United States
Pollution Prevention
d Toxics
EPA742-R-99-001
June 1999
Environmentally Preferable Purchasing Program
How Companies Are Incorporating
Environmentally Preferable Purchasing
Printed on paper that contains at least 30 percent postconsumer fiber.
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Environmentally Preferable
Purchasing Program
Environmentally preferable purchasing ensures that
environmental considerations are included in purchasing
decisions, along with traditional factors, such as product
price and performance. The EPP program provides guid-
ance for federal agencies to facilitate purchases of goods
and services that pose fewer burdens on the environment.
For more information about environmentally preferable purchasing or EPA's EPP Program,
please visit our Web site at , or contact:
Pollution Prevention Information Clearinghouse (PPIC)
202260-1023
e-mail: PPIC@EPA.GOV
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Acknowledgements
T
he U.S. Environmental Protection Agency's Environmentally Preferable Purchasing
Program would like to acknowledge the contributions of the following individuals
who shared information on their companies' environmental purchasing initiatives:
Andrea Asch, Ben & Jerry's
Christy Barone, Public Service Electric and Gas
Shelley Levin Billik, Warner Bros.
Eeva-Liisa Book, Volvo
Dobbin Callahan, Collins & Aikman Floorcoverings, Inc.
Jeannine Fallon, Volvo
Al Fralinger, Public Service Electric and Gas
Lena Gevert, Volvo
Jim Gillespie, Herman Miller
Rick Hall, IBM
Alistair Jackson, The Body Shop
Bob Kainz, DaimlerChrysler
Yoko Kano, Tokyo Gas
Bob Langert, McDonald's Corporation
Diana Lyon, IBM
Tim Mann, IBM
Yuko Miike, Sony
Danielle Ouendag, Perrigo Company
Mark Petruzzi, Green Seal
Lynn Preston, Collins & Aikman Floorcoverings, Inc.
Bob Sanders, IBM
Hiroyuki Sato, Green Purchasing Network (Japan)
Lu Sctnicka, Patagonia
Hugh "Bert" Share, Anheuser-Busch Companies, Inc.
Kiyomi Shimizu, Tokyo Gas
Hiroyuki Tada, Sony
Noriko Takata, NEC
Hiroaki Wakamatsu, Canon
Susan Wegner, Sun Microsystems
Acknowledgements
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Disclaimer
This document provides an overview of recent private sector environmentally
preferable purchasing initiatives and includes references to specific products and
companies. These references are included to provide additional detail and do not
constitute endorsement or recommendation for use by the U.S. Environmental Protec-
tion Agency (EPA). This document is intended to show representative private sector
environmentally preferable purchasing activities. It does not attempt to include the
efforts of every company initiating such activities or every activity initiated by the com-
panies that are referenced.
^ Environmentally Preferable Purchasing (EPP) Program, however, is interest-
ed in learning about the environmentally preferable purchasing practices of other com-
panies. Please share any information on corporate green purchasing activities with:
Eun-Sook Goidel
Environmentally Preferable Purchasing Program
U.S. Environmental Protection Agency
40 1M Street, SW. (7409)
Washington, DC 20460
E-mail: goidel.eunsook@epa.gov
Fax: 202 260-0178
Disclaimer + iii
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Contents
Acknowledgments i
Disclaimer iii
Contents .v
Acronyms .vi
Introduction 1
Defining Environmentally Preferable Purchasing 2
Selecting Report Participants 3
Public Versus Private Sector Purchasing 5
Private Sector Reasons for Adopting Environmental Purchasing Practices 7
Responding to Customer Interest in "Environmentally Friendly"
Products and Practices 7
Distinguishing a Company and Its Products From Competitors 8
Pursuing Cost Savings 12
Joining an Industry Trend 13
An Overview of Private Sector Environmentally Preferable
Purchasing Activities 15
Developing Lists of Chemicals to Avoid 15
Creating Lists of Approved Products 17
Establishing Single Environmental Attribute Purchasing Programs 20
Buy Recycled Programs 20
Energy- and Water-Efficiency Programs 22
Considering Multiple Environmental Attributes When Making
Purchasing Decisions 24
Resolving Competing Attributes 28
Working Closely With Suppliers to Enhance Environmental Performance 30
Conclusions 35
Private Sector Companies Are Increasingly Adopting Environmentally
Preferable Purchasing Practices 35
Environmental Purchasing Has Economic and Environmental Benefits 35
Companies Are Actively Promoting Environmental Purchasing 35
Different Companies Can Reach Different Environmental Purchasing Decisions 36
Environmental Purchasing Will Continue to Expand 36
Appendix: Description of Participating Companies 37
Contents
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Acronyms
CPG Comprehensive Procurement Guidelines Program (EPA)
ELU Environmental Load Unit
EPA U.S. Environmental Protection Agency
EPP Environmentally Preferable Purchasing Program (EPA)
EPS Environmental Priority Strategies
D OE U. S. D epartment of Energy
FEMP Federal Energy Management Program (DOE)
FR Federal Register
GPN Green Purchasing Network
MSDS Material Safety Data Sheet
PSE&G Public Service Electric and Gas Company
PVC Polyvinyl Chloride
rBGH Recombinant Bovine Growth Hormone
TCF Totally Chlorine Free
TEEM The Energy Efficient McDonald's Program
VOC Volatile Organic Compound
vi
Acronyms
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Introduction
During the past 20 years, U.S. federal agencies have operated under a series of
federal statutes and Presidential Executive Orders mandating the purchase of
products and services that pose fewer burdens on the environment. As a result,
federal agencies are increasingly selecting products based in part on environmental
attributes such as recycled-content percentages, energy- and water-efficiency ratings,
lower toxicity, and the use of renewable resources. Many state and local governments
are embarking upon similar initiatives. The U.S. Environmental Protection Agency's
(EPA^) Environmentally Preferable Purchasing (EPP) Program is assisting these efforts
and documenting federal, state, and local government attempts to implement environ-
mentally preferable purchasing strategies.
