Hiroyuki Sato Secretary General Green Purchasing Network (GPN) Green Purchasing in Japan - Progress,...

Hiroyuki SatoHiroyuki SatoSecretary GeneralSecretary General

Green Purchasing Network (GPN)Green Purchasing Network (GPN)

Hiroyuki SatoHiroyuki SatoSecretary GeneralSecretary General

Green Purchasing Network (GPN)Green Purchasing Network (GPN)

Green Purchasing in JapanGreen Purchasing in Japan

- Progress, Current Conditions, and Future - - Progress, Current Conditions, and Future -

What is green purchasing?What is green purchasing?

PricePrice QualityQuality Conveni-Conveni-enceence

＋EnvironmentEnvironment

＝

Green purchasingGreen purchasingGPN

When you purchase something, consider the necessity, taking the environment, as well as quality and price into account, and try to purchase a product or service with the least environmental impact from the businesses of those who make a conscious effort to care for the environment.

＜＜ Basic rule of green purchasingBasic rule of green purchasing ＞＞

What does “green purchasing” mean?What does “green purchasing” mean?

Principles of Green PurchasingPrinciples of Green PurchasingPrinciples of Green PurchasingPrinciples of Green Purchasing

Principle 1Principle 1 – Deliberate the necessity before purchasing

Principle 2Principle 2 - Consider the environmental impact of a product at all stages of its life cycle.– followed by eight detailed aspects.

Principle 3Principle 3 – Assess suppliers’ environmental management and activities,

Principle 4Principle 4 - Gather environmental information on products and suppliers

By Green Purchasing Network(GPN)

Green purchasing changes a corporation

Green purchasing changes a corporation

CorporationCorporationConsumerConsumer

Green purchasing

Green product

Eco-designEco-design

Environmentally Environmentally conscious managementconscious management

Encouraging environmentally conscious managementand product development through the market

Establish a sustainable societyEstablish a sustainable societyGPN

Green marketGreen market

Governments and corporations Governments and corporations are large scaled-consumer. are large scaled-consumer.

End user

Material supplier

Manufacturer/service business

Raw material supplier

Pro

mot

ion

of g

reen

pu

rcha

sing

/pro

cure

men

t

Dev

elop

gre

ener

pro

duct

s

＋

Env

iron

men

tall

y co

nsci

ous

man

agem

ent

Construct a green supply chainConstruct a green supply chain

Green Purchasing Network (GPN)Green Purchasing Network (GPN)Green Purchasing Network (GPN)Green Purchasing Network (GPN)

Founded in February 1996 to promote green purchasing in Japan by the initiative of Environment Agency

Since then GPN has taken a leading role to promote green purchasing in Japan.

The mission of the GPN – to spread out the concept and practices of green purchas

ing– to provide guidelines and information necessary for pra

cticing green purchasing.

About GPNAbout GPNAbout GPNAbout GPN

Independent non-profit organization 2,732 members (as of Nov. 2002)

– 2,099 corporations – 364 governments– 269 NGOs, NPOs

Executive Committee: 35 members Secretariat: 6 staff Budget: US$600,000/year

– Membership fee : 50%– Project income : 40%– Subsidy : 10%

Business

NGOGovernment

Members of GPNMembers of GPNMembers of GPNMembers of GPN

All of 47 prefectural governments All of 12 designated cities – Osaka, Nagoya, Fukuoka,

Sendai, Sapporo, Yokohama…..

Large businesses– Sony, Canon, NEC, Fuji Xerox, Ricoh, Honda, Toyota,

Nissan, Matsushita Electric Industrial, Nippon Steel, Seiko Epson, Hitachi, Toshiba, Mitsubishi Corp., JT, Suntory, Kikkoman, Tokyo Gas, Development Bank of Japan, NTT, JR, Tokyo Electric Power……

Necessity of Initiatives by Necessity of Initiatives by Public SectorsPublic Sectors

Necessity of Initiatives by Necessity of Initiatives by Public SectorsPublic Sectors

Have significant impact on the market [about 20% of the market]

Can help to improve reliability of the “green” products

Can reduce the cost of “green” products by creating initial demand

Expand availability of “green” products in local areas

Raise awareness of staff, that can lead to greening the government

Law on promoting Green PurchasingLaw on promoting Green PurchasingLaw on promoting Green PurchasingLaw on promoting Green Purchasing

May 2000, the Law on Promoting Green Purchasing was enacted, and enforced in 2001.

