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9/30/2011




   Sustainability Elements of a
 Responsible Request for Proposal

     Meta Brophy
     Director, Publishing Operations
     Consumers Union

     Monica Garvey
     Sustainability Manager
     Verso Paper Corporation

     Joe Muehlbach
     Executive Director
     Facilities and Environmental Policy
     Quad Graphics




                             Objectives

Understand the Business Case for Sustainability
Provide guidance on the procurement of
 environmentally responsible paper & print.
  Understand key elements
  Engage in dialogue
  Assess suppliers
Provide Environmental RFP Template and other
 references




                                                          1
9/30/2011




Sustainability Business Goals
 Promote your commitment
 Demonstrate stewardship and leadership
 Garner good PR—internal and external
 Drive continuous improvement
 Establish guiding principles
 Compare environmental performance
 Endorse what vendors are doing
 Identify supply chain efficiencies
 Encourage integration throughout facilities,
  materials, handling
 Outline issues, benchmark, measure




   Green Purchasing . . . Sustainable Sourcing . . .
     Environmentally Preferred Purchasing . . .
           Sustainable Procurement . . .
   Economics is very much under purchasing’s control and skill set while CSR
   is far less so but green purchasing must be informed and conversant in
   both. CSR issues are already forcing major organizations such as Wal-
   Mart, Proctor & Gamble, Home Depot and many other multi-billion dollar
   business giants to adopt sustainability as a corporate goal. Even such
   giants cannot achieve their sustainability goals on their own; they must
   count the gains of their suppliers throughout the supply chain. Therefore, it
   arrives at purchasing’s door to drive sustainability throughout the supply
   chain to meet the demands of customers, prospective work force, and
   society at large. The old adage of “fore warned
   is fore armed” applies.

   –Robert Menard, Certified Purchasing Professional and
    Consultant, Green Purchasing & Sustainability July 2011




                    Employee Engagement




                                                                                          2
9/30/2011




           Conserving Resources




     Key Elements to Address in RFP


 Corporate Philosophy
 Paper and Packaging made from fiber sourced
  legally from Sustainably Managed Forests
 Paper, Packaging and Print resulting from Clean,
   Responsible Production Practices
 Climate Change and Carbon Footprint
 Recycling and Use of Recovered Paper Products
 Supply Chain Management




           Corporate Philosophy

Written Environmental Policy addressing Key
 Issues
Certified Environmental Management System
 (e.g. ISO 14001)
Compliance with Regulations and Legislation
Focus on Supply Chain Performance
External Report on Environmental Performance
Manager or Officer responsible for
 Environmental Management or Sustainability
Objectives/Goals with specific target reductions




                                                            3
9/30/2011




           AF&PA Final Sustainability Goals
                                                                                Board-Approved Goals
      Pillar              Previous AF&PA Goal              (all Goals have a 2020 target and a 2005 baseline, except safety,
                                                                              which has a 2006 baseline)
Paper Recovery                60% by 2012.
                                                                                     Exceed 70%.
 for Recycling           Achieved 63.5% in 2010.

                     No goal, but members required to
                                                           Exceed 10% increase. Measurement consistent with DOE method
Energy Efficiency    provide data and AF&PA reports
                                                                        that rewards energy self sufficiency.
                                 progress.
                      12% reduction in GHG emissions
                    intensity by 2012 (exceeded in 2006,
  Greenhouse
                    but regressed in 2008 due to drop in                        Exceed 15% reduction.
    Gases
                          production and change in
                              membership mix).
                                                           AF&PA members are committed to sustainable forestry both in the
                     100% of our membership abides by       US and around the globe. We will increase the amount of fiber
Forestry Related     sustainable forest management and       procured from certified forest lands or through certified fiber
     Goal           procurement standards as a condition        sourcing programs in the United States; and work with
                               of membership.              governments, industry and other stakeholders to promote policies
                                                                    around the globe to decrease illegal logging.
    Safety-          No goal, but members required to                        “Aspirational” goal of zero.
Recordable Case      provide data and AF&PA reports          Report and measure interim target of a 25% reduction in OSHA
     Rate                        progress.                                      recordable incidents.
                     No goal, but members required to
                                                           Commit to collect and analyze data to address consumptive use to
   Water Use         provide data and AF&PA reports
                                                                 determine feasibility of later setting a numeric goal.
                                 progress.
Fossil Fuel Use,
                     No goal, but members required to
  Renewable
                     provide data and AF&PA reports                          Continue reporting progress.
 Energy Use,
                                 progress.
Water Discharge




