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Green Procurement Online Course C215

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Green Procurement Online Course C215 Page ii

Table of Contents

Table of Contents ............................................................................................................................. ii

Globals .............................................................................................................................................. 1

Welcome to green procurement online training! .................................................................. 1

Course objective ......................................................................................................................... 1

Using this course ........................................................................................................................... 2

Module 1: Basic Concepts ............................................................................................................. 3

Learning objectives ..................................................................................................................... 3

Why buy green?........................................................................................................................... 3

Does green procurement cost more? ..................................................................................... 4

What is an environmentally preferable good? ...................................................................... 5

What is an environmentally preferable service? ................................................................... 6

Review ........................................................................................................................................... 7

Module 2: The Policy ....................................................................................................................... 8

Learning objectives ..................................................................................................................... 8

Overview of the policy ............................................................................................................... 8

Where does it apply? .................................................................................................................. 8

Key players .................................................................................................................................... 9

Treasury Board policy context ................................................................................................. 11

Planning and reporting ............................................................................................................. 12

Category management and green procurement planning process ............................. 13

Review ......................................................................................................................................... 14

Module 3: The Life Cycle .............................................................................................................. 15

Learning objectives ................................................................................................................... 15

Life cycle analysis ...................................................................................................................... 15

Green Procurement Online Course C215 Page iii

Life cycle costing ....................................................................................................................... 17

Planning phase considerations ............................................................................................... 17

Acquisition phase considerations ........................................................................................... 21

Use phase considerations ........................................................................................................ 23

Disposal phase considerations ................................................................................................ 24

Case study 1: Kitchen ............................................................................................................... 25

Case study 2: Batteries .............................................................................................................. 29

Review ......................................................................................................................................... 30

Module 4: Evaluating Environmental Claims ............................................................................ 31


Terminology ................................................................................................................................ 31

Environmental performance labels ........................................................................................ 37

Eco-labels .................................................................................................................................... 37

Certification programs for general goods and services ..................................................... 39

Certification programs for energy efficiency ....................................................................... 40

Certification programs for sustainable forest management ............................................. 41

Review ......................................................................................................................................... 42

Module 5: Resources for Buying Green ..................................................................................... 44


Guidance and information on greening government operations ................................... 44

PWGSC Supply Manual ............................................................................................................ 45

Green Procurement Plans ........................................................................................................ 45

Green Language Repertoire ................................................................................................... 46

Step-by-Step guides .................................................................................................................. 47

e-Purchasing ............................................................................................................................... 47

Green Procurement Online Course C215 Page iv

Interdepartmental communities ............................................................................................. 48

Review ......................................................................................................................................... 49

Module 6: Practical Considerations ........................................................................................... 50


Consideration of alternatives .................................................................................................. 50

Dealing with resistance ............................................................................................................. 51

Working with suppliers ............................................................................................................... 52

Key success factors ................................................................................................................... 52

Performance measurement .................................................................................................... 53

Review ......................................................................................................................................... 54

Module 7: Guidelines for Greening Specifications .................................................................. 55


Knowledge check ..................................................................................................................... 55

Green procurement checklist ................................................................................................. 56

Sources of information .............................................................................................................. 60

Guidelines ................................................................................................................................... 62

Review ......................................................................................................................................... 64

Module 8: Putting It All Together ................................................................................................. 65


Scenario analysis ........................................................................................................................ 65

Final Quiz ......................................................................................................................................... 67

Instructions .................................................................................................................................. 67

Glossary and References ............................................................................................................. 73

Glossary ....................................................................................................................................... 73

References .................................................................................................................................. 82

Green Procurement Online Course C215 Page v

Answers ........................................................................................................................................... 84

Module 1: Basic Concepts ....................................................................................................... 84

Module 2: The Policy ................................................................................................................. 84

Module 3: The Life Cycle .......................................................................................................... 85

Module 4: Evaluating Environmental Claims ........................................................................ 90

Module 5: Resources for Buying Green .................................................................................. 91

Module 6: Practical Considerations ....................................................................................... 91

Module 7: Guidelines for Greening Specifications .............................................................. 91

Module 8: Putting it All Together ............................................................................................. 91

Green Procurement Online Course C215 Globals Page 1

Globals

Welcome to green procurement online training!

This course will present the Treasury Board approved federal Policy on Green Procurement and provide strategies and tools for implementing green procurement throughout the procurement process.

The content is organized into the following modules:

1. Basic concepts on the benefits to buying green and what it means to buy green

2. Application of the policy

3. The life cycle approach and considerations for each phase of the life cycle

4. Evaluating environmental claims made by suppliers

5. Resources for buying green

6. Practical considerations, such as key success factors

7. Guidelines for greening specifications

8. A scenario to illustrate the course content

9. A final quiz

The course is intended for functional specialists in procurement and materiel management. It may also be of interest to sustainable development coordinators and policy analysts.

Course objective

This course is designed to convey green procurement concepts and principles. The implementation of green procurement requires purchasers to exercise judgement because each purchase has different environmental impacts, which means the opportunities to green it is similarly unique. Ideally, purchasers will search for innovative solutions in applying the concepts and seek to continually improve.

Green procurement can be a challenge in part because purchasers work with precise language, whereas environmental responsibility is contextual, meaning it will vary from one product to another, from one organization to another and across time as the industry evolves and our knowledge evolves. This contextual nature of environmental responsibility is the reason that green procurement is not just purchasing from an approved list. There is no suitable replacement for a case-specific holistic, full life cycle review of environmental risks and opportunities.

Green Procurement Online Course C215 Globals Page 2

Nevertheless, hopefully when armed with the knowledge in this course, purchasers will be able to fulfill with ease their purchasing requirements in an environmentally responsible manner.

Examples and exercises will be used throughout the course to demonstrate how environmental considerations can successfully be incorporated into procurement decisions.

At the conclusion of this course you should be able to do the following:

Discuss the advantages of buying green

Explain the federal government requirements pertaining to the Policy on Green Procurement

Use life cycle analysis and life cycle costing to establish best value when purchasing environmentally preferable goods and services

Evaluate goods and services using a wide range of environmental terms, claims and certifications

Integrate green procurement considerations into your procurement solicitation and contracting documents

Identify key resources available within the federal government

Using this course

The course takes two to four hours to complete. Each module is designed to flow from one to the next; building on material of the previous.

Throughout the course you will be asked to complete a variety of exercises and review quizzes. They are provided as practice, for self-evaluation, and to enhance your learning. It is recommended that you complete every exercise and quiz. Answers to the exercises and quizzes are found at the end of this document.

After you’ve covered all of the modules, complete the final quiz. You will receive a certificate as proof of completing the course if you achieve a score of 70% or higher. You can attempt the final quiz as many times as needed.

Green Procurement Online Course C215 Module 1: Basic Concepts Page 3

Module 1: Basic Concepts

Learning objectives

This module will provide background information to help you better understand the rest of the course.

At the end of this module you will understand:

the benefits for buying environmentally preferable goods and services

the costs, if any, associated with buying environmentally preferable goods and services

what constitutes an environmentally preferable good or service

Why buy green?

Purchasing environmentally preferable goods and services promotes environmental stewardship and can reduce the environmental impact of government operations. Specifically, environmentally preferable goods and services can:

Reduce greenhouse gas emissions

Reduce the depletion of our natural resources (e.g. raw materials, energy and water)

Reduce the use of hazardous, toxic and ozone-depleting substances

Reduce hazardous, toxic and solid waste

Reduce pollution to the air, water and land

Support reuse and recycling

Maintain or improve habitats and biodiversity

Create healthier environments for employees, surrounding communities including those involved in the production and transportation of the goods and services

From an economic perspective, purchasing environmentally preferable goods and services may:

Achieve the best value for money over their life cycle and result in a more efficient use of public resources. Financial savings are possible through energy efficiency, reduced disposal costs, more efficient use of water, and avoided purchasing costs over the life cycle of a good or service.


Reduce the environmental, financial, political, and health and safety risks associated with negative environmental impacts, such as spills of hazardous products, pollutant emissions and contaminated lands.

Benefit the whole economy through the creation of new markets, increased innovation by industry, and increased competitiveness of suppliers.

Does green procurement cost more?

“Does it cost more?” is the most common question that senior management asks about green procurement. Over its lifetime (from purchase price, to operation cost to disposal), an environmentally preferable good or service may not cost more. There are four typical scenarios for environmentally preferable goods and services.

1. The purchase price is comparable or less

Environmentally responsible businesses consume fewer resources (e.g. raw materials, water, energy) and generate less waste. This can lead to cost savings for the organization that are passed down to the purchaser.

2. It costs more upfront but less over its life

Environmentally preferable goods and services may cost less to transport, install, operate or dispose of over their life. These cost savings may come from increased energy efficiency, improved durability or the use of alternatives to hazardous substances. These savings can add up to more than any increase in upfront cost, making environmentally preferable goods and services more economical in the longer term compared to conventional options. This concept will be discussed further in Module 3: The Life Cycle.

3. Suppliers seek a price premium

Some suppliers may attempt to increase their profit margin by charging a price premium for environmentally preferable goods and services. Environmental criteria should be viewed as equal to any other technical criteria, and therefore purchasers should work with suppliers to reduce or eliminate any unjustified price premiums.

4. It does cost more

Price premiums may sometimes be justified; purchasers should compare and discuss with the supplier the reasons why their good or service is more expensive compared to a conventional alternative. The purchaser should then determine the best value for the Crown, including if the good or service meets federal or departmental goals or whether there are reputational, financial or environmental risks to the organization. Reputational risks may include the potential for negative media attention on any environmental or social impacts


government operations may have on a community, whether domestically or internationally.

In other cases, environmentally preferable goods and services may cost more to pay for initial start-up research and development costs, or because of low supply and demand. Over time, as the market continues to develop, costs will become more competitive. Stimulating innovation and market development is desirable and may be considered as a justification for additional costs temporarily.

Recycling services example

The Government of Canada launched a Federal Electronic Waste Strategy in 2010 to ensure that surplus electronic and electric equipment do not contribute to improper disposal methods and the associated negative impacts on human health, the environment and information security. Additional costs of purchasing recycling services for surplus equipment have been justified based on reputational risks as well as the environmental and social impacts.

What is an environmentally preferable good?

It’s easy to say that we should all buy environmentally preferable goods, but it’s not always easy to identify them. What are their attributes?

An environmentally preferable good is one that is less harmful to the environment and human health than the next best alternative. More detail will be presented in later modules, but in general, the good should have characteristics including, but not limited to, the following:

• Are required: A good cannot be considered environmentally preferable if there is no requirement for it. For example, a printer may be resource and energy efficient, made with recycled materials and have a long service life. However, if the printer is left unused or is severely underutilized, then it is not an environmentally preferable purchase compared to the alternative of not buying anything new.

• Are recyclable: A good can be environmentally preferable if existing local facilities are available to recycle it at the end of its useful life.

• Contain recycled material: A good with recycled content can be an environmentally preferable good. For example, recycling aluminum cans is far less energy and resource intensive than mining new aluminum and aluminum can be recycled an infinite number of times. Construction material with high recycled aluminum content compared to the competition is an environmentally preferable good.


• Produce fewer pollutants: A good that produces fewer polluting by-products and/or safety hazards during manufacture, use or disposal is environmentally preferable when it replaces a more hazardous good. For example, cleaning products which do not contain typical pollutants found in conventional cleaning products that can impact indoor air quality are environmentally preferable.

• Have a long life: An environmentally preferable good can be one which has a longer life than its conventional alternative and/or can be economically and effectively repaired or upgraded. For example, a notebook computer with an extended use and maintenance warranty that includes replacement of the battery will have a longer life compared to conventional notebook computers.

• Increase resource and energy efficiency: An environmentally preferable good can be more energy, fuel, or water efficient, or use less paper, ink, or other resources. For example, lighting or office equipment that are energy efficient.

• Are reusable: A good that can be used in whole or in part more than once can be an environmentally preferable good if the next best alternative is a single-use or disposable product. For example, rechargeable batteries and reusable building partitions are environmentally preferable.

When evaluating goods, a holistic view should be taken. The presence of one environmental attribute alone should not be the end of the analysis; decision makers need to apply an entire life cycle approach. Module 3: The Life Cycle will explain this life cycle, holistic approach.

Some goods come with environmental certifications or claims. Module 4: Evaluating Environmental Claims will cover the various programs and terminology you may encounter when evaluating goods and services.

What is an environmentally preferable service?

There can be a misconception that procurement of services can’t be greened or are difficult to green. Criteria and specifications can be included in the mandatory and rated criteria and statements of work for services in the same manner as for goods.

Environmentally preferable services will have one or more of the following categories of environmental considerations reflected in the procurement documents:

1. Supplier attributes could include the implementation of standardized environmental policies and practices within the supplier’s organization or certifications covering the supplier’s general operations (e.g. the existence of sound environmental management system). These must nevertheless be relevant to the services being delivered.


2. Supplier operations when delivering services could include minimizing travel, administrative practices that reduce paper use, obtaining third-party environmental certification indicating that the supplier processes are environmentally preferable, and providing services efficiently and only when required.

3. Goods and services used in service delivery; Services can be environmentally preferable if the service provider uses equipment, consumables and/or other services that are environmentally preferable.

4. The inherent nature of the services. For example, recycling services are environmentally preferable compared to landfilling services. Similarly, contaminated sites remediation is, by its nature, beneficial to the environment compared to doing nothing. The purchase of services such as leases or rentals over equipment ownership may also in its nature provide the supplier with a greater incentive to ensure that the goods used are durable, well maintained and efficiently deployed.

Review

To check your understanding of the material in this module, consider each of the following questions.

1. List three environmental benefits to buy green.

2. List two economic benefits to buy green.

3. Do environmentally preferable goods and services cost more than conventional ones?

Green Procurement Online Course C215 Module 2: The Policy Page 8

Module 2: The Policy

Learning objectives

Module 2 provides information about the Policy on Green Procurement.

After completing this module, you will be able to:

• identify the key concepts within the Policy on Green Procurement

• explain where and how the policy is applied

• explain the roles of key players

• explain how it fits with other Treasury Board policy instruments

• explain some of the processes in place to implement the policy

Overview of the policy

The Policy on Green Procurement strives to have environmental performance considered in all purchasing decisions by the federal government, in the same manner as price, performance, quality and availability. In this way, green procurement should become part of the federal government’s normal business practice. The Policy was approved by Treasury Board in 2005 and took effect April 1, 2006.

It is founded on the principles of value for money and life cycle management. These principles mean not only that the life cycle costs of purchases are to be considered, as opposed to only the up-front acquisition costs, but also that the value of economic, environmental and social costs and benefits to society should be considered.

Did you know?

Implementation of green procurement is now standard across most national and regional governments, including those in developing nations. Green procurement is also supported by international organizations and trade agreements.

Where does it apply?

The Policy on Green Procurement applies to the procurement of goods and services, including construction, across the phases of the life cycle, from planning and acquisition through use and disposal.


To whom does it apply?

The Policy on Green Procurement applies to all departments, as defined in Section 2 of the Financial Administration Act, unless specific acts or regulations override it.

All other departments and agencies have the authority to establish their own policies and procedures on green procurement within the context of their governance framework.

What are the requirements?

