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WHAT IS THE BUSINESS CASE

FOR GREEN PRODUCTION IN


THE MARKET FOR GLOBAL
HEALTH AID?

9/24/2014

Report on the Working Session, UN Supplier Meeting

What is the business case for green production in the market for global health aid?

Table of Contents
EXECUTIVE SUMMARY ................................................................
................................ ................................................................
................................ ................................................................
................................ ...................................
................................ ... 2
PART 1: PRESENTATIONS
PRESENTATIONS ................................................................
................................ ................................................................
................................ ...............................................................
................................ ............................... 3
Roads to Transformational Partnership .............................................................................................................3
Methodology for limiting water use in the production of pharmaceuticals .........................................................3
Cradle to Cradle ...............................................................................................................................................4
Joint UN Programme: Greening Procurement in the Health Sector ......................................................................5
PART 2: PANEL DISCUSSION
DISCUSSION - WHAT IS THE BUSINESS CASE FOR GREEN PRODUCTION
PRODUCTION IN THE MARKET FOR
GLOBAL HEALTH AID? ................................................................
................................................................................................
................................................................
................................ ................................ ...................................
................................ ... 6
Panelists: .........................................................................................................................................................6
Introduction by Dr. Christoph Hamelmann........................................................................................................6
Panel Discussion, part 1 ...................................................................................................................................6
Panel Discussion, part 2 ...................................................................................................................................8
PART 3: WORKSHOP - COLLABORATIVE APPROACHES
APPROACHES TO SUSTAINABLE TRANSITION .......................................
................................ ....... 10
Case presentation, Coloplast ..........................................................................................................................10
Case presentation, Novo Nordisk ...................................................................................................................11
Conclusions, group discussions .....................................................................................................................11
CONCLUDING REMARKS ................................................................
................................ ................................................................
................................ ..............................................................
................................ .............................. 14
FUTURE ACTIONS ................................................................
................................ ................................................................
................................ ................................................................
................................ .......................................
................................ ....... 15
LINKS ................................................................
................................ ................................................................
................................ ................................................................
................................ ........................................................
................................ ........................ 16
APPENDIX 1. AGENDA ................................................................
................................ ................................................................
................................ ................................................................
................................ .................................
................................ . 17
APPENDIX 2. PARTICIPANT
PARTICIPANT LIST ................................................................
................................................................................................
................................ ...................................................
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What is the business case for green production in the market for global health aid?

WHAT IS THE BUSINESS CASE FOR GREEN PRODUCTION IN THE


MARKET FOR GLOBAL HEALTH AID?

EXECUTIVE SUMMARY
UNDP and UNFPA hosted a working session on the 24th September 2014 on the topic What is the business case
for green production in the market for global health aid?, as a part of the joint UNICEF, UNFPA and WHO
meeting with manufacturers and suppliers of diagnostic products, vaccines, finished pharmaceutical products
and active pharmaceutical ingredients. The aim of the session was to engage in a dialogue with key
stakeholders with an influence over procurement activities in the health sector, in line with Output 3 of the
Programme document of the Joint UN Initiative on Greening Procurement in the Health Sector. More specifically,
this dialogue includes suppliers/manufacturers, procurement institutions, international health development and
funding agencies, and other relevant stakeholders in the market for global health aid. Overall, through the
involvement of 65 participants, there was a substantial representation of different stakeholders, enabling the
initiation of discussions and engagements around green procurement and production practices in the health
sector.
To enrich the dialogue, prominent organisations such as the Stockholm International Water Institute and the
Environmental Protection Encouragement Agency introduced methodologies for increasing resource efficiency in
production practices, showcasing not only environmental and social benefits of green initiatives, but also the
high financial returns on investments that these would bring. Furthermore, a highly constructive and solutionoriented

panel

discussion

moderated

by

UNDP

demonstrated

clearly

that

purchasers

and

suppliers/manufacturers in the global health aid market are willing to act on greening their practices, and to
start a results-oriented engagement process under the leadership of the UN. The institutions and organisations
represented on the panel were Health Care Without Harm, Novo Nordisk, UNFPA, The Global Fund to fight AIDS,
Tuberculosis and Malaria, International Institute for Sustainable Development and Lupin Limited. Lastly, an
intensive workshop session opened an all-encompassing dialogue between the various participants (including
UN Suppliers, best practice suppliers, procurement institutions, international health development and funding
agencies) to discuss opportunities, challenges and next steps in the movement towards greening production in
the health sector.
The session provided evidence of the following:

UN suppliers of pharmaceuticals and medical devices are ready to become involved in pilot projects on
eco-innovation;

Suppliers are willing to develop eco-innovative products and to work with the UN and other
procurement agencies towards tender processes that take environmental aspects into consideration;

Procurement agencies recognize the importance of the Joint UN Programme on Greening Procurement in
the Health Sector and will show their full support by encouraging and committing to activities proposed
by its Secretariat;

There is an overall consensus among actors to continue the dialogue as soon as possible and to identify
structured forms of engagement for greening production within the market for global health aid.

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What is the business case for green production in the market for global health aid?

PART 1: PRESENTATIONS
Moderated by: Dr. Pauline Gthberg, National coordinator Swedish County Councils and Regions
Procurement is ever more being used as a policy tool to achieve a sustainable development. When procuring
goods and services for the health sector, this is of utmost importance as there are numerous environmental and
social concerns related to this specific area1. Today, as further knowledge surfaces about these challenges,
words have to be put into action. The joint UN initiative on Greening Procurement in the Health Sector is
working on involving corporations and other stakeholders to encourage such action, in order to influence
development in a positive direction.
During the session, five speakers shared potential solutions to some of these challenges and provided insights
to some true business cases for it, i.e. on how green solutions and green procurement in the health sector can
offer so called win-win scenarios.

