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THE GREEN
 PURCHASING
 JOURNEY IN
MOONEE VALLEY

  JULY 2011
Green Purchasing – why do it?

 When we purchase goods or services there is some
 environmental impact that results.
            Mineral Resources




Forest resources
                                Manufacturing   Retail




 Water resources




        Energy Resources




                                                  Landfill
Green Purchasing – why do it?

 When we purchase goods or services there is some
 environmental impact that results.
            Mineral Resources




Forest resources                                             The all-important
                                Manufacturing   Retail          consumer




 Water resources




        Energy Resources




                                                  Landfill
Green Purchasing – why do it?

Green procurement is a powerful tool with which to address
climate change and the over-exploitation of our resources.
            Mineral Resources




Forest resources                                             The all-important
                                Manufacturing   Retail          consumer




 Water resources




        Energy Resources




                                                  Landfill
Green Purchasing – why do it?

Green procurement encourages less environmental impact
by reducing resource input requirements either by the
consumer or the manufacturer.
            Mineral Resources

                                                 Eg. recycling


Forest resources                                                 The all-important
                                Manufacturing   Retail              consumer




 Water resources




        Energy Resources




                                                  Landfill
Green Purchasing – Existing Definitions




“…procurement activities that aim towards
minimising an organisation's overall
environmental impact.”


“The ultimate green procurement is the avoidance
of the purchase altogether.”
COMMITMENT

Many of our staff have taken great green purchasing initiatives.

MVCC is committed to green purchasing.

 We set out this commitment in our:
 - Environment Sustainability Plan in 2007
 - Waste Management Strategy in 2008
 - Procurement Policy in 2010

We have systems to record and report on our
green purchases.



BUT, the most important element is our staff and how
they go about purchasing.
HOW WE RECORD GREEN PURCHASES

• Select your green category at point of requisition
• One Green Selection Code no matter how many (different) line
  items purchased
• Currently aligned to the most expensive line item.
OUR STARTING POINT –
ROOM TO GROW
2011-12
                                            Council Green Spend as a
Staff selected “no green                   Percentage of Total Quarterly
 alternatives available” for 75%                     Spend
 of purchases.                          100%

This result indicates
                                                                                       Non Green
 sustainability staff have not           80%
                                                                                       Spend
                                                                                       Green Spend
 explained green purchasing to
                                   Spend
 procurement staff as there is     %
                                         60%

 almost always a greener
 alternative which would count           40%

 as a green purchase.
Clearly we must explain to our           20%

 staff what green purchasing is.                28%       28%       19%       17%
                                         0%
                                                 1st      2nd       3rd       4th
                                               Quarter   Quarter   Quarter   Quarter
Defining Green Purchasing



Hang on! So what really is
a green purchase?
It seemed everyone had a different
opinion.



       ?                     ?       ??
Defining Green Purchasing


Some said it depended on how it was made.

Some said it depended on what it replaced.

Some said it depended on how you used it.




       ?                     ?         ??
Defining Green Purchasing


These products help run our business more
sustainably…




But are they made sustainably?
Defining Green Purchasing


                             Manufactured overseas
                             using higher proportion
                             of green power




                               Manufactured locally
                               using higher proportion
                               of fossil fuel power




 Can we still count either panel as a green purchase?
Why are we so pedantic at Moonee Valley?

                             Example Purchase:           Mains water
 Green Purchasing            rainwater tank to replace
 Definition 1                mains water

 Products and services
 that are less damaging to
                                                         replaced by
 the environment and
 human health than those
 you are currently buying.



 Green Product?
 In many cases, yes!
Why are we so pedantic at Moonee Valley?
To avoid this situation…
                             Example Purchase:           Mains water
 Green Purchase              rainwater tank to replace
 Criteria Definition 2       mains water

 A green product is one
 that is less damaging for                               replaced by
 the environment and/or
 human health than
 competing products that
 serve the same purpose


 Green Product?
 Maybe not - depends on
 how it is produced...
Defining Green Purchasing

Let‟s clarify and say a green purchase can be
    - best environmental practice
    - or, at least, better than what you currently do…


This

        replaced by     replaced by           replaced by




 this
                                            (not better, maintaining
         (better)          (better)
                                            current best practice)
Defining Green Purchasing

                     Purchase of a 4 seat personal vehicle for city use
    High Environmental
    Impact
                                                              Definition: Better
                                                              than current
                                                              practice



         competing
         products
                                        Definition:
                                        Best Practice
                                        Purchase



         Less damaging
         than competing
         products

  Lower Environmental
  Impact
                                     Sequence of Purchases over Time
Defining Green Purchasing

What about services?
If I commission a building energy audit is this a green
purchase?