Deputy heads are required to:

• ensure that the objectives of green procurement are realized while maintaining compliance with all legislative, regulatory and policy obligations

• ensure their management control framework in support of procurement incorporates environmental considerations

Additional responsibilities

Four departments have additional responsibilities in the Policy. Public Works and Government Services Canada (PWGSC) leads the implementation of the Policy, which includes the following activities:

• developing tools and guidance

• greening their procurement strategies and instruments used by departments

• supporting departments in planning and reporting on green procurement

Technical expertise is provided by Treasury Board of Canada Secretariat, Environment Canada and Natural Resources Canada as needed to support this work.

Key players

Every employee in the Government of Canada can help implement green procurement. All employees make everyday decisions about the supplies and equipment they request and the stewardship of the goods and services they use. Proper stewardship should reduce the amount of materials needed and ensure materials are used efficiently and disposed of properly. These responsibilities are especially important for individuals with signing authority to make procurement decisions – typically managers and acquisition cardholders.

Although the authority to make procurement decisions can be widely distributed, key players have a significant role in supporting the implementation of green procurement.


Procurement specialists

A procurement specialist is responsible for the planning and acquisition of goods and services to support the delivery of government programs that provide the best value to the Crown and the Canadian people.

Most procurement specialists advise and consult with clients, suppliers and management on the interpretation and application of acquisition policies, regulations, trade agreements and best practices. They work from the outset with their clients to define the clients’ requirements, forecast life cycle costs, and develop and implement acquisition strategies. This can include preparing a bid solicitation package, evaluating proposals and formalizing procurement contracts. Procurement specialists can also be involved in managing procurement contracts, ensuring that performance is monitored, resolving disagreements, and amending contracts. They work closely with both industry and key stakeholders at various levels in exploring new means of providing services and innovative solutions to address their client's needs and issues.

Procurement specialists are critical to the implementation of green procurement due to their influence on clients, suppliers and management.

Materiel management specialists

Materiel management specialists are involved in the life cycle management of the Crown's movable assets, goods and services. They assess and plan materiel requirements and activities to support the delivery of government programs. They provide strategic analysis and business-case advice on investment, acquisition, management, operation, maintenance and disposal of assets. They advise clients, management and suppliers on the application and interpretation of materiel management policies, legislation, regulation and practices. They are involved in preparing strategic investment plans, acquisition and disposal strategies.

Materiel management specialists are critical to the implementation of green procurement due to their influence on clients, management and suppliers.

Sustainable development coordinators

Sustainable development coordinators typically lead the development of departmental sustainable development strategies, which will include a section on green procurement. They may hold many other titles, such as advisor, analyst, officer or manager. Their functions may include coordinating planning and reporting, raising awareness of sustainable development and the department’s targets, and advising management and specialists on the implementation of sustainable development strategies.

Sustainable development coordinators have the potential to inspire and enable management and specialists to implement green procurement.


The importance of these key players is linked predominantly to their potential to influence their stakeholders. To be effective in influencing changes in procurement behaviour, they may need to find ways to inspire and engage their stakeholders while enabling them to make changes.

Treasury Board policy context

The Policy on Green Procurement is consistent with the Treasury Board policy suites on procurement, materiel management and real property.

Principles of the Treasury Board Policy Framework for the Management of Assets and Acquired Services include:

• Decisions on the management of assets and acquired services actively promote environmental stewardship

• Value for money and sound stewardship are achieved through a life cycle management approach reflecting direct and indirect costs of assets and services

The Treasury Board Contracting Policy directs departments to acquire goods and services in a manner that results in best value or the optimal balance of overall benefits to the Crown and the Canadian people. It also directs departments to establish socio-economic bid evaluation criteria and to include a notice in the solicitation documents that socio-economic factors will be used to assess bids.

Did you know?

The Treasury Board Contracting Policy defines “best value” to mean the combination of price, technical merit, and quality, as determined by the contracting authority. It also states that inherent in procuring best value is the consideration of all relevant costs over the useful life of the acquisition, not solely the initial or basic contractual cost.

The Treasury Board Policy on Management of Materiel directs departments and agencies to manage and dispose of materiel assets in an environmentally responsible manner. It also directs departments to acquire, operate, maintain and dispose of capital assets based on an analysis that includes full life cycle costs and benefits.

A policy requirement of the Treasury Board Policy on the Management of Real Property is to manage real property in an environmentally responsible manner consistent with the principles of sustainable development. An expected result of the policy is environmental stewardship that contributes to the preservation and protection of the environment.


Planning and reporting

The Policy requires that departments set green procurement targets, as appropriate. Green procurement targets are identified in the Reports on Plans and Priorities (RPP) and reported against through the Departmental Performance Reports (DPR). In setting targets, departments should take into account, as appropriate, the following:

• legislation (e.g., Federal Sustainable Development Act) and alignment with the Federal Sustainable Development Strategy

• government-wide policies, guidance and tools (e.g. Treasury Board guidance for RPP/DPR, PWGSC guidance on greening government operations)

• departmental mandate, policies, spend pattern, and environmental risks of goods and services

Federal efforts towards greening procurement are ongoing within the broader context of the greening of government operations. PWGSC’s Office of Greening Government Operations (OGGO) coordinates interdepartmental efforts and advises departments and agencies on how to improve the Government of Canada’s performance in a number of greening of government operations areas, such as:

• green procurement

• electronic waste

• sustainable buildings

• greenhouse gas emissions

Did you know?

Supporting sustainable development is an objective of the Policy on Green Procurement.

The first Federal Sustainable Development Strategy (FSDS) was tabled by the Minister of the Environment in 2010. The FSDS contains a suite of targets relating to the greening of government operations developed by PWGSC. Targets for green procurement are aligned with the Policy on Green Procurement requirements and reporting on green procurement takes place within the same Departmental Sustainable Development Strategy Supplementary Table in RPPs and DPRs as the FSDS.

While TBS provides broad guidelines on the completion of RPPs and DPRs, PWGSC produced guidelines specific to meeting and reporting on the greening of government operations targets.


Sustainable development has become a key goal of public policy both domestically and internationally. Sustainable development is about meeting the needs of today without compromising the needs of future generations. It is about improving the standard of living by protecting human health, conserving the environment, using resources efficiently and advancing long-term economic competitiveness. It requires the integration of environmental, economic and social priorities into policies and programs.

Category management and green procurement planning process

The Government of Canada takes a corporate approach to the procurement of commonly purchased goods and services called category management.

Category management is the process PWGSC uses to develop National Goods and Services Procurement Strategies (NGSPS) for managing the procurement of categories for the Government of Canada. It describes the scope, methodology and supporting documentation as well as the approach for the implementation, management and duration of the category.

The objective of these actions is to:

• better understand the client department need and industry capacity to deliver and meet the operational requirements of government as a whole

• provide the optimal total cost of ownership and disposal

• achieve the best value for Canada

Category managers within PWGSC manage the life cycle of specific categories in this way. Examples of categories include office equipment, communication services, furniture, food and beverage, janitorial services, audio visual equipment, clothing and textiles, vehicles and office supplies.

Procurement conducted as part of the category management processes provides an ideal opportunity to advance the objectives of the Policy on Green Procurement. Category management emphasizes the use of a life cycle approach to examine the costs associated with specific goods and services. The use of a life cycle approach to examine impacts and costs is also a cornerstone of the Policy on Green Procurement.

Category management produces government-wide procurement instruments, such as standing offers and supply arrangements that provide the basis for the specification and selection of best value goods and services. Category management not only allows the achievement of economies of scale and savings, but also facilitates the incorporation of environmental considerations.


Did you know?

A standing offer allows purchasers to purchase goods and services, as requested, through the use of a call-up process which incorporates the conditions and pricing of the standing offer.

A supply arrangement (SA) allows purchasers to award contracts and solicit bids from a pool of pre-qualified suppliers for specific requirements within the scope of the SA.

Since 2006, green procurement has been systematically incorporated into the category management procurement planning process using a phased, iterative approach. This means that most PWGSC procurement instruments now include environmental considerations.

More detail on this process will be discussed in later modules.

Review

To check your understanding of the material in this module, answer each of the following questions:

1. Selecting goods and services that demonstrate ‘value for money’ means:

a. Always selecting goods and services that are the most environmentally preferable.

b. Selecting goods and services that show the optimal balance of overall benefits, including, among other things, cost, performance, and environmental performance.

c. Always selecting the goods and services that are least expensive.

2. Is the following statement true or false? The Policy on Green Procurement is optional for departments.

3. Is the following statement true or false? Sustainable development will become a key goal of public policy both domestically and internationally for future generations.

Green Procurement Online Course C215 Module 3: The Life Cycle Page 15

Module 3: The Life Cycle

Learning objectives

The principle of life cycle management is key to the Policy on Green Procurement. Module 3 explains life cycle analysis and explores how environmental considerations can be integrated in each of the life cycle phases – planning, acquisition, use, and disposal. The phases are defined and practical applications are described.


• describe the importance of life cycle analysis to green procurement

• describe how life cycle costing can be used to demonstrate value for money

• describe each of the life cycle phases and some of the environmental considerations in each

Life cycle analysis

Life cycle analysis is used to examine the known and potential environmental impacts of a good or service. In its most detailed form, a life cycle analysis considers the environmental risks from initial resource extraction through to final disposal (from “cradle to grave”).

For goods, these environmental risks could include:

• the depletion of resources and the waste and pollution generated at the time of manufacturing

• the environmental impacts of transporting goods to processing plants or to markets

• indoor air quality issues and corresponding health problems caused by off-gassing

• the use of energy or water to operate the goods

• the solid and liquid wastes that are absorbed by the environment at the end of their useful life

For services, the environmental risks over the life of the service may include:

• the general operations of the supplier

• how services are delivered

• what equipment and goods are used to deliver the service


A holistic view should be taken when evaluating the environmental performance of a good or service. This means examining all stages in the life of the good or service and the multiple potential environmental impacts to avoid shifting the environmental burden from one area to another.

For example, let’s look at something as simple as beverage containers. Let’s say the only choices are aluminum, plastic or glass containers. If the decision was made based only on the recyclability of the material, aluminum would be selected as the best option because it is universally accepted in recycling streams and can be recycled again and again without any breakdown of the material.

However the environmental impact of mining, producing and disposing of the aluminum that is not recycled is significantly higher than the total impact of plastic and glass containers, far outweighing the benefit of being highly recyclable.

Glass containers perform better than plastic when comparing the environmental impacts of production and disposal. However glass is heavier than plastic and therefore the impact of transporting it over large distances is greater. The choice on whether it is plastic or glass containers that have the lowest impact therefore depends on how far they are being transported for a particular requirement.

Once the environmental impacts have been identified and weighed against alternative means of meeting a requirement, consider an appropriate mitigation strategy for the environmental impacts associated with the potential procurement decision (e.g. recycling the container or minimizing transportation). The environmental impacts and mitigation strategies should together inform the procurement decision.

The Policy on Green Procurement requires integrating environmental considerations into each procurement phase of the life cycle, listed below:

• Planning

• Acquisition

• Use

• Disposal

The federal government is committed to the purchase of environmentally preferable goods and services where value for money is demonstrated. A value for money approach to procurement means that:

• the lowest upfront price will not automatically be preferred

• all life cycle costs must be taken into consideration


• other values will be considered in addition to cost, such as reduction of environmental impact

The federal government can, through its choice of specifications, drive broader positive environmental changes outside its direct operations. For example:

• specifying a requirement for recycled content leads to solid waste reduction, as well as lower energy consumption related to processing of raw materials, resulting in lower greenhouse gas emissions

• specifying a requirement for the elimination of hazardous substances from the production process or the end product can result in the manufacturer acquiring, storing, handling and disposing of fewer hazardous substances

Life cycle costing

In addition to an analysis of the environmental impacts, an assessment of the financial costs associated with each phase of the life cycle should be conducted. This is called life cycle costing. From the government’s perspective, these costs include:

• Planning costs, including administrative and other costs (internal to government)

• Acquisition costs, including administrative as well as design and production costs that are associated with the goods or services in question

• Use costs, including set-up, training, contingency and maintenance costs

• Disposal costs, including administrative costs, removal and transport

Future costs may be estimated when actual figures are unknown. Where significant savings in the operation of assets can be made through increased upfront expenditures, consider opportunities to reduce any barriers to making optimal life cycle costing decisions, such as transferring funds between budgets if necessary.

The following pages will walk through the federal government’s approach to life cycle management of environmental impacts and financial costs. Reflect on how you could undertake each step within your own organization.

Did you know?

The planning and requirement definition stage offers the greatest opportunity to consider environmental issues.

Planning phase considerations

During the planning phase buyers can ensure that environmentally preferable goods and services are purchased, and that the management of how they are used, maintained and disposed is planned. There is little in terms of policy, regulations or trade


agreements that affect or limit purchasers from taking environmental considerations into account. Program managers, project authorities and other internal users need to work closely with the contracting authority to ensure that full consideration is given to environmental issues during the planning stage and in the subsequent development of specifications.

During the planning phase, the following should be addressed:

Objectives

Take into account specific green procurement objectives, established either for all federal organizations or by the procuring department or agency.

3Rs

Take the 3Rs (Reduce, Reuse, Recycle) approach to the acquisition:

• Reduce: Assess the need for a given purchase and, whenever possible, reassess the need, or the quantity purchased.

• Reuse: Consider acquiring second-hand or used materiel, by searching for surplus assets and materiel transferred from other government organizations. Ensure that reusability, maintenance costs, and other environmental considerations are taken into consideration.

• Recycle: Ensure that acquired goods contain recycled material and can be recycled at end of life.

Did you know?

The Greenstone Building in Yellowknife demonstrates the application of 3R principles in procurement. The building’s location was chosen because of its accessibility by bike and public transit to help reduce employees’ use of private vehicles for commuting.

Rather than break ground on a new site, the building was constructed on a site that had previously been developed. Over 90% of the material from the demolition of the previous building was recycled. Recycled and repurposed building materials were used, such as a by-product from burnt coal called fly ash used in the concrete mixture. Not only did this create a use for something previously thought to be waste but it also meant that less cement was needed, which is energy-intensive to produce.

Furnishings contained recycled materials, such as carpet tiles with high level of post-consumer content. The building’s electrical and mechanical systems were designed efficiently to save electricity. A state of the art photovoltaic solar panel


wall produces enough electricity to support 5% of the building’s energy consumption. Measures to conserve water were taken, such as installing dual flush toilets, waterless urinals and a green roof to collect rainwater for landscaping.

Alternatives

Consider alternatives to ownership to meet a need, such as leases for buildings and equipment or asset sharing, rather than acquiring assets, especially for costly and resource-intensive capital items.

Life cycle analysis and costing

Conduct a life cycle analysis and calculate the life cycle cost of any proposals. Consider making a best-value argument to defend a higher upfront cost if financial savings or benefits to the environment are likely over the life of the good or service. Be sure to include any impacts of disposal and costs of environmentally sound disposal as they may impact which goods or services are chosen.

Resource and energy efficiency

Consider suppliers, goods and services that make efficient use of resources and/or increase energy efficiency during manufacturing, use or service delivery.

Did you know?

An ENERGY STAR qualified multi-functional printer can save about $150 in energy costs and 300kg of greenhouse gas emissions over its lifetime compared to a model that is not ENERGY STAR qualified.

Materials used

Consider goods and services that utilize alternatives to ozone depleting, toxic or hazardous substances. Consider as well if there are alternatives that reduce or eliminate by-products such as greenhouse gas emissions or indoor air pollutants.

