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Salesforce’s Approach to
Sustainable Procurement and
Healthy Material Sourcing
May 15, 2018
Fadi El Mouallem
Director of Strategic Sourcing for Real Estate
The Salesforce Ohana!
Since 1999, Salesforce culture was founded on a concept called Ohana!
Ohana is an ecosystem that brings all our customers, employees,
partners, and communities together to work collaboratively and
make the world a better place.
Sustainability at Salesforce
Water Leadership
● Tower Blackwater to save 7.8M
gallons/year
● 40% average office water savings
● 5M gallons conserved at DF18
● Activism - We Are Still In
● Policy - Create low-carbon future
● Engagement - more than 6,000
Earthforce members across the
globe
● in April 2017, Salesforce began
delivering carbon neutral cloud
● Sourcing 100% renewable at HQ
Campus in San Francisco
● 38% average office energy savings
Energy
We consider the environment to be a key stakeholder and we strive for a world where
everyone has equal access to clean air, water, and energy
Effect of Office Environment on Employee Productivity
● Lighting: Over 2/3 of all workers are unhappy with the
lighting situation in their offices.
● Air Quality: OSHA has estimated that poor air quality
in office environments costs about $15 billion across all
industries due to inefficient workers and sick leave.
● Ergonomics: Not only does it increase productivity, it
also prevents injuries and fatigue.
● Acoustics: Not only will this help your employees be
more productive, it will help them relax and feel less
stressed.
● Temperature: 1/3 of all workers surveyed were not
comfortable with the temperature of their office
● View: Studies show that employees are up to 16% more
productive when they have an outdoor view.
Ohana Design starts with site selection, design, construct, operate and
maintain sustainable, high-performance workspaces that cultivate
innovation, productivity, health and well-being for our Ohana.
Who Makes Sure Our Building Products Are Good for Human?
Materials Health
Ingredient Disclosure
Chemicals of concern
Materials Composition
Material makeup of a product
How it’s produced
Environment
Environmental impact reduction
throughout the product’s life-cycle
Waste elimination
Carbon footprint reduction
Social Responsibility
Manufacturer’s social responsibility
efforts within their company,
community and supply chain
Risk to their own employees
Salesforce Healthy Materials Key Performance Evaluation Criteria
Truly healthy spaces start with purposeful design and healthy materials
Use Case #1 - Overview
Furniture RFP for Salesforce Tower in San
Francisco!
● Salesforce New Headquarter
● About 800k RSF of Space
● ~3,500 Salesforce seats
● LEED Platinum CI v4
● 5 Global Furniture Manufacturers competing
● Custom furniture was part of the package
Use Case #1 - Highlights
● We used to RFP as a platform to communicate with our
partners about the environmental attributes of each
product
● We looked at not only supply chain risk but also how
various components were sourced
● We reviewed and scored environmentally impactful
elements including finish types.
● We looked at how can we engage a local manufacturer
for custom products (500 miles was not good enough).
● We had our sustainability team and consultant plugged
into the sourcing process to review all the data.
● When price and quality were a close match (less than 2%
in difference), the environmental attributes were the
biggest differentiators.
Use Case #2 - Overview
Salesforce Tower in Indianapolis
● About 250k RSF of Space
● ~1000+ Salesforce seats
● 3 Global Furniture Manufacturers competing
● Integrate the Salesforce Ohana design
● Quality, cost, and schedule are always in mind
● Maintain cultural balance internally
● Manager legacy supplier relationships
Use Case #2 - Highlights
● 2 same finalist contenders were competing
● We decided to look further into bringing the local
community into the project
● One of the contenders partnered with a local
Indianapolis manufacturer to produce custom
made conference room tables
● Higher cost (5%-7%), and higher risk to
Salesforce
● But the community engagement aspect
exceeded our expectations
“At Purposeful Design, our mission is to help re-build the lives
of men broken by addiction or homelessness, equip them with
valuable work skills and provide the gift of work.”
Take Aways
● The business of business is improving the state of
the World!