All the State ministries and agenciesAll the State ministries and agencies must draw up annual “procurement policy”, to practice the plan, practice it , and are required to to report the result to Environmental Minister.

Local authoritiesLocal authorities are imposed “efforts” to implement green purchasing activities.

Designated Procurement Items Designated Procurement Items of the Lawof the Law

Designated Procurement Items Designated Procurement Items of the Lawof the Law

All of the State institutions are obligated to implement green purchasing for the designated procurement items

152 items of 14 categories– Copying and printing paper, Stationery and office

supplies, Office furniture, Electric appliance, Office automation equipment, Lighting apparatus and lamps, Motorcars, Uniforms and work wear, Interior, Building material of public project, Services

Law on Promoting Green Purchasing, Designated Procurement Items -1

“Evaluation criteria” and “Items to be considered”



Copying paper:Copying paper: Used paper: 100%, brightness: less than 70% Printing paper:Printing paper: Used paper: 70%, brightness less than 70% Stationery:Stationery: Recycled plastics: 40%/Use of thinned wood, Used

paper: 50% 【 Considerations 】 Change or refill of consumable stores, “R” design

Office furniture:Office furniture: Recycled plastics: 10%/Use of thinned wood, Least emission of formaldehyde/Used paper: 50%【 Considerations 】 Repairable, Parts exchangeable

Copying machines:Copying machines: Energy-saving standards/International Energy Star standards 【 Considerations 】 Recovery and recycling of cartridges

Personal computers:Personal computers: Energy-saving standards 【 Considerations 】 Recovery of products, “R” system, Reuse of parts, Use of recycled plastics

Refrigerators:Refrigerators: Energy-saving standards 【 Considerations 】 Impacts of coolant and insulation materials on global warming, Use of recycled plastics

Air-conditioners:Air-conditioners: Energy-saving standards 【 Considerations 】 Use of recycled plastics

Motorcars:Motorcars: Low-pollution vehicles, transitional low-emission vehicles (TLEV) 【 Considerations 】 Reduction of lead, Use of recycled materials

Fluorescent devices:Fluorescent devices: Hf inverter/Energy-saving standard Uniforms and working wear:Uniforms and working wear: Recycled PET resin 10% or more 【 Conside

rations 】 Recovery and recycling of products Printers, facsimile machines, television sets, VTRs, Fluorescent tubes, curtaiPrinters, facsimile machines, television sets, VTRs, Fluorescent tubes, curtai

ns, carpets, blankets, glovesns, carpets, blankets, gloves Solar power generation system, fuel cells, solar thermal utilization systemSolar power generation system, fuel cells, solar thermal utilization system Public construction:Public construction: Use of recycled materials, Use of low-pollution type co

nstruction machines Diagnosis on energy savingDiagnosis on energy saving





Movements of Law on Promoting Green Purchasing

　～ Addition and Review of Designated Procurement Items ～

Papers: Addition of 5 items including OCR papers, tissue paper, etc.Stationery: Addition of 18 items including cloth adhesive tape, desk mats, etc.Apparatus: Addition of 3 items including coat-hangers, umbrella stands, etc.OA apparatus: Addition of display, Partial alteration of energy-saving standardsMotorcars: Addition of LPG vehiclesInterior: Addition of futon mats, beds and mattressesEquipment: Addition of kitchen garbage processing equipmentPublic construction: Addition of 17 items including slag aggregate, earth and

sand, paints, insulation materials, insulation sash doors, automatic clocks, etc.Services: Addition of restaurants and reuse of tiresPrinting: Addition of standard for printing ink, Change of category to services

GPN

Impact of the LawImpact of the LawImpact of the LawImpact of the Law

A Survey shows 18 % of local governments “started the green purchasing under the influence of the law.”

Many of companies manufacturing “designated procurement items” accelerated development of “green” products which can meet the criteria.