Service life

Select options that are known to have a longer service life or that are economical to repair or upgrade. Consider purchasing extended warranties and ensure that the availability of warranties is well communicated to clients.


Aggregating Demand

Investigate the possibility of aggregating demand amongst multiple users to achieve more efficient usage of assets, fewer shipments and/or enable the usage of bulk packaging.

Packaging

Specify packaging requirements that are less damaging to the environment such as:

• minimizing the amount of packaging used

• reusing or recycling packaging

• specifying take-back requirements whereby packaging is returned to the vendor for reuse or recycling

• ensuring packaging is free of hazardous substances

• purchasing in bulk and/or concentrate

Disposal

The method of disposal when a good is declared surplus or no longer functioning should be decided upon early in the planning phase to avoid unnecessary costs and environmental impacts later on. Plan for an environmentally sound disposal. Remember to also consider the disposal cost, if any, in the overall cost.

Sources to obtain this information will be discussed in Module 7: Guidelines for Greening Specifications.

During the planning phase, potential suppliers should be surveyed to evaluate their readiness or ability to meet environmental specifications.

To simplify the process, check to see if green standing offers or supply arrangements produced through the PWGSC category management process are available for your requirement. If so, it is recommended that the instrument be used. PWGSC’s category management teams consult potential suppliers so clients do not have to. They determine if suppliers can meet the environmental criteria outlined in each of the category’s green procurement plans. If the majority of suppliers cannot immediately meet all the criteria, then the criteria are introduced progressively over successive solicitations.

Did you know?

PWGSC has a website listing environmental criteria for goods and services that suppliers have already been consulted on.


If government-wide procurement instruments (such as standing offers or supply arrangements) are not available or cannot be used, consider using criteria from related procurement instruments. If not, potential suppliers should be surveyed to assess their capacity to meet the environmental criteria. This can be done through discussions with industry representatives or by posting your requirement to the Buyandsell.gc.ca/tenders web page as a Request for Information or Letter of Interest.

Guidance on how to research potential environmental criteria to consult with suppliers is found in modules 5, 6 and 7 of this course.

Acquisition phase considerations

Once a specific need has been identified and examined, the acquisition phase begins. Requirements and bid evaluation criteria for the solicitation and contract documents are determined in the acquisition phase. The acquisition phase involves the following steps:

1. If there is a standing offer or supply arrangement, environmental considerations may already have been incorporated. Maximize the environmental potential of these instruments. Consult Step-by-Step guides or contact the Green Procurement Team for specific guidance.

2. If there is no standing offer or supply arrangement, refer to the supplier consultations and research you conducted in the planning phase.

3. Prepare the solicitation document(s) including the environmental specifications resulting from steps 1 and 2.

4. Evaluate the bids against the environmental specifications included in the solicitation documents.

5. Award the contract.

The outcomes of the acquisition phase are:

Technical requirements: Create a statement of work that establishes a succinct outline of the technical requirements, including the environmental outcomes to be achieved.

Selection methodology: Develop evaluation criteria that will use a value-for-money approach and take into account total life cycle costs and environmental performance.

Terms and conditions: Integrate environmental considerations into the terms and conditions of the resulting contract.

Debrief unsuccessful bidders: Notify unsuccessful bidders of the outcome of the process. If any environmental criteria were not met, include this information in


any debrief with the bidder in order to emphasize government commitment to green procurement.

Acquisitions activities within the green procurement context are subject to all of the standard procurement obligations associated with international and national trade agreements, the Government Contracts Regulations, as well as federal government procurement policies.

The selection of a supplier must be based on criteria that are clearly defined in the solicitation documentation. Further information to support environmental criteria may however be requested where it is relevant to the requirement.

The following are some examples of information that might be requested:

specific environmental attributes of goods, including features which result in lower environmental impact

goods and services with a third party certification or a reputable eco-label

goods that minimize packaging and/or use reusable or recyclable packaging

existence of environmental policies

existence of an environmental management system

availability of extended warranties to prolong the life of equipment

replacement schedules based on the functionality of assets rather than time

take back options the supplier offers

Any information requested should be useful to procurement decision-making now or into the future, or else it should not be asked for. Information requested should also be proportional to the environmental risks associated with the purchase and/or the size of procurement. Where possible, ask suppliers for proof of their claims.

Did you know?

In the PWGSC supply arrangement for printing services, evaluation criteria have been added that specifically evaluate the supplier’s environmental practices. These criteria add up to 25% of the points for the general evaluation criteria. Bid submissions must obtain at least 80% in this section to be evaluated further, which in effect means that suppliers must meet at least some of the environmental criteria to pass. In addition, electronic submission of proofs and environmentally preferable printings inks and paper have been established as the default for all contracts made through the supply arrangement. Clients may request other options; however the suppliers must then inform the client of the environmentally preferable alternatives and recommend the client selects one of those alternatives.


Use phase considerations

After the contract is signed it should be monitored to ensure that the contract conditions are met, through mechanisms such as progress reports. If it is found that the contract conditions are not being met, corrective measures should be implemented according to established procurement practices, up to and including invoking penalties or termination of the contract.

The process of monitoring and managing contracts applies equally to any environmental considerations included in the contract as any other terms or conditions. This ensures that expected environmental outcomes are achieved. Ideally the contract will contain clear performance expectations and any applicable incentives or penalties associated with compliance or non-compliance.

In addition, assets and materiel purchased should be used and maintained to maximize their environmental benefits and life cycle cost savings.

For both goods and services, the responsibilities in this phase may fall to different stakeholders than those who planned or acquired the purchase. Environmental criteria and clauses need to be understood by those stakeholders to implement green procurement consistently.

Examples of environmentally preferable use include:

1. Janitorial services

A contract for janitorial services may include a condition that the cleaning products used must have a third party environmental certification and be in concentrated format. To achieve the environmental benefits of this condition, the supplier must be in compliance and be given instructions on using the correct quantities of cleaning products to minimize waste.

2. Hybrid vehicles

To achieve the high fuel efficiency expected with hybrid vehicles, the vehicles should be used in situations where they perform best and drivers should be trained appropriately. For example, hybrid vehicles generally achieve optimal fuel savings when used for city driving as the use of the electric motor is maximized.

3. Computers

To achieve the greatest energy savings associated with ‘power down’ features on computers, the settings must be adjusted to a level that puts the computer in ‘sleep’ mode after a brief time period. In addition, users should be instructed to


turn equipment off when it is not in use for an extended period, or when leaving for the day or weekend to eliminate unnecessary energy consumption.

4. Furniture

To achieve the extension of life expected from the purchase of extended warranties on furniture, users of the furniture need to be aware of the warranty and how to access it.

Did You Know?

100 ENERGY STAR certified desktop computers and their monitors that are always on use approximately $5,900 worth of electricity per year. However, if power management settings are enabled as designed, the operating cost can go down to as low as $800 per year. If the computers are also set to shut off at night, operating costs can be as low as $700. By enabling power management settings and turning the computers off at night, clients can save approximately $5,200 per year or nearly 90% of the energy if computers were left on 24 hours per day.

When economically feasible, equipment should be repaired, refurbished and reused to extend its service life. There are many examples where this advice could be applied:

Upgrading software applications and/or storage capacity, rather than replacing computer equipment will reduce the frequency of IT hardware purchases.

Conducting proper maintenance of vehicles. For example, proper tire inflation levels can improve fuel efficiency (the average Canadian driver can save the equivalent of 2 weeks worth of gas every year) and prolong tire life, both of which save energy and reduce greenhouse gas emissions.

Using warranties for repairs rather than replacing will extend the useful life of equipment, such as computers and furniture.

Disposal phase considerations

As noted earlier, how goods will be disposed when they become surplus should be decided in the planning phase because it could influence which good is chosen.

Waste generation should be minimized to the greatest extent possible. When surplus assets and materiel do exist, ideally, alternative disposal methods to land filling should always be considered, such as:

reusing by transferring the equipment to another organization in the federal government through, for example, GCTransfer; by donating to an external organization; or by selling through, for example, GCSurplus

planning for upgrades


recovery/reclamation of components and hazardous materials

recycling of components or whole assets

The goal is to find the most environmentally preferable method and ensure that it is carried out in an environmentally responsible manner. If at the end of the life the assets have no resale or trade-in value or cannot be donated, seek opportunities to use waste minimization or waste diversion programs.

Did You Know?

GCTransfer is a website that allows government departments to obtain, post and view surplus assets and transfer them within federal departments and agencies at no fee or direct cost. Assets identified by a department as surplus can be listed on GCTransfer for 14 calendar days. Once the 14 days have passed, any remaining assets can be posted on GCSurplus for sale to the general public.

If reuse, resell, donation and provincial recycling programs are not possible, use available standing offers for disposal options such as recycling (e.g. electronic and electrical equipment). To be awarded a standing offer, the supplier must have been accredited by the Government of Canada for using environmentally sound practices.

Consider ease of disassembly specifications when planning the purchase as this will facilitate the recycling and reclamation of components at the end of life.

Hazardous waste must be disposed of following appropriate regulations. Finding an alternative to a hazardous substance has a significant environmental and cost benefit. Hazardous substance disposal costs are high and employees require costly regular training to legally handle these substances properly and safely. Also, the incorrect disposal of hazardous waste can have a negative environmental impact and be costly to remediate. If hazardous substances are required, calculate the capacity to properly use and dispose of them as a part of your cost benefit analysis.

Suppliers may have return-to-vendor programs available, whereby goods are sent back to suppliers at the end of their life. These programs are recommended for toner cartridges but should not be used for electronic and electrical equipment. Refer to the Federal Electronic Waste Strategy for information on all surplus electronic and electrical equipment. For any other product, please contact the Office of Greening Government Operations for specific advice.

Case study 1: Kitchen

The Canadian Coast Guard needs to select equipment for a galley (ship’s kitchen) and is considering the purchase of ENERGY STAR qualified commercial kitchen equipment


because it meets high levels of energy efficiency. Both ENERGY STAR equipment and conventional equipment meet minimum performance specifications.

Reduced energy use means both cost savings and reduced greenhouse gas emissions, a key contributor to climate change. Energy savings are achieved in water-using equipment in part by reducing the amount of water that needs to be heated, thereby also reducing water use. In Canada water quality is good, but supplies are shrinking in parts of the country and, combined with high demand, this raises concerns for the future. In this case in particular, excessive resource use on a ship may incur additional logistics and supply costs.

Introduction

Based on the data provided, and ignoring inflation and discount factors, we will perform a life cycle costing analysis to determine the savings expected from selecting one of each type of ENERGY STAR qualified equipment compared to conventional equipment. In both cases, we will ignore upfront, maintenance and disposal costs as they are equivalent and will have no impact on the result of the analysis.

Water data

Commercial Product

Annual Water Use of Conventional Equipment (m3)

Annual Water Use of ENERGY STAR Equipment (m3)

Dishwasher 202 88

Steam cooker 79 28

Energy data

Commercial Product Annual Energy Use of Conventional Equipment (kWh)

Annual Energy Use of ENERGY STAR Equipment (kWh)

Refrigerator 1,803 1,195 Dishwasher 17,212 8,800 Steam cooker 9,241 4,393 Griddle 17,056 14,460 Oven 12,193 10,260


Utility rates

Utility Rate Unit of measure Electricity 0.1235 $/kWh Water 2.69 $/m3

These products are all expected to last 12 years.


Using the data above, complete the following tables:

Annual energy cost ($) Commercial Product Conventional ENERGY STAR

Refrigerator

Dishwasher

Steam cooker

Griddle

Oven

Total annual energy cost

Annual water cost ($) Commercial Product Conventional ENERGY STAR

Dishwasher

Steam cooker

Total annual water cost

Cost savings from ENERGY STAR equipment Commercial

Product Total Annual Utility Cost Total Lifetime Utility Cost

Conventional

ENERGY STAR

Cost Savings


Case study 2: Batteries

Department A currently requires 12,000 hours of battery power to run its walkie-talkies. Each walky-talky uses 4 batteries. The Department currently uses AA alkaline batteries, but is considering switching to rechargeable NI-MH batteries. Using life cycle costing, assess the two options.

Scenario 1

AA Alkaline batteries:

Package of 50 batteries costs $15

Expected life of 4 batteries in a walky-talky is 15 hours

Disposal cost associated with the batteries is 0 because GCSurplus has a battery recycling program that costs nothing for departments to use

Answer the following questions by considering the product information above and the fact that the department requires 12,000 hours of walky-talky use, and that each walky-talky uses 4 batteries.

1. For 12,000 hours of battery power using AA alkaline batteries, the cost is $______. Fill in the blank.

2. What may be some of the environmental impacts of this purchase?

Scenario 2

Rechargeable Ni-MH batteries:

Battery charger + 4 AA rechargeable NI-MH batteries costs $70

2 sets of batteries are required: while one is charging, the other will be in use. Set of 4 extra AA rechargeable NI-MH batteries costs $30

Batteries can be recharged approximately 200 times and provide 30 hours of use per charge

Time required to charge 4 AA NI-MH batteries is 1 hour

Cost of electricity per hour to use charger is $0.1235

Disposal costs are the same as for alkaline batteries

Answer the following questions by considering the product information above and the fact that the department requires 12,000 hours of walky-talky use, and that each walky-talky uses 4 batteries.


1. For 12,000 hours of battery power using rechargeable batteries, the cost is $____. Fill in the blank.

2. What may be some of the environmental impacts of this purchase?

Review

To check your understanding of the material in this module, answer each of the following questions:

1. At which phase of the life cycle would you consider the environmental harm that might occur?

a. Planning

b. Acquisition

c. Use

d. Disposal

e. All of the above

2. At which phase of the life cycle would you decide on the disposal method for an asset?

a. Planning

b. Acquisition

c. Use

d. Disposal

e. All of the above

3. At which phase in the life cycle would you specify that the goods or services being purchased must have been certified by a third party organization or reputable eco-label?

a. Planning

b. Acquisition

c. Use

d. Disposal

Green Procurement Online Course C215 Module 4: Evaluating Environmental Claims Page 31

Module 4: Evaluating Environmental Claims

Learning objectives

An important skill to develop when buying green is the ability to evaluate the claims that suppliers make to represent the environmental attributes of their goods and services.


explain the meaning of terms commonly used by suppliers to describe environmental characteristics

describe environmental performance label types and programs

recognize and describe certification programs for general goods and services, energy efficiency and sustainable forest management

describe considerations to be taken when reviewing the claims made by a supplier

Terminology

This section contains terms that suppliers and certification programs may use. Take the time to become familiar with each one to better understand environmental claims being made. Details on how to uncover further information about a claim is discussed in later modules.

Note that some terminology has a standardized meaning and can require certification prior to being used by suppliers. Other terminology is more generic and can be meaningless, unless evidence is provided to support the claim.

Did You Know?

The Competition Bureau has published Enforcement Guidelines for Environmental Claims

It is also important to note that some environmental features are achieved by compromising others. For example, a good that shows high durability may contain more hazardous materials or volatile organic compounds (VOCs) than lower durability competitors. It is therefore important to understand the overall environmental qualities of a good, and not only individual features. Whenever it becomes necessary to choose between desirable features, decisions should be transparent and minimize the overall negative environmental impact on a life cycle basis.


The following points should be considered when reviewing environmental claims:

Be wary of generic environmental claims that are unregulated or vaguely defined.

Encourage suppliers to highlight environmental product attributes.