R oa d s to Tr an sf o r ma tio n al P ar tn er sh i p
Presented by: Ms. Pernille Fenger, Director UNFPA Nordic Office
The private sector can partner with UN agencies in order to support and join various global initiatives. A number
of concrete ways in which partners can choose to support UN agencies are presented from a UNFPA perspective:
1.

Cash or in kind contribution:


contribution In kind contribution varies depending on the nature of the company. For

2.

Joint advocacy: a company in a program country can, together with a selected UN agency, advocate for a

3.

Employee programs:
programs Typically focuses on a specific cause and can for example include the organization

example, a mobile company donated mobile phones to UNFPA now being used to trace Ebola.
specific cause.
of fund-raising activities and/or presentations involving UN agencies.
4.

CauseCause-related initiatives: UNFPA examples of cause-related initiatives include the Body Shop and the
Swedish jewelry company Sn which both donate a share of their profits to UNFPAs work to end child
marriage and female genital mutilation in Ethiopia.

5.

Workplace programs:
programs For companies that have production in partner countries, collaborations can be
established to develop workplace programs. In the case of UNFPA, programs have included informing
about sexual transmitted diseases and contraceptives, and preventing gender-based violence.

6.

Private partnerships for innovative


innovative solutions: For example, UNFPA partners with mobile and software
companies developing logistical software and training programs to help midwives in rural areas.
Furthermore, there is scope for new ideas of how, in an inexpensive and innovative way, we can ensure
that women access information, products and reproductive health services.

7.

Volunteering staff:
staff A partnership can also implicate volunteering staff for a certain period of time to one
of the UN offices.

M eth o do lo gy f or l i mi tin g wat e r u s e in th e p ro du c ti o n of ph ar ma c eu tic al s


Presented by: Ms. Charlotte Khler Lindahl, Programme Manager Swedish Water House and Dr. Pawan Mehra,
Managing Director, cKinetics
The Stockholm international Water Institute (SIWI) is a policy institute that contributes to international efforts to
combat the worlds escalating water crisis. Sweden Textile Water Initiative (STWI) started in 2010 as a joint
project between textile and leather retail companies in Sweden together with Stockholm International Water
Institute (SIWI) and implemented along with SIWIs partner cKinetics. As of 1 January 2013, 33 companies have

For the full report, please visit: http://hllbarupphandling.se/index.php/dokument/category/3-hallbar-upphandling

What is the business case for green production in the market for global health aid?

joined STWI. The project guidelines cover three areas: water efficiency, water pollution prevention and
wastewater. SIWI has correspondingly introduced a pharma dialogue, an initiative that was launched in April
2014 in order to reduce the negative impact that production of pharmaceuticals and medical equipment have on
the environment. To advance this agenda, SIWI has now entered into discussions with UNDP and UNFPA on
starting an initiative on water and energy efficiency within the health sector. Health care product suppliers were
openly invited to join pilot projects in reducing water usage, energy efficiency, chemicals and wastewater in
their production, realizing a potential triple win of financial, environmental and social benefits. During the
working session, questionnaires were distributed to explore potential cooperation interest among suppliers for
such an integrated resource management program in the pharmaceutical industry.
Viewing water as a carrier or medium (and not water as a resource) puts water in a new light, steering the
conversation of water and energy efficiency into integrated resource management and change management,
driving a change in mind set. This approach reveals the value of the nexus between (1) water and energy, and
(2) water, chemicals and waste. SIWIs partner, cKinetics has developed these two concepts that help uncover
focus areas when connecting water with other resources: Value-Added Water (VAW) where water is seen as a
carrier (and thereby priced accordingly), or Embodied Value of Water (EVW) to identify products that are at-risk
as water gets scarce. In previous projects conducted in the textile sub-segment, short term savings were made
from low hanging efficiency measures (10-15 %), generating momentum for longer-term savings from process
measurement and process innovations (5-10%).

Cr a dl e t o C ra dl e
Presented by: Mr. Ingo Walterscheid, CEO Environmental Protection Encouragement Agency
The Environmental Protection Encouragement Agency (EPEA) is a worldwide operating research and consulting
institute, founded 27 years ago, that optimizes the quality and usefulness of materials, products and services
through eco-effective design. Its highest ambition is the manufacturing of healthy and environmentally
beneficial products, instead of just reducing harmful substances. EPEA`s core competence is integrating science
with industrial innovation to recreate materials, products and supply chain partnerships so they have positive
impacts. Instead of using todays economic growth model with its linear material flows of products and
processes, the Cradle to Cradle Design framework, as basis of the circular economy, envisions transformation
into cyclical nutrient flows, making initially created value continuously available to human beings and nature.
For the economy this doesnt mean producing less, but rather producing more intelligently.
While the (packaging-) industry has done a lot in the past to minimize its environmental impact, it needs to
focus less on minimizing and more on celebrating its functionality, quality and design. Packaging today is
supposed to be convenient: practical, durable, re-sealable, protective of the contents; as well as visually striking
to attract customers and sell advertising space.

In order to meet these complex requirements, packaging

contains a lot of different substances such as plasticizers, pigments, lubricants, antistatic agents, catalysts,
fillers, binders, antioxidants etc.: What do we know about them and their potential effects?
From a Cradle to Cradle perspective packaging is generally not well defined within the supply chain, which
means the generic materials are known but nothing about the ingredients. Furthermore, packaging comes to the
market which is not designed for recycling. The main challenge lies in designing packaging which is appropriate
for continuous material flows, either making the materials suitable for returning safely and completely to the
biosphere or being recovered at a consistently high quality. Therefore, the implementation of a comprehensive
quality concept by positively defining ingredients and the subsequent input into (recycling) systems is
fundamental.
EPEA invites UNs supplier to adopt Cradle to Cradle Design as a tool to achieve Eco-effectiveness through the
application of established EPEA methods. To create the necessary framework for a paradigm shift, an
international organization for the design (thinking) of circular packaging solutions will be founded -

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What is the business case for green production in the market for global health aid?

