Green Purchasing – Road to Corporate Social Responsibility Timothy Lam Assistant Director of...

Green Purchasing – Road to Corporate Social Responsibility

Timothy LamAssistant Director of

FinanceHong 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

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

Green Purchasing

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

•Energy and water efficiency

•Biodegradable

•Low toxicity

•Durability

•Renewable resources

•Packaging

•Resource conservation

•Low VOC

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 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 Decisions6R’s + EC

RightSource

RightSource

RightTime

RightTime

RightQuality

RightQuality

RightPlace

RightPlace

RightQuantity

RightQuantity

EnvironmentalConsiderations

RightPrice

RightPrice

Environmental Considerations

Acquisition of recycled content products

Low-environmental harm products & services

Energy & water-efficient products Renewable energy products Alternatives to toxic chemicals

The HK Baptist Universityat a Glance 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 WarmingInternational 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 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

23

Global Instrumental Temperature Record

10 warmest years

Source: IPCC 2007


Arctic sea ice will disappear in the next

few decades

Arctic Sea Ice Melting

1979

2005


2007


Source: ipcc 2007

Ice Melting changes the Ice Melting changes the ecology systemecology system

Polar Bear Will Disappear Polar Bear Will Disappear within 45 yearswithin 45 years

。。


Future melting in Greenland and Antarctica is

unknown

Taiwan Sea Level in 2007

Source: ipcc 2007


Sea Level will rise 23” by 2100, but . . .


Temperatures and sea levels will

continue to rise for centuries

36

Observations of recent climate change


Hurricanes have

increased in intensity since

1970


Hot extremes, heat waves, and heavy rains will

continue to become more

frequent

Save our Planet . . .Save our Planet . . .HKBU . . . Green JourneyHKBU . . . Green Journey

HKBU – Green Journey

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


All catering outlets in HKBU have been using Biodegradable Lunch Boxes since 2000

First University in HK adopting biodegradable lunch boxes

Degradable Lunch Box


Modification of all kitchen equipment from gas to electricity in our Chinese Restaurant in 2005

Save 20 – 25% on energy cost


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 air-conditioning control to existing buildings.

Luminaries & Florescent Tube

Light Sensor

Motion Sensor Escalator


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


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


Being the first local educational institution awarded as the Follow Member of the Hong Kong Green Purchasing Charter


Donation and sharing old items to charity organizations and among University Community

Items like used furniture, photocopier, computers . . .


Being the only local tertiary educational institution offering general course on environmental topic

“You and Environment”

HKBU – Green Journey 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”.


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

Incorporate ‘Sustainability’ in our Strategic Plan 2009- 2010

Secure Government/UGC Funding support

Towards a sustainable Low Carbon University

Campus Facilities and Operation

Campus Community Culture


• Measuring and controlling the University’s carbon footprint

• ‘ Carbon Audit ’ – water, electricity, gas, fuels, papers


Integrating sustainable features in future building design and applications

Campus Facilities and Operation Increasing

energy efficiency

Installation of energy-saving devices for lighting and air-conditioning systems

Installation of renewable energy equipment such as solar panels in student residence halls

Campus Facilities and Operation Lower Water

Consumption

Collecting rainwater for irrigating and toilet flushing

Educating the University community on water saving


Increase Fleet Efficiency

Phasing in hybrid fuel vehicles, electric car

Installation of catalytic converter to reduce emission from our fleet


Increasing Campus Greening

Construction of green roofs – beautify the campus, saving of electricity consumption

and removal of carbon dioxide


Enhancing areas for greening and organic farming on Campus


Educating Staff and students on green issues by organizing visits, workshops, competitions.


Promotion of Low carbon campus lifestyle

Nominating Green Ambassadors disseminating the Green message

Educating students on ‘Green living lifestyle’. Converting the practice into behavior


Promotion of Low carbon campus lifestyle

Collaborating with Staff Interest Group and CPRO for promoting various events


Incorporating topics of “climate changes” and “carbon reduction” into general studies


Participating benchmarking exercise TEFMA as part of monitoring our performance

Publicizing our environmental performance


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

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

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


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


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 GreenPurchasing Policy

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 specification- recycled paper

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 ProcurementPolicies, Practices and Processes

G

Green PolicyDevelopment

Internal Green KPIs

Reporting

Internal PolicyCommunication

Internal program management

Green SourcingStrategies

Green evaluation criteria & Spec.

Sourcing opportunity Assessment

Green product design

Green content catalogue

Green SupplierIdentification

Data management

PO Processing

Supplier Communication

Tracking of Green KPIs,Green Certification

Supplier Carbon Footprint

Policies, Governance

StrategicSourcing

Traditional Procurement

Supplier Management

Paints (Low VOC)

Pesticides (odorless, Non-flammable, 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

Examination Booklets

Waste Recycling Station

Waste Recycling Process

Common Challenges 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

•Cooperative Efforts

•Lifecycle Assessment

•Best Value Purchasing

•Green Teams

•Approved Product Lists

•Eco-Labels

•Incentive Programs

•Employee Training

•Vendor Partnership

Save our PlanetSave our PlanetHKBU Can . . . HKBU Can . . .

Purchasing Professional Purchasing Professional CanCan

You Can !You Can !

Green Purchasing – Road to Corporate Social Responsibility Timothy Lam Assistant Director of...

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