Validate supplier claims by checking for certification, and asking for proof of environmental attributes, such as standards and methods used to reduce environmental impacts.

Degradable / Biodegradable / Compostable

A degradable material is one that breaks down in such a way that the resulting materials can be easily assimilated into the environment, without any significant negative environmental impact. While many materials are ultimately degradable, the conditions under which they are disposed may hinder the degradation process. Generally, a product must be in contact with light to adequately photo degrade, while biological degradation requires the presence of oxygen. Neither light nor oxygen is readily available in conventional landfills. Therefore, a supplier’s claim of degradability only has value if the disposal conditions are appropriate for degradation to occur. Furthermore, if a good is only partly degradable, those ingredients that are identified as degradable should comprise a significant part of the good.

For a claim of compostability to be made, further criteria must be met; it must be able to break down into carbon dioxide, water and biomass at the same rate as paper, should not produce any toxic material, and should be able to support plant life.

Suppliers should cite specific standards when making claims of degradability, biodegradability or compostability. The American Society for Testing Materials (ASTM) and the Organization for Economic Cooperation and Development (OECD) publish degradability standards for a range of materiel, including plastics and chemicals.

Durable

Durable means a good is useful for a long period by resisting wear, decay, etc. Durable goods are environmentally preferred, in principle, because they can be reused or upgraded, helping keep resources out of a landfill and reducing the need for the consumption of raw materials. However, there are no set criteria for durability as a green procurement term. When a supplier claims that a good is more durable compared to its competitors, ask for further information, such as the expected lifetime of the good, options for reuse and/or upgrade, and availability of replaceable parts that prevent disposal in the event of a breakdown.


Environmentally preferable, environmentally safe, environmentally friendly, green

The terms environmentally ‘preferable’, ‘safe’ or ‘friendly’ do not have a standard definition in the marketplace. Suppliers using these terms could mean something quite different from each other. The same is true for terms such as ‘environmentally responsible’, ‘natural’, or ‘green’. Therefore, this claim can be meaningless, unless specific environmental standards are cited. Suppliers should be requested to provide complete information as to why they deem their good or service to be environmentally preferable to their competitors.

Greenhouse gas emissions

Greenhouse gases include any of the atmospheric gases that contribute to the ‘greenhouse effect’. The greenhouse effect is the trapping of heat within the Earth’s atmosphere by atmospheric gases, and is a cause of climate change. The greenhouse gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrochlorofluorocarbons (HCFCs), ozone (O3), per fluorinated carbons (PFCs), and hydrofluorocarbons (HFCs). Emissions of these gases in the atmosphere are caused by a number of things, including the burning of fossil fuels (e.g. oil, gas, coal, etc.) and the release of some manmade chemicals. Reduction in emissions of these gases is being targeted to reduce the effects of climate change.

Greenwashing

Greenwashing is the act of misleading purchasers regarding the environmental performance of a company or the environmental benefits of a good or service. A claim can be misleading by being vague, irrelevant, lacking proof, hiding a trade-off, being the lesser of two evils, fibbing or giving a false impression that it is endorsed by a reputable third party.

Hazardous material

Generally speaking, goods considered “hazardous” are dangerous to living organisms and the environment. Two common Canadian references to hazardous materials can be found in the Workplace Hazardous Materials Information System (WHMIS) and the Transportation of Dangerous Goods Act. Industrial suppliers must provide Material Safety Data Sheets (MSDS), which provide information regarding the risks of using a good and precautions to be taken to safely use, store and dispose of such goods.

The Hazardous Products Act and the Consumer Packaging and Labelling Act regulate the labelling of consumer products, for use in both industrial settings and by consumer households. Consumer products that can pose a safety risk are marked as being flammable, corrosive, poisonous, explosive, etc.


International Organization for Standardization (ISO)

The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies. The ISO 14001 standard is being used by organizations around the world to develop Environmental Management Systems (EMS). An EMS provides a framework for managing environmental responsibilities efficiently and supports their integration into overall business operations. An organization may simply base its EMS on the standard or it may choose to become officially registered to the standard, in which case it must periodically undergo audits by an ISO 14001 registrar. The establishment and registration of an EMS to ISO 14001 demonstrates that a company has procedures for monitoring and complying with regulatory requirements, exercises due diligence with respect to environmental risks and is continually improving its environmental performance.

ISO 14020 to 14024 eco-labelling standards address product labelling, environmental claims made by suppliers, and the standardization of environmental terminology.

Procurement officers have access to more detailed information about the ISO 14000 standards through the Canadian General Standards Board (CGSB).

Ozone depleting substances, Ozone friendly

The ozone (O3) layer protects the Earth against ultra violet (UV) radiation. A class of chemicals known as halocarbons are used in packaging, foam, and as solvents, propellants and refrigerants. Halocarbons are ozone depleting substances that thin the ozone layer, allowing harmful UV radiation to pass through to the Earth’s surface.

There is no set definition of ‘ozone friendly’ but it is generally intended to indicate that a good is free of chemicals which damage the ozone layer. Refer to the Canadian Environmental Protection Act Ozone-depleting Substances Regulations for more on which substances are considered ozone depleting.

Recycled content / Recyclable

Recycled content is the portion of a good or its packaging, by weight or volume, which is composed of materials recovered from recycling. Goods containing recycled content have a positive environmental impact because they divert waste material from a landfill and can reduce energy consumption, by re-processing recycled materials rather than using virgin resources.

There are two types of recycled material:

Pre-consumer material indicates material recycled prior to use by the consumer. To make an appropriate "pre-consumer" recycled content claim, a supplier must


be able to substantiate that the pre-consumer material would otherwise have gone into the solid waste stream.

Post-consumer materials are generated by commercial and institutional facilities, or households. They can no longer be used for their intended purpose and are separated from the waste stream for recycling (e.g. paper and aluminum cans).

When an item is recycled, it is separated from the solid waste stream, diverted from a landfill and re-processed into a new good through an established recycling program. A claim of recyclability should make clear to consumers whether it refers to the good, the package, or both.

To determine if a good is recyclable, information on recycling facilities and processes is needed. Many goods may be recyclable in principle but without local processing facilities, they will be directed to a landfill.

The Mobius loop is a symbol in the shape of three twisted chasing arrows forming a triangle. It may refer to recycled content in the product or the packaging or it may mean that one or both are recyclable. When referring to recycled content, Canada’s Federal Competition Bureau requires the percentage of recycled content to be identified to avoid giving the impression that the symbol refers to recyclability. If the symbol is intended to indicate both recycled content and recyclability, an explanatory statement should appear near the symbol. If there is confusion over whether the symbol is meant for the good or the packaging, advertisers are asked to include an explanatory statement.

Plastics should be stamped with their plastic resin identification code (from one to seven) to facilitate recycling of the plastic. Not all recycling plants accept all types of plastics.

Resource efficient

Resources include raw materials such as timber, minerals and metals, water and the energy used to produce the goods. Resource efficiency means that resources are used in the most productive and economical way possible, keeping quantities consumed and waste to a minimum. Ideally an item should be resource-efficient throughout its life – from design and manufacture through to use and disposal. When assessing resource efficiency, consider elements such as:

quantity of raw material used during production (e.g. miniaturized electronics may use twenty times more resources than their final weight)

waste generation during manufacture and use

energy consumption during manufacture, delivery, use and disposal


size and capacity of the good (e.g. is it larger than necessary to meet the intended need?)

quantity of packaging

Toxic substances

The Canadian Environmental Protection Act, 1999 (CEPA, 1999) defines a substance as toxic if it is entering or may enter the environment in a quantity or concentration or under conditions that:

1. have or may have an immediate or long-term harmful effect on the environment or its biological diversity;

2. constitute or may constitute a danger to the environment on which life depends; or

3. constitute or may constitute a danger in Canada to human life or health.

The likelihood and magnitude of releases into the environment and the harm it may cause are taken into account. The Minister of the Environment and the Minister of Health are jointly responsible for the Priority Substances List, which is a list of substances to assess to determine if they are "toxic" or capable of becoming "toxic".

Substances that are found to be toxic are then added to the CEPA List of Toxic Substances. The federal government then works with the provinces, territories, industry, non-government organizations and other interested parties to develop a management plan to reduce or eliminate the harmful effects the substance has on the environment and on the health of Canadians. This may include the introduction of regulations that prohibit activities or impose specific duties, including duties to those in possession of the substance and who use products containing the substance.

There is little value or consistency to a ‘non-toxic’ label, unless backed up by a certification. The certification standards cited should be reviewed to better understand the meaning of the ‘non-toxic’ claim.

Volatile Organic Compounds (VOCs)

Volatile Organic Compounds (VOCs) change rapidly from a liquid state to a gaseous state when exposed to air. VOC vapours react with oxides of nitrogen in the presence of sunlight to produce low level ozone, an air pollutant and a contributor to smog. Indoors, VOCs can adversely impact indoor air quality, a measurement of the quality of air in a particular building based on the concentration of chemicals, particulates and other elements harmful to human health. Sources of VOCs include off-gassing from furniture, carpets, printers, cleaning products, markers and paint fumes.


Environmental performance labels

The International Organization for Standardization (ISO) has defined three types of environmental performance labels. These are all voluntary labels that the supplier can qualify to use for their goods and services.

Type I: These labels are commonly known as eco-labels. They are multiple criteria based programs that identify goods and services that are environmentally preferable within their category, based on life cycle considerations and third party audits.

Type II: These labels are environmental self-declarations made by manufacturers/importers/distributors/suppliers. Typically, they are based on a single attribute such as 'contains x% recycled content' or 'biodegradable'. The labels are not independently verified; however they may be defined by a regulatory body.

Type III: These labels provide quantified environmental data on goods or services, sometimes in the form of a data list, similar to a nutritional label for food. They are similar to Type I eco-labels in that the information is based on the life cycle performance of pre-defined parameters set by a qualified third party and the claims are independently verified. But unlike Type I eco-labels, they are not applied only to the top performers in a class, but broadly to any good or service in the class.

All these labels share a common goal to communicate verifiable and accurate environmental information about goods or services that is not misleading. They also aim to stimulate the market for environmentally preferable goods and services.

Eco-labels

Eco-labels are symbols used for goods and services to indicate that they have been certified to a specific environmental standard.

Eco-label programs exist in most countries. The following pages of this module will look at some of the most common ones used in Canada. This is not an exhaustive list as there are constantly new programs being created and many that exist for niche markets.

Respectable eco-labels are most valuable in allowing for rapid identification of environmentally preferable goods and services, especially where life cycle analysis and costing may be too time-consuming or may not be warranted based on the environmental risk and value of the purchase.


Did You Know?

The Government of Canada first introduced environmental criteria in its purchasing requirements for information technology (IT) hardware in 1994. Increasingly stringent environmental criteria have been introduced since then, using a phased, iterative approach. The criteria are wide-ranging and include reduced energy consumption, reduction of hazardous substances, design for reuse and recycle, environmental stewardship in the manufacturing process, packaging, supplier engagement and report and billing.

Examples of eco-labels and environmental standards that are required for IT hardware include ENERGY STAR®, Electronic Product Environmental Assessment Tool (EPEAT), International Organization for Standardization (ISO) 14001 certification, Total Cost of Ownership (TCO) certification and the Canadian General Standards Board standard for bulk packaging for computer equipment.

Keep in mind that before giving full credence to an eco-label, the criterion that was used to award the certification should be fully investigated – particularly if the certification body is not well known or widely accepted. Many companies promote their goods and services as environmentally preferable and may even develop their own Type II labels, when in fact there is no substantial evidence to verify their claim. This has become known as “greenwashing”.

Example

To obtain UL ECOLOGO certification, office paper must be manufactured using environmentally preferable processes, produced without the use of elemental chlorine for whitening and produced from fibers that are sourced from sustainably managed forests.

Using labels from certification organizations that are members of the Global Ecolabelling Network helps to ensure that the certification is meaningful. Most eco-label certification programs have web sites that you can quickly consult to determine the standards required for certification. Information on the eco-labels can also be found on the Ecolabel Index and Consumer Reports’ Eco-labels Centre.

Whenever an eco-label is used in government purchasing, equivalent labels should also be accepted. This is primarily to honour trade agreements, given that suppliers from other countries may be certified to a different eco-label that uses comparable criteria yet is not commonly used in Canada. In the solicitation document, whenever inserting the name of eco-label(s) requested, add “or equivalent.” Certifications may be


deemed equivalent if they are both members of the Global Ecolabelling Network or if their standards contain the same or almost the same environmental criteria.

Certification programs for general goods and services

The following programs grant certification to various goods and services that meet specific guidelines allowing them to be deemed environmentally preferable. Such goods and services have met established criteria for low life cycle impact on the environment.

Underwriters Laboratories (UL) Environment

UL Environment, a business unit of UL, offers environmental claim validations, multi-attribute product certifications such as ECOLOGO Certification (Type I eco-label), environmental product declarations (Type III), indoor air quality certification, product emissions testing, organizational sustainability certification, and consulting. Certification to their UL Sustainability standards indicates a product’s compliance with environmental performance criteria throughout its life cycle, including energy reduction, materials, energy, manufacturing and operations, health, and environment. This gives a robust view of a product’s sustainable attributes and identifies environmental leaders. The certification covers a large variety of goods.

Cradle to Cradle

The Cradle to Cradle Certified Product Program is a guidance system for continual improvement of product quality administered by the Cradle to Cradle Products Innovation Institute. Assessors trained and accredited by the Institute work with manufacturers to evaluate product quality across five categories: material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness. After an assessment summary has been submitted to the Institute, a qualifying product is awarded an overall level — basic, bronze, silver, gold, or platinum. Every two years, manufacturers must report improvement in these quality categories to earn recertification. All currently certified products are listed in the Institute’s product registry. The program does not certify foods or beverages.


ISO 14001 Environmental Management Systems

ISO 14001 sets out the criteria for an environmental management system. It can be certified to, although it does not state requirements for environmental performance. Instead it maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization regardless of its activity or sector. Using ISO 14001 can provide assurance that environmental impact is being measured and improved. Organizations may implement the criteria without being certified to the standard. There is no logo used to identify organizations certified to this standard.

Certification programs for energy efficiency

The following programs are used to identify the energy efficiency of goods and services, a key element of resource efficiency.

EnerGuide

EnerGuide is a Natural Resources Canada Type III energy performance label that helps consumers in their decision-making to purchase more energy efficient equipment on the market.

The EnerGuide label shows how much energy goods consume in a year of normal service and makes it easy to compare the energy performance of each model to others of the same size and class.

ENERGY STAR®

ENERGY STAR® is an international symbol of energy efficiency. It identifies goods which meet prescribed levels of energy efficiency. ENERGY STAR in Canada is administered by Natural Resources Canada’s Office of Energy Efficiency. The ENERGY STAR symbol can be found on a wide range of energy using products sold in Canada. The symbol can also be seen on the EnerGuide label for qualified appliances and air conditioners. While the EnerGuide label identifies energy use, ENERGY STAR goes one step further and identifies goods that are better energy performers.

Smart Way

The SmartWay Transport Partnership identifies freight transportation companies that publicly report their transportation emissions. Registered companies (e.g. truck, barge, and multi-modal carriers, logistics companies, and freight shippers) are called “SmartWay partners” and are identified on Natural Resources Canada’s SmartWay website. SmartWay Partners may be requested when procuring transportation services.


In addition, suppliers that provide the Government of Canada with goods may be asked to use SmartWay Partners for the delivery of goods.