The growing interest in environmentally preferable purchasing, however, is not lim-
ited to the public sector. Private sector companies also are investigating and purchasing
environmentally preferable products and services. Although environmental purchasing
is a new concept for many companies, others are beginning to solve some of the chal-
lenges encountered when incorporating environmental considerations into purchasing
decisions. Through a variety of environmental and cost-savings initiatives—design for
the environment, greening the supply chain, full cost accounting, zero waste initiatives,
ISO 14000 certification, environmental accounting, and others—private sector compa-
nies are identifying, manufacturing, and purchasing "green" products and services.
In an effort to provide federal purchasers and other interested parties with up-to-
date information on current environmental purchasing practices, this report highlights
some of the initial efforts of a few private sector companies to "buy green." The EPP
Program hopes the ideas generated and lessons learned from these private sector envi-
ronmentally preferable purchasing pioneers will provide additional incentives, goals,
and tools to further advance environmental purchasing efforts.
Through a variety
of environmental
and cost-savings
initiatives, private
sector companies
are identifying,
manufacturing, and
purchasing "green"
products and
services.
For additional information on the EPP Program
or to access existing resources that can help you identify and purchase envi-
ronmentally preferable products, please visit the program's
Web site at:
www.epa.gov/opptintr/epp
Introduction
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EPA encourages
federal agencies to
evaluate multiple
environmental
impacts when
making purchasing
decisions.
Defining Environmentally Preferable Purchasing
According to Executive Order 13101, Greening the Government Through Waste
Prevention, Recycling, and Federal Acquisition (September 1998), environmentally
preferable purchasing means selecting "products or services that have a lesser or
reduced effect on human health and the environment when compared with competing
products or services that serve the same purpose." An earlier Executive Order, Federal
Acquisition, Recycling, and Waste Prevention (October 20, 1993), initiated EPA's work on
environmental preferability by mandating EPA to develop environmentally preferable
purchasing guidance for federal agencies. EPA proposed seven guiding principles and
provided further clarification to help federal agencies comply with the Executive
Order mandates.
EPA recommends that agencies select products to maximize beneficial environmen-
tal attributes and to minimize adverse environmental effects consistent with price and
performance considerations. EPA encourages agencies to evaluate the multiple envi-
ronmental impacts of every product throughout the product's life cycle—raw material
acquisition, manufacture, packaging and distribution, use, and disposal. Environmental
impacts can include:
Greening the Government
Executive Order 13101, Greening the Government
Through Waste Prevention, Recycling, and Federal
Acquisition, mandates federal agencies to identify
and purchase environmentally preferable products
and services. It defines them as:
"...products and services that have a lesser or
reduced effect on human health and the envi-
ronment when compared with competing prod-
ucts or services that serve the same purpose.
This comparison may consider raw materials
acquisition, production, manufacturing, packag-
ing, distribution, reuse, operation, maintenance,
or disposal of the product or service."
• Energy-efficiency
• Recycled content
• Water-efficiency
• Resource conservation
• Waste prevention
• Renewable material percentages
• Adverse effects to workers, animals, plants, air,
water, and soil
• Toxic material content
• Packaging
• Transportation
While very few private sector companies have
formally defined environmentally preferable pur-
chasing, several are incorporating environmental
purchasing principles consistent with EPA's rec-
ommendations.
Introduction
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Selecting Report Participants
To select the companies represented in this report, numerous newspaper, magazine,
and journal articles were reviewed to identify companies potentially engaged in envi-
ronmental purchasing efforts. EPA also was working closely with Japan's Green Pur-
chasing Network (GPN), which recommended several companies. In addition,
messages were posted to multiple Internet list servers describing the proposed report
and soliciting additional companies willing to participate. As a result of these efforts, a
list of almost 60 companies from 20 different industry sectors was developed.
After describing the purpose of the report, companies were asked if they were inter-
ested in participating. A third of the companies (18) agreed and each was contacted and
asked specific questions about their individual programs and efforts. EPA did not use
questions from within a fixed set of questions or a plan of inquiry. Instead, EPA created
tailored questions for each company.
For the 18 participating companies, EPA interviewed company representatives and
requested publicly available information pertaining to the company's environmental
purchasing efforts. EPA used the information to prepare this report. Participating com-
panies were then given an opportunity to review the report before publication.
The Appendix includes a brief description of the participating companies.
EPA's Environmentally Preferable Purchasing Guidance*
EPA identified seven guiding principles to help federal agencies incorporate envi-
ronmental preferability into their procurement practices. These principles were
proposed in the Federal Register (FR) in EPAk Guidance on Acquisition of Environmen-
tally Preferable Products and Services (60 FR 50722):
1. Consideration of environmental preferability should begin early in the acquisition
process and be rooted in the ethic of pollution prevention, which strives to elimi-
nate or reduce, up front, potential risks to human health and the environment.
2. A product or service's environmental preferability is a function of multiple
attributes.
3. Environmental preferability should reflect the lifecycle considerations of prod-
ucts and services to the extent feasible.
4. Environmental preferability should consider the scale (global versus local) and
temporal reversibility aspects of a product or service's impact.
5. Environmental preferability should be tailored to local conditions where
appropriate.
6. Environmental objectives of products or services should be a factor or subfactor
in competition among vendors, when appropriate.