● Our business is the greatest platform for change
● Protecting the planet for future generations is
everyone’s responsibility
● Sourcing responsibly is not a personal effort, it must
be a corporate mission
● Cost is often hidden behind the label, it’s proven that
access to transparent information is key
● Building sustainable purchasing policies is a great
step, activating the policy and measuring results
should be the goal
● The Planet needs more than carbon neutrality, we
need to be part of the positive change for future
generations to come.
City of Portland
2017 Furniture
Solicitation
2018 SPLC Summit Stacey Foreman, Sustainable Procurement Coordinator, City of Portland, Oregon
Background
 Citywide Furniture: systems furniture, conference, lounge, accessories
Prompted by renovation of 15-story admin building
 Goals
Standardize furniture – “kit of parts”
Meet best practices in less-toxic furniture
Align with LEED and WELL certifications
Durable, non-trendy
Meets a variety of workspace needs
Furniture contractor is partner in sustainable solutions
2
Background
 Sustainable Procurement Specification Development
Align with City less-toxic priorities
Reviewed existing practices/specifications
 LEED, WELL
 BIFMA level
 Healthier Hospitals Initiative
 Center for Environmental Health – flame retardants work
 Other agencies (e.g. Massachusetts)
Challenge: no “one” furniture certification that addresses all issues at
mandatory level
3
Furniture Sustainability Criteria
 VOC Emissions: CA 01350 compliant; required third-party verification
 No added flame retardant chemicals (exception for electrical)
 Formaldehyde: CA Title 17 Phase 2 compliant
 No added/built-in antimicrobials
 No PVC greater than 1% by weight
 Less than 100ppm Perfluoroalkyl and Polyfluoroalkyl Substances
 Less than 100ppm heavy metals and hexavalent chromium
 Textiles: most of the above plus third-party certification
4
Verification Approach
 VOC Emissions: required third-party
certifications
 All Others Product Attribute
Sustainability Requirements:
Proposer attests to compliance for
each proposed product; City can
request letter of assurances
 Evaluation of proposer responses to
open-ended questions
5
Challenges
 During Solicitation Development
No “one” furniture certification that addresses all issues at mandatory level
Hard to determine product availability against mandated specs
Lack of verification methods for some specs
Data is all over the place
6
Challenges
 During Solicitation Compliance Review
A lot of data points that need some verification, documentation,
communication. None of it is in one place.
Even where certifications exist, they are not simple to interpret
 CA 01350 vs BIFMA level vs Greenguard Gold vs Indoor Advantage Gold
 Have to review individual product certification documents – time consuming!
Furniture distributors are confused; educating sales staff is necessary
 During Contract Management
Ongoing compliance – verifying certifications are being maintained, etc.
7
Benefits
 Standardized Around Less-Toxic Furniture! Yay!
 Kit-of-Parts Approach Allows for End-User Flexibility
 Local Distributor (Contractor) is Sustainability Partner
8
Thank You.
stacey.foreman@portlandoregon.gov
www.portlandoregon.gov/buygreen
Solving the Data Challenge
Changing Furniture Procurement
Jeff Frost - LFA, CSBA, LEED-AP BD+C, Assoc. AIA
Project Manager – Materials Specialist
Co-founder – mindful MATERIALS
Create
Respond
Review
Complex Criteria
Complex Tracking – Spreadsheets
Complex Tracking – Spreadsheets
Complex Tracking – More Spreadsheets
Endless Documentation
212 Documents
for ONE vendor
Vendor ‘A’
Large Files
212 Documents
for ONE vendor
Vendor ‘A’
Human error
Vendor ‘A’
1. Not Sustainable!
2. True for many product categories!
There has to be a
better way!
mindful MATERIALS is a
design industry initiative that provides a
common platform for
manufacturers to clearly communicate
transparency and optimization information
for their building products.
1. Free
2. Network effect
1. Brand
2. Inform Better Choices
‘Real-time’ Data from Integration Partners
Improve Process
Leverage Data
Building Industry coming together around a brand for better products choices!
Other industries can do this too!
Thank you!
Jeff Frost - LFA, CSBA, LEED-AP BD+C, Assoc. AIA
Project Manager – Materials Specialist
Questions?