Certification programs for sustainable forest management

Canada is committed to sustainable forest management, a system that works to meet society’s need for maintaining a vibrant forest economy while protecting the health of forested lands and maximizing the many environmental and social benefits we value those lands for.

Certification complements Canada’s comprehensive and rigorous forest management laws and regulations. It is also embraced by companies as a way of further improving their sustainable forest management practices. Third-party certification provides assurance that a forest company is operating legally, sustainably and in compliance with world-recognized standards for sustainable forest management.

Canada leads the world in third-party certification, with more land certified to voluntary, market-based forest programs than any other country.

Certification programs may have subtle differences but they all require third-party audits, annual surveillance audits, and public disclosure of findings through audit reports. It is often augmented by chain-of-custody certification: an accounting and tracking system that follows a forest product from its source through processing, marketing and sale to its end user.

Programme for the Endorsement of Forest Certification

The Programme for the Endorsement of Forest Certification (PEFC) is an international non-profit, non-governmental organization dedicated to promoting sustainable forest management through independent third-party certification. PEFC is an umbrella organization. It works by endorsing national forest certification systems developed through multi-stakeholder processes and tailored to local priorities and conditions. Each national forest certification system undergoes rigorous third-party assessment against PEFC's sustainability benchmarks to ensure consistency with international requirements.

Canadian Standards Association (CSA) Group

The CSA Sustainable Forestry Management (SFM) Standard was the first national sustainable forest management standard in the world. First released in 1996, forests certified to the CSA SFM Standard provide independent third party assurance of meeting a set of biological, environmental and social criteria. It is endorsed by the Programme for the Endorsement of Forest Certification.


Forest Stewardship Council

The Forest Stewardship Council® (FSC®) is an international eco-label dedicated to promoting responsible management of the world’s forests. To be certified, forests are evaluated against FSC’s environmental and social standards. FSC has three regional systems in Canada and all have been accredited by FSC International.

Sustainable Forestry Initiative

Sustainable Forestry Initiative (SFI) is an eco-label that promotes sustainable forest management, improved forestry practices and responsible purchasing of forest products. The SFI Standard includes measures requiring program participants to conserve biological diversity and promote socially sound practices, among other things. It is endorsed by the Programme for the Endorsement of Forest Certification.

Review

The following exercise provides an opportunity to review the terminology associated with environmentally preferable goods and services.

1. A product is only truly ____________ if facilities exist to do it.

a. Degradable

b. Recyclable

c. Transferable

2. This type of material is harmful to human health and the environment.

a. Hazardous substances

b. Post-consumer material

c. Compostable material

3. ____________ are considered to be a key cause of climate change.

a. Volatile Organic Compounds

b. Hazardous waste sites

c. Greenhouse gas emissions


4. A material that is capable of being broken down so that it can be easily assimilated into the environment without having significant negative impacts.

a. Degradable

b. Combustible

c. Recyclable

5. Using a resource in the most productive and economical way possible is described as being:

a. Resource efficient

b. Resource economics

c. Productive resources

6. When reviewing supplier claims, you should:

a. Use a dictionary

b. Validate the claims by checking for certification and verifying the criteria used by the certification, or asking for proof of environmental attributes.

c. Trust all environmental labels

Green Procurement Online Course C215 Module 5: Resources for Buying Green Page 44

Module 5: Resources for Buying Green

Learning objectives

This module provides information about the tools available for green procurement.

After completing this module you will be able to describe federal resources for buying green.

Guidance and information on greening government operations

Public Works and Government Services Canada publishes guidelines and web content on the greening of government operations. Foundational information can be found on the following topics:

Green procurement for small and micro departments

A guideline document walks small and micro departments and agencies through the process of meeting the requirements of the Policy on Green Procurement, particularly in the areas of implementation, target-setting and reporting.

Greening management frameworks

A guideline exists to understand how to integrate environmental considerations into departmental management systems. This document includes a detailed checklist to identify management frameworks and procurement processes that are candidates for greening.

Greening services procurement

The Guideline for Greening Services Procurement teaches a methodology for integrating environmental considerations into services procurement and a core set of environmental considerations that are applicable to all services contracts. Test your knowledge on applying these principles with a case study found in Annex A of the guideline.

Disposal of surplus electronic and electrical equipment

A guideline outlines how federal surplus electronic and electrical equipment should be disposed of in an environmentally sustainable manner, and which maximizes value to the Crown.


The greening government operations theme of the Federal Sustainable Development Strategy

Every three years, the Federal government is required to table a Federal Sustainable Development Strategy (FSDS), in accordance with the Federal Sustainable Development Act (FSDA). A suite of guidelines provide guidance for departments and agencies to achieve the greening government operations targets set in the FSDS and to complete the related planning and reporting.

PWGSC Supply Manual

The PWGSC Supply Manual contains policies and procedures, as well as references to Acts and directives, for the procurement of goods and services, including construction.

Environmental considerations have been integrated into the Supply Manual, which include:

Chapter 1: Public Procurement

1.10.10.k Life Cycle Management of Assets

1.60 Environmental Considerations

Chapter 2: Defining the Requirement and Requisition Receipt

2.20 Green Procurement and Defining the Requirement

Annex 2.2 Environmental Factors and Evaluation Indicators

Chapter 3: Procurement Strategy

3.65 Green Procurement Strategy

3.140 Life Cycle Costing

Chapter 4: Solicitation Process

4.15.5 Green Procurement Requirements

Chapter 5: Evaluation and Selecting the Contractor

5.100 Special Program Considerations

Green Procurement Plans

Green Procurement Plans are created for each category of goods and services as part of PWGSC’s category management process. Recall from module 2 that the category management process produces government-wide procurement instruments.


The Green Procurement Plans can be used in two ways. First, they can be consulted for information on which environmental considerations are being used in the category management procurement instruments. Second, when a procurement instrument is not available or is not suitable, the Green Procurement Plan for a similar good or service is a source of green specifications to consider for inclusion in the specific procurement at hand.

The Plans consist of a questionnaire and a scorecard that document:

environmental impacts associated with the good or services

good/service specifications and internal initiatives that can be used to reduce the environmental impacts

environmental considerations included in the procurement instrument

plans for further environmental considerations to be included in the future

The Plans are being phased in on a category-by-category basis. Links to the scorecard portion of the Plans for each good and service can be found on Buyandsell.gc.ca/green. The questionnaire portions of the Plans are available by request. Contact the Green Procurement Team of PWGSC’s Acquisitions Branch for more information.

Green Language Repertoire

The Green Language Repertoire is a compilation of exact wording relating to environmental requirements taken from existing solicitation documents (e.g. Requests for Standing Offers, Requests for Supply Arrangements and Requests for Proposals).

Procurement personnel can use this Repertoire to assist them in developing evaluation criteria, clauses and conditions, statements of work and/or requests for information that include environmental considerations.

Please note: The sample language was gathered from existing solicitation documents that have been previously issued on Buyandsell.gc.ca/tenders. To use the language in upcoming solicitation documents, procurement personnel must:

1. tailor the wording to fit the solicitation in question

2. ensure that all wording is approved by your departmental Policy and/or Legal Services


Step-by-Step guides

The Step-by-Step guides lead government buyers through each of the life cycle phases for a category of goods or services and identify relevant environmental considerations and links to helpful resources at each phase.

The generic steps are outlined below.

Phase: Plan

Step 1: Reduce your consumption and consider alternatives to purchasing.

Step 2: Define your operational requirement using the PWGSC tools and/or resources.

Step 3: Select specific goods and/or services that meet your requirements.

Phase: Acquire

Step 4: Purchase your goods and/or services using the appropriate method of supply.

Step 5: Dispose of packaging in the most environmentally responsible manner.

Phase: Use and Maintain

Step 6: Use and maintain to minimize environmental impact.

Phase: Dispose

Step 7: Dispose of your goods in the most environmentally responsible manner.

e-Purchasing

E-Purchasing provides federal government employees with an online procurement service. It is a single-window site that enables selected goods and services to be purchased from the convenience of the desktop. It allows purchasers to:

access the Standing Offer Index and submit call-ups against standing offers

issue purchase orders

shop by catalogue

pay by credit card

Benefits to using e-Purchasing include:

requisition tracking


fewer administrative costs

reduced paperwork

quicker delivery

identification of environmentally preferable goods and services

competitive pricing

statistics reporting

e-Purchasing is currently used in the procurement of vehicles, office supplies and office furniture.

Interdepartmental communities

The Green Procurement Forum provides an opportunity for PWGSC and other federal departments and agencies to present updates, share best practices and solicit input related to green procurement.

Forum members consist of federal government employees. All federal departments and agencies are welcome to participate and there are no limits to the number of participants from the same organization. Participants include, but are not limited to, procurement officers, materiel management officers, environmental officers, sustainable development officers and policy analysts.

Members periodically receive notifications from PWGSC related to green procurement on an as-needed basis, including invitations to meetings of the Greening Government Operations Community of Practice that are specific to green procurement.

The Greening Government Operations Community of Practice is a forum for federal sustainability managers and operational staff to network and share best practices and information on the planning, implementation and reporting of sustainable practices, in line with the goals, targets and implementation strategies identified in the greening government operations theme of the Federal Sustainable Development Strategy.

For more information or to become a member of either the Green Procurement Forum or Greening Government Operations Community of Practice, contact [email protected].


Review

To check your understanding of the material in this module, match each topic below with its description.

Topics

1. Green Language Repertoire

2. Green Procurement Plans

3. Guidelines on Greening Government Operations

4. Interdepartmental communities

Descriptions

a. Used to obtain information on environmental considerations being applied to PWGSC procurement instruments

b. An opportunity to present updates, share best practices and solicit input related to green procurement

c. A compilation of terms, conditions and evaluation criteria relating to environmental requirements taken from existing Solicitation documents

d. Contain foundational information on various topics related to greening

Green Procurement Online Course C215 Module 6: Practical Considerations Page 50

Module 6: Practical Considerations

Learning objectives

This module covers additional factors you may encounter while implementing green procurement and outlines some strategies for success.

After completing this module you will be able to:

identify alternatives that should be considered prior to acquisition to reduce the environmental impacts of operations

identify strategies for dealing with resistance

identify strategies for working co-operatively with the supplier community to reduce the government’s environmental impacts

identify key success factors to integrating environmental procurement decisions

discuss performance measurement in green procurement

Consideration of alternatives

Prior to proceeding with procurement, consider alternatives such as:

Reducing consumption by extending asset life (e.g. extended warranties, maintenance and repairs, upgrades)

Reducing consumption by right-sizing (i.e. buying less or specifying the correct performance for the intended operation)

Reducing consumption by using existing assets (e.g. transferring surplus assets from or to other areas of government; sharing or pooling of underused assets)

Reducing use of consumables (e.g. reducing amounts of chemicals used in lab processes; reducing printing; sharing and/or office supplies)

Using environmentally preferable acquired services (e.g. leasing or renting) instead of purchasing capital assets

It can be a challenge to convince clients to change the way they operate, especially to reduce consumption. Keep in mind that the Policy on Green Procurement directs us to consider the environmental impacts of our purchasing. Reducing the amount of materiel purchased is the ultimate implementation of the Policy and should be encouraged wherever possible.


Your department or agency may also have further departmental policies, guides and/or standards that support or mandate the use of procurement alternatives in some cases. Use all the tools available to convince clients to consider alternatives as a first step in the procurement process.

Dealing with resistance

Change can be difficult and there may be resistance to the implementation of new practices. The following are suggested strategies for dealing with resistance:

Ensure clients’ needs are incorporated in decision-making process – understand their requirement.

Phase in changes in goods and services specifications iteratively at a rate with which clients and suppliers can keep pace.

Communicate anticipated changes in regular client and supplier communications. Focus on key benefits that are of interest to your audience and provide solutions that are reasonable for your audience to execute.

Changing behaviour may require more than information: search for opportunities to enable, exemplify, encourage and engage stakeholders in a way that is meaningful to them to inspire behaviour change. Understand their barriers, tailor your change efforts to the needs of your stakeholders and state the benefits. Use a range of actions and approaches such as prompts, commitments, social norms, incentives and making the desired action more convenient.

Use soft skills, such as communication, collaboration, negotiation and the application of judgement in the absence of perfect knowledge.

Demonstrate the cost/benefit of the environmentally preferable alternative over its life cycle. Quantify the environmental impact wherever possible.

Promote best practices: contact the Office of Greening Government Operations if you don’t know where to look for best practices.

Cite departmental green procurement targets, senior management support and the Policy on Green Procurement.

Communicate that environmental criteria are no different from other technical criteria.


Working with suppliers

There may be opportunities to work co-operatively with the supplier community to reduce the government’s environmental impacts. Continuous improvement should be sought, particularly with long-term suppliers.

Many actions that can be taken by suppliers to reduce the environmental impact have been previously discussed throughout this course. To summarize, general actions suppliers can be encouraged to take are to:

offer bulk packaging to minimize waste and transportation when several orders are combined into one

use electronic communication wherever possible

phase out inefficient equipment used to render services or produce goods

reduce the hazardous and toxic substances content in goods or service processes

phase in environmental specifications found in relevant eco-label standards

when printing is necessary, use environmentally preferable printing methods such as black and white double-sided format on recycled paper that has sustainable forest management certification

implement return-to-vendor programs for packaging

In addition, the Government of Canada's commitment to green procurement should be clearly communicated to suppliers and suppliers should be encouraged to offer or suggest green solutions whenever possible.

If environmentally preferable goods or services do not yet exist for a given need, signal to suppliers that the Government of Canada is looking for environmentally preferable solutions to fill the gap and encourage them to develop those options.

Key success factors

Some key success factors applicable to integrating environmental considerations into procurement decisions are:

Taking an iterative, phased approach, introducing environmental considerations in manageable segments

Incorporating environmental considerations in the planning phase

Taking a long term and holistic view to life cycle analysis and costing


Ensuring proper contract administration, use, maintenance, and disposal of acquisitions, to ensure realization of savings

Engaging stakeholders early, including suppliers and purchasers

Choosing procurement options that demonstrate value for money through the best possible combination of total life cycle costs, quality and performance, including environmental performance

Documenting best practices and sharing lessons learned

Performance measurement

Ideally we could trace all purchasing decisions to a quantifiable environmental impact, such as the total emissions of greenhouse gases or the quantity of raw materials used. There are great strides being made to quantify these impacts through Life Cycle Assessments and Environmental Product Declarations, however, at present they may not be readily available for many goods and services.

Proxy measurements to assess our progress implementing green procurement are often used, such as the percentage or amount spent on environmentally preferable goods and services. Caution should be taken when using any proxy measure because there is an increased risk of creating perverse incentives. For example, including minor specifications, such as reducing the paper used in reporting and billing associated with a purchase, should not prevent the inclusion of more rigorous criteria in future contracts. However, if the only measure is whether or not there are any specifications included, there is an incentive to not include more rigorous criteria because it requires extra effort but does not improve reporting, and yet it is desirable.

As another example, hydrofluorocarbons (HFCs) were introduced to replace ozone-depleting substances, specifically chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), which are being phased out globally and domestically. However, HFCs are potent greenhouse gases, as their warming effect is hundreds to thousands times more powerful than carbon dioxide (CO2). There is currently much effort worldwide to reduce greenhouse gas emissions, however, if efforts are measured by the reduction in CO2 only, we may miss larger opportunities to reduce our environmental impact. HFCs are many gases that are currently being used in stationary and mobile air conditioning and refrigeration systems, aerosol cans and as a foam blowing agent in insulation foams.