Pac2Change. The association will be founded and launched in October 2014. Members will represent all parts of
the value chain and include commercial enterprises, government agencies, purchasers, producers and NGOs.
Members will be able to use the platform for innovation, co-creation, knowledge sharing and meeting purposes.
The organization will apply the Cradle to Cradle principles of the circular economy and the world's most
successful contemporary, iterative innovation process, Design Thinking.

Join t U N Pr ogr a m m e: G re en in g P roc u re m e n t in th e H ea lth S ec t or


Presented by: Mr. Volker Welter, Senior Procurement Advisor UNDP
Around the world, the health sector provides a key opportunity to promote health and reduce environmental
harm. Within this sector, procurement and supply chain process contributes significantly to greenhouse gas
emissions and chemical pollution. Five UN agencies (UNFPA, UNOPS, UNEP, WHO, UNDP) are now collaborating to
reduce the health sectors environmental burden through a new global initiative. The Green Procurement in the
Health Sector initiative (GPHS) aims to establish evidence based standards on what constitutes green
procurement in the health sector. Furthermore, the programme aims at engaging in activities to address
research gaps and to capacitate UN procurement officers, suppliers, and health actors so as to be able to
operationalize green procurement practices in the health sector, thereby increasing the awareness of key
stakeholders with an influence over procurement activities in the health sector.
The programme adopts a progressive change approach in its stakeholder engagement, assuring a gradual
introduction of sustainability requirements to avoid unwanted loss of supplier engagement, giving equal
opportunities to all suppliers, setting initial goals that are attainable for all suppliers, and assisting suppliers in
capacity-building. Furthermore, the programme creates win-win situations through Public Private Partnerships
by bridging cross-sector communication, sharing knowledge, transferring eco-innovative solutions, facilitating
rapid market uptakes of green products and building strong partnerships for transforming the global health
sector.
Working as One UN, this joint effort utilizes procurement as both an advocacy and market shaping tool to
influence UN procurement practitioners, global and regional health care supplies manufacturers, and funding
entities to improve environmental stewardship of health care product manufacturers and supply chain activities.

What is the business case for green production in the market for global health aid?

PART 2: PANEL DISCUSSION - WHAT IS THE BUSINESS CASE FOR GREEN PRODUCTION IN THE MARKET
FOR GLOBAL HEALTH AID?
Moderated by: Dr. Christoph Hamelmann, HIV, Health and Development Team Leader for Europe and Central
Asia UNDP

Pan eli s t s:

Ms. Ruth Stringer, International Science and Policy Coordinator, Health Care Without Harm Europe

Ms. Victoria Elizabeth Stone-Bjarup, Responsible Sourcing Manager, Corporate Procurement, Novo
Nordisk A/S

Mr. Morten Sorensen, Deputy Chief of Procurement, UNFPA

Mr. Silas Holland, Lead, Tuberculosis Products Portfolio (Sourcing Department), The Global Fund to fight
aids, tuberculosis and malaria

Mr. Mukul Jerath, Deputy General Manager- Global TB, Lupin Limited

Ms. Oshani Perera, Programme Leader, Public Procurement and Infrastructure Finance, International
Institute for Sustainable Development

In tr o du c t ion b y D r. Ch r i st o ph Ha m e l man n
During the climate summit in New York City, occurring during the same week as the session, a coalition of
pharmaceutical companies and medical device manufacturers committed to certain activities which will
contribute to reducing the impact of greenhouse gas emissions. This showcases the on-going movement
towards increasing action-oriented activities in greening practices in the health sector, or that we are moving

towards more practical steps, leaving the public theatre of talking, but not doing (Dr. Christoph Hamelmann,
24th of September, UN City). The reason behind these efforts is the realization of the private and public business
case for greening production in the market for global health aid. Using public sector procurement as a tool for
change signals to all players that the UN system wants to reach out and have an inclusive engagement process
for greening the health sector.

Pan el D i sc u ss ion , pa rt 1
Question 1 (Q1): What are the benefits for various stakeholders (manufacturers, purchasers, financers) to get
engaged in this process?
Question 2 (Q2): What are the main obstacles in introducing greener production practices /regulations?
RUTH STRINGER, HEALTH CARE WITHOUT HARM (HCWH)
Q1: HCWH has an organizational mandate to greening the Health Sector, and procurement has been identified
to one key way to achieve this instead of waiting for regulations to enter into force. There is a clear business
case for greening production in the market for global health aid as the market for health care providers globally
is extremely large and thus the purchasing power strong.
Q2: The main obstacle is the lack of transparency regarding all components. Gaps in legislation on hazardous
chemicals are important, as it usually does not cover medical devices. This often arises due to competition on a
national level between the ministry of health and the ministry of environment.

Key words: Purchasing power; transparency; legislation.


VICTORIA STONE-BJARUP, NOVO NORDISK
Q1: Globally around 380 million people are today suffering from diabetes. The effects of climate change will
impact this number which is expected to increase to around 590 million people by 2035. Understanding the link
between this disease and climate change enables Novo Nordisk to take proactive action to prevent, treat and
ultimately cure diabetes. Addressing climate change is everyones business and to ensure focus and action, it
should be integrated in high level company strategies. There are a number of very obvious reasons why this

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What is the business case for green production in the market for global health aid?

makes sense, not least as, in Novo Nordisk experience, being climate focused is also a driver for customer
satisfaction. High level engagement is key, it enables the opportunity for greater impact and in joining forces
Novo Nordisk creates new partnerships and business growth opportunities.
Q2: Transparency is critical, but there are also operational challenges to be overcome, in Novo Nordisk
experience theres a need to challenge the ways in which things have always been done, to foster a change in
mind-set and to ensure green objectives are part of business as usual.