Jeff Frost - LFA, CSBA, LEED-AP BD+C, Assoc. AIA
Project Manager – Materials Specialist

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SPLC 2018 Summit: Make Better Furniture Purchases by Giving Data a Seat at the Table

  • 1. Salesforce’s Approach to Sustainable Procurement and Healthy Material Sourcing May 15, 2018 Fadi El Mouallem Director of Strategic Sourcing for Real Estate
  • 2. The Salesforce Ohana! Since 1999, Salesforce culture was founded on a concept called Ohana! Ohana is an ecosystem that brings all our customers, employees, partners, and communities together to work collaboratively and make the world a better place.
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  • 5. Sustainability at Salesforce Water Leadership ● Tower Blackwater to save 7.8M gallons/year ● 40% average office water savings ● 5M gallons conserved at DF18 ● Activism - We Are Still In ● Policy - Create low-carbon future ● Engagement - more than 6,000 Earthforce members across the globe ● in April 2017, Salesforce began delivering carbon neutral cloud ● Sourcing 100% renewable at HQ Campus in San Francisco ● 38% average office energy savings Energy We consider the environment to be a key stakeholder and we strive for a world where everyone has equal access to clean air, water, and energy
  • 6. Effect of Office Environment on Employee Productivity ● Lighting: Over 2/3 of all workers are unhappy with the lighting situation in their offices. ● Air Quality: OSHA has estimated that poor air quality in office environments costs about $15 billion across all industries due to inefficient workers and sick leave. ● Ergonomics: Not only does it increase productivity, it also prevents injuries and fatigue. ● Acoustics: Not only will this help your employees be more productive, it will help them relax and feel less stressed. ● Temperature: 1/3 of all workers surveyed were not comfortable with the temperature of their office ● View: Studies show that employees are up to 16% more productive when they have an outdoor view.
  • 7. Ohana Design starts with site selection, design, construct, operate and maintain sustainable, high-performance workspaces that cultivate innovation, productivity, health and well-being for our Ohana.
  • 8. Who Makes Sure Our Building Products Are Good for Human?
  • 9. Materials Health Ingredient Disclosure Chemicals of concern Materials Composition Material makeup of a product How it’s produced Environment Environmental impact reduction throughout the product’s life-cycle Waste elimination Carbon footprint reduction Social Responsibility Manufacturer’s social responsibility efforts within their company, community and supply chain Risk to their own employees Salesforce Healthy Materials Key Performance Evaluation Criteria Truly healthy spaces start with purposeful design and healthy materials
  • 10. Use Case #1 - Overview Furniture RFP for Salesforce Tower in San Francisco! ● Salesforce New Headquarter ● About 800k RSF of Space ● ~3,500 Salesforce seats ● LEED Platinum CI v4 ● 5 Global Furniture Manufacturers competing ● Custom furniture was part of the package
  • 11. Use Case #1 - Highlights ● We used to RFP as a platform to communicate with our partners about the environmental attributes of each product ● We looked at not only supply chain risk but also how various components were sourced ● We reviewed and scored environmentally impactful elements including finish types. ● We looked at how can we engage a local manufacturer for custom products (500 miles was not good enough). ● We had our sustainability team and consultant plugged into the sourcing process to review all the data. ● When price and quality were a close match (less than 2% in difference), the environmental attributes were the biggest differentiators.
  • 12.
  • 13. Use Case #2 - Overview Salesforce Tower in Indianapolis ● About 250k RSF of Space ● ~1000+ Salesforce seats ● 3 Global Furniture Manufacturers competing ● Integrate the Salesforce Ohana design ● Quality, cost, and schedule are always in mind ● Maintain cultural balance internally ● Manager legacy supplier relationships
  • 14. Use Case #2 - Highlights ● 2 same finalist contenders were competing ● We decided to look further into bringing the local community into the project ● One of the contenders partnered with a local Indianapolis manufacturer to produce custom made conference room tables ● Higher cost (5%-7%), and higher risk to Salesforce ● But the community engagement aspect exceeded our expectations “At Purposeful Design, our mission is to help re-build the lives of men broken by addiction or homelessness, equip them with valuable work skills and provide the gift of work.”
