Download Green Purchasing - The Council of Hong Kong Professional

Green Purchasing – Road to
Corporate Social
Responsibility
Timothy Lam
Assistant Director of Finance
Hong Kong Baptist University
23 January 2010
Agenda
•Green Purchasing - Definition
•Why we go green?
•HKBU – Our Green Journey
•Towards a Sustainable Low Carbon U
•The Role of Purchasing in Green Journey
•Common challenges and successful strategies
Green Purchasing
Means integrating environmental factors into
procurement policies, usually using the following tools
and/or methods:
Pollution Prevention: eliminating toxicity, air and
water emissions
Natural Resource Protection: recycled materials, water
and energy efficiency
Life-cycle Perspective: Consider cost and
environmental impacts over the lifetime of a product
National Association of Educational Procurement
Lifecycle Perspective
Green Purchasing
Products and services that have a lesser or
reduced effect on human health and the
environment when compared with competing
products or services that serve the same
purpose. The comparison may consider raw
materials acquisition, production, packaging,
distribution, re-use, operation, maintenance, or
disposal of product or services
US Executive Order 13101
Environmental Attributes
• Product-specific
attributes
• Process-specific attributes
• Manufacturer-specific attributes
• Life cycle perspective
Product-Specific Attributes
•Recycled Content
•Renewable resources
•Energy and water efficiency •Packaging
•Biodegradable
•Resource conservation
•Low toxicity
•Low VOC
•Durability
Process-Specific Attributes
~ Transportation
~ Use of renewable energy
~ Absence of hazardous byproducts
~ Greenhouse gas emissions
Manufacturer-Specific Attributes
~ Credible environmental management system
~ Public environmental reporting procedures
~ Mechanism for engaging stakeholders
~ Absence of ongoing protests
~ Lack of environmental violations
Life Cycle Assessment (UN)
Examples of environmentally
preferable characteristics

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It includes products and services that
conserve energy and water, minimize
generation of waste and releases of
pollutants;
products made from recycled materials and
that can be reused or recycled;
energy from renewable resources such as
biobased fuels, solar and wind power;
alternate fuel vehicles; and products using
alternatives to hazardous or toxic chemicals
Purchasers’ Point of View

Green Purchasing is a way of
adding environmental
considerations to the price
availability and performance
criteria used to make
purchasing decisions.
Purchasing Decisions
6R’s + EC
Right
Source
Right
Quality
Right
Quantity
Right
Price
Right
Time
Right
Place
Environmental
Considerations
Environmental
Considerations

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Acquisition of recycled content
products
Low-environmental harm products
& services
Energy & water-efficient products
Renewable energy products
Alternatives to toxic chemicals
The HK Baptist University
at a Glance

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
Founded in 1956, became fully-funded by the
Government in 1983
8,200 students
Offers 41 undergraduate majors, 56 taught
postgraduate leading to award of MPhil or
PhD
Seven academic schools: Arts, Business,
Chinese Medicine, Communication, Science,
Social Sciences, SCE, Academy of Visual Arts,
and Academy of Film
Why We Go Green?
•Climate Change and Global Warming
•Conserve resources, including energy
•Improve our environmental footprint
•IFPSM’s Purchasing Directive
•Health and safety
•Corporate social responsibility
Global Warming – APEC’s Agenda
in Singapore 15 Nov 09
Global Warming
International Agenda


The meetings of
both Presidents
are the most
high-profile
meeting on global
warming
The Resolution
is . . . ?
Copenhagen
World Summit
Dec 7 – 18, 2009
• The UN’S Climate Change Conference in
Copenhagen ended in confusion, disagreement
and disarray - but seemingly with a deal, though
one not as ambitious as delegates had hoped for
after two weeks of wrangling . . .
Financial Times
Copenhagen Accord

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Drafted on December 18
It was "taken note of", but not "adopted",
and it was not passed unanimously.
The document recognized that climate
change is one of the greatest challenges of
the present and that actions should be taken
to keep any temperature increases to below
2°C.
The document does not contain any legally
binding commitments for reducing CO2
emissions
Global Warming Effects
IPCC 2007 Reports
Global average
temperatures will rise
11.5 °F by 2100
Global Instrumental Temperature Record
10 warmest years
23
Source: IPCC 2007
Global Warming Effects
IPCC 2007 Reports
Arctic sea ice will
disappear in the next
few decades
Arctic Sea Ice Melting
1979
Arctic Sea Ice Melting
2005
Arctic Sea Ice Melting
2007
Source: ipcc 2007
Ice Melting changes the ecology
system
Polar Bear Will Disappear within
45 years
。
Global Warming Effects
IPCC 2007 Reports
Future melting in
Greenland and
Antarctica is unknown
Taiwan Sea Level in 2007
Source: ipcc 2007
Taiwan Sea Level in 2027
Taiwan Sea Level in 2032
Global Warming Effects
IPCC 2007 Reports
Sea Level will rise 23”
by 2100, but . . .
Global Warming Effects
IPCC 2007 Reports
Temperatures and sea
levels will continue to
rise for centuries
Observations of recent climate change
36
Global Warming Effects
IPCC 2007 Reports
Hurricanes have
increased in
intensity since
1970
Global Warming Effects
IPCC 2007 Reports
Hot extremes,
heat waves, and
heavy rains will
continue to
become more
frequent
Save our Planet . . .
HKBU . . . Green Journey
HKBU – Green Journey

