An Overview of the Council October 2013 For more information: Sam Hummel Jason Pearson Director of Outreach Executive Director sam@purchasingcouncil.org jason@purchasingcouncil.org 919.475.8136 202.642.2336
Background In 2008, The Keystone Center launched the Green Products Roundtable, a voluntary, multi-stakeholder forum, with the goal of bringing further clarity to the green products marketplace. Green Products Roundtable Participants 2
Background How to define a green product? 3
Background Roundtable Work Products Guidance for Green Purchasing Lexicon Identifying Credible Green Claims Guidance for FTC Green Guides Framework for Prioritization Business Plan 4
Background Prioritization Framework 5
Challenges facing purchasing organizations Related to Related to Related to Program Performance Leadership GUIDANCE MEASUREMENT RECOGNITION No standard methodology No recognition framework Policy inconsistency for measuring the social, economic, Similar-but-different policies at every • Difficult to get recognition for and environmental impacts of a given organization progressive improvement organization’s spend • Sends suppliers mixed signals (good, better, best) • Difficult to share training costs Silo-ed accounting practices 3 rd party acclaim tends to be product • • Policies are rarely updated make it difficult to assess all spend on focused, rather than purchasing program focused (e.g. green power) • Focus is on easy over impactful goods and services • Development cost is prohibitive • Leadership recognition currently No standard process depends on marketing Lack of program guidance for tracking, reporting and • Rarely based on open data shared benchmarking the performance of an Holistic program guidance hard to find; on common platforms organization’s overall sustainable scattered resources don’t add up and No professional distinction purchasing program are expensive to corral; challenges Nothing like LEED AP to signal integrating social and environmental Software not optimized expertise and proficiency in sustainable Product label growth & gaps Measurement conforms to limitations of institutional purchasing. current business process software; if a Both purchasers and suppliers need Lacking multi-sector forum common standard existed, software better labels and less confusion could evolve to support it Need a gathering place for the Inertia of standard practices sustainable purchasing movement Lack of ROI for program where passionate professionals can Standard procurement practices do not share thought leadership across Return on investment (ROI) has been always support sustainable purchasing sectors and stakeholder groups . Many demonstrated in certain product (e.g. lowest-bid vs Total Cost of would like to participate in such a categories, but is still lacking for Ownership) “community of purpose.” sustainable purchasing as a program . 6
BLUE SKY IDEA Aligning with the excellent work already underway by many groups, such as The Sustainability Consortium, the Responsible Purchasing Network, the National Association of State Procurement Officers, the Western States Contracting Alliance, EPA, GSA, UNEP, ICLEI, and others… Could we collaborate to launch a shared program to serve as a platform for guiding , measuring , and recognizing leadership in sustainable purchasing? 7
A Shared Program We propose a “ LEED for procurement ” rating system and leadership recognition program for sustainability in institutional and commercial purchasing. This shared program will aid all marketplace actors by providing clear guidance, effective performance assessment and credible leadership recognition within an integrated program platform . We believe such a program is necessary to address a number of market barriers that are similar to the barriers LEED substantially alleviated in the green building market. 8
Analogy: USGBC / LEED BEFORE (early 1990’s) AFTER (early 2010’s) Market fragmented by inconsistent guidelines LEED provides buyers and suppliers with common language No shared training program for green building LEED AP makes training accessible to everyone Can’t differentiate credible from greenwash LEED identifies credible standards and eco-labels Leadership recognition based on marketing Leadership recognition based on performance Shared challenges solved project by project Shared challenges addressed through LEED versioning Documentation is expensive and rare Documentation costs steadily decrease Creativity consumed reinventing the wheel Creativity focused on innovation ROI demonstrated on case by case basis ROI of LEED approach consistently documented Green building is expensive Building LEED-certified adds negligible cost “A common standard is impossible.” A common standard is widely embraced and used. “Green building will always be niche.” Green building is becoming the norm.* * Green building is estimated at 44% of non-residential new construction in 2012. 9
Our Approach The Council will support and incentivize organizations to: ① Analyze the impacts associated with their total goods and services spending and uncover hotspots within it, ② Action Plan proven and cost-effective strategies for meeting the organization’s goods and services needs in ways that mitigate impacts and increase the financial sustainability of the organization, ③ Implement their action plan within their incumbent procurement processes and tools, ④ Measure the action plan’s performance in ways that efficiently track and demonstrate improvements in outcomes, support benchmarking, and allow for assurance, and ⑤ Earn Leadership Recognition for their sustainable purchasing efforts from a credible third party. 10
Benefits for Key Stakeholders Buyers Suppliers Public Interest Government, corporate Energy, building, food, IT, NGOs, institutes, policy… indirect, higher ed… transport, services… reduce cost of promoting enhance efficiency of staff; reduce costs associated new science and best REDUCE reduce need for consulting; with market confusion; 1 practices; COSTS & share costs of training and harmonize data lower risk that guidance supplier engagement; requests to address RISKS and tools will be under- avoid mistakes “survey fatigue” utilized find improved solutions align offerings to improve outcomes by for end users; INCREASE expressed market needs; getting upstream of 2 exceed mandates cost- BUSINESS align brand with downstream impacts; effectively; Council’s sustainability expand reach of existing VALUE receive recognition for leadership efforts leadership gain insight into needs gain access to trustworthy, and expectations of gain insight into ready-to-use guidance; ACCESS leading large procurement processes 3 gain insight into peer PEOPLE & organizations; and current challenges; efforts & market direction; develop networks of develop relationships INFORMATION develop networks of peers peers and valued with potential partners and reliable suppliers customers 11
Steering Committee Key Staff Anastasia O’Rourke , C o - C h a r i Yalmaz Siddiqui , Co-Chair Principal , DEKRA Senior Director, Environmental Strategy Founder, EcoLabel Index Office-Depot Jason Pearson Cynthia Cummis Josh Silverman Executive Director Manager, GHG Protocol Director, OSES Founder, TRUTHstudio and past World Resources Institute US Department of Energy President & CEO, GreenBlue. Mark Rossolo Jonathan Rifkin Public Affairs Director Green Purchasing Coordinator UL Environment NASPO / City of Washington, DC Sam Hummel Chris O’Brien Nancy Gillis Director of Outreach Director of Sustainability Senior Manager Formerly at Association for the American University Ernst & Young, LLC Advancement of Sustainability in Higher Education and Duke University (Sustainability Coordinator) Dennis McGavis EPA Liaison to the Director of EHS, Sustainability Steering Committee Goodyear Tire & Rubber Co. A lison Kinn Bennett Senior Advisor EPP Pr ogr am , US EPA 12
Activities 2012 Stakeholder Meeting Discussion Draft Extensive STARS Input results in vision for integrated program. submitted to AASHE. for recognition program. SPLC Steering Committee Interim Executive Director forms to launch the SPLC. hired. Data Model Pilot Project created to prioritize launched to apply GPR spend categories. framework for guidance to AASHE STARS. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 13
Activities 2013 Public Launch Webcast July 23 rd , 1pm ET Founding Summit August 27-28, Washington DC Founders & Partners only Pre-Launch Launch • 501(c)3 incorporation • Nominate Founding Board • Fundraising • Refine Guiding Principles • Staffing up • Prioritize work projects • Partnership development • Form technical working groups • Founders’ Circle invites • Identify working group leaders • Prep governance, work stream & • Kick-off work streams… content proposals for launch mtg • Prep general membership program • Pre-launch publicity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14
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