  Paper & Packaging Made from Fiber Sourced
   Legally from Sustainably Managed Forests

                                                               Promote all credible third
                                                                party forest certification
                                                                systems and commit to
                                                                continuous improvement
                                                                targets to the % of certified
                                                                fiber purchased each year
                                                               Advocate for more land
                                                                certification
                                                               Comply with amended U.S.
                                                                Lacey Act
                                                               Have certified chain of
                                                                custody system(s) in place




               Forest Certification by Region




           Less than 10% of global forests are certified




                                                                                                                                      4
9/30/2011




   Paper, Packaging and Print Resulting from
    Clean, Responsible Production Practices


Reduce Air Emissions
Reduce Water Emissions & Water Use
Reduce GHG Emissions
Minimize Solid Waste
 Recyclable
 Compostable
 Beneficial Use
Avoid hazardous chemicals




   Climate Change and Carbon Footprint


Have Plan to address impact on climate change
Have strong Energy Strategy
 Energy Efficiency
 Increased use of biofuels vs. fossil fuels
Measure Carbon Footprint
 Facilities
 Transportation
 Travel
 Products




          Interest in Carbon Footprint
What’s creating interest in knowing the Carbon Footprint of paper?
  – Carbon Labeling? Product comparisons. Digital vs Print




   – Cost of becoming Carbon Neutral? Offsets? Advertisers,
     Publishers, etc.
   – Corporate Social Responsibility? Avoiding Green-washing
     accusations. Transparency initiatives. FTC guidelines.
   – Affects of potential carbon legislation
          Informed decisions require measuring
                  the Carbon Footprint




                                                                            5
9/30/2011




     Recycling and Use of Recovered
             Paper Products
                                                                  The real benefit of recycling is
                                                                  keeping paper out of landfills. By
                                                                  diverting usable fiber from landfills, we not
                                                                  only reclaim a valuable raw material, but
                                                                  also reduce GHG emissions (methane) that
                                                                  result when landfilled paper products
                                                                  degrade over time.

                                                                  Ultimate goal of paper recycling should
                                                                  be to increase fiber recovery beyond the
                                                                  current 63.5% reported by AF&PA to the
                                                                  maximum possible in the U.S., and then to
                                                                  re-use all fiber recovered in products
                                                                  where the least amount of transporting,
                                                                  cleaning and energy for processing of
                                                                  the post-consumer fiber is needed.




              Recovered Fiber Statistics 2010

                         100,000

                          90,000

                          80,000

                          70,000      Not
                                   Recovered
      (000 short tons)




                          60,000    29,664
                                                                                            Printing -
                          50,000                                                             Writing
                                                  News/Uncoated          Exports              5.1%
                          40,000   Recovered        Mechanical
                                                                           39%
                          30,000    51,545        Mixed Paper

                          20,000                                       Used in Paper
                                                  Container-                              Container-
                                                   board               & Board Mills
                          10,000                                                           board
                                                   61.3%                  61%              50.8%
                              0
                                   Total Supply    Sources                 Uses            End Uses
                                                                                               Source: AF&PA

The economics of recovery, fiber yield rates, quality issues, grade utilization efficiency and other factors
combine to create this utilization picture.

Reducing process energy usage for cleaning can have a considerable impact on economics of recycled
paper and also can reduce CO2 emissions.




                                   Supply Chain Management

   Establish clear expectations/requirements for suppliers
   Engage in routine dialogue with suppliers
   Audit environmental performance of suppliers
   Embrace Product Lifecycle Analysis
   Also evaluate Social Responsibility elements
     Labor & Human Rights
     Human Health & Safety
     Charitable Giving
     Biodiversity Initiatives
     Community Involvement




                                                                                                                         6
9/30/2011




                       Recommended Resources


  Quad Graphics Environmental RFP Questions
   http://www.qg.com/aboutus/environment/rfpquestions.asp
  Sustainable Procurement of Wood and Paper-based
   Products: Version 2, updated June 2011, WBCSD and
   WRI, www.wri.org/publications
  Environmental Paper Assessment Tool (EPAT),
   www.epat.org
  DMA Environmental Planning Tool & Policy Generator,
   www.the-dma.org/envgen




