Eco Buy
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  • 1. Introduction toSustainable Procurement Sara Redmond-Neal ECO-Buy Business Program Manager
  • 2. Every purchase has an impact What is ECO-Buy?
  • 3. Negative publicity
  • 4. Green is the new Black The Australian consumer market for healthier, more sustainable products and services is valued at $21.5Bn – Living LOHAS Insights 4, 2011 70% of Asia Pacific consumers prefer to buy from companies who engage in CSR, including environmental sustainability. 55% of APAC consumers are willing to pay extra for products and services from those companies – Nielsen Global Survey of Corporate Citizenship, 2011
  • 5. Sustainable procurement is: “a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.” UNEP definition
  • 6. Triple bottom line Economic Sustainable Social Environmental
  • 7. Total cost of ownership (TCO) What is ECO-Buy?
  • 8. PaperWhat is ECO-Buy? towels vs. hand-dryersPaper Towels Hand-dryersConsumables $9,000/year Purchase price (one off) $2,000Labour (refilling, cleaning, disposal) Electricity $ 100/year$17,550/yearCost $26,550/year Cost $100/year Actual Savings • 76.8% less energy than other dryers • cost saving of over 85% • 186,761 kgs less carbon emissions • zero waste to landfill • 40,000L water 8
  • 9. How it’s done What is ECO-Buy? Communication Measure- Policy People Process Suppliers ment Commitment
  • 10. What is ECO-Buy?
  • 11. What is ECO-Buy?
  • 12. What is ECO-Buy?1. Implement Supplier 2. Monitor Compliance to Sustainability Principles Principles• Corporate Governance• Occupational Health and Safety 3. Sustainability Initiatives with• Risk Management High Risk Suppliers• Community 4. Support & Recognition of• Environmental Management Supplier Performance• Workforce Policies & Human Rights• Supply Chain Management
  • 13. Boral’s quest for a better bag What is ECO-Buy?What can we do to improve the sustainability, priceand performance of this product?3 ply paper cement sack 2 ply  39% reduction in paper use per sack, or 860 tonnes paper per annum • Reduced carbon emissions, water use, waste, biodiversity impacts  20% reduction in sack price  New sacks stronger and higher quality than the old 3 ply sacks  Elimination of perforations which created dust leakages and consequential OH&S issues  15% faster filling time and increased throughput on the filling line  Decreased plastic film weight per sack on average by 50%  Reduction in leakage during transport by over 90%
  • 14. Global Best Practice
  • 15. Start now What is ECO-Buy?  What are you currently purchasing?  Get executive buy-in  Train procurement staff  Talk to your suppliers  Establish a baseline  Engage staff in the process
  • 16. ECO-FindWhat is ECO-Buy? Membership Consulting ECO-Buy can help Training Resources and Events and Advice Assessment Tool
  • 17. Any questions? Sara Redmond-Neal Business Program Managersredmondneal@ecobuy.org.au 9349 0402