Increase in the number of organizations that have promoted green purchasing

～ it has become to rapidly grow in around 1996 when GPN established～

GPN

16 28 35 45109

217

398

577

802

962

1128

16 20 22 31 53 76 121 178256 297

402

0

200

400

600

800

1000

1200

92 93 94 95 96 97 98 99 00 01 02-03 (Estimates)

Office supplies

Year

Num

ber

of o

rgan

izat

ions

Parts, materials and packaging materials

Present Status in Public SectorsPresent Status in Public SectorsPresent Status in Public SectorsPresent Status in Public Sectors

All the central government ministries practices green purchasing

All the 47 prefectural governments and 12 designated cities are engaged in green purchasing

47% of 700 cities implement green purchasing organizationally

Particularly advanced areas ; papers, office supplies, office furniture, OA & IT equipments, motorcars, uniforms, and electric appliances

Current Status of Business SectorsCurrent Status of Business SectorsCurrent Status of Business SectorsCurrent Status of Business Sectors

Findings from survey by GPN in 2002 51% of responding companies have written

policies on green purchasing 36% of them have adopted green

purchasing policies on parts and materials. 52% of them consider suppliers’ EMS and

other environmental activities

Market Impact of Green PurchasingMarket Impact of Green PurchasingMarket Impact of Green PurchasingMarket Impact of Green Purchasing

Findings from survey by GPN in 2001 74% of suppliers responded “sales of green “sales of green

products increased in the past couple of products increased in the past couple of years”years”

75% of the suppliers have increased the numbers of green products brand

Expansion of green purchasing has had a great impact on the market in Japan

Outline of Green Procurement of Outline of Green Procurement of Parts and MaterialsParts and Materials

Outline of Green Procurement of Outline of Green Procurement of Parts and MaterialsParts and Materials

Green procurement of parts and materials have been expanding around electric equipment and machinery manufacturers.

Environment has been added to the conventional consideration points of quality, cost and delivery.

Green procurement standards and targets are set for carrying out the activities.

The following combination of assessments forms the mainstream.– Evaluation of parts and materials (chemical contents, etc.)– Evaluation of suppliers’ corporate structures

Efforts are made to gain cooperation of business partners through seminars, presentation of successful cases, and positive support.

The campaign has been expanded to include business partners in Asia and other parts of the world.

Toward the greening of world-wide industries through the supply chain.

Incentives to Green Procurement of Incentives to Green Procurement of Parts and MaterialsParts and Materials

Incentives to Green Procurement of Incentives to Green Procurement of Parts and MaterialsParts and Materials

〈 Evaluation of parts and materials 〉 Cooperation with trade partners is indispensable to upgrade the

“greenness” of the company’s own products.– Respond to the needs of customers for green purchasing– Reduce the risks at the time of disposal based upon EPR (Extended

Producer Responsibility) Avoid the risks relating to chemical substances Reduce environmental impact throughout the product life cycle

and reduce the cost of disposal.〈 Evaluation of suppliers 〉 The business partners can strengthen their management structure

by establishment of an environmental management system. Cost reductions can be realized through the reduction of waste,

energy and resource saving, etc.

Green Procurement ― Movement on Green Procurement ― Movement on “Evaluation of parts and materials”“Evaluation of parts and materials”

Green Procurement ― Movement on Green Procurement ― Movement on “Evaluation of parts and materials”“Evaluation of parts and materials”

Investigation of chemical contents in parts and materials– Prohibited substances: Substances to be abolished or substituted– To-be-reduced substances: Substances to be reduced– Controlled substances: Substances to be adequately controlled

Other items to be considered (Energy and resource saving, recyclability, packaging materials, etc.)

Carrying out the survey on suppliers. General parts are put into the data base within the company and used by the designing division. Special parts are to be developed under mutual cooperation.

Reduction of lead in soft soldering, reduction of hexavalent chrome in steel plates, reduction of halogen family substances, etc. are the points to be appealed.

Green Procurement ― Common Green Procurement ― Common Approaches to Investigating Chemical Approaches to Investigating Chemical

SubstancesSubstances

Green Procurement ― Common Green Procurement ― Common Approaches to Investigating Chemical Approaches to Investigating Chemical

SubstancesSubstances Manufacturers in the electric industry, etc. established the “guidelines

for common investigation of green procurement” in March 2002.– As of September 2002, 28 corporations have joined in the move including Canon, Fuji Xerox,

Fujitsu, Hitachi, Seiko Epson, Toshiba, IBM Japan, Ricoh, Mitsubishi Electric, Matsushita Electric Industrial, NEC, NTT, etc.

This has been to minimize the cost of investigation to each of the companies and to upgrade the precision of research

Common items of investigation are limited to chemical contents of materials.– 28 groups of substances have been designated for the investigation.– It does not refrain member corporations from carrying out additional research of their own.

The move aims at establishing a global standard through discussions with industrial associations in Europe and the United States.

As for common data base of parts and materials, discussions are underway among

concerned parties.