Key words: partnerships create focus to improve; focus improves customer satisfaction; a change in mind-set is
needed to really make it work.
MORTEN SORENSEN, UNFPA
Q1: UNFPA is working closely with manufacturers in order to develop green procurement policies to encourage
greener production. They have been working with manufacturers on the production level, where suppliers have
engaged voluntarily, and at their own cost, to develop different options on how to optimise production, how to
reuse energy and water, etc. UNFPA is one of the biggest players in the procurement of reproductive health
products, and particularly in the procurement of condoms. They want to build partnerships in order to generate
positive engagement with manufacturers and suppliers.
Q2: The challenge will be to scale up existing initiatives with a product focus and to implement them into other
markets within the health sector industry. Joint efforts and long-term commitment will be essential, because
donors, financiers and procurers have to work together with suppliers and manufacturers to create an allinclusive positive engagement to greening production.

Key words: Positive engagement; supplier engagement; long-term perspective


SILAS HOLLAND, THE GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS AND MALARIA
Q1: Since the Global Fund was founded in 2002, they have evolved from being an emergency responder working
in crisis mode to fight AIDS, tuberculosis and malaria to a more sustainable partner with a broader focus
including child health, gender/human rights, infrastructure and sustainability. Their emerging interest in green
procurement and understanding/mitigating the environmental impact of their investments is a direct reflection
of this evolution. The Global Fund is interested in ensuring there is a consistent ethic across the organization
and that the same high standards apply to who, what, and how they fund the fight across the three diseases.
Therefore, the Global Fund is keenly interested in working with partners to make the business case for green
procurement and use their purchasing power to ensure it is fully integrated into the global health aid agenda.
The Global Fund is also working more directly with manufacturers to understand their manufacturing processes,
challenges and constraints, so that they can work together to improve the environmental impact of the grants.
Q2: Actors in the market for global health aid lack an understanding of the environmental impact of its
practices, and have a perception that costs will rise when environmental aspects are incorporated. Furthermore,
there is a perception that environmental aspects are completely outside of the mission of health aid institutions
that should exclusively focus on saving lives. Practical next steps should therefore include:
-

Communicating a clear sense of the environmental impact of global health aid,

Articulating impact in terms of financial, health and moral costs among all stakeholder,

Ensuring standards to leverage purchasing power to drive safer, more environmentally sound products,

Engaging with suppliers about greening (toxicity)

Developing clear policies and procedures for use and disposal of health care products and devices.

Key words: Purchasing power; standard qualification of services; long-term; well-being of population at large.

What is the business case for green production in the market for global health aid?

MUKUL JERATH, LUPIN LIMITED


Q1: The fact that UN agencies and financing institutions talk about the importance of greening procurement is
already a strong incentive to engage in dialogues. Potential benefits for companies in engaging in green
initiatives could relate to customer satisfaction, to the competitive edge gained in the market, to placing the
company in the front line of changing the public procurement processes and to contributing to the environment.
Q2: The main obstacles for the supplier are found in the green production processes: to minimize the impact on
the environment at every stage. There is an overall challenge in changing mind-sets and increasing the level of
acceptability for these evolutions. Changing production is a longstanding process and requires investments that
need to be planned for ahead. Thus, long-term engagements of stakeholders as well as a shown understanding
of the implications for manufacturers are of essence.

Key words: Process; Planning; Long-term engagement; Unforeseen obstacles; Financial implications
OSHANI PERERA, IISD
Q1: In green public procurement, the health sector is overlooked or forgotten. Health care for all is of vital
importance, but only if managed responsibly. The public owner has to be an entrepreneur, and set demands in
order to trigger innovation and eco-efficiency. Asking manufacturers to innovate without innovating
procurement is unfair and unviable.
Q2: Procurement exists in the back-office, but should be dealt with in the forefront. Strategies need to be
developed to design specifications and contract conditions. In other words, the design of procurement
processes need to be given more time and attention.

Key words: Entrepreneurialism in public sector; market power; design of procurement practices; high-level
decision making

Pan el D i sc u ss ion , pa rt 2
Question 3: What are the three most important criteria for the engagement process to be successful?

RUTH STRINGER: Connect multiple networks, provide clear specifications for manufacturers to know exactly
what is required, and give enough lead time, as manufacturers need 12-24 months to be able to deliver
products.

VICTORIA STONE-BJARUP : Be clear on what needs to be achieved, ensuring focus and investing in
partnerships, as Novo Nordisk experience shows, much more can be done when forces are joined.

MORTEN SORENSEN: Moving towards a common goal, for the manufacturers to have an incentive
(benefits/savings), and pre-qualifications that allow for manufacturers to put greening on their agenda.

SILAS HOLLAND: There is room for the public sector to become more entrepreneurial in the approach to
structuring sourcing mechanisms and working with manufacturers. Tenders should reflect organizational values
including environmental values beyond just price and lead time; this broader focus may enable win-win
situations where environmental values reduce costs.

MUKUL JERATH: Clear timeline, clear communication of requirements, and provision of help and motivation
(long-term engagement) to make these initiatives possible.

OSHANI PERERA: Contract criteria have to be established, as well as reward criteria to incentivize greener
processes. There has to be a triple win outcome, thus the health sector has to be reformed and redesigned to
become efficient and profitable. Shared risk is also an important criterion.

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What is the business case for green production in the market for global health aid?

