Green Purchasing & Green Marketing

Prof. Hideki NakaharaMusashi Institute of Technology

Chair of GPN Japan

GREEN MARKETING CONFERENCE 17th OCTOBER 2006,SEOUL

How much is enough?

These matter changed our Lifestyle during 20 century in Japan!!

1st Convenience Store 2nd Mobile phone 3rd Internet 4th Television5th Computer 6th Micro wave Ouven 7th Computer Game 8th Car9th Credit Card 10th First Food

Products and Services

Acceptance

Sustainable Production

Sustainable Consumption

Sustainable Society

Sustainable Development

WSSD

Producers Network (BtB)

Households

Quality of Life

Happiness

Clothing

Mobility

Leisure

Housing

Function Based approach

Market

Social Infrastructure

Product(BtC)

Product(BtG)

Government

Life Cycle Approach

Life Style

Eco Label

IPP EPP

Green Procurement

Acceptability

LCA LCC Eco Efficiency

Economy

Environment

Society

ConceptToolPolicy

PSS

Value

Do You Prefer to Buy Eco-Products?

Preferring eco-products as much as possible

Taking into account environmental aspect to some extent as well as other aspects

Not motivated by environmental aspects

４３％５１％

６％

Buying only eco-products 　１％

Year ２００ 1

JAMA Information on Motorcars

JEMA Information on Home Appliances

GPN Data BaseEnergy Saving Catalog

Low Emission Vehicle Guidebook

Considering whole life cycle Focusing specific aspect(s)

SYMBOL

DATA

Various Environmental Labellings

Type LabelⅢ

Eco Mark （ ISO Type LabelⅠ ）Eco Mark （ ISO Type LabelⅠ ）

GPN Guidelines/DatabaseGPN Guidelines/Database

Symbols from Third partiesSymbols from Third parties

Criteria of Green Purchasing LawCriteria of Green Purchasing Law

Self Declaration Label Self Declaration Label

ISO Type Ⅲ Label（ e.g Eco-Leaf）ISO Type Ⅲ Label（ e.g Eco-Leaf）

88%88%

48%48%

43%43%

33%33%

23%23%

7% 7%Source: ＧＰＮ “ Green Purchasing Questionnaire Survey”( ２００３）

Product Related Information Used by Green Institutional Purchasers

Green Procurement in Business Sector

Already implemented

Consider to introduce

No plan

57%25%

18%

Survey by MoE Japan in 2005

2,524 respondents (large sized companies)

Effect of Green Purchasing

GPN Annual Suppliers Survey, Japan 2001 Survey• 74% of 673 supplier companies responded “sales amounts

of green products have increased in the past couple of years”.

• 75% have increased green products brand.

2002 Survey • 74% of 802 suppliers responded “customers’ interest in

green products has increased.

2003 Survey • 58% of 722 suppliers responded “green products sales

have increased in the past year”.• Domestic market size of green products is roughly

estimated at 50 trillion yen.

Market Size of Environmental Business of Japan

29.9

47.2

58.4

0

10

20

30

40

50

60

Y2000 Y2010 Y2020

Pollution prevention

Efficient ResourceUtilization TOTAL

(Trillion yen)

Government estimates 47 trillion yen (4,200 billion US$) in 2010.

Source: MoE Japan 2003

Products• Printing and Copying Paper • Copiers, Printers, Facsimiles• Personal Computers• Stationery and Office Supplies • Office Furniture• Motor Vehicles• Refrigerators• Washing Machines• TV Sets • Air Conditioners • Toilet and Tissue Paper• Lighting Equipment • Uniforms and Work Wear

Green Purchasing Guidelines for 15 Products and Service Areas

Services• Offset Printing

Service• Hotels and Inns

Suppliers Evaluation Checklist

Target fields of Green Purchasing

Office SupplyMotorcar

PC

Paper

Furniture

Work wear

Distribution

Food

Hotel & Meeting

Banking

Lighting Electric Appliance

CanteenCatering

ServicesProducts

Parts and MaterialsCleaning

Printing

Printer

Construction

ElectricityEnergy

Information Found in GPN-Database

Example for “Copiers”Example for “Copiers”Brand nameCompanyCopying speedEnergy StarGP Law conformity Power consumption for stand-by and off modeTwo-sided copyingUse of recycled plasticsUse of reused partsToner cartridge recyclingUse of PVCEco-Label certificationPrice

Users can get and compare environmental performance information for hundreds of registered brands.

Information format is consistent with relevant GPN Purchasing Guidelines

GPN DB - Registered Products

Score System of Eco-Challenge DB

Policy & EMSPolicy & EMS

Waste managementWaste management

Food & Beverage Food & Beverage relatedrelated

Energy/water conservationEnergy/water conservation

Green purchasingGreen purchasing

• Performance is indicated with radar chart• 89 check points are classified into 5 categories• For each category, score of 0 - 5 is calculated

Role of GPN in the Market

Suppliers PurchasersＧＰＮ

Products Information

Green Products & Information

Data BaseProducts Information

GuidelineParticipation in Consensus building process

Guideline for

PurchasingGuideline for

product development

Green Purchasing

Common guidelinesComparable product information

Participation in Consensus building process

Next Decade of the GPN • Promote green purchasing among individual

consumers as well as institutional purchasers

• Educate pupils and school teachers

• Provide more information focusing on food, clothes, house, and various services

• Launch local networks and support their activities targeting SME, municipalities, and consumers

• Diffuse green purchasing globally

Conclusions• Customers already started green

purchasing/procurement across the world and had made reasonable successes.

• Businesses are increasingly required to supply eco-products, eco-components, and eco-services from customers throughout the supply chain.

• To be competitive in the global market, businesses should enhance environmentally sound management, development of eco-products, and green purchasing.

PurchaserPurchaserPurchaserPurchaser BusinessBusinessBusinessBusinessGreen marketGreen market

Green purchasing & Green Business

Eco-design,Eco-design,LCA, EMSLCA, EMS

Green Purchasing encourage environmentally conscious Management and eco-product development through the market

IndividualsIndividualsGovernmentsGovernmentsCorporations Corporations

Green purchasing

Green product

Win-Win

Producers Network (BtB)

Quality of Life

Happiness

Clothing

Mobility

Leisure

Housing

Function Based approach

Market

Social Infrastructure

Product(BtC)

Product(BtG)

Government

Life Cycle Approach

Life Style

Eco Label

IPP EPP

Green Procurement

Acceptability

LCA LCC Eco Efficiency

Economy

Environment

Society

ConceptToolPolicy

PSS

Value

Households

Talk the Walk、 UNEP

Find Fundamental Solutionby Changing the Input

WasteWaste

PollutionPollution

Hazardous Hazardous

substancessubstances

Carbon Carbon

DioxideDioxide

Recycling

Reduce inputReduce input

Non-hazardous materialNon-hazardous material

Easy-to-recycleEasy-to-recycle

Energy savingEnergy saving

Resource savingResource saving

Make the input greenMake the input green

RecycledRecycledmaterialmaterial

Reduce the outputReduce the output

Thank you for your kind attention.GPN Website : http://www.gpn.j

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