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Slide 2 AGENDA Introduction Mr Stephen Howson Contract Services Presentation One Policies Across Government Mr Greg Rowberry Sustainability and Climate Change Division, Department of the Premier and Cabinet Mr Ian Harvey Zero Waste SA Presentation Two A Government Case Study Mr Andrew Richmond Department for Families and Communities Presentation Three Suppliers Perspective Mr Roger Carthew EcoIntegrity Panel Questions Networking and Light Refreshments Professional Development Seminar Slide 3 Sustainable Procurement Government Policy Greg Rowberry Sustainability and Climate Change Division DPC Slide 4 Objective of this session Use examples to: Explore the role of procurement in influencing business in responding to government objectives Consider the implications of possible future trends for your agency Slide 5 Our Ecological Footprint Slide 6 The Role of Business in Society The fundamental purpose of business is to provide continually improving goods and services for increasing numbers of people at prices that they can afford. WBCSD: A Manifesto for Tomorrow's Global Business Business Cannot Succeed in a Society that Fails Slide 7 The Role of Business in Society Meet customers needs for goods and services. Innovate to create products that are more efficient and that contribute to human progress. Create value for shareholders Create jobs, pay wages and benefits. Fund public services and infrastructure. Contribute to healthy economies The products are the purpose - the profits are the prize. Slide 8 Sustainable Consumption? More isnt always better Slide 9 Sustainable Consumption? Less isnt always better Slide 10 Global Consumption If the world is represented by 100 people, how many of them: live on less than $2 per day suffer from malnutrition lack access to basic sanitation have a car 40 have a mobile phone 41 People own 85% of the wealth 30 50 85 40 20 30 10 85 50 Slide 11 One World (today) Globalization World trade has risen over 500 fold in value in the past century Business power In Washington DC lobbyists outnumber legislators by 30 to 1 Connectivity CNN is now available to over 1 billion people in 212 countries Integration of cultures? 90% of internet traffic is in English Slide 12 Two Worlds (today) Inequality The top 10 percent own 85% of global household wealth, the bottom 50% own 1% Population growth By 2050 there will be 3 billion more people on the planet, mainly born in developing countries Poverty Half the worlds population lives on less than $2 per day Urbanization By 2050 two thirds of the worlds people will live in cities Slide 13 Three Worlds (today) Scarcity of resources By 2025 half the world will be living in water- stressed areas Technology Development Will it focus on creating desires or meeting needs? Of the 1223 new drugs marketed between 1975 and 1996, only 13 were developed to treat tropical diseases Slide 14 Three Worlds (today) Increasing Demand If everyone in the world were to consume natural resources and generate carbon dioxide at the rate that people in industrialized economies do Slide 15 Constructing the scenarios Trends / pre-determined - Globalization - Connectivity - Integration of cultures - Business power - Inequality - Poverty - Urbanization - Population growth - Scarcity of resources -Technological development Key drivers / uncertainties - Consumer behaviour - Business regulation - Market Instruments Slide 16 Will consumers be driven by Concerns about the social and environmental effects of their choices? Slide 17 Will consumers be driven by Materialistic desires? Slide 18 The Business of Sustainable Consumption REGULATION International Regulation & Cooperation National & Regional Protectionism CONSUMER VALUES Materialism Environmental, social & economic impact of products and services Slide 19 Four Scenarios Snapshots REGULATION International Regulation & Cooperation National & Regional Protectionism CONSUMER VALUES Materialism Environmental, social & economic impact of products and services Slide 20 Bubble WTO and UN failure Intensified climate change Government and consumers focus on own protection, turn away from global solutions Business focus on meeting demands of middle-class consumers Slide 21 Bubble life Growing gap between rich and poor between those who can insulate themselves from climate chaos and those who cant Asian Economic Area formed WTO fractures UN beset by scandal and disbanded