Manufacturers need to know that procurers are


are ready to walk the miles with the manufacturers
be there all the way
Mr. Mukul Jerath, Lupin Limited, 24th September 2014, UN City, Copenhagen

From the left:


Mr. Christoph Hamelmann
UNDP
Ms. Ruth Stringer
HCWH
Ms. Victoria Stone-Bjarup
Novo Nordisk
Mr. Morten Sorensen
UNFPA

From the left:


Mr. Silas Holland
the Global Fund
Mr. Mukul Jerath
Lupin Limited
Ms. Oshani Perera
IISD

The public sector needs to become an entrepreneur and step forward to provide leadership for
innovation
Ms. Oshani Perera, Programme Leader International Institute for Sustainable
Development, 24th of September 2014, UN City, Copenhagen

From the left:


Dr. Pawan Mehra,
cKinetics
Ms. Oshani Perera
IISD
Mr. Jaykumar Kabra
Pregna International Ltd.
Dr. Christoph Hamelmann
UNDP
Mr. Volker Welter
UNDP.

What is the business case for green production in the market for global health aid?

PART 3: WORKSHOP - COLLABORATIVE APPROACHES TO SUSTAINABLE TRANSITION


Moderated by: Mr. Mohammad Asim and Mr. Martin Hansen, Consultants Implement Consulting Group
A reoccurring challenge regarding greening procurement in the health sector is the necessity of changing mind
sets. Many want to do good and engage with partners, which was the main purpose of the workshop. For the
workshop, participants were divided into three different groups to discuss chosen topics. The groups were
created on equal terms to each include stakeholders from different backgrounds and professions, including
suppliers, public procurers, financing institutes, best practice suppliers, think tanks and other stakeholders.
Each group were first presented with a case, one from Novo Nordisk and two from Coloplast, show-casing
existing green initiatives within the health sector. Thereafter, the groups were tasked with discussing and
answering questions as demonstrated in table 1-3.

Ca s e p r es en ta ti on , C olo p la st
Presented by: Oluf Damsgaard Henriksen, Senior Climate Manager and Christoffer Quist Weesgaard, Corporate
Responsibility Manager
Coloplast develops products and services that make life easier for people with very personal and private medical
conditions. Their business includes ostomy care, urology & continence care and wound & skin care. Coloplast
categorizes their green initiatives within two main areas; Resources and energy including reduction of CO2
footprint and hazardous substances including reduction of toxicity of products and production processes.
(1) Resources and energy: To mitigate the total greenhouse gas emissions of Coloplast, focus is put on raw
materials, energy and transportation, which in total cover more than 80% of their total emissions. Within
raw materials, the company works extensively with the eco-design of products (life cycle assessments),
packaging and recycling of process waste. For energy efficiency, Coloplast works with factory design
and optimization. In this way, they lowered the CO2/unit from energy consumption significantly, thus
enabling

growth

while

reducing

CO2

emissions.

Within

transportation,

Coloplast

aims

to

minimize/eliminate the use of airfreight, which can have up to 200 times higher global warming
impact pr. unit transported than sea transportation, significantly reducing the overall impact from
distribution.
(2) Hazardous substances:
substances: Coloplast works to exclude the use of PVC/PVdC where possible, and has
eliminated the use of phthalates in new products. They have substitution programmes for existing
products furthermore and lobby for an international/EU ban against the use of phthalates in medical
devices. Other hazardous substances are evaluated according to REACH and on case by case by
Coloplasts bio-safety team.
Summary of Coloplasts input to the workshop discussion topics:

Q1: How can we move into the above direction and what can you as company offer from your side?
A1: We can develop step by step aligned with our competitors, but not take huge leaps without strong pull from
the market. Public and private purchasers should use their massive purchasing power to set strict sustainability
requirements teaming up in larger procurement associations makes sense for smaller purchasers. Customer is
king!

Q2: What prevents you to cooperate more closely within the sector on improving sustainability?
A2: Fierce competition in the sector driven by public and private tendering makes it very hard to cooperate on
sustainability topics, while at the same time competing on cost, quality and user experience in the market. It will
be beneficial to us, and the health care industry as such, if the UN could facilitate dialogue between competitors
in some constructive way that does not jeopardize competition between businesses.

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What is the business case for green production in the market for global health aid?

Q3: What would, in your view, facilitate a successful engagement process between the UN and you as business
partner in order to achieve the above goals?
A3: We are not currently doing business with the UN. However, as described in A1, our customers have the final
saying when it comes to sustainability. We can only drive the market to a limited extends, without pull from our
customers.

Q4. How can we continue these efforts after todays seminars (letter of intent, forum on sustainability,
presentation of your results on next years meetings)?
A4: We believe that todays seminar is a very good way of sharing our experiences and expertise with the UN.

Ca s e p r es en ta ti on , N ov o N or di sk
Presented by: Victoria Elizabeth Stone-Bjarup, Responsible Sourcing Project Manager, Corporate Procurement
Novo Nordisk is a global healthcare company specialised in diabetes and haemophilia care, growth hormone
therapy and hormone replacement therapy. Novo Nordisk believes that a healthy economy, environment and
society is fundamental to long-term business success. Therefore, they manage business in accordance with the
Triple Bottom Line business principle (being financially responsible, socially responsible and environmentally
responsible) and pursue business solutions that maximise value not only to their shareholders but to all
stakeholders. One example of how Novo Nordisk focuses on environmental issues is the partnership with Dong
Energy, through which Novo Nordisk addresses climate issues. The partnership was launched in 2007 and
builds on the following simple model:
DONG energy helps
Novo Nordisk save
energy at Danish
production sites

Novo Nordisk
implements energy
saving projects and
achieves financial
savings

Financial savings
earmarked to
purchase renewable
energy certificates
from wind farms

Electricity at Novo
Nordisks production
sites is covered by
renewable energy
certificates.

