Green Procurement Decision Making Tool

(Setting Green Procurement Targets)

Under the Policy on Green Procurement, Deputy heads are required to ensure that the objectives of green procurement are realized. Requirements of the policy include setting green procurement targets as appropriate, with the assistance of Public Works and Government Services Canada (PWGSC).

This tool is meant as a guideline to help federal departments (key management, procurement services, delivery and oversight positions and their clients) set green procurement targets, as appropriate. It can also be used to develop awareness in other procurement related decision-making activities such as the commodity management activities currently underway at PWGSC. The tool should be especially useful to departments and agencies that are required to establish green procurement targets for their Sustainable Development Strategies.

The Decision Making Tool includes an Excel software application, (.xls 92kB) (other software formats are currently being developed) which reflects five sets of commodity grids used for the purpose of analyzing the environmental and operational attributes of selected goods and services (identified as Commodity # 1 through Commodity # 5 in the tabs at the bottom of the spreadsheet). The software application also includes a Commodity Comparison chart (the first tab in the spreadsheet), which reflects the results of the analyses completed using the five sets of commodity grids, as well as additional instructions for users wishing to evaluate more or less than five commodities (the last tab in the spreadsheet). A fictional example of a completed analysis is also provided.

Detailed instructions and supporting information is provided under the following categories:

• Using the Decision Making Tool
• COMPONENT 1 and COMPONENT 2: Identifying Goods and Services and Environmental Improvement
• COMPONENT 3: Green Procurement Action Plan
• COMPONENT 4: Quantifiable Measures
• COMPONENT 5: Timeline
• Useful Links

Using the Decision Making Tool

The use of this tool is best suited to the planning phase to enable appropriate decision-making that fully integrates the environment. The policy relies on the application of a life cycle approach to the procurement of goods and services, including planning, acquisition, use and disposal.

A green procurement target includes the following components:

1. Identifying Goods and Services
2. Environmental Improvement
3. Green Procurement Action Plan
4. Quantifiable Measures
5. Timeline

Example: By December 2007⁵, we plan to reduce energy consumption² from the use of printers¹ by 10 %⁴ by purchasing high efficiency printers and setting the default option to duplexing³.

COMPONENT 1 and COMPONENT 2: Identifying Goods and Services and Environmental Improvement

Step 1

To help identify the goods and services (component 1) and environmental improvements (component 2) that would have the highest opportunity for environmental improvement, follow the steps below and access the Excel tool, (.xls 92kB). Here is a completed example of the application of this tool.

To open or view the Excel file, you will need the Microsoft Excel software.

Step 2

Based on your departments spend patterns, select up to 5 goods and services. In the Excel tool, 1 sheet is used per good or service and up to 5 sheets are available (see bottom tabs). If you have less or more than 5 commodities (goods or services) to compare, see the "More instructions" sheet in the Excel tool.

Step 3

Evaluate each good or service individually by filling out the two grids included in each of the Commodity tabs in the Excel spreadsheet:

1. Level of environmental impact for each environmental/sustainability attribute throughout the use and disposal phases of the life cycle of the good or service.
2. Feasibility in terms of operational requirements.

For each environmental/sustainability attribute, evaluate its environmental impact at both the use and disposal phases based on the following point rating system:

High (8 to 10 points): the good or service has a high impact on the environment; therefore, there would be a great opportunity for environmental improvement

Medium (5 to 7 points): the good or service has a medium impact on the environment; therefore, there would be an opportunity for environmental improvement.

Low (1 to 4 points): the good or service has a low impact on the environment; therefore, there would be minimal opportunity for environmental improvement.

For each operational requirement, evaluate the feasibility of integrating the environmental improvement:

High (16 to 20 points): the operational requirement makes the green procurement highly feasible; therefore, there would be a great opportunity for environmental improvement.

Medium (9 to 15 points): the operational requirement makes the green procurement feasible; therefore, there would be an opportunity for environmental improvement.

Low (1 to 8 points): the operational requirement makes the green procurement less feasible; therefore, there would be minimal opportunity for environmental improvement.

To help you evaluate each item, answer the following questions.

Environmental/Sustainability Attributes

Answering the following questions will lead you to a better understanding of the environmental impact of the good or service by identifying what it is and how it affects the environment; how it is used; and how it will be disposed.

Reducing greenhouse gas emissions and air contaminants:

Are the levels of emissions of carbon dioxide, sulphur dioxides, nitrogen oxides and other greenhouse gases significant at any time during the life cycle of the good or service?

Improving energy and water efficiency:

During the use of the good, does it require high levels of energy or water consumption?

Reducing ozone-depleting substances:

Will there be use of ozone depleting substances at any time during the life cycle of the good or service?