           Environmental Paper Assessment
                   Tool® (EPAT)
          Developed by MetaFore and the
           Paper Working Group

          Online tool to compare
           environmental characteristics of
           paper products www.epat.org

          Provides apples-to-apples
           metrics and language to help
           paper buyers assess
           environmental attributes and
           trade-offs




                        Environmental Planning Tool and
            Optional Policy & Vision Statement Generator
                                                          www.dma.responsibility.org
PURPOSE & USE OF THIS TOOL
This practical and easy-to-apply tool was created by DMA’s Committee on Environment and Social
Responsibility (CESR) for you, the members of the direct marketing community. It is intended to be used
by your organization to:
     •    Assist in conducting an internal evaluation of environmental practices that affect aspects of your
          marketing process.
     •    Help you attain Direct Marketing Association “Green 15” environmental performance compliance.
     •    Generate an environmental vision statement or policy for your organization to consider and
          adopt.
EVALUATION OF ENVIRONMENTAL PRACTICES
The planning tool provides you with a list of ideas and strategies to consider when developing internal
environmental goals and/or policies. It empowers you to create and/or evaluate your internal policies and
goals for continual environmental improvement, in balance with financial performance. Using the tool, you
can consider your current practices and the environmental impact of your organization.

The tool is flexible. You may choose to focus on single areas in which to make improvement, set goals
and build from there; or you may take a more comprehensive approach. At a minimum, the tool is
designed to be educational. Using it gives you both a greater awareness of the breadth and complexity of
environmental issues facing direct marketers and the means for addressing them in a practical, feasible
manner.




                                                                                                                      7
9/30/2011




                   Environmental Resource Center
                                                   www.dmaresponsibility.org

THE “GREEN 15”
Through the “Green 15”, the DMA calls upon you as a member organization to establish internal and
measurable benchmarks to improve environmental performance in key areas of your direct marketing
process:
1. List Hygiene and Data Management
2. Design
3. Paper Procurement and Usage
4. Printing and Packaging
5. Recycling and Pollution Reduction in Our Workplace and Community

BUSINESS BENEFITS OF "GREEN 15" IMPLEMENTATION & USE OF THIS PLANNING TOOL
Increase efficiency, reduce waste, and lower costs, while serving these three bottom line objectives.
Moreover, build better customer relations and winning brand loyalty while inspiring employees and
driving innovation.
1. The Triple Bottom Line—financial performance, environmental performance, social responsibility
2. Reduce Greenhouse Gases & Mitigate Climate Change




QUESTIONS?
Meta Brophy
Director, Publishing Operations
Consumers Union
MBrophy@consumer.org

Monica Garvey
Sustainability Manager
Verso Paper Corporation
Monica.Garvey@versopaper.com

Joe Muehlbach
Executive Director
Facilities and Environmental Policy
Quad Graphics
Joe.Muehlbach@qg.com




                                                                                                               8

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Notes Version: Sustainability Elements of a Responsible Request for Proposal