Since the partnership started, 370 energy-saving projects have been implemented. Examples of these projects
range from those classified as low-hanging fruits where changes such as ventilation adjustments at production
sites were made to realise energy savings through to larger-scale projects such as the heat recovery project,
which also resulted in significant savings. Through initiatives like these, Novo Nordisk has reached their 10%
CO2 absolute reduction target 5 years ahead of schedule, and has had cumulated net savings of 201 million
DKK with an average payback of 2.1 years. The partnership has proved that sustainability is commercially viable,
takes a long-term perspective, and creates value for the companies involved in the projects as well as for
society. As the Triple Bottom Line approach suggests, there is a business case in moving away from separate
sustainability strategies to rather incorporating the sustainability agenda in the overall strategy.

C on c lu si on s, g rou p di sc u s si on s

Backg
Background Information for group discussion
There will be a future engagement process with the UN system in which we want to obtain from our business
partners, as part of a commercial relation, actions with regard to:

Reduction of CO2 footprint

Reduction of water/energy consumption

Reduction of waste production/packaging consumption

Reduction of toxicity of products and their production processes

What is the business case for green production in the market for global health aid?

GROUP RED
The discussions in this group were framed within the lens of the Novo Nordisk legacy of management of a triple
bottom approach, entailing an integration of sustainability strategies at a high level. Discussions encouraged
framing of possibilities and focus on low-hanging fruits. Furthermore, the group stressed the importance of
clear communication around potential venues for cooperation as well as the need for a common language and
common standards.
Question

Conclusions of discussions

A: How can we move into the above direction

Experiments, best practices

and what can you as company offer from your

Willingness to partner potentially amongst competitors

side?

too - You have to share to learn!


Resources (people, expenses, knowledge)
Global Fund: Potential normative guiders on indicators.
Way of collaboration with data

B: What prevents you to cooperate more closely

Need for a platform

within the sector on improving sustainability?

Lack of people who understand the topic; willingness from


suppliers to engage, but a perceived lack of understanding
from public sector, obstructing the ability to move forward
Missing proper standards and reasons to engage
Lack of benchmarking: Difficult to measure which
companies are doing best (standards are missing to rank)

C: What would, in your view, facilitate a

Someone from within the buying sector who can speak the

successful engagement process between the UN

supplier-language

and you as business partner in order to achieve

Clearer targets and standards

the above goals?

Agencies should set targets on the goals, where to act


(specific area or product to move forward from).

D: How can we continue these efforts after

Agencies like UN or the Global Fund should take the lead,

todays seminars (letter of intent, forum on

e.g. initiating a pilot activity.

sustainability, presentation of your results on

Companies are ready, but lacking people to engage with.

next years meetings)?

Make clear where manufacturers can engage.

GROUP BLUE
The groups discussion took a starting point in purchasing power and customer demand. The transition towards
greener production methods has to be initiated by procurers, in this context by the public procurers for global
health aid. However, the discussions also emphasized the importance of involving the market in the dialogue, as
the expertise possessed by suppliers regarding production processes are vital to understand different
implications and to be successful with green initiatives.
Questions

Conclusions of discussions

A: How can we move into the above direction

Step by step development

and what can you as company offer from your

Should be driven by demand- green production methods

side?

will emerge if demanded by procurers


Customer is king

Page 12

What is the business case for green production in the market for global health aid?

B: What prevents you to cooperate more closely

Fierce competition is a barrier

within the sector on improving sustainability?

Compliance vs. innovation: not much room to come up


with innovative solutions
Hard to change when the buyer is requesting non green

C: What would, in your view, facilitate a

Involving the market: there is a lack of market dialogue

successful engagement process between the UN


and you as business partner in order to achieve
the above goals?
D: How can we continue these efforts
efforts after

Set up a meeting in Asia to continue the dialogue with

todays seminars (letter of intent,


intent, forum on

suppliers and set up some visits to further engage with the

sustainability, presentation of your results on

programme.

next years meetings)?

GROUP GREEN
The discussions in this group revolved around expectations and feasibility. Expectations should be clearly
expressed: however, there is a need to understand the different characters of different products, and that all
cannot be included under the same methodology. Therefore, it is important to include suppliers in the
development of criteria, as they are the true experts of the production process. Furthermore, there is a need to
standardize language and methodologies around environmental assessment and find a common agreement on
how to measure initiatives.
Questions

Conclusions of discussions

A: How can we move into the


the above direction

Clear expectations from buyers

and what can you as company offer from your

Joint efforts, shared risks

side?

Realistic timeline
Know the production process, the manufacturers have the
expertise

B: What prevents you to cooperate more closely

Tender shaping clear rules.

within the sector on improving sustainability?

The tenders should be more flexible to allow special


remarks; today, there is no room in tenders for innovation
outside of the framework.

C: What would, in your view, facilitate a

Transitionally shaping tenders.

successful engagement process between the UN

An understanding for the different needs of different

and you as business partner in order to achieve

products.

the above goals?

Capacity building.
Guideline processes

D: How can we continue these efforts after

On-going dialogue.

todays seminars (letter of intent, forum on

Multidisciplinary designed approach: bring different

sustainability, presentation of your results on

expertise from different areas.

next years meetings)?

Collaboration around Green Procurement Index

What is the business case for green production in the market for global health aid?