Yes - it helps run our business more sustainably.
Q: What is Green Purchasing at Moonee Valley?

 Firstly, it is one part of Sustainable Purchasing.
Environmental
consideration:                                                  Social consideration:
For example,                                                    For example,
I buy item with the lowest                                      I buy fairtrade products to
resource use/pollution.                                         support human rights
                         Environmental         Social




                                    Economic



                             Economic consideration:
                             For example, I buy the item with
                             the best value for money.
Q: What is Green Purchasing at Moonee Valley?

 Secondly, it must meet at least one of the following
 specific green purchasing criteria:


   Products                                   Services
              Green Supplier                             Green Provider
                                                         Necessary service provided
              Necessary goods                            more sustainably than
              made to industry best                      services we currently buy
              practice or is at least made               and/or provided to industry
              more sustainably than                      best practice.
              goods we currently buy.
                                                         Eg. green cleaning
              Eg. recycled paper                         services

              Green Product                              Green Service
              Goods that will improve                    Services to improve the
              the sustainability of our                  sustainability of our
              business or are                            business or are
              sustainability best practice.              sustainability best practice.
              Eg. solar panels                           Eg. energy audits
Moonee Valley Green Purchasing Criteria

  In summary
  All different – but they all count as green purchases


   Products                          Services
              Green Supplier                    Green Provider
              Goods from a                      Services from a
              „green supplier‟                  „green provider‟




              Green Product                     Green Service
              Goods to „green‟ our              Services to „green‟ our
              business                          business
Example Purchases


                                   Example Purchase:
Green Purchase                     low watt light globe to
Criteria                           replace incandescent globe

1. Green Supplier
  Goods from a green supplier


2. Green Product                                                replaced by
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     low watt light globe to
Criteria                           replace incandescent globe

1. Green Supplier
  Goods from a green supplier


2. Green Product                                                replaced by
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     low watt light globe to
Criteria                           replace incandescent globe

1. Green Supplier
  Goods from a green supplier


2. Green Product                                                replaced by
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:           Mains water
Green Purchase                     rainwater tank to replace
Criteria                           mains water

1. Green Supplier
  Goods from a green supplier


2. Green Product                                                replaced by
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:           Mains water
Green Purchase                     rainwater tank to replace
Criteria                           mains water

1. Green Supplier
  Goods from a green supplier


2. Green Product                                                replaced by
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:           Mains water
Green Purchase                     rainwater tank to replace
Criteria                           mains water

1. Green Supplier
  Goods from a green supplier


2. Green Product                                                replaced by
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     Energy auditor‟s report
Criteria
1. Green Supplier
  Goods from a green supplier


2. Green Product
  Goods to green our business


3. Green Provider                                            Recommends
  Services from a green provider
                                                             replacement
                                                                  by
4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     Energy auditor‟s report
Criteria
1. Green Supplier
  Goods from a green supplier


2. Green Product
  Goods to green our business


3. Green Provider                                            Recommends
  Services from a green provider
                                                             replacement
                                                                  by
4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     Energy auditor‟s report
Criteria
1. Green Supplier
  Goods from a green supplier


2. Green Product
  Goods to green our business


3. Green Provider                                            Recommends
  Services from a green provider
                                                             replacement
                                                                  by
4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     Green cleaning services
Criteria
1. Green Supplier
  Goods from a green supplier

                                                             replaced by
2. Green Product
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     Green cleaning services
Criteria
1. Green Supplier
  Goods from a green supplier

                                                             replaced by
2. Green Product
  Goods to green our business


3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business
Example Purchases


                                   Example Purchase:
Green Purchase                     V8 to replace V10
Criteria
1. Green Supplier
  Goods from a green supplier
                                                       7.3 litre V10
2. Green Product
  Goods to green our business


3. Green Provider
  Services from a green provider                       replaced by
4. Green Service
  Services to green our business



                                                        6 litre V8
Example Purchases


                                     Example Purchase:
 Green Purchase                      CFL light globe to replace
 Criteria                            CFL light globe

 1. Green Supplier
    Goods from a green supplier


 2. Green Product                                                 replaced by
    Goods to green our business


 3. Green Provider
    Services from a green provider


 4. Green Service
    Services to green our business



Be careful! This product is not better than what
we currently do and is no longer best practice!
Example Purchases


                                   Example Purchase:
Green Purchase                     LED light globe to replace
Criteria                           LED light globe

1. Green Supplier
  Goods from a green supplier
                                                                Best practice
2. Green Product                                                replaced by
  Goods to green our business                                   best practice

3. Green Provider
  Services from a green provider


4. Green Service
  Services to green our business



  This product is arguably the new best
  practice standard in lighting.
Summary of Moonee Valley definition




If you are going to measure
something you must measure it
against something you know.