  • 1. 9/30/2011 Sustainability Elements of a Responsible Request for Proposal Meta Brophy Director, Publishing Operations Consumers Union Monica Garvey Sustainability Manager Verso Paper Corporation Joe Muehlbach Executive Director Facilities and Environmental Policy Quad Graphics Objectives Understand the Business Case for Sustainability Provide guidance on the procurement of environmentally responsible paper & print. Understand key elements Engage in dialogue Assess suppliers Provide Environmental RFP Template and other references 1
  • 2. 9/30/2011 Sustainability Business Goals Promote your commitment Demonstrate stewardship and leadership Garner good PR—internal and external Drive continuous improvement Establish guiding principles Compare environmental performance Endorse what vendors are doing Identify supply chain efficiencies Encourage integration throughout facilities, materials, handling Outline issues, benchmark, measure Green Purchasing . . . Sustainable Sourcing . . . Environmentally Preferred Purchasing . . . Sustainable Procurement . . . Economics is very much under purchasing’s control and skill set while CSR is far less so but green purchasing must be informed and conversant in both. CSR issues are already forcing major organizations such as Wal- Mart, Proctor & Gamble, Home Depot and many other multi-billion dollar business giants to adopt sustainability as a corporate goal. Even such giants cannot achieve their sustainability goals on their own; they must count the gains of their suppliers throughout the supply chain. Therefore, it arrives at purchasing’s door to drive sustainability throughout the supply chain to meet the demands of customers, prospective work force, and society at large. The old adage of “fore warned is fore armed” applies. –Robert Menard, Certified Purchasing Professional and Consultant, Green Purchasing & Sustainability July 2011 Employee Engagement 2
  • 3. 9/30/2011 Conserving Resources Key Elements to Address in RFP Corporate Philosophy Paper and Packaging made from fiber sourced legally from Sustainably Managed Forests Paper, Packaging and Print resulting from Clean, Responsible Production Practices Climate Change and Carbon Footprint Recycling and Use of Recovered Paper Products Supply Chain Management Corporate Philosophy Written Environmental Policy addressing Key Issues Certified Environmental Management System (e.g. ISO 14001) Compliance with Regulations and Legislation Focus on Supply Chain Performance External Report on Environmental Performance Manager or Officer responsible for Environmental Management or Sustainability Objectives/Goals with specific target reductions 3
  • 4. 9/30/2011 AF&PA Final Sustainability Goals Board-Approved Goals Pillar Previous AF&PA Goal (all Goals have a 2020 target and a 2005 baseline, except safety, which has a 2006 baseline) Paper Recovery 60% by 2012. Exceed 70%. for Recycling Achieved 63.5% in 2010. No goal, but members required to Exceed 10% increase. Measurement consistent with DOE method Energy Efficiency provide data and AF&PA reports that rewards energy self sufficiency. progress. 12% reduction in GHG emissions intensity by 2012 (exceeded in 2006, Greenhouse but regressed in 2008 due to drop in Exceed 15% reduction. Gases production and change in membership mix). AF&PA members are committed to sustainable forestry both in the 100% of our membership abides by US and around the globe. We will increase the amount of fiber Forestry Related sustainable forest management and procured from certified forest lands or through certified fiber Goal procurement standards as a condition sourcing programs in the United States; and work with of membership. governments, industry and other stakeholders to promote policies around the globe to decrease illegal logging. Safety- No goal, but members required to “Aspirational” goal of zero. Recordable Case provide data and AF&PA reports Report and measure interim target of a 25% reduction in OSHA Rate progress. recordable incidents. No goal, but members required to Commit to collect and analyze data to address consumptive use to Water Use provide data and AF&PA reports determine feasibility of later setting a numeric goal. progress. Fossil Fuel Use, No goal, but members required to Renewable provide data and AF&PA reports Continue reporting progress. Energy Use, progress. Water Discharge Paper & Packaging Made from Fiber Sourced Legally from Sustainably Managed Forests  Promote all credible third party forest certification systems and commit to continuous improvement targets to the % of certified fiber purchased each year  Advocate for more land certification  Comply with amended U.S. Lacey Act  Have certified chain of custody system(s) in place Forest Certification by Region Less than 10% of global forests are certified 4
  • 5. 9/30/2011 Paper, Packaging and Print Resulting from Clean, Responsible Production Practices Reduce Air Emissions Reduce Water Emissions & Water Use Reduce GHG Emissions Minimize Solid Waste Recyclable Compostable Beneficial Use Avoid hazardous chemicals Climate Change and Carbon Footprint Have Plan to address impact on climate change Have strong Energy Strategy Energy Efficiency Increased use of biofuels vs. fossil fuels Measure Carbon Footprint Facilities Transportation Travel Products Interest in Carbon Footprint What’s creating interest in knowing the Carbon Footprint of paper? – Carbon Labeling? Product comparisons. Digital vs Print – Cost of becoming Carbon Neutral? Offsets? Advertisers, Publishers, etc. – Corporate Social Responsibility? Avoiding Green-washing accusations. Transparency initiatives. FTC guidelines. – Affects of potential carbon legislation Informed decisions require measuring the Carbon Footprint 5