7. Agencies need to examine product attribute claims carefully.
* Note: EPA is currently revising these principles. The revised principles will be available on the EPP Pro-
gram Web site at .
Introduction
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Public Versus Private Sector Purchasing
While public and private sector purchasing are similar in many ways, an
important distinction between them is the role each plays in the supply
and demand dynamic of the market. The government typically buys
finished products—products that were designed and manufactured by private
sector companies—and services.1 Private sector companies, however, are
both buyers and suppliers of products and services. As buyers, both the
government and private industry are concerned with product price, perfor-
mance, and availability. As suppliers, however, companies' purchasing
decisions also are determined by their ability to sell the products they
manufacture and the services they provide. Consequently, companies must
concern themselves with each purchase's impact on their production costs
and schedules, product performance, customer reactions, sales, and profits—
concerns that are rarely part of the government's purchasing equation.
In addition to obtaining needed products and services, one of the historical roles of
government purchasing in the United States is to promote specific social and economic
objectives. While price and performance are usually the primary determining factors in
government purchasing decisions, they are often examined within a broader context
that includes Congressional or Presidential policy objectives. Government purchasing
programs, for example, can be used to promote the purchase of products manufactured
in the United States, to support women- and minority-owned businesses, to protect
small business interests, to assist the less fortunate, to revitalize or stimulate growth in
selected industries, and to encourage research and development in areas deemed
important to national interests. As a result, incorporating environmental concerns into
government purchasing decisions is a natural extension of the government's role in
protecting the nation's environment.
1. Some government agencies, such as the General Services Administration, Defense Logistics Agency, UNICOR,
NIB, and NISH, are, like their private sector counterparts, both buyers and suppliers of products and services.
Public Versus Private Sector Purchasing
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Private Sector Reasons for Adopting
Environmental Purchasing Practices
Traditionally, private sector purchasing decisions are not made to promote
social, economic, or political objectives. To prosper and earn a reason-
able profit, private sector companies must sell quality goods at rea-
sonable prices. As a result, before making a purchasing decision,
companies typically only examine a product's cost, performance, avail-
ability, and any impact on future profits. An increasing number of pri-
vate sector companies, however, are adopting purchasing policies to
promote specific social, economic, or environmental objectives. A
much larger number of companies, however, are adopting them when
they also promote the company's financial objectives.
While many of the companies in this case study adopted environmen-
tally preferable purchasing practices to help improve the environment, this
section examines several of the "traditional" business reasons, including:
• Responding to customer interest in "environmentally friendly" products
and practices.
• Distinguishing a company and its products from competitors.
• Pursuing cost savings.
• Joining an industry trend.
Responding to Customer Interest in
"Environmentally Friendly" Products and Practices
Almost every company interviewed for this report referenced anecdotal evidence of
increasing customer interest in the environmental performance of companies and their
products. As a result, companies are taking steps to ensure their purchasing and manu-
facturing practices reflect the environmental sensitivities of their customers and that
their products incorporate the environmental attributes customers are seeking.
Many companies reported receiving phone calls or surveys from existing and poten-
tial customers requesting specific environmental information about their products.
Collins & Aikman and Herman Miller both regularly respond to calls or surveys
concerning their products' recycled-content percentages, indoor air quality impacts,
and other environmental attributes.
Several companies also mentioned recent consumer surveys that suggest customers
are increasingly interested in purchasing "environmentally friendly" products or prod-
ucts from environmentally conscious companies. A 1995 Roper/International
Research Associates press release cited by Anheuser Busch, Collins & Aikman, and
IBM, reported that almost two in three people (64 percent) around the world believe
"protecting the environment is the most important concern, even at the expense of
economic growth." Companies also referenced similar studies indicating that
Companies are taking
steps to ensure their
purchasing and
manufacturing
practices reflect
customers' environ-
mental sensitivities.
Reasons for Adopting Environmental Purchasing
-------
15 percent of the U.S. population routinely incorporates environmental considerations
into purchasing decisions and an additional 3 3 percent do so occasionally.
Ben & Jerry's cited a 1994 study conducted by Cone and Roper that reported that:
• Seventy-eight percent of adults said they were more likely to buy a product
associated with a cause about which they care.
• Sixty-six percent of adults said they would be likely to switch brands to sup-
port a cause about which they care.
• Fifty-four percent of adults said they would pay more for a product that sup-
ports a cause about which they care.
• Thirty-three percent of adults ranked a company's responsible business prac-
tices after price and quality as the most important factor in determining
whether or not to buy a brand.
Public Service Electric and Gas Company (PSE&G), a New Jersey utility com-
pany, adopted a "buy recycled" program in December 1997 because polls suggested its
customers strongly supported the emerging "green purchasing" trends. Public support
for such initiatives led the New Jersey governor to establish an Office of Sustainability
which further encouraged PSE&G's environmental purchasing efforts.
DaimlerChrysler referenced similar studies, but expressed some concern that it has
not yet seen any indication of a strong correlation between customers' words and cus-
tomers' actions. The manufacturer mentioned recent surveys reporting that customers
claim environmental performance is important before purchasing an automobile, but
similar surveys conducted after an automobile purchase place environmental concerns
well below other deciding factors such as the vehicle's comfort, size, color, and engine
performance. While customer demand is not a primary reason, the company is adopt-
ing environmentally preferable purchasing practices for other reasons such as to save
costs and increase profits.
Distinguishing a Company and Its Products
from Competitors
While surveys have not conclusively established a link between customers' words
Environmental and actions, anecdotal evidence suggests that environmental performance can increase
performance can or prevent sales. As a result, companies are beginning to respond to the "green"
affect sales. demands of their customers by adopting environmentally preferable purchasing and
manufacturing practices in an attempt to distinguish themselves from competitors.