Reducing waste and supporting reuse and recycling:

Will the use of consumables end up as waste or generation of packaging waste?

Reducing hazardous waste:

Will there be use of toxic or hazardous substances at any time during the life cycle of the good or service?

Reducing toxic and hazardous chemicals and substances:

Do the goods comply with current regulations that govern the content of environmentally hazardous substances?

Operational Requirements

Evaluating the feasibility of the environmental improvements based on operational requirements and the practicality of the environmental alternative offers balance to decisions.

Volume and frequency of purchase:

How significant is the purchase? How often? How does this requirement fit within the mandate of the department?

Costs related to the environmental impacts:

What are the costs associated with the purchase? How is the good maintained? How is the good used? What are the operational needs? Are water and energy costs high? Is it expensive to maintain and operate the good? Are disposal costs significant? Is the good made up of replaceable parts?

Usability and effectiveness of alternatives:

Is the quality of the alternative good or service equal or above the original? Will the outcome be the same?

Feasibility and accessibility of alternatives:

Is there a market for the alternative? Is it readily available? Is it easily achievable?

Minimal risk of liability (corporate and personal):

Would the environmental improvement reduce liability issues? Is the current good or service at risk of liability issues (spills, health issues, hazardous waste)?

Costs and level of effort related to the green procurement are reasonable:

Is it expensive or time consuming to make the transition to an alternative good or service? Is the environmental improvement cost effective?

Step 4

The scores are automatically tallied up and a point for each commodity is plotted for you on the Chart.

Step 5

From the Chart, select the commodities that are located closest to the upper right hand corner. These have the highest opportunity for environmental improvement because, according to your assessment, they have the highest environmental impacts and the highest degree of feasibility.

Step 6

Once you have selected the commodities to be targeted, review their respective environmental attributes and based on those rated as high or medium, determine the appropriate green procurement action plan.

COMPONENT 3: Green Procurement Action Plan

Here are examples of specific actions that can be included in an action plan and in your target to achieve the environmental improvement:

• Reduce Consumption (re-think the purchase) - make sure that the volume requested is really the volume required.
• Alter specification/contract terms to detail measures or product attributes that will reduce impact of purchase during use.
• Seek alternative goods or raw materials (always based on a cost benefit analysis).
• Incorporate environmental criteria into supplier selection processes.
• Incorporate environmental design issues into specifications.
• Specify eco-labeled (or equivalent) goods and services, if feasible.
• Request evidence of the supplier's environmental management system during the supplier selection/appraisal.
• Engage suppliers and create awareness of environmental performance issues.
• Include environmental criteria in supplier auditing.
• Include environmental clauses in conditions of contract.
• Require suppliers to detail their proposed measures for reducing environmental impacts at end of life/disposal as part of the specification/invitation to tender.
• Include environmental performance criteria in contract monitoring requirements.
• Exercise caution regarding "green" marketing from suppliers.

Consult links referenced herein to find more tools and resources.

To continually improve and maintain existing initiatives

• Combine expertise of commodity managers, contracting officers, project authorities/program managers and users.
• Work with suppliers to develop environmental improvement plans and environmental performance measures, if appropriate.
• Investigate possibilities for collaboration on joint R&D, if appropriate.

COMPONENT 4: Quantifiable Measures

Environmental improvements must be measured in a quantifiable way. Quantifiable measures should be attainable, realistic and should take into account operational requirements and available tools and resources.

COMPONENT 5: Timeline

The timeline should be achievable and realistic – ideally within 3 to 5 years with signs of progress in each year.

LINKS

The following tools and resources provide additional information on specific goods and services, on how to identify opportunities for improvement and on setting green procurement targets using a risk-based approach.

Environment Canada Website

Natural Resources Canada Website

Green Risk Methodology

Commodity Sustainability Briefing Documents: Environment Agency with Taneco Ltd (lists environmental issues by commodity, examples of procurement actions based on risk assessment methodology and step by step assessment)

Swedish Environmental Advisory Council's green headline indicators

Green in Practice Purchasing's GRIP Purchasing (1997) (Norway)

Industry Canada's 3 Steps to Eco-efficiency tool - now being used/promoted by the World Business Council's SD eco-efficiency efforts. Targeted towards industry.

Pennsylvania Dept. of Environmental Protection -

New Zealand Business Council for Sustainable Development: Map your own risks – Procurement checklist

Greener Public Purchasing, OECD

GIPPER Guide (Has a Purchasing Process and Practices Framework, includes recommendations for certain commodities)

Swiss Agency for the Environment, Forests and Landscape's Implementation of Integrated Product Policy which includes Life cycle assessments, Public purchasing and Eco-labels.

Green Procurement in New Zealand