This is also an example of how the world of green procurement is constantly evolving. We do not have perfect knowledge of all the ways our actions today may impact the environment and our future. It is important to make the best decisions we can with the


information that we have now, and also be willing to adjust and continually improve based on new knowledge.

Review

To check your understanding of the material in this module, match the action below to the topic discussed in this module.

Actions

1. Search for opportunities to enable, exemplify, encourage and engage stakeholders in a way that is meaningful to them.

2. Signal that the Government of Canada is looking for environmentally preferable solutions to fill future needs.

3. Choose procurement options that demonstrate value for money through the best possible combination of total life cycle costs, quality and performance, including environmental performance.

4. Demonstrate the cost/benefit of the environmentally preferable alternative over its life cycle. Quantify the environmental impact wherever possible.

5. Incorporate environmental considerations in the planning phase.

6. Communicate anticipated changes in regular client and supplier communications.

7. Encourage suppliers to offer or suggest green solutions whenever possible.

8. Reduce consumption through the extension of asset life, right-sizing, use of existing assets, reduced use and/or use of environmentally preferable acquired services.

9. Ensure proper contract administration, use, maintenance, and disposal of acquisitions, to ensure realization of savings.

Topics

a. Consideration of alternatives

b. Dealing with resistance

c. Working with suppliers

d. Key success factors

Green Procurement Online Course C215 Module 7: Guidelines for Greening Specifications Page 55

Module 7: Guidelines for Greening Specifications

Learning objectives

This module provides information on creating specifications and criteria for environmentally preferable goods and services.


recognize when to use existing green procurement options and when to develop your own environmental specifications

refer to a green procurement checklist when establishing specifications and evaluation criteria

describe where else to go to find information to develop greening specifications and evaluation criteria

describe the general process for developing greening specifications and environmental criteria

describe environmental issues and considerations associated with services

Knowledge check

You should now have a better understanding of the basic green procurement concepts, including life cycle analysis and value for money. You are also more familiar with the terms and claims used to market environmentally preferable goods and services, some of the environmental certification labels that you might encounter, and some practical considerations to remember. Now you are faced with making a purchase and you need to put these principles into action.

To review, the following steps should be followed when considering green procurement options:

1. Assess if a purchase is really required and consider alternatives.

2. If the requirement cannot be met with existing resources, assess other alternative purchases, such as repairing or upgrading existing assets or use of acquired services.

3. Assess if any existing PWGSC procurement instruments meet the requirement. If so, seek out opportunities to maximize the environmental potential of the instruments through item selection and Statements of Work.


4. If no procurement instruments exist that meet the requirement, consult relevant green procurement plans for related goods or services. The existing research and environmental criteria should be applied wherever relevant.

5. If no criteria exist, develop greening specifications to meet your requirement. This module will elaborate how to develop these greening specifications.

Green procurement checklist

There are many environmental aspects that should be considered when establishing specifications for goods or services procurement. The list below identifies issues and questions to be addressed for each.

Departmental green procurement objectives

What specific green procurement objectives have been established by the procuring department? The Policy on Green Procurement requires departments and agencies to set and monitor targets for green procurement through the annual Report on Plans and Priorities and the Departmental Performance Reports.

3R's

Reduce: Is there a need for the purchase? Are there opportunities to reduce consumption? Can demand for the item be aggregated amongst multiple users, to achieve better asset utilization or minimize shipping? Rather than buying a good, can services be used to meet the need?

Reuse: Can a second-hand or used item meet the requirement, such as transferring a surplus asset from elsewhere in government? When re-using items, consider costs of refurbishing and maintenance. Is the good being purchased reusable? Can it be economically repaired or upgraded to extend its life?

Recycle: Can the item be recycled at end of life? Do programs exist for recycling?

Environmental performance labels

Have studies of the environmental attributes of these goods or services been completed?

Are environmental performance labels available for the goods or services? Have the goods or services been certified by an environmental performance label?

Are other environmental standards available for the goods or services? Do the goods or services meet those standards?


Performance testing

Is it possible to verify the performance of goods or services prior to purchase?

Do the goods or services meet the required performance specifications?

Recycled content and renewable resources

Does the good include recycled content?

What percentage of recycled materials does the good contain?

What type of recycled materials does the good contain? Pre-consumer or post-consumer recycled content?

Does the good contain reconditioned parts?

Is the good made from rapidly renewable materials? Rapidly renewable materials are defined as materials that are renewable from natural sources within a ten year cycle (e.g. bamboo, kenaf, wool).

Resource efficiency

Do the goods or services make efficient use of resources (e.g. raw materials, water) throughout their life cycle? Are they made with sustainably managed resources or processes that are resource-efficient?

Do the goods or services consume fewer resources when used relative to their competitor? What are the operating costs, such as water consumed over their life?

Are there clear instructions as to how to use the good the most efficiently?

Greenhouse Gas Emissions

Are there fewer greenhouse gases emitted during the production or use of the goods or services, relative to their competitors?

Do the goods contain hydrofluorocarbons (HFCs)? If so, do the suppliers offer an equivalent that does not contain this potent greenhouse gas?

What are the operating costs, such as energy consumed over their life?

Does the good have any energy or fuel saving features (e.g. power down mode, programmable thermostats)?

Are there clear instructions as to how to use the good the most efficiently?


Hazardous materials

Does the product require Material Safety Data Sheets (MSDS)?

Do the suppliers offer a less hazardous equivalent for this product?

For goods containing hazardous substances, what obligations do regulations place on owners and users of the goods containing these hazardous substances?

Did You Know?

The Department of National Defense / Canadian Forces eliminated or restricted in use 116 hazardous chemical products identified as being a high risk between 2010 and 2013. These chemical products were screened and prioritized based on their inherent health, safety and environmental properties. Identified chemical products are eliminated wherever possible or restricted for use in only those applications where a less hazardous alternative is not available.

Toxic substances

Does the good contain any substances on the Canadian Environmental Protection Act List of Toxic Substances?

Do the suppliers offer an equivalent for this good that does not contain any toxic substances?

For goods containing toxic substances, do regulations allow the sale and use of a good containing these toxic substances? What obligations do regulations place on owners and users of a good containing these toxic substances?

Ozone-depleting substances

Does the good contain any ozone-depleting substances, as listed in the Canadian Environmental Protection Act (CEPA) Ozone-depleting Substances Regulations?

Is there an alternative good available that does not contain ozone-depleting substances?

Is the content of ozone-depleting substances within acceptable levels as outlined in the CEPA Regulations?


Air quality

Does the good release volatile organic compounds (VOCs)? Is there a suitable replacement that releases fewer VOCs?

Does the good release any other criteria air contaminant or air pollutant emissions? Is there a suitable replacement that generates lower emissions?

Packaging

Is the packaging necessary? Can it be eliminated or reduced through bulk packaging?

Is the packaging reusable? Does it contain reusable parts?

Is the packaging recyclable? Does it contain recycled materials?

Is the packaging made from rapidly renewable materials?

Will the suppliers remove the packaging from the site following installation?

Durability and useful life

Is the good durable? What is the expected useful life span of the good?

Is the good reusable or does it contain reusable parts?

Is the good designed for easy disassembly for reconditioning and reuse?

How long is the warranty? Should an extended warranty be purchased to increase lifespan?

Is it economical to repair or upgrade the good?

Is the good designed for easy maintenance, repair and/or upgrade?

Are maintenance and replacement parts readily available and reasonably priced?

Recycling

Is the good recyclable?

Do appropriate local facilities exist for recycling?

Is the good designed for easy disassembly for recycling?

Does the good include a return for recycling policy?


Will consumables and peripherals be accepted for recycling?

Disposal and waste

What is the quantity of waste generated by the goods or services during their life time? Do the goods or services generate less waste than their competitors?

When delivering construction services, will all wastes be source separated on site and recycled?

Are there local recyclers that can be used for waste management?

What is the cost of disposal arrangements?

Where hazardous waste is involved, can a certified recycler be engaged to reclaim or recycle material?

Indirect costs

What indirect costs are associated with the goods or services (e.g. less energy efficient IT equipment will produce more heat, causing the building's air conditioning system to work harder and further increase electricity costs)?

Do administrative costs apply, such as complying with Workplace Hazardous Materials Information System?

Environmental attributes of the suppliers

Do the suppliers have a certification or registration (e.g. ISO 14001 registration)?

Do the suppliers have an Environmental Management System (EMS) or environmental policy in place?

Do the suppliers engage in voluntary environmental initiatives?

Sources of information

When developing specifications for environmentally preferable goods and services, information on environmental attributes can come from a number of sources, including:

Certification programs or ‘eco-labels’. Refer to Module 4 for detailed information on reputable programs that can validate supplier claims.

Industry standards: Some industries have taken the initiative to establish standards or self-registry programs that define actions being taken to mitigate environmental impacts associated with their goods and services. These


standards provide a wealth of information related to environmental criteria that can be specified.

Product databases provide profiles of classes of goods and services and the key environmental impacts that they may have. This information can help a great deal in developing specifications.

Suppliers should be able to discuss and provide data on the environmental features of their goods and services. Use the Green Procurement Checklist as a guide for asking suppliers questions about the environmental attributes of their goods and services. Industry associations can also be a valuable resource, particularly when discussion with individual suppliers is not feasible.

Refer to the PWGSC Office of Greening Government Operations (OGGO) website for information, tools and resources, or contact OGGO. Contact the Green Procurement Team in Acquisitions Branch, PWGSC who develops green procurement plans and environmental specifications, or visit their Green Procurement website.

Using goods and services that have already been certified or reviewed by someone else is a good idea for several reasons:

The criterion has been verified by a third party

Ecolabeling organizations will award a label to goods or services that meet environmental sustainability criteria. Looking for the label takes the guesswork out of purchasing.

Performance requirements are usually included in the criteria

Many ecolabeling organizations include performance requirements in their standards to ensure the goods or services are effective for their intended purpose. Remember: it is not environmentally preferred unless it is an alternative and it is not an alternative if it does not perform as expected.

The programs are good sources of information on environmental considerations for specific goods and services

A lot of specialized research and consultation is typically conducted to develop a certification program. This information is reflected in the guidelines and standards of the programs and can be useful in place of conducting the same research and consultations over again.


Guidelines

Every good and service has different environmental impacts. The key environmental impacts relating specifically to the good or services purchased through PWGSC’s category management activities are documented in the Green Procurement Plans discussed earlier in this course. They should be consulted for category-specific environmental information wherever relevant plans exist.

Information on specific goods and services can otherwise be obtained from the sources of information highlighted earlier in this module.

In all cases, consider using output-based specifications to let suppliers meet the need in new ways, and therefore promoting innovation. For example, specify the upper limit of greenhouse gas emissions and/or energy consumption that is acceptable for annual operation and let suppliers determine the technology that can achieve the result.

For many departments and agencies, the most common type of procurement for which greening specifications are developed is the procurement of services. There are some specific considerations to take into account for greening services that are included below.

Note: Specifications recommended in this section are suggestions only. Specifications should be chosen based on the life cycle analysis done in the planning phase of any procurement.

Procuring services

Key environmental issues:

A life cycle approach should be used to identify the key environmental issues associated with the specific services being procured. The extent of the environmental impact will vary depending on the nature of the services being procured.

Consider the environmental issues related to general supplier operations, supplier operations when delivering the services, the goods and services used in service delivery and the inherent nature of the services.

Environmental issues could include, but are not limited to:

resource efficiency

greenhouse gas emissions

renewable resources, energy sources and fossil fuels

ozone-depleting substances


air quality

solid waste

hazardous or toxic waste

Specifications to be considered:

Supplier attributes (must be relevant to the services being procured)

Require supplier to have environmental management policies and practices that address general operations and are geared to continuous improvement

Require supplier evidence of an environmental management system or certification, such as ISO 14001

Require the completion of regular waste audits and a sound waste disposal program

Request the inclusion of environmental considerations in the corporate travel policy, including minimization of travel and selection of environmentally preferable modes of transportation

Supplier operations when delivering a service

Include the use of video/teleconferencing instead of in-person meetings

Include the use of environmentally preferable modes of transportation when travel is necessary

Include practices to minimize printing, such as the use of electronic distribution of documents

Include the use of duplex (double sided) printing in black and white when printing is necessary

Include the direction to provide services on an as-needed basis, such as janitorial services cleaning areas only if they require cleaning as opposed to a pre-determined schedule

Goods and services used in service delivery

Require the use of environmentally preferable equipment and consumables in service delivery that, at minimum, meet the environmental criteria required by PWGSC in procurement instruments for those goods.


The inherent nature of the services

Consider alternative services, such as recycling services instead of landfilling services, or services as an alternative to ownership of underused assets.

Review

To check your understanding of the material in this module, answer the following questions:

1. When should greening specifications be developed?

a. As soon as you know the requirement

b. Once you have concluded there are no alternatives to procurement

c. Once you have concluded there are no relevant environmental specifications or criteria already developed by PWGSC for their procurement instruments

d. Once the solicitation is ready to launch

2. What is a source of information for greening specifications?

a. Suppliers

b. Certification programs

c. Green procurement plans from PWGSC

d. All of the above

Green Procurement Online Course C215 Module 8: Putting It All Together Page 65

Module 8: Putting It All Together

Learning objectives

This module consists of a scenario analysis that will give you the opportunity to apply the knowledge you’ve gained.


apply concepts of this course at an operational level

describe the steps in a green procurement process

Scenario analysis

1. A client is asking you to purchase a number of printers for his/her Branch. What environmental considerations will you investigate first?

Hint: Remember the 3Rs.

2. After considering reduction and reuse opportunities, it is concluded that procurement of printers is still required. Where would you go to start planning for this purchase?

Hint: Federal procurement instruments.

3. The next step is to define the operational requirements. A factor in greening any procurement is to ensure that the operational requirements are met but not largely exceeded. For example, if a printer is purchased that does not meet the operational requirements; another procurement will be necessary sooner than desired. Alternatively, if a printer with greater functionality than required is purchased, it may use more energy and resources than necessary.

You have defined your operational requirements and have a list of printers from which to choose.

How do you decide which printer model(s) to choose?

Hint: Compare features available.

4. You have purchased the printers chosen using a call-up and the printers have just been delivered. What should the department do now to ensure that the environmental impacts of this procurement are minimized?

Hint: Packaging material and printer settings.

Green Procurement Online Course C215 Module 8: Putting It All Together Page 66

5. Now that the new printers have arrived, some older printers have been declared surplus by your department. Where would you go for direction on how to dispose of these printers?

Hint: Public Works and Government Services Canada’s Office of Greening Government Operations.

6. Consider if this procurement was for services, for example printing services or leasing of printers. What types of environmental criteria could you include in the technical requirements and/or evaluation criteria?

Hint: Areas that are also greened in government operations.

Green Procurement Online Course C215 Final Quiz Page 67

Final Quiz

Instructions

The quiz must be completed online to receive a certificate. If you pass the quiz, you will receive access to the certificate.

The final quiz includes 20 questions and the pass grade is 70%.

The questions will be presented one at a time with instructions along the way. There is no time limit, however, if you have to leave before completion, you will be required to restart the final quiz from the beginning when you re-enter the course.

Upon completion you will be shown your score. If you have received a passing grade, you will be able to print the certificate. If not, you will be asked to try again.