  • 15. Take Aways ● The business of business is improving the state of the World! ● Our business is the greatest platform for change ● Protecting the planet for future generations is everyone’s responsibility ● Sourcing responsibly is not a personal effort, it must be a corporate mission ● Cost is often hidden behind the label, it’s proven that access to transparent information is key ● Building sustainable purchasing policies is a great step, activating the policy and measuring results should be the goal ● The Planet needs more than carbon neutrality, we need to be part of the positive change for future generations to come.
  • 16.
  • 17. City of Portland 2017 Furniture Solicitation 2018 SPLC Summit Stacey Foreman, Sustainable Procurement Coordinator, City of Portland, Oregon
  • 18. Background  Citywide Furniture: systems furniture, conference, lounge, accessories Prompted by renovation of 15-story admin building  Goals Standardize furniture – “kit of parts” Meet best practices in less-toxic furniture Align with LEED and WELL certifications Durable, non-trendy Meets a variety of workspace needs Furniture contractor is partner in sustainable solutions 2
  • 19. Background  Sustainable Procurement Specification Development Align with City less-toxic priorities Reviewed existing practices/specifications  LEED, WELL  BIFMA level  Healthier Hospitals Initiative  Center for Environmental Health – flame retardants work  Other agencies (e.g. Massachusetts) Challenge: no “one” furniture certification that addresses all issues at mandatory level 3
  • 20. Furniture Sustainability Criteria  VOC Emissions: CA 01350 compliant; required third-party verification  No added flame retardant chemicals (exception for electrical)  Formaldehyde: CA Title 17 Phase 2 compliant  No added/built-in antimicrobials  No PVC greater than 1% by weight  Less than 100ppm Perfluoroalkyl and Polyfluoroalkyl Substances  Less than 100ppm heavy metals and hexavalent chromium  Textiles: most of the above plus third-party certification 4
  • 21. Verification Approach  VOC Emissions: required third-party certifications  All Others Product Attribute Sustainability Requirements: Proposer attests to compliance for each proposed product; City can request letter of assurances  Evaluation of proposer responses to open-ended questions 5
  • 22. Challenges  During Solicitation Development No “one” furniture certification that addresses all issues at mandatory level Hard to determine product availability against mandated specs Lack of verification methods for some specs Data is all over the place 6
  • 23. Challenges  During Solicitation Compliance Review A lot of data points that need some verification, documentation, communication. None of it is in one place. Even where certifications exist, they are not simple to interpret  CA 01350 vs BIFMA level vs Greenguard Gold vs Indoor Advantage Gold  Have to review individual product certification documents – time consuming! Furniture distributors are confused; educating sales staff is necessary  During Contract Management Ongoing compliance – verifying certifications are being maintained, etc. 7
  • 24. Benefits  Standardized Around Less-Toxic Furniture! Yay!  Kit-of-Parts Approach Allows for End-User Flexibility  Local Distributor (Contractor) is Sustainability Partner 8
  • 26. Solving the Data Challenge Changing Furniture Procurement Jeff Frost - LFA, CSBA, LEED-AP BD+C, Assoc. AIA Project Manager – Materials Specialist Co-founder – mindful MATERIALS
  • 29. Complex Tracking – Spreadsheets
  • 30. Complex Tracking – Spreadsheets
  • 31. Complex Tracking – More Spreadsheets
  • 32. Endless Documentation 212 Documents for ONE vendor Vendor ‘A’
  • 33. Large Files 212 Documents for ONE vendor Vendor ‘A’
  • 35. 1. Not Sustainable! 2. True for many product categories!
  • 36. There has to be a better way!
  • 37. mindful MATERIALS is a design industry initiative that provides a common platform for manufacturers to clearly communicate transparency and optimization information for their building products.
  • 39. 1. Brand 2. Inform Better Choices
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  • 45. ‘Real-time’ Data from Integration Partners
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  • 49. Building Industry coming together around a brand for better products choices! Other industries can do this too!
  • 50.
  • 51. Thank you! Jeff Frost - LFA, CSBA, LEED-AP BD+C, Assoc. AIA Project Manager – Materials Specialist
  • 52. Questions? Jeff Frost - LFA, CSBA, LEED-AP BD+C, Assoc. AIA Project Manager – Materials Specialist