Targeted Chemical Substances (List A)Targeted Chemical Substances (List A)

(1) Focused on laws and regulations relating to wastes, prohibitions on production and usage, and wastewater.

(2) Weighting of list A items is left to the judgement of each member company.

(3) The investigation is principally limited to families of substances. Further details are left to each member company.

(4) Answers are given on intentionally added substances or on substances known to be contained.

(5) No threshold values are given. (Answers are based on responsibilities of member companies.)

List A (28 groups of substances)

Interpretation of List A

※1 Chromium compounds other than hexavalent chrome and metallic chrome※2 Nickel compounds other than metallic nickel※3 Halogen family resin additives other than paraffin chloride, PBB and PBDE※4 Azo compounds forming specific amine※5 Substances designated by Montreal Protocol

Green Procurement ― Movements on Green Procurement ― Movements on “evaluation of suppliers”“evaluation of suppliers”

Green Procurement ― Movements on Green Procurement ― Movements on “evaluation of suppliers”“evaluation of suppliers”

Emphasize the importance of establishing an Environmental Management System (EMS).– Require major suppliers to obtain ISO14001 certification.– Many businesses demand the establishment of EMS not limited to ISO.– Some businesses are proposing a system to simplify ISO and to gradually

upgrade, in order to modify the burden on the suppliers’ side.– Many businesses are providing support and consultation for the

establishment of EMS. Other than the above, the following activities are also

considered.– Environmental policy, organization, plan, environmental education,

compliance with the law, disclosure of information– Product assessment, development of environmentally conscious parts and

materials, green procurement– Recovery and recycling of used products and packaging materials

Many businesses declare that unless the requirements are fulfilled within the specified period, trade transactions shall be discontinued.

Evaluation Criteria in Product Selection (Guidelines)

～ 60% for eco-mark, 53% for GPN guidelines ～

GPN

9%

11%

13%

32%

53%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Others

None in particular

Standards, etc. by other organizations

Evaluation criteria of Law on Promoting Green Purchasing

GPN purchasing guidelines

Approval criteria of eco-mark

Environmental Labels by Third-party Organizations, etc.

Environmental Labels by Third-party Organizations, etc.

Eco-markEco-markInternational Energy StarInternational Energy Star Save-energy labelSave-energy label

FSC Forest FSC Forest accreditationaccreditation

PET bottle recycling PET bottle recycling recommendation markrecommendation mark

Certification of low Certification of low emission vehicleemission vehicle

GPN Purchasing GuidelinesGPN Purchasing GuidelinesGPN Purchasing GuidelinesGPN Purchasing Guidelines Copying and printing paper Copiers, printers, facsimile machines Personal computers Motorcars Refrigerators, Washing machine, TV,

Air conditioner Stationery and office supplies Toilet and tissue paper Office furniture Lighting apparatus and lamps Uniform and working wear Offset printing service Hotels and inns

Purchasing Guidelines for MotorcarsPurchasing Guidelines for Motorcars

1) The automobiles shall have high fuel efficiency and low carbon dioxide (CO2) emissions.

2) The automobiles shall have low levels of nitrogen oxides (NOx), hydrocarbons (HC), carbon monoxide (CO), and particulate matter (PM) in their emissions.

3) The automobiles shall use coolants for air conditioning that have a little contributory impact on ozone layer depletion and global warming.

4) The automobiles shall use reduced levels of lead. 5) The automobiles shall be designed for ease in disassembly and recy

cling of their parts when no longer in commission. 6) The automobiles shall use large amounts of recycled parts. 7) The automobiles shall make little external noise.

Features of GPN GuidelinesFeatures of GPN GuidelinesFeatures of GPN GuidelinesFeatures of GPN Guidelines

Guidelines for main product areas to be targeted in green purchase Listing of the matters to be considered in selecting the products Focus the check points to about 10 items at the most, which are

important and can be differentiated. (In case of products) The guidelines are not meant for giving the standards of “green

products” but moderately suggesting the viewpoints and directions of consideration.

The guidelines provided the opportunities of obtaining the information in those fields which are not covered by eco-mark, etc.

The guidelines are used as indications by many purchasing organizations, as well as becoming the indication of product development of the manufacturers.