  • 6. 9/30/2011 Recycling and Use of Recovered Paper Products The real benefit of recycling is keeping paper out of landfills. By diverting usable fiber from landfills, we not only reclaim a valuable raw material, but also reduce GHG emissions (methane) that result when landfilled paper products degrade over time. Ultimate goal of paper recycling should be to increase fiber recovery beyond the current 63.5% reported by AF&PA to the maximum possible in the U.S., and then to re-use all fiber recovered in products where the least amount of transporting, cleaning and energy for processing of the post-consumer fiber is needed. Recovered Fiber Statistics 2010 100,000 90,000 80,000 70,000 Not Recovered (000 short tons) 60,000 29,664 Printing - 50,000 Writing News/Uncoated Exports 5.1% 40,000 Recovered Mechanical 39% 30,000 51,545 Mixed Paper 20,000 Used in Paper Container- Container- board & Board Mills 10,000 board 61.3% 61% 50.8% 0 Total Supply Sources Uses End Uses Source: AF&PA The economics of recovery, fiber yield rates, quality issues, grade utilization efficiency and other factors combine to create this utilization picture. Reducing process energy usage for cleaning can have a considerable impact on economics of recycled paper and also can reduce CO2 emissions. Supply Chain Management Establish clear expectations/requirements for suppliers Engage in routine dialogue with suppliers Audit environmental performance of suppliers Embrace Product Lifecycle Analysis Also evaluate Social Responsibility elements Labor & Human Rights Human Health & Safety Charitable Giving Biodiversity Initiatives Community Involvement 6
  • 7. 9/30/2011 Recommended Resources  Quad Graphics Environmental RFP Questions http://www.qg.com/aboutus/environment/rfpquestions.asp  Sustainable Procurement of Wood and Paper-based Products: Version 2, updated June 2011, WBCSD and WRI, www.wri.org/publications  Environmental Paper Assessment Tool (EPAT), www.epat.org  DMA Environmental Planning Tool & Policy Generator, www.the-dma.org/envgen Environmental Paper Assessment Tool® (EPAT)  Developed by MetaFore and the Paper Working Group  Online tool to compare environmental characteristics of paper products www.epat.org  Provides apples-to-apples metrics and language to help paper buyers assess environmental attributes and trade-offs Environmental Planning Tool and Optional Policy & Vision Statement Generator www.dma.responsibility.org PURPOSE & USE OF THIS TOOL This practical and easy-to-apply tool was created by DMA’s Committee on Environment and Social Responsibility (CESR) for you, the members of the direct marketing community. It is intended to be used by your organization to: • Assist in conducting an internal evaluation of environmental practices that affect aspects of your marketing process. • Help you attain Direct Marketing Association “Green 15” environmental performance compliance. • Generate an environmental vision statement or policy for your organization to consider and adopt. EVALUATION OF ENVIRONMENTAL PRACTICES The planning tool provides you with a list of ideas and strategies to consider when developing internal environmental goals and/or policies. It empowers you to create and/or evaluate your internal policies and goals for continual environmental improvement, in balance with financial performance. Using the tool, you can consider your current practices and the environmental impact of your organization. The tool is flexible. You may choose to focus on single areas in which to make improvement, set goals and build from there; or you may take a more comprehensive approach. At a minimum, the tool is designed to be educational. Using it gives you both a greater awareness of the breadth and complexity of environmental issues facing direct marketers and the means for addressing them in a practical, feasible manner. 7
  • 8. 9/30/2011 Environmental Resource Center www.dmaresponsibility.org THE “GREEN 15” Through the “Green 15”, the DMA calls upon you as a member organization to establish internal and measurable benchmarks to improve environmental performance in key areas of your direct marketing process: 1. List Hygiene and Data Management 2. Design 3. Paper Procurement and Usage 4. Printing and Packaging 5. Recycling and Pollution Reduction in Our Workplace and Community BUSINESS BENEFITS OF "GREEN 15" IMPLEMENTATION & USE OF THIS PLANNING TOOL Increase efficiency, reduce waste, and lower costs, while serving these three bottom line objectives. Moreover, build better customer relations and winning brand loyalty while inspiring employees and driving innovation. 1. The Triple Bottom Line—financial performance, environmental performance, social responsibility 2. Reduce Greenhouse Gases & Mitigate Climate Change QUESTIONS? Meta Brophy Director, Publishing Operations Consumers Union MBrophy@consumer.org Monica Garvey Sustainability Manager Verso Paper Corporation Monica.Garvey@versopaper.com Joe Muehlbach Executive Director Facilities and Environmental Policy Quad Graphics Joe.Muehlbach@qg.com 8