• In 1994, Test, a Dutch consumer magazine, rated Sony televisions as a "rea-
sonable" buy while rating televisions made by two other companies as "best
buys." The primary difference between the ratings was environmental perfor-
mance. Following publication of the results, Sony's market share in the
Netherlands fell by 11.5 percent. Its competitors' market shares increased by
57.1 and 100 percent, respectively. (See Figure 1 on page 9.)
That same year, in a separate effort to further demonstrate its commitment to
social responsibility and to provide quality products to its customers, Sony
launched an ambitious new program—the "Greenplus Project." The project
focuses on increasing the environmental performance of Sony's products by
8 + Reasons for Adopting Environmental Purchasing
-------
Figure 1—1994 Market Share Changes Following Environmental Performance
Rating of Televisions
After a 1994 European con-
sumer magazine's evaluation
of the environmental impacts
of major television brands,
Sony's regional market share
decreased by more than 10'per-
cent. Two of its competitors in
the market increased sales by
almost 60 and 100 percent,
respectively. In 1998, the
European magazine again
evaluated major television
brands. Sony's products -were
among the highest rated and
Sony's market share has
increased steadily.
20 40 60
(Percent Change)
80
100
setting strict environmental criteria that its products must meet. At publication,
Sony has more than 500 products registered as "Greenplus" products, which
means they meet Sony's strict internal environmental performance criteria.
Although the "Greenplus" program was initiated for social and not economic
reasons, Sony is beginning to see some benefits from this effort. In 1998, Test
magazine rated the environmental performance of Sony's television products
more favorably than its competitors, and its market share in the Netherlands
has increased steadily.
Since the summer of 1996, Volvo has provided automobile customers in Japan
with information on the environmental impacts associated with the manufac-
ture, use, and recyclability of each of its models. Following introduction of the
environmental specifications, Volvo's automobile sales in Japan rose 17 per-
cent, from 20,500 units to 24,000 per year. Although it is difficult to quantify
any correlation between the increased sales and environmental performance,
the company is assuming its products' environmental performance has some
impact. As a result, Volvo is now providing information
on the environmental attributes of its automobiles in
Europe, Australia, and the United States. (For a sample
of the environmental specifications Volvo provides, see
Figure 2 on page 10.)
Collins & Aikman Floorcoverings, Inc., the second
largest U.S. vinyl floor covering manufacturer, promotes
the environmental performance of its products in all of its
sales literature and developed a fact sheet specifically cit-
ing its product performance as measured against EPAk
proposed environmentally preferable purchasing guid-
ance. (See Figure 3 on page 11 for a sample.) To further
distinguish itself from its competitors, Collins & Aikman
provides customers with a "Sustainable Warranty" pledg-
ing to recycle its products at the end of their useful lives so that they never
require disposal. Sales have been increasing steadily since Collins & Aikman
An example of how Collins &
Aikman promotes the environmental
performance of its carpet.
Reasons for Adopting Environmental Purchasing
-------
Figure 2—Sales Brochure Providing Environmental Attribute Information
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Reasons for Adopting Environmental Purchasing
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Figure 3—Sales Brochure Providing Environmental Attribute Information
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Reasons for Adopting Environmental Purchasing ^ 11
-------
began promoting the environmental benefits of its products, although the
company has not conducted the necessary research to demonstrate a direct
correlation.
• The search to improve the environmental attributes of its own products drives
Canon's environmentally preferable purchasing program. It believes more
and more customers are demanding environmentally friendly products and
cites several recent examples of large sales finalized because of its products'
environmental attributes.
• Ben & Jerry's fought a series of court battles to ensure the right to use prod-
uct labels to inform customers that its products contain milk and cream from
suppliers that do not treat their cows with recombinant bovine growth hor-
mone (rBGH), a synthetic hormone used to increase a cow's milk production
by 10 to 15 percent. Ben & Jerry's believes the use of synthetic hormones is an
important environmental issue about which its customers should be informed.
The company has not attempted to measure the impact, if any, its stand
against rBGH has had on sales, but believes its customers expect no less from
the company.
• Products containing recycled content or organic cotton are clearly identified
in Patagonia's catalogs and stores. Patagonia believes these symbols help to
inform consumers about important environmental issues and to distinguish its
products from its competitors'.
Pursuing Cost Savings
Many companies Another important reason many companies are employing environmentally prefer-
are employing able purchasing principles is to pursue potential cost-saving opportunities. Environ-
environmentally mentally preferable purchasing requires examining all purchases from a new
preferable perspective and questioning previously unchallenged assumptions. Adopting an envi-
purchasing ronmental perspective allows companies to discover and avoid previously hidden costs.
principles to It requires looking beyond the initial cost of a product or of a procedural change and
increase cost examining the savings resulting from reduced material handling, reporting require-
savings. ments, pollution abatement, or disposal costs that could accrue over the next 5, 10, or
20 years.
Companies that have adopted this perspective are proving that "pollution prevention
pays." They are profiting from the cost savings that result from eliminating unneces-
sary purchases, avoiding waste disposal costs, and investing in energy-efficient equip-
ment.
• DaimlerChrysler saved almost $45 million and prevented 110,580 tons of
pollution in 1997. Most of these savings resulted from careful screening and
tracking of all chemical purchases to eliminate excess purchases; substituting
less hazardous chemicals when possible, which significantly decreased disposal
costs; reducing the number of plastic resins purchased, which reduced costs
and increased in-house recycling opportunities; and investing in energy-saving
measures.