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The set-up of the EHS office
The set-up of BEE
Better Environment Endeavour
“ 環保先[蜂] “
Better Environment
Endeavour 環保先蜂
HKBU – Green Journey

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All catering outlets in HKBU have
been using Biodegradable Lunch
Boxes since 2000
First University in HK adopting
biodegradable lunch boxes
Degradable Lunch Box
HKBU – Green Journey

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Modification of all kitchen equipment
from gas to electricity in our Chinese
Restaurant in 2005
Save 20 – 25% on energy cost
HKBU – Green Journey
Successfully secured UGC’s funding
for energy efficient T5 light fitting,
LED exit signs, automatic sensing
devices for escalators and occupancy
sensors for lighting and airconditioning control to existing
buildings.
Luminaries &
Florescent Tube
Light Sensor
Motion Sensor Escalator
HKBU – Green Journey

Obtained donation to install
solar water heater at Wai Hang
Sports Centre. Solar panels,
solar lighting and wind
turbines on Campus
Solar Water Heater
Solar and wind hybrid power
system sponsored by HKE
Wind turbine and solar panel
powered lamp
Solar Lamp
Solar Mosquito Killing
Device
HKBU – Green Journey
Campus Greening through planting and
building of green roof and green wall at
Sir Run Run Shaw Building
Overview of the Green
Roof
Vertical plant bed
Solar Irrigator
HKBU – Green Journey

Being the first local educational
institution awarded as the Follow
Member of the Hong Kong Green
Purchasing Charter
HKBU – Green Journey
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Donation and sharing old items to
charity organizations and among
University Community
Items like used furniture,
photocopier, computers . . .
HKBU – Green Journey
Being the only
local tertiary
educational
institution offering
general course on
environmental
topic
“You and
Environment”
HKBU – Green Journey
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SCMP 2 Sept 08 “A survey by
Consumer Power found the Chinese
University pack - with booklets,
guidebooks and leaflets - distributed
to every new student weighed
1,711gms.
This was compared with Baptist
University's information kit, which
was just 15 gms”.
HKBU – Green Journey

香港商報
2 Sept 2008
“用紙量減幅最大的是浸會大學。主要是浸大
今年在新生註冊入學時，只向學生派發一張
列有網址的簡章，指導他們上網註冊及迎新
活動的程序，因此其聯招註冊文件及自負盈
虧課程用紙的總重量由排名第5位下降至第7
位，總重量由去年1020克減至今年335克，
下降67%。其中大學聯招註冊文件包由去年
70克減至15克，下降78%”。
Towards a Sustainable Low
Carbon University
Towards a Sustainable
Low Carbon University

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Incorporate ‘Sustainability’ in
our Strategic Plan 2009- 2010
Secure Government/UGC
Funding support
Towards a sustainable Low
Carbon University
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Campus Facilities and
Operation
Campus Community Culture
Campus Facilities and
Operation
• Measuring and
controlling the
University’s carbon
footprint
• ‘ Carbon Audit ’ –
water, electricity,
gas, fuels, papers
Campus Facilities and
Operation

Integrating sustainable
features in future
building design and
applications
Campus Facilities and
Operation
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Increasing energy
efficiency
Installation of energysaving devices for
lighting and airconditioning systems
Installation of renewable
energy equipment such
as solar panels in
student residence halls
Campus Facilities and
Operation
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Lower Water
Consumption
Collecting rainwater
for irrigating and
toilet flushing
Educating the
University
community on
water saving
Campus Facilities and
Operation
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Increase Fleet
Efficiency
Phasing in hybrid
fuel vehicles, electric
car
Installation of
catalytic converter to
reduce emission
from our fleet
Campus Facilities and
Operation
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Increasing Campus Greening
Construction of green roofs – beautify
the campus, saving of electricity
consumption
and removal of
carbon dioxide
Campus Facilities and
Operation

Enhancing areas for greening and
organic farming on Campus
Campus Community
Culture
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Educating Staff and students on
green issues by organizing visits,
workshops, competitions.
Campus Community
Culture
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Promotion of Low carbon campus
lifestyle
Nominating Green Ambassadors
disseminating the Green message
Educating students on ‘Green living
lifestyle’. Converting the practice into
behavior
Campus Community
Culture
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Promotion of Low carbon campus
lifestyle
Collaborating with Staff Interest Group
and CPRO for promoting various events
Campus Community
Culture

Incorporating
topics of
“climate
changes” and
“carbon
reduction”
into general
studies
Campus Community
Culture
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Participating benchmarking
exercise TEFMA as part of
monitoring our performance
Publicizing our environmental
performance
Campus Facilities and
Operation
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Green Catering Policies
Developing a food portioning policy
Food wastage management
Encouraging the use of reusable
utensils
Comparison between BU Fiesta and
Harmony

Transaction number of BU Fiesta is larger than that of Harmony, so the
Business of BU Fiesta is bigger.