1. Identify the item that is not a potential benefit of buying green:

a. Reduce greenhouse gas emissions and the depletion of natural resources

b. Promote innovation

c. Disregard trade agreements

d. Reduce pollution and maintain or improve habitats and biodiversity

2. The primary means of implementing the Policy on Green Procurement is ________________.

Select the item that correctly fills the blank.

a. consideration of life cycle costs from planning to final disposal

b. achieving value for money

c. incorporation of environmental considerations into the procurement decision-making process

3. The Policy on Green Procurement applies to the procurement of goods and services, including construction, from planning to acquisition and does not apply to use or disposal phases.

a. True

b. False


4. In the Policy on Green Procurement, environmentally preferable goods and services are defined as ________________.


a. those that have a lesser or reduced impact on the environment over the life cycle of the good or service, when compared with competing goods or services serving the same purpose

b. those that have a lesser or reduced impact on the environment during disposal, when compared with competing goods or services serving the same purpose

c. those that have a lesser or reduced impact on the environment over the life cycle of the good or service, and cost less when compared with competing goods or services serving the same purpose

d. environmentally friendly

5. The Policy on Green Procurement requires that green procurement targets be made and reported through the ________________.


a. Capital Plan

b. Reports on Plans and Priorities and Departmental Performance Reports

c. Integrated Plan

6. Selecting goods and services that demonstrate value for money means ________________.


a. Always selecting environmentally preferable goods and services

b. Selecting goods and services that show the optimal balance of overall benefits, for a given expenditure, including, among other things, cost, performance, and environmental attributes

c. Always selecting the good or service that is least expensive

d. Ignoring any economic, environmental or social benefits to Canadian society


7. Which one of the following is considered a cornerstone of the Policy on Green Procurement?

a. The application of life cycle analysis.

b. The use of category management processes to meet purchasing needs.

c. Giving environmental performance top priority over cost and quality within the decision making process.

8. Life cycle analysis and costing in the context of federal procurement considers environmental and financial costs associated with which phases of the life cycle of the good or service?

a. Use and Disposal

b. Acquisition

c. Production, Transportation and Disposal

d. Planning, Acquisition, Use and Disposal

9. At which stage in the life cycle would you ask a supplier to demonstrate their compliance with environmental criteria?

a. Planning

b. Acquisition

c. Use

d. Disposal

10. At what phase would documentation be created that defines terms and conditions, including environmental terms, and mandatory requirements?

a. Planning

b. Acquisition

c. Use

d. Disposal


11. What is the purpose of Type 1 environmental performance labels (i.e. eco-labels)? Select the best answer.

a. To provide profiles of classes of goods and services and the key environmental impacts that they may have.

b. To provide a framework for managing environmental responsibilities efficiently and to support their integration into overall business operations.

c. To validate supplier claims of environmental attributes by confirming that a good or service meets a certain standard of reduced environmental impact.

d. All of the above.

12. The ISO 14001 standard is being used by organizations around the world to develop ________________.


a. Environmental procurement standards

b. Life cycle assessment standards

c. Sustainable development strategies

d. Environmental management systems

13. The 3Rs are ________________.


a. Reduce, reuse and rethink

b. Repair, recover and rot

c. Reduce, reuse and recycle

d. Reduce, replace and reclaim

14. Goods and services that burn less fuel or consume less energy than the next best alternative can claim that they have ________________.


a. lower greenhouse gas emissions

b. ISO 14001

c. lower halocarbons

d. Canadian Standard Association certification


15. What is the difference between EnerGuide and ENERGY STAR?

a. They both identify energy efficient products, however ENERGY STAR is third party verified and EnerGuide is not.

b. EnerGuide labels show how much energy equipment consumes in a year of normal service. ENERGY STAR goes one step further and identifies equipment that are better energy performers.

c. EnerGuide is a fuel consumption standard used to provide monthly updates to consumers on energy consumed, whereas ENERGY STAR identifies energy efficient kitchen equipment.

d. EnerGuide identifies goods that are most energy efficient. ENERGY STAR is an eco-label that identifies freight transportation companies that publicly report their transportation emissions.

16. When comparing products to determine environmental attributes, the best course of action is to ________________.


a. verify the meaning of any environmental performance labels

b. request further information from suppliers on why they consider their good or service to be environmentally preferable to competing goods or services

c. be aware that some environmental attributes may have been achieved by compromising other environmental objectives

d. do all of the above

17. The federal government can through its choice of specifications ________________.


a. limit competition to the top environmental performers

b. drive suppliers to implement a comprehensive environmental management program within one round of solicitations

c. drive broader positive environmental changes outside its direct operations

d. choose to ignore environmental considerations


18. When writing green specifications, which of the following criteria would be included?

a. Reduce the use of hazardous materials and/or toxic substances.

b. A demand that the client picks up the purchased goods.

c. A demand that suppliers stop packaging their goods.

d. A donation by the supplier to a charity with an environmental mandate.

19. How can packaging waste be reduced? Select the best answer.

a. Use of re-useable containers

b. Return-to-vendor programs

c. Bulk purchases

d. All of the above

20. Of the following, what is a key success factor to environmentally preferable purchasing?

a. Incorporating environmental considerations in the planning phase.

b. Taking a long term and holistic view to life cycle analysis and costing.

c. Documenting best practices and sharing lessons learned.

d. All of the above.

Green Procurement Online Course C215 Glossary and References Page 73

Glossary and References

Glossary

Air pollutant

Any substance in the air that could, in high enough concentration, harm humans, other animals, vegetation, or material. Pollutants may include almost any natural or artificial composition of airborne matter capable of being airborne. They may be in the form of solid particles, liquid droplets, gases, or in combination thereof. Exclusive of pollen, fog, and dust, which are of natural origin, about 100 contaminants have been identified. Air pollutants are often grouped in categories for ease in classification; some of the categories are: solids, sulfur compounds, volatile organic compounds, particulate matter, nitrogen compounds, oxygen compounds, halogen compounds, radioactive compound, and odours.

By-product

Material, other than the principal product, generated as a consequence of an industrial process or as a breakdown product in a living system.

Closing the loop

Closing the loop entails reusing, recycling or recovering materials that are then used by industry to make goods that you purchase.

Category management

Category management is the process PWGSC uses to develop national approaches for managing the procurement of categories of goods and services for the Government of Canada. It describes the scope, methodology and supporting documentation as well as the approach for the implementation, management and duration of the good or service.

Degradable / Biodegradable / Compostable

A degradable material is one that breaks down in such a way that the resulting materials can be easily assimilated into the environment, without having any significant negative impact on the environment. While many materials are ultimately degradable, the conditions under which these materials are disposed of may hinder the degradation process. Generally, light must be present for a good to photodegrade, while biological degradation requires oxygen to be present. Neither light nor oxygen is readily available in conventional landfills. Therefore, a supplier’s claim of degradability only has value if the disposal conditions are appropriate for degradation to occur.


Furthermore, if a good is only partly degradable, those ingredients that are identified as degradable should comprise a significant part of the good.

For a claim of compostability to be made, further criteria must be met; it must be able to break down into carbon dioxide, water and biomass at the same rate as paper, should not produce any toxic material and should be able to support plant life.

Suppliers should cite specific standards when making claims of degradability, biodegradability or compostability. The American Society for Testing Materials (ASTM) and Organization for Economic Cooperation and Development (OECD) publish degradability standards for a range of materiel, including plastics and chemicals.

Durable

Durable means a good is useful for a long period by resisting wear, decay, etc. Durable goods are environmentally preferred, in principle, because they can be reused or upgraded, helping keep resources out of a landfill and reducing the use of raw materials. However, there are no set criteria for durability as a green procurement term. When a supplier claims that a good is more durable compared to competitors, ask for further information, such as the expected lifetime of the good, options for reuse and/or upgrade, and availability of replaceable parts that prevent disposal in the event of a breakdown.

E-waste

Electronic waste (e-waste) includes all federal surplus electronic and electrical equipment (except vehicles) with a plug, battery or that uses electricity.

Environmental Management Systems (EMS)

See entry for the International Organization for Standardization (ISO).

Environmentally preferable, Environmentally safe, Environmentally friendly, Green

In the federal government “environmentally preferable” is defined as being less harmful to the environment and human health over the life cycle of the good or service, when compared with competing goods or services that serve the same purpose.

In the marketplace, the terms environmentally ‘preferable’, ‘safe’ or ‘friendly’ do not have a standard definition. Suppliers’ use of these terms could mean something quite different from each other. The same is true for terms such as ‘environmentally responsible’, ‘natural’, or ‘green’. As a result, this claim can be meaningless, unless specific environmental standards are cited. Suppliers should be requested to provide complete information as to why they deem their good to be environmentally preferable to their competitors.


Environmentally preferable good

An environmentally preferable good should have characteristics including, but not limited to, the following:

Is required

Can be reusable

Can be recyclable

Contain recycled material

Produces fewer pollutants

Has a long life

Is energy and resource efficient

Environmentally preferable services

Environmentally preferable services are services having at least one attribute from at least one of the following four categories of environmental considerations for services:

1. Supplier attributes

This could include the implementation of standardized environmental policies and practices within the supplier’s organization or certifications covering the supplier’s general operations (e.g. ISO 14001). These must nevertheless be relevant to the services being delivered.

2. Supplier operations when delivering a service

This could include minimizing travel, administrative practices that reduce paper use, obtaining third-party environmental certification indicating that the supplier processes are environmentally preferable, and providing services efficiently and only when required.

3. Goods and services used in service delivery

Services can be green if the service provider uses equipment, consumables and/or other services that are environmentally preferable.

4. The inherent nature of the services

Services can be green based on the inherent nature of the services. For example, recycling services are environmentally preferable compared to landfilling services.


Green procurement

Green procurement is the integration of environmental considerations into the procurement decision-making process, with the objective to advance the protection of the environment and support sustainable development.

Greenhouse gas emissions

Greenhouse gases include any of the atmospheric gases that contribute to the ‘greenhouse effect’. The greenhouse effect is the trapping of heat within the Earth’s atmosphere by atmospheric gases, and is a cause of climate change. The greenhouse gases include gases such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrochlorofluorocarbons (HCFCs), ozone (O3), perfluorinated carbons (PFCs), and hydrofluorocarbons (HFCs). Emissions of these gases in the atmosphere are caused by a number of things, including the burning of fossil fuels (e.g. oil, gas, coal, etc.) and the release of some manmade chemicals. Reduction in emissions of these gases is being targeted to reduce the effects of climate change.

Greenwashing

Greenwashing is the act of misleading purchasers regarding the environmental performance of a company or the environmental benefits of a good or service. A claim can be misleading by being vague, irrelevant, lacking proof, hiding a trade-off, being the lesser of two evils, fibbing or giving a false impression that it is endorsed by a reputable third party.

Hazardous material

Generally speaking, goods considered “hazardous” are dangerous to living organisms and the environment. Two common Canadian references to hazardous materials can be found in the Workplace Hazardous Materials Information System (WHMIS) and the Transportation of Dangerous Goods Act. Industrial suppliers must provide Material Safety Data Sheets (MSDS), which provide information regarding the risks of using a product and precautions to be taken to safely use, store and dispose of such products.

The Hazardous Products Act and the Consumer Packaging and Labelling Act regulate the labelling of consumer products, for use in both industrial settings and by consumer households. Consumer products that can pose a safety risk are marked as being flammable, corrosive, poisonous, explosive, etc.

International Organization for Standardization (ISO)

The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies. The ISO 14001 standard is being used by organizations around the world to develop Environmental Management Systems (EMS). An EMS


provides a framework for managing environmental responsibilities efficiently and supports their integration into overall business operations. An organization may simply base their EMS on the standard or it may choose to become officially registered to the standard, in which case it must periodically undergo audits by an ISO 14001 registrar. The establishment and registration of an EMS to ISO 14001 demonstrates that a company has procedures for monitoring and complying with regulatory requirements, exercises due diligence with respect to environmental risks and is continually improving their environmental performance.

ISO 14020 to 14024 eco-labelling standards address product labelling, environmental claims made by suppliers, and the standardization of environmental terminology.

Procurement officers have access to more detailed information about the ISO 14000 standards through the Canadian General Standards Board (CGSB).

Landfills

Disposal sites for non-hazardous solid wastes spread in layers, compacted to the smallest practical volume, and covered by material applied at the end of each operating day.

Life cycle analysis

Life cycle analysis is used to examine the known and potential environmental impacts of a good or service. In its most detailed form, a life cycle analysis considers the environmental risks from initial resource extraction through to final disposal (from “cradle to grave”). In its detailed form with quantifiable analysis, this can also be called a life cycle assessment.

For goods, these environmental risks could include:

the resource depletion, pollution and waste generation associated with manufacturing

the environmental costs of transporting goods to processing plants or to markets

poor indoor air quality and corresponding health problems caused by off-gassing of the good

the energy or water used during the operation of the good

the solid and liquid wastes that are absorbed by the environment at the end of its useful life


For services, the environmental risks over the life of the service may include those related to:

the general operations of the supplier

the delivery of the service

the equipment and goods used to deliver the service

the inherent nature of the service

Life cycle costing

An assessment of the financial costs associated with each phase of the life cycle:

Planning costs, including administrative and other costs (internal to government)

Acquisition costs, including administrative as well as design and production costs that are associated with the goods or services in question

Use costs, including set-up, training, contingency and maintenance costs

Disposal costs, including administrative costs, removal and transport

Life cycle management

Life cycle management is the application of both life cycle analysis and life cycle costing.

Ozone depleting substance, ozone friendly

The ozone (O3) layer protects the Earth against ultra violet (UV) radiation. A class of chemicals known as halocarbons are used in packaging, foam, and as solvents, propellants and refrigerants. Halocarbons are ozone depleting substances that thin the ozone layer, allowing harmful UV radiation to pass through to the Earth’s surface.

There is no set definition of ‘ozone friendly’ but it is generally intended to indicate that a product is free of chemicals which damage the ozone layer. Refer to the Canadian Environmental Protection Act Ozone-depleting Substances Regulations for more on which substances are considered ozone depleting. The U.S. Environmental Protection Agency (U.S. EPA) also maintains a list of ozone depleting substances.

Pollution

Generally, pollution is the presence of a substance in the environment that, because of its chemical composition or quantity, prevents the functioning of natural processes and produces undesirable environmental and health effects.


Recyclable

When an item is recycled, it is separated from the solid waste stream, diverted from a landfill and re-processed into a new product through an established recycling program. A claim of recyclability should make clear to consumers whether it refers to the product, the package, or both.

To determine if a product is recyclable, information on recycling facilities and processes is needed. Many products may be recyclable in principle but without local processing facilities, they will be directed to a landfill.

Recycled content

Recycled content is the portion of a good or its packaging, by weight or volume, which is composed of materials recovered from recycling. Goods containing recycled content have a positive environmental impact because they divert waste material from a landfill and can reduce energy consumption, by re-processing recycled materials rather than using virgin resources.

There are two types of recycled material:

Pre-consumer material indicates material recycled prior to use by the consumer. To make an appropriate "pre-consumer" recycled content claim, a supplier must be able to substantiate that the pre-consumer material would otherwise have gone into the solid waste stream.

Post-consumer materials are generated by commercial and institutional facilities, or households. They can no longer be used for their intended purpose and are separated from the waste stream for recycling (e.g. paper and aluminum cans).