• PSE&G saved more than $2 million by streamlining its purchasing process
and reducing the number of its chemical suppliers from more than 270 to
only 9. The new system allows PSE&G to avoid excess inventory and drasti-
cally reduces disposal costs for outdated or unnecessary chemicals.
12 + Reasons for Adopting Environmental Purchasing
-------
• After adopting an aggressive energy-efficiency initiative in 1996, Anheuser-
Busch expects to keep its utility purchases in 2000 at or below its 1995
utility costs. The company anticipates annual savings of $60 million by 2000.
Most of these savings will result from large capital investments to decrease
utility consumption and cost. At present, the company is on schedule to
meet its goal.
• Collins & Aikman reduced the amount of yarn in some of its carpet lines by
more than 10 percent without adversely affecting performance. In addition to
lower material costs, this change also allows Collins & Aikman to manufacture
the same amount of carpet with significantly less energy.
• Several companies, including Anheuser-Busch, The Body Shop, Herman
Miller, IBM, and McDonald's, are purchasing lighter weight or reduced
packaging to contain their products, which significantly reduces product
packaging volume, saves money, and reduces impacts on solid waste disposal
systems.
Joining an Industry Trend
Several companies suggested that supplying environmentally preferable products
will be an important industry objective in the next century. Supplying "environmentally
friendly" products requires companies to purchase and use environmentally preferable
components in manufactured products and to identify vendors to stock environmental-
ly preferable products, hi an attempt to identify such products, more than 1,800 Japan-
ese companies and other organizations have joined the Japanese government's Green
Purchasing Network (GPN) to learn more about environmentally preferable purchas-
ing and to share product information. GPN has sold more than 10,000 copies of its
Environmental Data Books, which compare the environmental attributes of products.
(Please visit for additional information on GPN.)
Similarly, more than 368,000 people refer to information published by Green Seal, a
nonprofit organization providing environmental product recommendations in 3 3 prod-
uct categories. Green Seal developed a 110-page buying guide to share its environmen-
tal product and services research. It also helps its more than 450 Green Seal member
companies evaluate their current purchases and implement green buying programs.
The organization publishes a monthly Choose Green Report, which lists products Green
Seal has identified as environmentally preferable. (Please visit Green Seal's Web site
for additional information.)
Supplying
environmentally
preferable
products will be
an important
industry objective
in the next
century.
Reasons for Adopting Environmental Purchasing
13
-------
An Overview of Private Sector
Environmentally Preferable
Purchasing Activities
Many companies have incorporated environmentally preferable purchasing
principles into their routine operations, but very few have formal
environmentally preferable purchasing programs in place. Instead,
companies are developing and refining critical components of what could
become formal programs. This section provides an overview of these com-
ponents and of company activities to implement them. The components
include the following:
• Developing lists of chemicals to avoid.
• Creating lists of approved products.
• Establishing single environmental attribute purchasing programs.
• Considering multiple environmental attributes when making purchas-
ing decisions.
• Working closely with suppliers to enhance environmental performance.
In addition, though not covered in detail in this report, companies are making
efforts to better track chemical and waste streams and to define the total cost and envi-
ronmental impact of materials, processes, and products. These measures significantly
aid company efforts to buy and manufacture environmentally preferable products.
Developing Lists of Chemicals to Avoid
In the mid 1970s, the U.S. federal government began regulating the manufacture,
use, and disposal of numerous chemicals because of concern for potential adverse
human health or environmental effects. As a result, many companies in a wide variety
of industries began carefully tracking and modifying their chemical purchases. While
these early steps toward environmental purchasing were instituted to comply with
federal laws and regulations, several companies have expanded these efforts beyond
their original compliance concerns to save money or to incorporate a broader environ-
mental ethic.
• Daimler-Chrysler maintains several databases to screen more than 1,700
chemicals and chemical compound groups. This database tracks information
concerning the environmental health and safety impacts of more than 760
substances used or considered for use by the company. More than 100 of the
chemicals are identified as having potential adverse effects or excessive han-
dling or disposal costs based on toxicity, volume used, associated emissions,
number of operations using the substance, potential worker risks, reporting
requirements, carcinogen potential, mutagen potential, adverse effects on
the nearby Great Lakes, and potential for additional regulations. As a result,
purchases of these chemicals are either prohibited or are being reduced
significantly.
Several companies
have expanded their
efforts beyond
regulatory
compliance.
Private Sector Purchasing
15
-------
Volvo has a similar program to track chemical usage. It employs a database
identifying the environmental impacts of more than 5,000 chemical products.
From this list, Volvo has developed two lists—a black and a grey list. The
black list includes chemicals that the company has banned from use in its
products. The grey list includes a similar list of chemicals for which Volvo is
attempting to locate more environmentally benign substitutes. Volvo shares
this list with all of its suppliers to ensure none of the components it purchases
contain any of the banned substances. (For a copy of Volvo's black and grey
lists, please see Figure 4 on pages 18 and 19.)
As part of its Green Procurement Standards, Canon includes two lists con-
taining more than 300 chemicals. The lists include 270 chemicals used in
company facilities as part of routine plant operations (e.g., research and devel-
opment, production, cleaning, and maintenance) and 49 chemical substances
remaining in its products. Chemicals on the lists are prohibited or are being
reduced by the company.
Sony uses a classification system to prohibit the use of certain chemicals. It
classifies production process chemicals into four groups based on the degree
of hazard posed to human health and the environment. It prohibits the use of
Class 1 chemicals, which the company classifies as the most hazardous. Sony
plans to eliminate the use of all Class 2 chemicals and reduce its use of Class 3
chemicals 50 percent by March 2001. Class 4 chemicals will continue to be
supervised and controlled carefully.