CONCLUDING REMARKS
As a result of the many contributions from the different participants of the session, several outcomes could be
identified that create a roadmap for continued work. Overall, there was a great consensus on the need for
immediate action for sustainability within the market for global health aid. Focus was on the significance of joint
efforts as well as on the importance to create frameworks for innovation. Initiatives should be undertaken by
procurement agencies and financing institutions so that purchasing power is used as a tool for change.
Moreover, suppliers and manufacturers should be included in the dialogue from the start in order to develop
bottom-up approaches to greening production in the market for global health aid.
The following conclusions can be drawn from the working session:
UN suppliers of pharmaceuticals and medical devices are ready to become involved in pilot projects on ecoecoinnovation:
innovation: The Stockholm International Water institute together with their partner cKinetics introduced a
methodology on water and energy efficiency, and gave proof of already successfully implemented projects in the
textile industry. Suppliers of the working session were encouraged to get involved in pilot projects: simple
questionnaires were distributed during the session and several suppliers showed interest to become involved,
both during the workshop as well as by attending side-meetings outside of the session.
Suppliers are willing to develop ecoeco-innovative products and to work with the UN and other procurement
agencies towards tender processes that take environmental aspects into consideration: During the workshop, it
was stated that existing frameworks, more specifically prequalification requirements and tender documents,
inhibit suppliers ability to innovate for green solutions. Therefore, in order to encourage green initiatives, these
public procurement regulations need to be reshaped to encourage eco-innovation among suppliers and
manufacturers.
Procurement agencies and financing institutions recognize the importance of the Joint UN Programme on
and
nd committing to
Greening Procurement in the Health Sector and will show their full support by encouraging a
activities proposed by the Secretariat: As several projects will be undertaken in the near future by the Secretariat
for the Joint UN Programme on Greening Procurement in the Health Sector, it will be central to have leading
procurement agencies and financing institutions on board. The Secretariat has met considerable interest from
different stakeholders and has noticed a willingness among these to engage in proposed activities.
There is an overall consensus among actors to continue the dialogue
dialogue as soon as possible and to identify
structured forms of engagement for greening production within the market for global health aid: In conclusion,
all participants agreed on the importance of taking actions within the near future to green practices in the
market for global health aid. Participants of the working session recognized that the approach of the Joint UN
Programme on Greening Procurement in the Health Sector is realistic in order to achieve this. However, they also
emphasized the importance of linking the Joint UN Programme to other global initiatives in the field of
sustainability.

Page 14

What is the business case for green production in the market for global health aid?

FUTURE ACTIONS
The third output of the Joint UN Programme for Greening Procurement in the Health Sector targets social
outreach and dialogue. More specifically, output 3 states: Key stakeholders with an influence over procurement
activities in the health sector, e.g. suppliers/manufacturers, procurement officers, international health
development agencies, and health actors, are engaged in and supportive of the overall initiative. We consider
that the outcome of this working session can be used as a start for this dialogue and we therefore suggest that
the Secretariat for the Joint UN Programme on Greening Procurement in the Health Sector after consultation with
the steering committee initiates follow-up activities.
An outline of possible activities will be:

Analyze and assess existing prequalification schemes and tender documents in order to suggest
changes that can reduce regulatory bottlenecks and encourage business model innovation for
sustainability;

As suggested during the working session, a workshop will be planned in Asia to continue the dialogue
with suppliers and manufacturers on greening practices within the Health Sector;

The feasibility of pilot projects with suppliers, in collaboration with Stockholm International Water
Institute or the Centre for Sustainable Consumption and Production (SCP), will be analyzed;

The Secretariat for the Joint UN Programme on Greening Procurement in the Health Sector intends to
involve parties of the working session in the future elaboration of the Green Procurement Index2 as
interest was found.

Follow the Green Procurement Index on Twitter: @GreenProcIndex, #Inno4Dev.

What is the business case for green production in the market for global health aid?

LINKS
Related topics:
http://www.slideshare.net/undpeuropeandcis/greening-the-health-sector-global-health-initiatives-andclimate-change
http://www.slideshare.net/undpeuropeandcis/greening-the-health-sector-pharmaceuticals-and-climatechange
http://www.eurasia.undp.org/content/rbec/en/home/library/hiv_aids/rapid-assessment-healthcare-wasteglobal-fund/
http://www.undp.org/content/undp/en/home/librarypage/hiv-aids/managing-our-climate-change-risk--anapproach-for-environmental-.html
http://www.scribd.com/doc/173048077/Carbon-footprint-of-UNDP-Global-Fund-health-initiatives-inMontenegro-and-Tajikistan
http://www.unfpa.org/webdav/site/global/shared/procurement/08_QA/Green%20Procurement%20Strategy_NO
V%202013%20last_compressed.pdf
http://www.unfpa.org/webdav/site/global/shared/procurement/08_QA/Safe%20Disposal%20and%20Manageme
nt%20of%20Unused%20Unwanted%20Contraceptives.pdf

Page 16

APPENDIX 1. AGENDA

What is the business case for green production in the market for global health aid? - Agenda
Organiser: IIATT-SPHS Secretariat
Wednesday 24th September 2014, UN City, Auditorium I
14.30 - 15.30 PRESENTATIONS
Chaired by: Pauline Gthberg
14.30 - 14.35 Welcome address
14.35 - 14.40 Roads to Transformational Partnership
14.40 - 14.55 Methodology for limiting water use in the production of
pharmaceuticals
14.55 - 15.10 Cradle to Cradle
15.10 - 15.25 Joint UN Programme: Greening Procurement in the Health
Sector
15.30 - 16.00 Coffee/tea break
16.00 - 17.00 PANEL DISCUSSION:
Chaired by: Dr Christoph Hamelmann
16.00 - 16.05 Introduction
16.05 - 17.00 Panel Discussion: What is the business case for green
production in the market for global health aid?

