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SPLC 2018 Summit: Making the Business Case: Measuring the Economic Outcomes of Sustainable Purchasing

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Slides from Julia Wolfe, Director of Environmental Purchasing, Commonwealth of Massachusetts' Operational, presented at the Sustainable Purchasing Leadership Council's 2018 Summit in Minneapolis, MN.

Published in: Government & Nonprofit
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SPLC 2018 Summit: Making the Business Case: Measuring the Economic Outcomes of Sustainable Purchasing

  1. 1. mass.gov/osd © 2017 Operational Services Division. All Rights Reserved.@Mass_OSD Commonwealth of Massachusetts Annual Environmentally Preferable Product/Service Progress Reporting Serving Public Buyers and Vendors of the Commonwealth of Massachusetts
  2. 2. mass.gov/osd@Mass_OSD 2 Details
  3. 3. mass.gov/osd@Mass_OSD 3 Background Commonwealth of Massachusetts - Operational Services Division Establish/manage Statewide Contracts (SWC) >100 SWC: 18 categories, >$1.5 billion Executive agencies required to use SWC, many other eligible entities Robust EPP Program • Dedicated director • EO 515, annual reporting
  4. 4. mass.gov/osd@Mass_OSD 4 What We Measure Total Spend on EPP’s through SWC’s – by contract Measure • Reduction in energy used (KwH or BTU) • Reduction in water used (gal) • Hazardous waste recycled (tons) • Materials collected for recycling (tons) • Post-consumer recycled content used in new products (tons) Quantify $ Savings from purchasing sustainable products that…. • save energy • save water • reduced labor to install or service • Lower bottom line purchase price vs. conventional product Other • reduction in MTCE • reduction in air emissions • landfill space saved • wood saved
  5. 5. mass.gov/osd@Mass_OSD 5 Process Vendor quarterly sales reports - requirement •Ask for additional information on sustainable products •Work closely with sourcing leads at initiation of contract •Tied back to savings and environmental & health measures Other info you will need to be able to measure: •Correct Unit of Measure (e.g, gal, each, lb, tons, etc…) •Number in the Unit of Measure (e.g, #rolls of TP in a case) •SKU or manufacturers part number Compile annualized data by contract •Methodical process to pull data •Intern developed tool to help
  6. 6. mass.gov/osd@Mass_OSD 6 Vendor Reports • Antifreeze- remanufactured • Building Supplies – third party cert • Batteries – rechargeable • Carpet/Flooring – post-consumer (PC) recycled content • Cleaning products – third party cert • Computers, Copiers, MFD’s – third party reg. • Dishware – PC recycled content/ compostable • Food or Dairy Item – Organic /locally sourced • Furniture – meets certifications or other requirements • Heating Fuel – bioheat • Janitorial Paper Products – third party cert • Lighting – LEDs • Motor Oil – re-refined • Office products – PC recycled content • Pay-As-You-Throw Bags – PC recycled content • Plastic Office Supplies – PC recycled content • Power cleaning equipment – third party cert • Recycled materials – diverted solid and hazardous waste • Recycling & Trash containers – PC recycled content • Sanitizers and Disinfectants - listing of an active ingredient • Toner cartridges - remanufactured • Vehicle Fuel – biodiesel, ULSD • Vehicles - alternative fuel • Water Treatment Chemicals – alternative treatment technologies • Other EPP – solar, energy efficient, water efficient, reduced toxicity
  7. 7. mass.gov/osd@Mass_OSD 7 Toner Input data: • # cartridges (OEM, Reman, Generic) Output data: savings from using remans, track purchases by agency Product Focus: Remanufactured Laser Printer Toner Cartridges * Enterprise printing contracts – moving away from copiers to MFD’s
  8. 8. mass.gov/osd@Mass_OSD 8 Tools – EEBC EPEAT Input data: • # desktops, laptops, tablets, monitors, TV's, copiers, MFD’s by registration type (bronze, silver, gold) Output data: various environmental and cost benefits (single year and multi year) • Energy savings (KWh) • Primary material savings (kg) • Greenhouse gas emission savings (kg of CE) • Air emission savings (kg) • Water emission savings (kg) • Toxic material savings (kg) • Municipal solid waste savings (kg) • Hazardous waste savings (kg) • Cost savings ($) Product Focus: Electronics
  9. 9. mass.gov/osd@Mass_OSD 9
  10. 10. mass.gov/osd@Mass_OSD 10 Tool – EnviroCalc • # units of recycled content products, weight, % PCRC • remanufactured antifreeze • re-refined motor oil • janitorial products • food and grocery related products • office products • plastic bins • furniture • remanufactured toner cartridges • containers and carts • traffic control products • compost/mulch • products with metal • products with glass • # of LEDs (and some fluorescent bulbs) • *has ability to add computers and other electronics but we use EEBC EPEAT Input Data Product Focus: Recycled and energy efficient products