In an attempt to increase the environmental preferability of its products,
Collins & Aikman prohibits the purchase of raw materials containing known
hazardous or high levels of volatile organic compounds (VOCs). As a result,
product VOC emission tests result in no detectable formaldehyde, styrene,
4-PC, or known human carcinogens at product installation, and VOC emis-
sions, including the products' preapplied adhesives, are minimal.
Other manufacturers focus efforts on avoiding or reducing smaller sets of
specific chemicals. The Body Shop, for example, avoids the use of polyvinyl
chloride (PVC), a common plastic resin, out of concern for the dioxins
produced as part of the manufacturing process and for the potential adverse
health effects from chemicals routinely added to the plastic to improve
performance.
As part of Ben & Jerry's efforts to avoid products linked with dioxin releases,
the company avoids chlorine-bleached paper products whenever possible. As
mentioned previously, Ben & Jerry's also avoids the purchase of milk from
dairy farmers who treat their cows with rBGH. The company is concerned
because rBGH has been linked to decreases in the nutritional value of the
milk, reduced shelf life, and adverse effects to the health of the cows. Addi-
tionally, Ben & Jerry's purchases organic cotton t-shirts for use by "scoop
shop" employees and for retail sale because it believes organic cotton farming
techniques, which eliminate the use of chemical pesticides, are environmental-
ly preferable to other cotton farming methods.
16 + Private Sector Purchasing
-------
Creating Lists of Approved Products
One of the many challenges companies face when implementing an environmentally
preferable purchasing program is determining which products on the market are envi-
ronmentally preferable. While one approach is to eliminate the purchase of all prod-
ucts containing certain chemicals or possessing specific adverse environmental
attributes, another method is to develop a list of approved products. Some companies
have found that developing an approved products list simplifies the purchasing process
because employees simply consult the list before making a purchase, which eliminates
the need to screen products against a list of prohibited attributes.
• Canon, Sony, NEC, Tokyo Gas, and numerous other Japanese companies
have created lists of approved products that were developed based upon each
product's environmental attributes. Before making a purchase, employees
must first consult the list of approved products to determine if the company
has established a preference for a particular product.
Tokyo Gas, for example, lists 23 office products it determined to be environ-
mentally superior. The company first focused on the most frequently used
office products such as copy paper, stationery, post-it notes, erasers, and pen-
cils and pens, but is currently expanding its list. Like many of the Japanese
companies creating similar lists, Tokyo Gas based its environmental product
assessments on information provided by GPN. (See page 13 for additional
information on GPN.)
• Approved environmental product lists appear to be a less common solution in
the United States, although two companies—Perrigo and Ben & Jerry's—
purchase cleaning products from lists that were developed based on the prod-
ucts' environmental attributes.
Perrigo wanted to improve indoor air quality, reduce the number of cleaning
products purchased, and minimize the environmental impacts of the cleaning
process used in its facility. After reviewing the material safety data sheets
(MSDSs) and interviewing the suppliers and manufacturers of numerous
cleaning products, the company developed a list of attributes including VOC
content, pH level, toxicity, flammability, chemical content, use of regulated
materials, reduced packaging, cleaning effectiveness, and price. Perrigo then
compared commercially available cleaning products and identified a range of
products meeting its environmental, price, and performance requirements.
As a result of its environmental purchasing effort, Perrigo is saving more than
$35,000 annually. The company, for example, significantly decreased the
number of cleaning products it needed to purchase. While it previously pur-
chased seven different glass cleaners, Perrigo now purchases only two, which
are just as effective as the ones they replaced. Reducing the number of prod-
ucts saves the company money by allowing it to purchase the remaining prod-
ucts in bulk.
The company saves additional money by consolidating its purchases with a
single supplier. The supplier only provides cleaning products meeting Perri-
go's environmental health and safety standards. Relying on a single supplier
decreases administrative oversight and paperwork by reducing hundreds of
monthly cleaning product invoices from multiple suppliers to a single month-
ly invoice from a single supplier.
Several companies
have simplified the
purchasing process
by developing
approved product
lists.
Private Sector Purchasing
17
-------
Figure 4—Volvo's List of Chemicals To Avoid
VOLVO
Environmental care
5.1 Volvo's Black list of chemicals (Equal to Volvo STD 1009,1)
Substances or groups of substances which must not be used within Volvo
New products containing listed substances must not be put into use. Phase-out plans with final date
of use are required for substances which were not fully phased out when introduced on the list. Ex-
ceptions may be made for substances used in processes where legal or safety requirements limit
Volvo's possibilities of prohibiting the use. In such situations, precautionary measures shall be taken
to prevent injurious effects on humans or the environment. (Valid through 1999).