17.00 - 18.15 WORKSHOP


Chaired by: IMPLEMENT CONSULTING
17.00 - 18.15 Workshop:
Collaborative approaches to sustainable transition

Pauline Gthberg
Pernille Fenger
Charlotte Khler Lindahl
Dr Pawan Mehra
Ingo Walterscheid
Volker Welter

National coordinator, Swedish County Councils and Regions


Director, UNFPA Nordic Representation Office
Programme Manager, Swedish Water House
Managing Director, cKinetics
CEO, Environmental Protection Encouragement Agency
Senior Procurement Advisor, UNDP

Dr Christoph Hamelmann
Ruth Stringer
Victoria Elizabeth Stone-Bjarup
Morten Sorensen
Silas Holland
Mikul Jerath
Oshani Perera

HIV, Health and development Practice Leader for Europe and Central Asia, UNDP
Science and Policy Coordinator, Health Care Without Harm Europe
Responsible Sourcing Manager, Corporate Procurement, Novo Nordisk A/S
Deputy Chief of Procurement, UNFPA
Lead, TB Products Portfolio (Sourcing Department), The Global Fund
Dy. General Manager- Global TB, Lupin Pharma
Programme Leader, Public Procurement and Infrastructure Finance, International Institute for Sustainable Development

Mohammad Asim
Martin Hansen

Consultant, Implement Consulting Group


Consultant, Implement Consulting Group

APPENDIX 2. PARTICIPANT LIST

What is the business case for green production in the market for global health aid? - Participant list
Organiser: IIATT-SPHS Secretariat

Wednesday 24th September 2014, UN City, Auditorium I


Organisation

Participant

Position

Facilitators

Swedish County

Pauline Gthberg

National coordinator

and Speakers

Councils and Regions


Charlotte Khler Lindahl

Programme Manager

Institute

Nicolai Schaaf

Programme Officer

cKinetics

Dr Pawan Mehra

Managing Director

Environmental

Ingo Walterscheid

CEO

Oshani Perera

Programme Leader, Public

Stockholm
International Water

Protection
Encouragement
Agency
International Institute
for Sustainable

Procurement and Infrastructure

Development

Finance

Health Care Without

Ruth Stringer

Science and Policy Coordinator

Martin Hansen

Consultant

Mohammad Asim

Consultant

Ashley Jackson

Consultant: Supplier Ethics and

Harm Europe
Implement Consulting
Group

The Global Fund

Compliance
Silas Holland

Lead, TB Products Portfolio


(Sourcing Department)

UN Staff

UNFPA

UNDP

Pernille Fenger

Director, Nordic Office

Morten Sorensen

Chief PSB

Ignacio Diaz

Project Coordinator

Camilla Brckner

Director, Nordic Office

What is the business case for green production in the market for global health aid?

Christoph Hamelmann

Regional Practice Leader HIV,


Health and Development

Other

Volker Welter

Senior Procurement Advisor

Padcha Panichgul

Procurement Analyst

Pranisha Bajracharya

Programme Associate

Mirjana Milic

Communications Associate

Rachel Bagnall

iIATT-SPHS Assistant

Katharina Kjoege

iIATT-SPHS Assistant

Karin Lonaeus

iIATT-SPHS Assistant

Hanne Juel

Head of Circular Economy Team

Christian Leth Christensen

Civil Servant

Dorte Christensen

Head of Legal& Financel Services

Ebbe Abildgaard

Public Procurement Consultant

Thomas Mller

Environmental Coordinator

Henrik Jensen

Associate Partner

Peter Bernstorff

Founder

Sara Bernstorff

Founder

Fairtrade Denmark

Jonas Giersing

Director

Environmental

Christian Dinter

Technology Transfer Management

Tom Ohlendorf

Packaging engineer

Emma Hjern

Head of Section, 3GF

Lupin

Mukul Jerath

Dy. General Manager- Global TB

Pfizer

Daniele Russo

European Sales Lead, Global

Central Denmark
Region

Copenhagen Institute
for Futures Studies
Noble Consulting

Protection
Encouragement
Agency
Danish Ministry of
Foreign Affairs
UN Suppliers

Health Institutions
Svizera

Boudewijn Ploos van Amstel

Managing Director

Cepheid

Hallie Lewis

Senior Manager, Government and


Professional Relations

What is the business case for green production in the market for global health aid?

Bayer

Jean-Francois Fiard

Global Sustainable Development


Manager

BD

Laurent Dini

Sustainable Development Dept.

Wolfgang Becker-Jezuita

Director

Jean-Franois Mathieu

Sr Director, Marketing - Global


HIV/AIDS Initiative

Brigitte Cornelis

Agency Account Manager,


Corporate/Shared Services

Cipla

Vaishali Shridhankar

Group Leader

Mylan Laboratories

Varun Razdan

Senior Manager - Business


Development

Hetero

Arvind Kanda

Associate Vice President

Namrata Vyas

Assistant Manager - International


Marketing

Karex

Amy Goh

Sales Director

Innolatex

Paul Liang

CEO

MSD

Rene van Eenbergen

International Account and


Development Manager

Pregna

HLL Lifecare Limited

Famycare

Suzanne van den Berg

Business Coordinator

Ramesh Taparia

Managing Director

Jaykumar Kabra

Export Manager

Jitesh Prabhu

General Manager Exports

Harikrishnan Namboothiri

General Manager Exports

Krishna Jadhav

General Manager - International


Marketing

NonNon-UN

Novo Nordisk A/S

Victoria Elizabeth Stone-Bjarup

Suppliers

Corporate Procurement

Coloplast

Page 2

Responsible Sourcing Manager,

Gisela Artola Pascual

Responsible Sourcing Intern

Christoffer Quist Weesgaard

CSR manager

Oluf Damsgaard

Senior Climate Manager

What is the business case for green production in the market for global health aid?

UNDP
Dr. Christoph Hamelmann, HIV, Health and Development Team Leader for Europe and Central Asia, UNDP
christoph.hamelmann@undp.org
Volker Welter, Senior Procurement Adviser
Tel: +45 4533 6050 I E-mail: volker.welter@undp.org
Mirjana Milic, Communications Associate
Tel: +45 4533 6068 I E-mail: mirjana.milic@undp.org

UNFPA
Morten Sorensen, Deputy Chief PSB
Tel: +45 4533 7222 I E-mail: sorensen@unfpa.org
Ignacio Sanchez Diaz, Project Coordinator
Tel: +45 4533 7247 I E-mail: idiaz@unfpa.org