Paul StarrEnvironment Protection BranchDepartment of the Environment & Heritage

What is Environmental

Purchasing?• Environmental purchasing is the inclusion of

environmental factors in decisions on the purchase of products and/or services.

• The aim of considering environmental factors is to buy products or services that have less impact on the environment and human health than otherwise comparable products or services.

Purchasing Power• The Australian Government spends more than $16

billion per year on goods and services.• Environmental purchasing is happening in the

private and the public sector.• Buy Recycled Business Alliance (BRBA)• Public sector purchasing can drive real market

change:- clothing sizes- air bags- energy star for computers and monitors.

Why buy for the environment?

Environmental Purchasing can:• Reduce energy and water consumption

(which can reduce costs)• Improve resource use efficiency• Reduce waste (which can reduce waste

disposal costs)• Reduce environmental health impacts of

goods and services.

More Benefits

• Reduce pollution• Provide markets for new environmentally

preferable products and services• Close the loop for recycling• Demonstrate leadership to the community• Send signals to industry about the value of

cleaner production and eco-efficiency

Success stories - products

• DEH returns 100% of toner cartridges used in the Department back to the manufacturers. Of this, approximately 80% are remanufactured into new toners. DEH has had no difficulties with quality or performance when purchasing remanufactured cartridges.

Success stories - products• Brisbane City Council recently switched

to the purchase of Australian made recycled content paper. The unit cost was slightly higher than their previous paper, but the switch was part of a coordinated paper use reduction campaign. The savings from these initiatives offset the costs of switching papers.

Success stories - products

• Frankston City Council in Victoria uses recycled plastic signage. This is lower maintenance, easier to install, and poses less of an OH&S risk to employees.

Success stories - services

• DEH waste management includes the separation of organic waste, recyclables and non-recyclable materials.

• The Department has been actively recycling since 1996, and last year consigned 16 tonnes of organic material for composting. This amounted to approximately 17 tonnes of CO2 abatement.

Success stories - services

• A 1998 US Department of Interior (DOI) RFP for environmentally preferable custodial services cleaning products to be low toxicity, noncarcinogenic and biodegradable; to reduce skin, eye, and respiratory irritability; and to be without unnecessary fragrances, or dyes. The winning bid was the most environmentally preferable, the least expensive of the bids submitted, and was less than the price of the current contract.

Success stories - services

• The Department of the Environment and Heritage has committed to the ongoing recycling of fluorescent tubes from its operations. This ensures that the mercury contained in the tubes is diverted from landfill. This commitment includes compact fluorescent tubes from task lighting.

Is it OK to do this?

• The Commonwealth Procurement Guidelines and Best Practice Guidance (CPGs) already require agencies to take environmental policies, programmes, costs and benefits into account as part of the overall Value for Money of a good or service.

• Whole of life costing also policy (ANAO)

Links to other policies• Commonwealth Energy Policy• Environmental Management Systems• National Packaging Covenant• Waste Reduction• Greenhouse Challenge• s516A Environment Protection and

Biodiversity Conservation Act reporting• OH&S

Polystyrene Cups at BP

• 156,000 polystyrene cups per year avoided from landfill• Direct financial savings of $4,680 annually (one off purchase of

ceramic mugs cost $1,580)• Reduced waste by approx 10% (cups plus all the cardboard and

plastic packaging)• Improved staff satisfaction and morale, motivation towards

program• Improved customer image

 “it’s cheaper to buy everyone a brand new mug year on year than

disposable cups!!” Rosemary Warnock, Business Unit Leader, BP Lubricants 2002

How do I get started?

• Build on what you already do.• EMS and purchasing – make purchasing an aspect

of your EMS, get someone from purchasing on your environment committee, waste data from service providers can help your EMS.

• Choose an approach: pick an issue, risk assessment, contract cycle, cost based, employee interest, etc.

• Set realistic targets covering goods and services• Contract variations

Some challenges• It might be a matter or taking a barrier away – eg

avoid unnecessary whiteness specifications for paper.

• Does your IT services contract deliver for the environment?

• Short term thinking makes whole of life costing difficult. Lowest cost not always best value for money, complicated by under-bidding.

• Bridging the gap between facilities management and purchasing functions.

• Training on environmental purchasing?

What help is there?

• Model Chief Executive Instruction (CEI) - “Purchasing officials must have regard to the Environmental Purchasing Guide to ensure that environmental concerns are integrated into procurement decisions.”

• Environmental Purchasing Guide• Environmental Purchasing Checklists – cover 15

types of common goods and services

There are Checklists for:

• paper and cardboard

• computers and monitors

• fax machines• printers and copiers• miscellaneous office

equipment• task lighting• office equipment

consumables

• recycled products• refrigerators• dishwashers• packaging• printing services• building

management services

• cleaning services• waste management

services

Checklists Contents

• Key environmental issues• Relevant government policies• Environmental purchasing criteria• Purchasing tips• “Success Stories” case studies• Links to additional resources

Further Information

• US Energy Star website: www.energystar.gov/purchasing

• Know Your Paper: www.resource.nsw.gov.au - follow links to waste reduction in office buildings

• Greening of Government website:http://www.deh.gov

.au/industry/agency-performance/index.html • Paul Starr – (02) 6274 1909

Paul.Starr@deh.gov.au