  11. 11. mass.gov/osd@Mass_OSD 11 Tool - EnviroCalc Output data: • Output by product
  12. 12. mass.gov/osd@Mass_OSD 12 Tool - EnviroCalc Output data: • Output by benefit
  13. 13. mass.gov/osd@Mass_OSD 13 Tool - EnviroCalc Output data: • recycling calculations • Tons CO2/Ton – landfilled and combusted • Million BTU/ton • Weight of recycled material • Collected weight (tons) • Household solid waste equivalent • CO2E Savings (tons) • Equivalent Auto Emissions • Energy Savings (million BTU) • Barrels of Oil Energy Equivalent • Landfill Savings (cubic yards) • Equivalent number of garbage (tons) • Equivalent # of Cars • Trees Saved • Acres of plantation saved
  14. 14. mass.gov/osd@Mass_OSD 14 Tool - EnviroCalc Output data: • Energy calculations • Wattage • Equivalent Incandescent Wattage • Real Incandescent Wattage • CFL or LED Energy Used (kWH) • Incandescent Energy Use (kWh) • Energy savings (kWh) EnviroCalc is flexible – add products, view and change assumptions
  15. 15. mass.gov/osd@Mass_OSD 15 Tools – EPA WARM Input Data: • Tons of various recycled materials Output Data: • Reduction in BTU’s • # annual households energy usage • # barrels of oil • # gallons of gasoline • Reduction in MTCE • # passenger vehicles • # gallons of gasoline • # cylinders of propane used for home BBQ • # railway cars of coal Product Focus: solid waste diverted to recycling/composting
  16. 16. mass.gov/osd@Mass_OSD 16 Put it all together… • Energy savings (KWh eq) • Energy Savings (BTU's) • Primary material savings (kg) • Primary material savings (tons) • Greenhouse gas emission savings (kg of CE) • Metric Tons of Carbon Equivalent Reduced (MTCE) • Carbon Dioxide emissions (tons) • Air emission savings (kg) • Water emission savings (kg) • Water Conserved (gal) • Toxic material savings (kg) • MSW savings (kg) • MSW Savings (ton) • Hazardous Materials Reduced (lb) • Hazardous waste diverted to recycling(kg) • Hazardous Waste diverted to recycling (tons) • Wood Saved (trees) • Landfill space savings (cubic yards) • Weight of Material Recycled (tons) • Solid waste equivalent to # households • SW equivalent to # loaded garbage trucks • Barrels of oil • Annual tailpipe emissions of # cars • Antifreeze or oil used by # cars • Annual Electricity usage of # households • MSRP Savings ($) • Cost savings ($) • Labor Savings ($) * Some measures can be combined with EPA’s Greenhouse Gas Equivalency Calculator (BTU’s to kWh: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
  17. 17. mass.gov/osd@Mass_OSD 17 EPP Cleaning Products Focus Description of Outcome Pounds of Hazardous Material Reduced MTCE Reduced Water Conserved (Gallons) Dollars Saved Negotiated Discounts for Green Cleaning Products (using FY2016 vendor reported sales subtracted from Manufactures Suggested Retail Price) none 0 0 $3.2 million Purchase of Microfiber Mops 95% chemical reduction 790 19.5 million $119,000 Purchase of Certified Low-Toxicity Foaming Hand Soap 190,000 (including 3,000 of Triclosan) 70 1.1 million $11,000 Purchase of Certified Low-Toxicity Glass Cleaner (Non- Ammoniated) 13,000 0 0 0 Purchase of Certified Low-Toxicity Laundry Detergents 2,800 none High Efficiency 0 Focus on environmentally preferable cleaning products • MSRP and negotiated discounts • # microfiber mops • Gal of hand soap & glass cleaner, lb. of laundry detergent
  18. 18. mass.gov/osd@Mass_OSD 18 Progress Report - 2016 • $300 million in EPP spend from SWCs • Reduced appx. 160,000 MTCE • energy efficient & PCRC • = removing 126,231 passenger vehicles from the road • Recycled 53,781 T of waste • = to conserving annual energy consumption of 10,634 households.
  19. 19. mass.gov/osd@Mass_OSD 19 Progress Report - 2016 • Cost savings
  20. 20. mass.gov/osd@Mass_OSD 20 Figure out what to measure and tools available – start small Allows you to measures progress each year If have goal, need to establish baseline Work with contract managers and vendors to receive accurate information Ask third party certifiers to provide SKU level certifications in a spreadsheet Connect with those working on Climate policies/issues NEED: Robust Product Registries API Enabled that work with e-procurement systems
  21. 21. mass.gov/osd@Mass_OSD 21 Additional Information • Websites of Interest: • OSD’s Main Website: www.mass.gov/osd • COMMBUYS: www.commbuys.com • EPP’s Main Website: www.mass.gov/epp • Find: EPP 2016 Annual Report Julia Wolfe Director, Environmental Purchasing Operational Services Division Julia.wolfe@state.ma.us 617-502-8836

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