China splits into 8 states Shanghai devastated by flood Bangladesh declares state of climate emergency 2000 2050 Slide 22 Telescope International regulation secures business transparency. Investors base their decisions on long-term value creation. Consumers demand that businesses be more accountable and provide information on social and environmental impacts. Slide 23 Telescope life Economic growth aligned to global priorities for social and environmental well being. But those whose concerns do not fit this framework are marginalized. SRI overtake non-SRI funds by value in US 2030 Global Agreement on economic cooperation and transparency GDP replaces by gross national welfare as international headline indicator 2000 2050 Peace in the middle east: Istanbul peace accord signed, Israel's wall comes down Slide 24 Overview Providing comfort and security Expanding Opportunity Bubble Moon LoopTelescope Doing no harm Innovation to solve global problems A new generation of conscientious consumers Middle class minority New mass consumers in developing countries Future generations Consumer expectations of business Which consumers are driving business strategy? Slide 25 What does all this have to do with me? How can procurement policy influence business decisions to get the outcomes that we/government want? Slide 26 Green Office Procurement 2005 HR Sustainable Cities Inquiry Report on Green Office Procurement 71 Australian Government agencies 95% of AG contracts (including Defence) Slide 27 Findings Performance.in meeting the governments expectations on office building energy efficiencies are commendable, but performance in motor vehicle emissions, reducing recycling, office wastes and conserving water has been pretty variable and, in most cases, pretty poor Slide 28 Australian Government Commitment To lead by: Buying goods and services that seek to minimise possible environmental impact Working with industry to encourage continuous reduction in . environmental impact of goods/services Assessing the environmental impact of goods and services against informed and internationally recognised standards Slide 29 16 Recommendations 1. Internal policies 2. Whole of lifecycle 3. EMS 4. Targets 5. Benchmarking and group purchasing 6. E-waste & energy star ratings 7. Fleet energy performance 8. Greenhouse gas emissions Slide 30 16 Recommendations (cont.) 9. Water conservation 10. WLA for buildings & offices 11. Waste reduction actions + contracts 12. Energy reporting 13. Energy management 14. Energy ratings for tenancies 15. Join Greenhouse Challenge+ Program 16. Best practice guidance Slide 31 Procurement & Waste: The Life Cycle of Materials Zero Waste SA Slide 32 South Australias Strategic Plan: South Australia Strategic Plan Objective 3: Attaining Sustainability Targets www.saplan.org.au/plan_targets_obj3.php www.saplan.org.au/plan_targets_obj3.php State Government Waste Targets South Australias Waste Strategy www.zerowaste.sa.gov.au/waste_strategy.php www.zerowaste.sa.gov.au/waste_strategy.php South Australias Waste Strategy: 30% increase in recovery of commercial & industrial materials by 2010 reduce waste to landfill By 25% by 2014 Slide 33 Image area What is Zero Waste? Waste Management Hierarchy Avoid Reduce Reuse Recycle Recover Treatment Disposal Most Preferable Least Preferable AVOID: not producing/purchasing materials which will become waste REDUCE: producing/purchasing less materials which will become waste REUSE: using materials more than once before recycling or disposing of them RECYCLE: remanufacturing used materials into new products/resources RECOVER: capturing otherwise wasted resources (eg. recovering & using heat from electricity generation processes TREATMENT: treat materials to minimise harmful effects on land, water or air DISPOSAL: release materials/pollutants to land, water or air Slide 34 USELESS DISPOSE AVOID Less Stuff = Less Energy (C02) Waste = Materials + Energy (C02) Slide 35 The story of a can! Slide 36 Slide 37 Slide 38 Slide 39 The secret life of products Slide 40 Climate Change & waste Evidence is now irrefutable Witnessing daily events of increased intensity and magnitude Australia is not immune Waste reduction and recycling have an exceptionally important role to play! Slide 41 procurement is first point of materials metabolism - what goes in, must come out Procurement & Waste procurement specifications can send market signals to encourage processes and designs that are