You need a benchmark to judge your
purchases to decide if they are green.
Summary of Moonee Valley definition




Everybody’s green is different, so
the best benchmark is your own.

Generally, if it is better than where you
are currently at, then it‟s a green
purchase.
Summary of Moonee Valley philosophy:
Change.


We are living in a changing world.

We see the principle of green
purchasing as positive change.

If your purchase represents a positive
change for the environment, it is
almost certainly a green purchase.

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Green purchasing training presentation july 2012

  • 1. THE GREEN PURCHASING JOURNEY IN MOONEE VALLEY JULY 2011
  • 2. Green Purchasing – why do it? When we purchase goods or services there is some environmental impact that results. Mineral Resources Forest resources Manufacturing Retail Water resources Energy Resources Landfill
  • 3. Green Purchasing – why do it? When we purchase goods or services there is some environmental impact that results. Mineral Resources Forest resources The all-important Manufacturing Retail consumer Water resources Energy Resources Landfill
  • 4. Green Purchasing – why do it? Green procurement is a powerful tool with which to address climate change and the over-exploitation of our resources. Mineral Resources Forest resources The all-important Manufacturing Retail consumer Water resources Energy Resources Landfill
  • 5. Green Purchasing – why do it? Green procurement encourages less environmental impact by reducing resource input requirements either by the consumer or the manufacturer. Mineral Resources Eg. recycling Forest resources The all-important Manufacturing Retail consumer Water resources Energy Resources Landfill
  • 6. Green Purchasing – Existing Definitions “…procurement activities that aim towards minimising an organisation's overall environmental impact.” “The ultimate green procurement is the avoidance of the purchase altogether.”
  • 7. COMMITMENT Many of our staff have taken great green purchasing initiatives. MVCC is committed to green purchasing. We set out this commitment in our: - Environment Sustainability Plan in 2007 - Waste Management Strategy in 2008 - Procurement Policy in 2010 We have systems to record and report on our green purchases. BUT, the most important element is our staff and how they go about purchasing.
  • 8. HOW WE RECORD GREEN PURCHASES • Select your green category at point of requisition • One Green Selection Code no matter how many (different) line items purchased • Currently aligned to the most expensive line item.
  • 9. OUR STARTING POINT – ROOM TO GROW 2011-12 Council Green Spend as a Staff selected “no green Percentage of Total Quarterly alternatives available” for 75% Spend of purchases. 100% This result indicates Non Green sustainability staff have not 80% Spend Green Spend explained green purchasing to Spend procurement staff as there is % 60% almost always a greener alternative which would count 40% as a green purchase. Clearly we must explain to our 20% staff what green purchasing is. 28% 28% 19% 17% 0% 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter
  • 10. Defining Green Purchasing Hang on! So what really is a green purchase? It seemed everyone had a different opinion. ? ? ??
  • 11. Defining Green Purchasing Some said it depended on how it was made. Some said it depended on what it replaced. Some said it depended on how you used it. ? ? ??
  • 12. Defining Green Purchasing These products help run our business more sustainably… But are they made sustainably?
  • 13. Defining Green Purchasing Manufactured overseas using higher proportion of green power Manufactured locally using higher proportion of fossil fuel power Can we still count either panel as a green purchase?
  • 14. Why are we so pedantic at Moonee Valley? Example Purchase: Mains water Green Purchasing rainwater tank to replace Definition 1 mains water Products and services that are less damaging to replaced by the environment and human health than those you are currently buying. Green Product? In many cases, yes!
  • 15. Why are we so pedantic at Moonee Valley? To avoid this situation… Example Purchase: Mains water Green Purchase rainwater tank to replace Criteria Definition 2 mains water A green product is one that is less damaging for replaced by the environment and/or human health than competing products that serve the same purpose Green Product? Maybe not - depends on how it is produced...
  • 16. Defining Green Purchasing Let‟s clarify and say a green purchase can be - best environmental practice - or, at least, better than what you currently do… This replaced by replaced by replaced by this (not better, maintaining (better) (better) current best practice)
  • 17. Defining Green Purchasing Purchase of a 4 seat personal vehicle for city use High Environmental Impact Definition: Better than current practice competing products Definition: Best Practice Purchase Less damaging than competing products Lower Environmental Impact Sequence of Purchases over Time
  • 18. Defining Green Purchasing What about services? If I commission a building energy audit is this a green purchase? Yes - it helps run our business more sustainably.