As BU Fiesta business is bigger than that of Harmony, more waste is
generated in absolute amount.
Waste generated per customer

Assumption: transaction number is equal to customer number
 Each customer generates 0.27kg and 0.14kg of waste in Harmony
and BU Fiesta respectively
 Customers of Harmony generated much more waste than customers
of Fiesta
Customers opinions’ on food
portion
45
Percentage of customers(%)
40
Frequency of customers leaving more than 10% of
weight of food
40.4
30
25
21.7
17.9
20

23.8
17.9
Fiesta
15
10
Harmony
8
5
0
very often

35.8
34.5
35
sometimes
infrequently
never
35.8% customers from Fiesta and 40% customers from Harmony can
finish the whole portion of meal
34.5% customers from Fiesta sometimes leave more than 10% weight
of food of their meal
The Role of Purchasing in
our Green Journey
Procurement Mode in HKBU
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Centralized procurement model
Purchasing & Support Services
Section of Finance Office
15 staff handle 1,200 copies of
POs/month
Supported by in-house Financial
Information System
Green Products in HKBU
•Paints & Pesticides
•Garbage & Umbrella Bags
•Tissue Roll & Copier Papers
•Luminaries & Florescent Tube
•Degradable Food Container
•High Efficiency Lamp
•Solar Equipment
•Ball Pen Refill & Ink
•Ink & Toner Cartridges
•Standard / Alkaline Dry Battery
•Correction Fluid & Thinner
•Paper Envelop & Note Pad
•Paper File Jacket & Box
•Plastic File Jacket
•Examination Booklet
•Soap & All Purpose Cleaner
•Office Equipment / Printers / Computer
•Flooring Materials & Carpeting Modular
•PVC Pipe, Fitting & Adhesive
•Household Appliances
Benefits for “Buy Green”
- Demonstrating U’s commitment to
EP and projecting an image of
environmentally responsible
education institution

Improving occupational safety and
health by minimizing exposures to
some toxic substances
How We Implement? (1)
• Prepare Green Purchasing Policy
• Identify leader to establish
accountability
• Promote & education within the
University
How We Implement? (2)
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Determine actual demand of item
Consider which products are the most
suitable based of their environmental
impact and other available
information
Draw up green specification
How We Implement? (3)
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Establish selection and award criteria
based on the relevant environment
factor together with 6Rs
Use contract performance clauses as a
way of setting relevant environmental
conditions in addition to the contract
requirements
Prepare Green
Purchasing Policy
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Adding the policy statement on green
purchasing to the existing purchasing policy
“The University will consider relevant
environmental factors in all purchasing
decisions and will purchase environmentally
preferable products and appoint service
providers which have better environmental
performance whenever practicable.”
Green specificationrecycled paper
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Paper shall contain at least 80% of
recovered fiber by weight
Bleaching agent used in pulp and paper
production, if necessary shall be chlorine
free
Processing of waste papers shall be done
without any dyestuff, optical brighteners
and non-biodegradable agents
Paper packaging, shall be made from
100% recovered fiber by weight
Addressing Green Procurement
Policies, Practices and Processes
Policies,
Governance
Strategic
Sourcing
Traditional
Procurement
Supplier
Management
Green Policy
Development
Green Sourcing
Strategies
Green content
catalogue
Supplier
Communication
G
Internal Green
KPIs
Green evaluation
criteria & Spec.
Green
Supplier
Identification
Reporting
Sourcing
opportunity
Assessment
Tracking of
Green KPIs,
Green
Certification
Data
management
Green product
design
PO
Processing
Internal Policy
Communication
Internal program
management
Supplier
Carbon
Footprint
Paints (Low VOC)
Pesticides (odorless, Nonflammable, biodegradable)
Garbage Bag (TDP)
Recycled Roll Tissues & Hand
Towel
Luminaries & Florescent Tube
Ball Pen
Pencil
Automatic Lighting Device
Photocopier with EL
Recycled Paper
Official Printing Material
Official Printing Material
Examination Booklets
Waste Recycling Station
Waste Recycling Station
Waste Recycling Process
Common Challenges
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Cost of green products
Lack of management support
Specification of green products
Green products’ sources of information
Green product availability and quality
Decentralization purchasing function
Green products’ certification
HKSAR’s legislation and direction
Successful Strategies
•Written Green Policies
•Approved Product Lists
•Cooperative Efforts
•Eco-Labels
•Lifecycle Assessment
•Incentive Programs
•Best Value Purchasing
•Employee Training
•Green Teams
•Vendor Partnership
Save our Planet
HKBU Can . . .
Purchasing Professional Can
You Can !