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Key Concepts of SP-II

Green procurement and productivity

• Green procurement is the purchase of
environmentally friendly products and
services, the selection of contractors and the
setting of environmental requirements in a
• Green procurement steams from pollution
prevention principles and activities.
Green procurement and productivity
• Also known as green or environmental
purchasing, green procurement compares
price, technology, quality and the
environmental impact of the product, service
or contract.
• Green procurement policies are applicable to
all organizations, regardless of size.
• Green procurement programs may be as
simple as purchasing renewable energy or
recycled office paper or more involved such
as setting environmental requirements for
suppliers and contractors.
Green procurement and productivity
• "Green" products or services utilize fewer
resources, are designed to last longer and
minimize their impact on the environment
from cradle to grave.
• In addition, "green" products and services
have less of an impact on human health and
may have higher safety standards.
• Whilst some "green" products or services may
have a greater upfront expense, they save
money over the life of the product or service.
Green procurement and productivity
• Before a green procurement program can be
implemented, current purchasing practices
and policies must be reviewed and assessed.
• A life cycle assessment of the environmental
impacts of products or services is required
and a set of environmental criteria against
which purchase and contract decisions are
made has to be developed.
Green procurement and productivity
• The outcome is a regularly reviewed green
purchasing policy that is integrated into other
organizational plans, programs, policies.
• A green purchasing policy includes date-
stamped priorities and targets, the
assignment of responsibilities and
accountability and a communication and
promotion plan.
Green procurement and productivity
• Green procurement policies and programs can
reduce expenditure and waste; increase
resource efficiency; and influence production,
markets, prices, available services and
organizational behavior.
Green procurement and productivity
• International Standards Organization and
other bodies have established guidelines for
green procurement programs.
• Obstacles to implementing a green
procurement program include:
(a) lack of readily available environmental
friendly products;
(b) expensive or zero environmental
(c) inaccurate studies;
Green procurement and productivity
(d) lack of organizational support;
(e) Inaccurate or unsupported environmental
claims by manufacturers and suppliers.
• Legislation, organizational policies, directives,
environmental management systems or
multi-lateral agreements often require
organizations to implement a green
procurement program.
Green Productivity
• Green Productivity (GP) is a strategy for
enhancing productivity and environmental
performance for overall socio-economic
• It comprises the appropriate techniques,
technologies and management system to
produce environmentally compatible goods
and services.
Green Productivity
• As GP focuses on productivity improvement
and environmental protection, the central
element of the GP methodology is the
examination and re-evaluation of both
production processes and products to reduce
their environmental impacts and highlight
ways to improve productivity and product
Green Productivity
• Implementation of these options leads on to
another cycle of review and so promotes
continuous improvement .
• GP techniques are used to bring about the
changes that will result in better
environmental performance and improved
Green Productivity
• They range from simple housekeeping
techniques to designing "green" products.
• Some of the techniques used in GP include,
good housekeeping, design change, process
modification, waste and water management,
pollution prevention etc.
Green Productivity
Life Cycle Analysis
• Life Cycle Assessment (LCA) identifies,
quantifies and evaluates the environmental
impacts (inputs and outputs) of a product,
service or activity, from cradle to grave.
• That is, the environmental impacts of all
phases of the product's life are assessed,
from the time materials are extracted through
manufacture, transportation, storage, use,
recovery, reuse and disposal.
Life Cycle Analysis
• LCA is a decision making tool.
• It acknowledges that all phases of a product's
life, have an impact on the environment and
these impacts can be quantified and
• Industry and consumers frequently use LCA to
compare designs, products or services that
perform the same function.
Life Cycle Analysis
• Comparisons are made in terms of
environmental impact.
• Other tools and processes also use LCA, such
as eco-labels, setting environmental
regulations or policies, writing environmental
statements, benchmarking, identifying areas
for improvement and collecting
environmental data.
• The use of LCA encourages preventative and
proactive environmental management rather
than reactive end-of-pipe approaches.
Life Cycle Analysis
• LCA can be a very involved and lengthy
• However, the basic steps in LCA are:
• Goal and scope definition - this step defines
the purpose of the LCA, identifies
assumptions and boundaries and defines the
scope (that is, what processes, elements and
activities associated with the
product/process/activity will be assessed).
Life Cycle Analysis
• Analysis - the impacts of energy, materials,
emissions, etc are identified, classified and
• An inventory table listing all environmental
impacts is one outcome of this process.
• Assessment - the environmental impacts of
the product/process/activity are assessed.
Life Cycle Analysis
• Interpretation/evaluation - the results are
interpreted or evaluated.
• Opportunities for environmental
improvement identified and value judgments
• Products/services/activities are compared.
Life Cycle Analysis
• Several other sustainability concepts have
arisen from LCA.
• Life cycle costing (LCC) examines
environmental costs and is applicable to
environmental accounting and budgeting.
• Streamlined LCA is a leaner approach to LCA,
cutting costs and time involved in conducting
a LCA.
• Life cycle inventory (LCI) looks at the
inventory stage of LCA.
Life Cycle Analysis
• Life cycle management (LCM) integrates life
cycle principles into business and
management structures.
• There is much debate about the validity and
usefulness of LCA.
• However, used correctly, LCA provides
meaningful results to aid decision-making.
Sustainable consumption
• Sustainable consumption is the consumption
of goods and services that have minimal
impact upon the environment, are socially
equitable and economically viable whilst
meeting the basic needs of humans,
• Sustainable consumption targets everyone,
across all sectors and all nations, from the
individual to governments.
Sustainable consumption
• In the last 50 years, the global population has
consumed more goods and services than the
combined total of all previous generations
(Tillard 2000).
• This growth in consumption has fostered
economic growth, environmental
degradation and improved the quality of life
for many.
• However, consumption patterns differ
significantly between developed and
developing nations.
Sustainable consumption
• Current unsustainable consumption patterns
are destroying the environment; depleting
stocks of natural resources; distributing
resources in an inequitable manner;
contributing to social problems such as
poverty; and hampering sustainable
development efforts.
Sustainable consumption
• Focusing on the demand side, sustainable
consumption compliments sustainable
production practices and achievements.
• Sustainable consumption requires a
multidisciplinary and multinational approach.
• Teams composed from various disciplines are
required to create and implement policies.
• Developed nations need to assist rather than
exploit developing nations.
Sustainable consumption
• The main barriers to sustainable
consumption include: lack of awareness and
training; lack of support from the community,
government and industry; reluctance to
include the true environmental and social
costs in the price of goods and services;
ingrained unsustainable thinking and
behavior patterns; and lack of alternative
sustainable products and services.
Sustainable consumption
• Carbon Neutrality - means achieving zero
carbon emissions by compensating carbon
dioxide released into the atmosphere from
burning fossil fuels, with renewable energy
that creates a similar amount of useful
• In other words it refers to having a net zero
carbon footprint.
Sustainable consumption
• Carbon footprint - The process of measuring,
calculating and declaring of an organization’s
direct and indirect emissions is typically
referred to as carbon foot printing.
• The carbon footprint is measured in tonnes of
carbon dioxide equivalent.
Sustainable consumption
• Carbon Credit - is given for the reduction of
every metric ton of carbon dioxide prevented
from being emitted into the atmosphere from
climate change mitigation projects.
• Industrialized countries pay for the project.
Sustainable consumption
• Credits are awarded to developing countries
that, through these projects, have reduced
their greenhouse gases below their emission
• Developed countries buy these credits to help
meet their emission target.