Reduce, reuse and recycle (3Rs)

The 3Rs are a basic methodology that can be applied to almost any activity or purchase. They are hierarchical, with ‘reduce’ being the most important, followed by ‘reuse’ and ‘recycle’. Recycling has no impact on consumption (of finished products), whereas the first two do. The 3Rs should be considered when deciding if an item needs to be purchased and in determining which item to choose.

Reduce - Do we really need it or can we find an alternative?

Reuse - Can we find a surplus item, or repair or upgrade an existing item? If we have to purchase a new item, what is its potential for reusability?

Recycle - Purchase products that can be recycled and/or contain recycled content.


Resource efficient

Resources include raw materials such as timber, minerals and metals, water and energy sources. Resource efficiency means that resources are used in the most productive and economical way possible, keeping quantities consumed and waste to a minimum. Ideally an item should be resource efficient throughout its life – from design and manufacture through to use and disposal. When assessing resource efficiency, consider elements such as:

quantity of raw material consumed during production (e.g. miniaturized electronics may use twenty times more resources than their final weight)

waste generation during manufacture and use

energy consumption during manufacture, delivery, use and disposal

capacity of the good (e.g. is it larger than necessary to meet the intended use?)

quantity of packaging

Standing offer

A standing offer is a pre-negotiated offer from suppliers to supply goods and/or services at predefined rates, terms and conditions; it is not a contract. Purchasers use the call-up process to obtain goods or services based on the conditions and pricing of the standing offer.

Supply arrangement

A supply arrangement is a procurement instrument that allows purchasers to award contracts and solicit bids from a pool of pre-qualified suppliers for specific requirements within the scope of the supply arrangement.

Sustainable development

Sustainable development is when development meets the needs of the present without compromising the ability of future generations to meet their own needs.

Toxic

The Canadian Environmental Protection Act, 1999 (CEPA, 1999) defines a substance as toxic if it is entering or may enter the environment in a quantity or concentration or under conditions that:

1. have or may have an immediate or long-term harmful effect on the environment or its biological diversity;

2. constitute or may constitute a danger to the environment on which life depends; or


3. constitute or may constitute a danger in Canada to human life or health.

The likelihood and magnitude of releases into the environment and the harm it may cause are taken into account. The Minister of the Environment and the Minister of Health are jointly responsible for the Priority Substances List, which is a list of substances to assess to determine if they are "toxic" or capable of becoming "toxic".

Substances that are found to be toxic are then added to the CEPA List of Toxic Substances. The federal government then works with the provinces, territories, industry, non-government organizations and other interested parties to develop a management plan to reduce or eliminate the harmful effects the substance has on the environment and the health of Canadians. This may include the introduction of regulations that prohibit activities or impose specific duties, including duties to those in possession of the substance and who use products containing the substance.

There is little value or consistency to a “non-toxic” label, unless backed up by a certification. The certification standards cited should be reviewed to better understand the meaning of the “non-toxic” claim.

Volatile Organic Compounds (VOCs)

Volatile Organic Compounds (VOCs) change rapidly from a liquid state to a gaseous state when exposed to air. VOC vapours react with oxides of nitrogen in the presence of sunlight to produce low level ozone, an air pollutant and a contributor to smog. Indoors, VOCs can adversely impact indoor air quality, a measurement of the quality of air in a particular building based on the concentration of chemicals, particulates and other elements harmful to human health. Sources of VOCs include off-gassing from furniture, carpets, printers, cleaning products, markers and paint fumes.


References

Policies and Legislation

Alternative Fuels Act

Canadian Environmental Protection Act

Toxic Substances List

Ozone-depleting substances regulations

Regulations

Consumer Packaging and Labeling Act

Energy Efficiency Act

Federal Sustainable Development Act

Hazardous Products Act

Policy on Green Procurement

Transportation of Dangerous Goods Act, 1992

Treasury Board Contracting Policy

Treasury Board Directive on Fleet Management: Executive Vehicles

Treasury Board Directive on Fleet Management: Light-Duty Vehicles

Treasury Board Policy Framework for the Management of Assets and Acquired Services

Treasury Board Policy on Management of Materiel

Treasury Board Policy on Management of Real Property


Government Resources

Competition Bureau

Environmental Claims: A Guide for Industry and Advertisers Enforcement Guidelines

Environment Canada

Air Quality

Canadian Pollution Prevention Clearinghouse

Greenhouse Gas Emissions

Hazardous Waste and Recyclable Material

Managing and Reducing Waste

National Pollutant Release Inventory

Ozone

PWGSC

Office of Greening Government Operations

Buyandsell.gc.ca/green

Natural Resources Canada

Cars and Light Trucks

ENERGY STAR®

Energy Efficiency

Sustainable Forest Management

Green Procurement Online Course C215 Answers Page 84

Answers

Module 1: Basic Concepts

1.

• Reduce greenhouse gas emissions

• Reduce the depletion of natural resources

• Reduce the use of hazardous, toxic and ozone-depleting substances

• Reduce hazardous, toxic and solid waste

• Reduce pollution to the air, water and land

• Support reuse and recycling

• Maintain or improve habitats and biodiversity

• Create healthier environments

2.

• Achieve the best value for money over the life cycle

• Reduce the financial risks associated with negative environmental impacts

• Create a market for environmentally preferable goods and services

• Promote innovation

• Increase the competitiveness of suppliers

3. It depends. The purchase price might be comparable or less, it might cost more upfront but less over the life cycle, or it might cost more. If it does cost more, sometimes the additional cost can be justified and sometimes not.

Module 2: The Policy

1. The correct answer is b. The Policy on Green Procurement requires that environmental considerations be incorporated into the decision-making process, in the same manner as cost and performance. Where value for money can be demonstrated, the environmentally preferable procurement decision should be made.

2. The statement is false because the Policy on Green Procurement applies to all departments that fall under the definition of “department” used in Section 2 of the Financial Administration Act. The Deputy heads of those departments have requirements under the policy that are not optional.


3. The statement is false because sustainable development has already become a key goal of public policy both domestically and internationally. Sustainable development is about meeting the needs of today without compromising the needs of future generations.

Module 3: The Life Cycle

Case Study 1: Kitchen

Annual energy cost ($) Commercial Product Conventional ENERGY STAR

Refrigerator $223 $148

Dishwasher $2,126 $1,087

Steam cooker $1,141 $543

Griddle $2,106 $1,786

Oven $1,506 $1,267

Total annual energy cost $7,102 $4,830

Annual water cost ($) Commercial Product Conventional ENERGY STAR

Dishwasher $543 $237

Steam cooker $213 $75

Total annual water cost $756 $312


Cost savings from ENERGY STAR equipment Commercial Product Total Annual Utility Cost Total Lifetime Utility Cost

Conventional $7,858 $94,296

ENERGY STAR $5,142 $61,704

Cost Savings $2,716 $32,592

Figure 1: Annual Cost

Figure 2: Lifetime Cost


Conclusion:

The purchase of ENERGY STAR commercial kitchen equipment produces significant savings annually and over the lifetime of the equipment. Note that the example does not include inflation and interest costs.

In addition to the cost savings, the reduced energy use results in about 3,700kg fewer greenhouse gases being emitted annually. That is equivalent to taking a car off the road about 90% of the year or planting 360 trees each year. The equipment will also use 165m3 (165,000 litres) less water annually.

Did you know?

The Office of Energy Efficiency has ENERGY STAR savings calculators available to do these calculations for you. They also have a number of fact sheets and guides that include recommendations on energy efficient operation of equipment.

Case Study 2: Batteries

Scenario 1

1. The correct answer is 960. Analysis of alkaline batteries:

12,000 hours/15 hours = 800 sets of 4 batteries

800 set * 4 batteries = 3200 batteries

3200 batteries/50 per package = 64 packages

64 packages * $15 = $960

2. Environmental impacts of this purchase:

The production and disposal of 3200 batteries.

Batteries contain metals like iron, manganese and zinc. The mining, production and disposal of these metals have significant negative environmental and health impacts.

If the batteries are disposed of in landfills, the metals may leach into the soil, ground water and surface water, which has significant environmental and health costs.

Energy is consumed during the mining, production, transportation and recycling of each battery.

Recycling of batteries reduces some of these negative impacts. Recycling reduces the build up of metals in the environment and reduces the need for virgin materials, and therefore reduces the negative impacts of mining and producing virgin materials.


Scenario 2

1. The correct answer is 149. Analysis of rechargeable batteries:

12,000 hours total/30 hours of use per charge = 400 charges

400 charges/200 charges per set of batteries = 2 sets of batteries required

Recharger + set of batteries + extra set of batteries = $70 + $30 = $100

Electricity cost is 400 charges * $0.1235= $49

Total cost = $100 + $49 = $149

2. Environmental impacts of this purchase:

Production and disposal of 8 batteries

All environmental impacts of alkaline batteries apply to rechargeable batteries as well

In addition, there is energy consumed during the use of the batteries to recharge them

Conclusion:

Alkaline batteries cost $960 and result in the use and disposal of 3200 batteries.

Rechargeable batteries with recharger cost only $149 and result in the use and disposal of only 8 batteries. Despite the higher initial cost of the rechargeable batteries and the cost of the recharger, the cost of the rechargeable option is significantly lower than that of the conventional alkaline batteries when the entire life of the rechargeable option is taken into consideration.

Additionally, the environmental impact of purchasing rechargeable batteries is significantly lower as only 8 batteries are used instead of 3200. The energy required to recharge the batteries has a lower impact on the environment compared to the increased use of metals and the energy needed to produce and recycle the batteries. In fact, according to a study by Uniross in 2007, rechargeable batteries have up to 23 times less potential impact on non-renewable natural resources and up to 30 times less potential impact on air pollution over their serviceable life compared to disposables.


Figure 3: Initial Cost

Figure 4: Lifetime Cost


Figure 5: Environmental Cost

Review of the life cycle

1. The correct answer is e. It is necessary to consider the environmental burden of the goods or services during all phases of the life cycle: planning, acquisition, use and disposal.

2. The correct answer is a. The decision is made during planning so that the disposal impacts and cost may be factored into the life cycle analysis and costing of the purchase. Including the disposal cost in the planning analysis may impact which goods or services are purchased. In the disposal phase, the decision made in planning should be executed to realize the environmental benefits and cost savings expected.

3. The correct answer is b. The acquisition stage is where you develop the specific criteria being used in the solicitation documents.

Module 4: Evaluating Environmental Claims

1. The correct answer is b: recyclable.

2. The correct answer is a: hazardous substances

3. The correct answer is c: greenhouse gas emissions

4. The correct answer is a: degradable

5. The correct answer is a: resource efficient

6. The correct answer is b: validate the claims by checking for certification and verifying the criteria used by the certification, or asking for proof of environmental attributes.


Module 5: Resources for Buying Green

1. c. The Green Language Repertoire is a compilation of terms, conditions and evaluation criteria relating to environmental requirements taken from existing Solicitation documents.

2. a. Green Procurement Plans are used to obtain information on environmental considerations being applied to PWGSC procurement instruments.

3. d. Guidelines on Greening Government Operations contain foundational information on various topics related to greening.

4. b. Interdepartmental communities are an opportunity to present updates, share best practices and solicit input related to green procurement

Module 6: Practical Considerations

1. b

2. c

3. d

4. b

5. d

6. b

7. c

8. a

9. d

Module 7: Guidelines for Greening Specifications

1. The correct answer is c. Develop greening specifications only if the requirement cannot be met using existing resources, alternatives to procurement cannot be pursued, there are no PWGSC green procurement instruments that can be used and there are no relevant environmental criteria already developed for related requirements.

2. The correct answer is d. All of these can be sources of information for greening specifications.

Module 8: Putting it All Together

1. Investigate whether it is possible to reduce consumption (e.g. extend the asset life, reduce the number of devices, and/or use an alternative to procurement such as printing services) or reuse existing assets (e.g. transfer surplus printers from elsewhere in the department or from another department through GCTransfer).


2.

Start with the Buyandsell.gc.ca website.

Navigate to the goods and services section (click on the Goods and Services tab).

Select the good or service desired (i.e. Desktop and Network Printers).

This resulting PWGSC site is dedicated to the category and contains everything about the PWGSC procurement instrument, such as how to order, what technical specifications are included and who to contact for more information. Use the left hand menu to navigate this page.

Plan your purchase by examining the list of printers available on the mandatory PWGSC Standing Offer. All printers listed meet the minimum environmental requirements established during the procurement process.

In addition,

PWGSC maintains a list of green goods and services.

Green Procurement Plans and Step-by-Step guides exist for PWGSC procurement instruments.

Information on green considerations is available through the Standing Offer Index.

The Contracting Authority for a PWGSC procurement instrument can be contacted whenever there are questions related to the instrument. The Contracting Authority’s name and contact information is available through the BuyandSell.gc.ca site for the good or service and through the Standing Offer Index (in the Tombstone data, Quick Reference Guide and Standing Offer).

Did you know?

All printers on the PWGSC Standing Offer must, at minimum, be ENERGY STAR qualified at the time of purchase, have an Environmental Ecolabeling Certification, and be manufactured in facilities that are both ISO 9001:2000 and ISO 14001 certified, to name a few.

3.

Examine the technical details of printers listed on the mandatory PWGSC Standing Offer. Click on “Imaging hardware” then “best value grid”. Select the category, followed by the model being examined then “View/Print Technical Details”.


Look for features such as environmental certifications, participation in environmental programs, printer functionality such as duplexing and scanning, and warranty information.

4.

The packaging material should be reused, recycled or disposed of in an environmentally sensitive manner.

The duplex feature and black and white setting should be set as the default on printers and computers.

Printing without banner/cover sheets should be set as the default.

Defaults should be used for printing as much as possible.

Consider using secure print features to reduce printing paper that is not collected.

Power saving features should be used.

Equipment should be turned off when not in use.

Warranties should be used whenever needed.

Did you know?

In some cases, the supplier is responsible for taking back the packaging and reusing it or disposing of it in an environmentally preferable manner. See if there is a take-back clause in the contract or if the supplier has a take-back policy or practice.


5. Follow the Guidelines for the Disposal of Federal Surplus Electronic and Electrical Equipment.

Did you know?

Used toner cartridges should be returned to vendors for recycling in accordance with the stipulations of the Standing Offers.

6. Environmental criteria for services can relate to four distinct areas:

a. Supplier environmental attributes

Include criteria that demonstrate a supplier's commitment to implementing environmental practices. This could include the implementation of standardized environmental policies and practices within the supplier's organization or certifications covering the supplier's general operations. In general, they are actions that exceed regulatory requirements for operation.

b. Supplier operations when delivering services

Include contractual performance requirements, such as minimizing travel during service delivery and administrative practices that result in reduced paper use.

c. Goods and equipment used in service delivery

Address the environmental features of the consumables, goods and equipment employed by the supplier to provide the service. For example, printers used by print and publishing contractors should comply with the environmental criteria included in the Standing Offer for printers discussed in the solution of the first question.

d. The inherent nature of the services

Consider alternative services. In this case, the leasing of printers compared to the purchase of printers may be environmentally preferable on the basis that the supplier has greater incentive to ensure that the goods used are durable, well maintained and efficiently deployed. If the requirement is for high volume in a short span of time, the purchase of printing services may be more appropriate and environmentally preferable to reduce the manufacture of printers that would shortly go unused.

C215 Print Friendly Version - dln-rad.forces.gc.ca

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