efficient, enables disassembly and reuse/recycling, and which eliminates or reduces use of hazardous substances fate of material at the end of its life cycle is determined at the beginning of its life the design stage Slide 42 volume of material generated E-Waste (electrical and electronic waste) high on list of priority waste streams in every OECD jurisdiction, including South Australia, due to: toxicity of many of the components including lead, mercury and cadmium Case Study: Procurement & E-Waste Slide 43 Volume of Material Generated 1.8 million computers will be stored... Case Study: Procurement & E-Waste Environment Australia Computer Waste Model www.environment.gov.au/settlements/publications/waste/electricals/comp uter-report/pubs/appendixb.pdf www.environment.gov.au/settlements/publications/waste/electricals/comp uter-report/pubs/appendixb.pdf...in addition to the 5.3 million computers already in storage In 2007, it is estimated that: 1.6 million computers will be sent to landfill 2.2 million new PCs will be sold in Australia Slide 44 Toxicity of components Lead CRT screen (1.8 3.6kgs); solder Barium CRT screen Hexavalent Chromium Beryllium Mercury Cadmium Brominated fire retardants E-Waste is HAZARDOUS waste Slide 45 Slide 46 E-Waste: Toxic Trash Exporting Harm Guiyu, China, December 2001 Basel Action Network www.ban.org www.ban.org Slide 47 E-Waste: Toxic Trash Exporting Harm Guiyu, China, December 2001 Basel Action Network www.ban.org www.ban.org Slide 48 Procurement is also about resources & ghg Manufacturing one average computer uses: 240 kg of fossil fuels, 22 kg of chemicals; 1,500 kg of water a total of 1.8 tonnes of materials. Environmental impacts increasing: materials and energy intense production process greater adoption of PCs worldwide rapid rate at which they are discarded for newer machines. Leading to: growing amounts of e-waste and increasingly serious contributions to resource depletion, environmental pollution and climate change. Slide 49 Waste, Procurement & Greenhouse: Shifting Perception Image from: www.worth1000.com seeing waste as materials seeing materials as energy carriers Slide 50 procurement also relevant to purchasing waste/recycling services Procurement is power! consolidated approach by State government to determine preferred service provider(s). need to develop specifications for managing of end-of-life material Slide 51 Where to from here? This is worth doing, there are clear benefits, it can be done, it is not difficult, it will not cost more in the medium term and will show real dividends in the long term. Those in charge of our big public sector organisations must see their spending power as a tool to deliver a more sustainable future and to be prepared to use it, only then can government truly claim that is achieving real value for the public purse. UK Sustainable Procurement Task Force Slide 52 DISPOSE AVOID Recycling? We Are Here! Recycling is only the halfway point of the journey towards being a zero waste society Beyond Recycling Slide 53 Zero Waste is Global Slide 54 Australian Green Procurement www.greenprocurement.org.au Designed for procurement officers and professionals involved in green procurement Slide 55 Good Environmental Choice Australia http://www.aela.org.au/ Certified Products Register Green Procurement Database Standards Register The Eco Label Slide 56 The State of Green Procurement in Australia(2004) Market mechanisms Local, State, Cwth Government analysis International arrangements Business, NGO and Industry actions Trends, conclusions & recommendations Slide 57 South Australia State Procurement Board Policy Environmental Impact Policy EI policy yet to extend to services GOGO: Objective 6 Energy Efficiency Action Plan Initiatives Slide 58 SGP Conclusion - Shift From: .. to reduce the impact on the environment of our operations To: .. creating a balance between the consumption of resources of our organisation and the ability of the regenerative capacity of the environment to sustain this consumption Slide 59 SGP Recommendations The Manufacturer - measure and report (ISO14020) The Transaction - articulate expectations The Consumer - track material flows - corporate change & build capacity The End of Life System - market mechanisms - manufacture -> RFT->end of life Slide 60 Toyota Slide 61 Statefleet Mixed Messages? Slide 62 Greenhouse Projections Slide 63 G8 Climate Change Roundtable Slide 64 Thank you www.greenprocurement@aela.org.au