Group
Amines
CFC
compounds
Fibres
Flame
retardants
Rubber-
chemicals
Halons
Chlorinated
hydro-
carbons
Metals
Lubricants
Surface
active agents
Substance name
Phenyl-p-naphthylamine
Methylene dianiline
CFC 11
CFC 113
CFC 114
CFC 115
CFC 12
Asbestos
Polybromin. biphenyls (PBB)
Polybromin. diphenylethers
Aminobiphenyl (+ salts)
Benzidine (+ salts)
Thiocarbamide
Halon1211
Halon 1301
Halon 2402
HCFC3
PCB
Hexachlorobutadiene
Carbon tetrachloride
Methylene chloride
1,1,1-Trichloroethane
Tetrachloroethylene
Lead chromate
Cadmium + Cd-compounds4
Mercury + Hg-compounds
Chlorinated paraffins
Mineral oil with PAHs5
4-Nonyl and 4-Octyl phenol
Nonyl- and Octylphenolethoxy-
lates
CAS no.1
135-88-6
101-77-9
75-69-4
76-13-1
76-14-2
76-15-3
75-71-8
Several
Several
Several
92-67-1
92-87-5
62-56-6
353-59-3
75-63-8
124-73-2
Several
1336-36-3
87-68-3
56-23-5
75-09-2
71-55-6
127-18-4
7758-97-6
Several
Several
Several
Several
Several
Several
Example of type or
area of use
Antioxidant
Hardener, in paints
Cooling agent, "freon"
Cooling agent, "freon"
Cooling agent, "freon"
Cooling agent, "freon"
Cooling agent, "freon"
Insulating material
In plastics, electronics
PBDEs, plastics, textile
Dye
Dye
In rubbers and plastics
Fire retardant
Fire retardant
Fire retardant
Blowing agent, solvents
Insulators, oils, etc
Solvent
Solvent
Solvent, in fuel
Solvent
Solvent
Pigment
Pigment
In electric equipment
In oils, fire retardants
Base oils, etc
Used as ethoxylates
Cleaning agent
Risk2
c
c
o
o
o
o
o
c
E, N, C
E
C
C
A, C
O
O
O
O
E
E, T
O, C, T
C
O
C
C, A, E, N
C, E
N, E
E
C
E
E
1) CAS no= Chemical Abstract Service number
2) A=Allergy, C=Cancer, T=Toxic, E=Environmentally hazardous, N=Neurotoxic, O=Ozone depletion,
R=Reproductive hazards
3) HCFC used as blowing agent in foams or as solvent is covered by the black list. HCFC as refrigerant on grey list
4) The use of cadmium in batteries is covered by the grey list and other applications by the black list.
5) Oil is considered to contain PAH if standard test (IP 346 method) produces the result "DMSOextract>3%". Appli-
cable to base oils used in lubricants and other chemical products.
18
Private Sector Purchasing
-------
Figure 4 (cont.) — Volvo's List of Chemicals To Avoid
^/OIi\/O Environmental care
5.2 Volvo's Grey list of chemicals (Equal to Volvo STD 1009,11)
Substances or groups of substances the use of which should be limited within Volvo
Products containing listed substances shall be kept under surveillance and less hazardous alternatives be introduced when
technically and economically possible. Before new products containing one or more substances from the list are to be used,
an assessment should be made regarding the use of less hazardous products. Exceptions may be made for substances
used in processes where legal or safety requirements limit Volvo's possibilities of prohibiting the use. In such situations,
precautionary measures shall be taken to prevent injurious effects on humans or the environment. (Valid through 1999)
Group
Biocides
Flame
retardants
HCFC3
compounds
Hardeners
Complex
mixtures
Solvents
Metals
Plasticizers
Acids
Surface
active
agents
Additives
Substance name
Chlorocresol (meta-)
Chlorocresol (ortho-)
Chloromethyl isothiazolinone
Methyl isothiazolinone
Thiram (TMTD)
Organotin comp. (trialkyl)
Brominated (not PBB+PBDE)
Triphenyl phosphate
HCFC 141 b
HCFC 1 42 b
HCFC 22
2,4-Toluene diisocyanate
2,6-Toluene diisocyanate
TGIC
Colophony (rosin) (>1%)
Creosote
Coal tar
Benzene
1,2-Dichloroethane
2-Ethoxyethanol
2-Ethoxyethanol acetate
n-Hexane
Chloroform
Limonene (>1%)
2-Methoxyethanol
2-Methoxyethanol acetate
Trichloroethylene
Arsenic + compounds
Lead + compounds
Cadmium in batteries4
Chromium (6*) compounds5
Strontium chromate
Zinc chromate
Butyl benzyl phthalate
Dibutyl phthalate
Dimethyl phthalate
Hydrofluoric acid (HF)
DHTDMAC
DSDMAC
DTDMAC
Diphenylamine
Sodium nitrite6
CAS no.1
59-50-7
1570-64-5
26172-55-4
2682-20-4
137-26-8
Several
Several
115-86-6
1717-00-6
75-68-3
75-45-6
584-84-9
91-08-7
2451-62-9
Several
Several
Several
71-43-2
107-06-2
110-80-5
111-15-9
110-54-3
67-66-3
Several
109-86-4
110-49-6
79-01-6
Several
Several
Several
Several
7789-06-2
13530-65-9
85-68-7
84-74-2
131-11-3
7664-39-3
61789-80-8
107-64-2
68783-78-8
122-39-4
7632-00-0
Example of type or
area of use
In lubricants, paints
In lubricants, paints
In aqueous solutions
In aqueous solutions
Also as biocide
In cooling water
In textiles, plastics
Also as antioxidant
Cooling agent
Cooling agent
Cooling agent
PUR-foams, adhesives.
PUR-foams, adhesives.
Powder paints
Adhesives, paints
Distillation product, filler
Distillation product, filler
Petrol, solvent
Additive for fuels
Solvent
Solvent
Solvent
Solvent
Solvent
Solvent
Solvent
Solvent
Wood preservative
Pigment in paints
Accumulator
Surface treatment
Pigment
Pigment
Adhesives, paints
Adhesives, paints
In hardeners, paints
Pickling, etching
Softener
Rinsing agent
Vehicle care products
In lubricants
Anti-rust agent
Risk2
E, A
E (probably)
A
A
A, E
E
E (possibly)
E
O
O
O
A (asthma)
A (asthma)
T (mutagen)
A
C, E
C
C
C
R
R
N
C, R
A, E
R
R
C
N, C, E
N, E
C, E
A, C, E
C
C
E
E
T
T
E
E
E
E,T
C (+ amine)
1) CAS no. = Chemical Abstract Service number
2) A=Allergy, C=Cancer, T=Toxic, E=Environmentally hazardous, N=Neurotoxic, O=Ozone depletion, R=Reproductive
hazards
3) HCFC used as blowing agent in foams or as solvent is covered by the black list. HCFC as refrigerant on grey list
4) The use of cadmium in batteries is covered by the grey list and other applications by the black list
5) With surface treatment of fasteners (chromating), the limit found in Volvo STD 571 3, 102 applies
6) Nitrite can form carcinogenic nitrosamines if amines are present.