  • 19. Q: What is Green Purchasing at Moonee Valley? Firstly, it is one part of Sustainable Purchasing. Environmental consideration: Social consideration: For example, For example, I buy item with the lowest I buy fairtrade products to resource use/pollution. support human rights Environmental Social Economic Economic consideration: For example, I buy the item with the best value for money.
  • 20. Q: What is Green Purchasing at Moonee Valley? Secondly, it must meet at least one of the following specific green purchasing criteria: Products Services Green Supplier Green Provider Necessary service provided Necessary goods more sustainably than made to industry best services we currently buy practice or is at least made and/or provided to industry more sustainably than best practice. goods we currently buy. Eg. green cleaning Eg. recycled paper services Green Product Green Service Goods that will improve Services to improve the the sustainability of our sustainability of our business or are business or are sustainability best practice. sustainability best practice. Eg. solar panels Eg. energy audits
  • 21. Moonee Valley Green Purchasing Criteria In summary All different – but they all count as green purchases Products Services Green Supplier Green Provider Goods from a Services from a „green supplier‟ „green provider‟ Green Product Green Service Goods to „green‟ our Services to „green‟ our business business
  • 22. Example Purchases Example Purchase: Green Purchase low watt light globe to Criteria replace incandescent globe 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 23. Example Purchases Example Purchase: Green Purchase low watt light globe to Criteria replace incandescent globe 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 24. Example Purchases Example Purchase: Green Purchase low watt light globe to Criteria replace incandescent globe 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 25. Example Purchases Example Purchase: Mains water Green Purchase rainwater tank to replace Criteria mains water 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 26. Example Purchases Example Purchase: Mains water Green Purchase rainwater tank to replace Criteria mains water 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 27. Example Purchases Example Purchase: Mains water Green Purchase rainwater tank to replace Criteria mains water 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 28. Example Purchases Example Purchase: Green Purchase Energy auditor‟s report Criteria 1. Green Supplier Goods from a green supplier 2. Green Product Goods to green our business 3. Green Provider Recommends Services from a green provider replacement by 4. Green Service Services to green our business
  • 29. Example Purchases Example Purchase: Green Purchase Energy auditor‟s report Criteria 1. Green Supplier Goods from a green supplier 2. Green Product Goods to green our business 3. Green Provider Recommends Services from a green provider replacement by 4. Green Service Services to green our business
  • 30. Example Purchases Example Purchase: Green Purchase Energy auditor‟s report Criteria 1. Green Supplier Goods from a green supplier 2. Green Product Goods to green our business 3. Green Provider Recommends Services from a green provider replacement by 4. Green Service Services to green our business
  • 31. Example Purchases Example Purchase: Green Purchase Green cleaning services Criteria 1. Green Supplier Goods from a green supplier replaced by 2. Green Product Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 32. Example Purchases Example Purchase: Green Purchase Green cleaning services Criteria 1. Green Supplier Goods from a green supplier replaced by 2. Green Product Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business
  • 33. Example Purchases Example Purchase: Green Purchase V8 to replace V10 Criteria 1. Green Supplier Goods from a green supplier 7.3 litre V10 2. Green Product Goods to green our business 3. Green Provider Services from a green provider replaced by 4. Green Service Services to green our business 6 litre V8
  • 34. Example Purchases Example Purchase: Green Purchase CFL light globe to replace Criteria CFL light globe 1. Green Supplier Goods from a green supplier 2. Green Product replaced by Goods to green our business 3. Green Provider Services from a green provider 4. Green Service Services to green our business Be careful! This product is not better than what we currently do and is no longer best practice!
  • 35. Example Purchases Example Purchase: Green Purchase LED light globe to replace Criteria LED light globe 1. Green Supplier Goods from a green supplier Best practice 2. Green Product replaced by Goods to green our business best practice 3. Green Provider Services from a green provider 4. Green Service Services to green our business This product is arguably the new best practice standard in lighting.
  • 36. Summary of Moonee Valley definition If you are going to measure something you must measure it against something you know. You need a benchmark to judge your purchases to decide if they are green.
  • 37. Summary of Moonee Valley definition Everybody’s green is different, so the best benchmark is your own. Generally, if it is better than where you are currently at, then it‟s a green purchase.
  • 38. Summary of Moonee Valley philosophy: Change. We are living in a changing world. We see the principle of green purchasing as positive change. If your purchase represents a positive change for the environment, it is almost certainly a green purchase.