Provide detailed products information of designated environmental aspects, certification of eco-labelling, conformity to the Law criteria, retail price, major functions

Not certificate/recommend specific products Information on more than 9,000 products of 13 produc

ts categories, 600 companies Updated quarterly Purchasers can compare products of many producers fr

om environmental point of view Users can get almost all the main products of major pro

ducers in Japanese market

GPN Products Data BaseGPN Products Data Base

Accumulation of GPN Data BaseAccumulation of GPN Data BaseAccumulation of GPN Data BaseAccumulation of GPN Data Base

Accumulate the data base in accordance with the information format set out alongside the guidelines of purchase

Broadly encourage relative manufacturers to provide information

Manufacturers wishing to provide information shall make the registration and input their data through the Internet

The secretariat checks the data and makes them public

The expenses are borne by the manufacturers as publication fees

GPN Data Base

ＧＰＮデータベース活用ガイド

Current Status and Features of Current Status and Features of GPN Data BaseGPN Data Base

Current Status and Features of Current Status and Features of GPN Data BaseGPN Data Base

Provide useful information for actual purchasing such as detailed environmental information, acquisition of environmental labels, conformity with standards of the Law on Promoting Green Purchasing, price, major functions, etc.

Product information of various businesses can be compared horizontally.

Information is available for almost all major products of major manufacturers

Do not recommend specific products Overall judgement on superiority of products is left to the purchasers. About 9,000 products of 600 companies in 13 product fields are

included in the data base. Renewals of data are made 4 times a year with biannual publication of

the “Data Book”.

Type Ⅲ Environmental Labelling

TypeⅠEco-Labelling

Easiness ofJudgment

Availabilityof DetailedInformation

GPN Data Base

Information for Green PurchasingInformation for Green PurchasingInformation for Green PurchasingInformation for Green Purchasing

Grading System

GPN start to develop a guideline on selecting suppliers based on the Principle 3.

The guideline will include EMS, waste reduction, information disclosure,……

GPN will launch a suppliers data base targeting all types of businesses

Guideline & Data Base on SuppliersGuideline & Data Base on Suppliers

ConclusionsConclusionsConclusionsConclusions

Green purchasing is a very effective market-oriented tool to make green supply chain

Public sectors should take the Initiatives In Japan GPN has succeeded in creating tendency

toward implementing green purchasing We need global collaboration to expand green We need global collaboration to expand green

purchasing and green marketpurchasing and green market– Exchange information and experiences– Support to launch green purchasing activities – Build a global Data Base on products traded internationally

and suppliers

Factors that have Supported Successful Diffusion of Green Purchasing in JapanFactors that have Supported Successful Diffusion of Green Purchasing in Japan

Green Purchasing Network (GPN) has succeeded in wide-range involvement of businesses and administrative organizations in the move.

– Major businesses representing Japan and local governments became the promoters of the campaign.

– The Environmental Agency backed up the establishment and activities of GPN.– Success stories were introduced by the commendation system and seminars.– A network was successfully established for the first time, with the involvement of b

usinesses, administration and NGOs as equal parties of purchasers. A social climate was successfully formed making “green purchasing”

another basic environmental activity same as “recycling” and “energy saving”.

There has been an active and wide-spread exchange of environmental information on products. (GPN data base, eco-mark, corporate brochures on eco-products, etc.)

The social zeal for ISO 14001 certification has become the favorable wind.

The movement was dramatically accelerated by the establishment and enforcement of the Law on Promoting Green Purchasing.

Incentives to Green PurchasingIncentives to Green Purchasing

By implementing green purchasing, the positive stance of businesses toward environmental issues can be demonstrated to the public.– Green purchasing has become one of the obligatory items for

environmental reports. Awareness of the employees can be enhanced through

green purchasing.– It gives constructive impact on product development, sales,

recycling and other environmental activities. Reviewing of purchase practices, reduction of

purchase quantities, etc. may bring cost reduction effects.– Reduction of life cycle cost (LCC) can also be expected.

International NetworkInternational NetworkInternational NetworkInternational Network

GPN (Japan) Korean GPN GPN Malaysia European GPN North American Green Purchasing Initiative ICLEI (International Council for Local Environmental

Initiatives) United Nations World Bank APO (Asian Productivity Organization)

If you are interested in the GPN and this presentation, please contact me and/or visit our websites at [http://www.gpn.jp/]

Thank you very much for your atteThank you very much for your attention.ntion.

Hiroyuki Sato, GPNe-mail: [email protected]

Hiroyuki Sato Secretary General Green Purchasing Network (GPN) Green Purchasing in Japan - Progress,...

Documents

Transcript of Hiroyuki Sato Secretary General Green Purchasing Network (GPN) Green Purchasing in Japan - Progress,...