Private Sector Purchasing
19
-------
Several compa-
nies have found
"buy recycled"
programs easy to
introduce.
• When Ben & Jerry's decided it wanted to use environmentally friendly clean-
ing products in its more than 170 U.S. "scoop shops," it contacted an outside
environmental consulting firm to recommend appropriate, natural, nonchlori-
nated products. The consulting firm examined many of the same attributes
identified by Perrigo and recommended a line of cleaning products currently
used in all of Ben & Jerry's U.S. franchises.
While using an approved product list makes selecting products significantly easier
for many users, some company representatives suggested that lists can quickly become
outdated. New products are continually introduced that incorporate additional envi-
ronmental attributes, enhance existing attributes, improve performance, or reduce
costs. In order for a list to be truly effective, it must be updated regularly
Establishing Single Environmental Attribute
Purchasing Programs
When incorporating environmental concerns into purchasing policies, many compa-
nies begin with an emphasis on a single environmental attribute. The "buy recycled"
programs adopted by many companies are an example of a single attribute program.
They focus on purchasing products with the highest recycled-content levels.2
Recycled-content is one of the attributes identified in EPAk EPP guidance. Other
single attribute programs focus on energy- and water-efficiency, which also are pro-
moted by the EPP Program.
Buy Recycled Programs
Several companies have found "buy recycled" programs easy to introduce because
employees and customers recycle at home and have been exposed to "buy recycled"
messages since the early 1980s. Additionally, many manufacturers and suppliers pro-
mote and supply a wide variety of recycled-content products.
• Since 1990, McDonald's and its more than 24,000 franchise restaurants have
spent nearly $3 billion on the purchase of recycled-content products. At the
time its program was initiated, recycling markets were poorly developed, but
McDonald's pledged to spend $100 million on recycled-content products to
help strengthen the demand for recovered materials. The company was par-
ticularly interested in increasing the demand for postconsumer materials,
which include the materials collected by local curbside recycling programs.
The company is currently spending $3 50 million a year for a wide variety of
recycled-content products including dining trays, construction materials,
chairs, tables, carpeting, insulation, play ground equipment, tiles, napkins and
other paper products, and packaging. (See Figure 5 on page 21.)
2. Recycled content is the focus of EPAs Comprehensive Procurement Guidelines (CPG) Program, which iden-
tifies products that can be made from recycled materials and recommends recycled-content percentages. For
additional information on the CPG program, please visit .
20
Private Sector Purchasing
-------
Figure 5 — Examples of McDonald's Recycled-Content Product Purchases
Representative Total Percent Average Percent
Recycled-Content Items Recycled Content Postconsumer Content
4-Hole Drink Carrier
Big Mac™ Container
Carry-Out Bag
Corrugated Paperboard
Deluxe Line Sandwich Containers
Happy Meal™ Bags
Happy Meal™ Cartons
In-Store Trays
Jumbo Fries Container
Jumbo Roll Tissue
Napkins
Roll Towels
Sandwich Wraps
Small Generic Carton
Toilet Tissue
Tray Liners
(Source: McDonald's Waste Reduction Action
100
36
100
40
36
65
100
50
36
100
100
100
20
50
100
100
Plan, May 12, 1998)
51
31
50
25
31
65
60
15
31
40
30
30
0
30
30
75
When McDonald's initiated its "buy-recycled" program, the company was
unsure how to locate recycled-content products. It placed ads in trade journals
and in the national press expressing its desire to purchase recycled-content
products. As manufacturers identified themselves and their products, McDon-
ald's entered them into a database. The database includes more than 700 com-
panies, and McDonald's has shared it with more than 250 other organizations
seeking to increase their purchases of recycled-content products. The data-
base, however, is no longer maintained for external use.
While very few companies have programs as large as McDonald's, numerous
companies are increasing their purchases of recycled-content office supplies as
the prices for recycled-content products become more competitive with their
virgin material counterparts. Collins & Aikman, for example, has a preferen-
tial purchasing program for recycled-content office supplies when price and
performance are equal to competing products. The company estimates its cur-
rent recycled-content purchases include approximately 20 percent of its gen-
eral office products and 75 percent of its paper supplies.
Private Sector Purchasing
Zl
-------
Recycled-Content Office Supplies
At Sun Microsystems, more than 50 recycled-
content office supplies can be ordered by any-
one in the company, including:
Envelopes
Hanging file folders
Message pads
Note books
Note pads
Paper clips
Pencils
In addition to
achieving
environmental
benefits,
companies are
saving money.
Plastic file dividers
Post-it® notes
Rulers
Scissors
Three ring binders
Transparency film
• Sun Microsystems is making it easier for employees
to purchase recycled-content office supplies by identi-
fying products' recycled-content percentages in its
internal electronic office supply catalog. Employees
order office supplies as needed from the catalog, and
the items are paid for out of the employees' depart-
mental office supply accounts. Although Sun's current
office products supplier provides a wide variety of recy-
cled-content office products (see sidebar), it stocks rela-
tively low volumes of the products. The supplier's low
purchasing volume prevents it from earning volume
discounts and makes the recycled-content products
more expensive to its customers. As a result of the price
difference, Sun's recycled-content purchases account
for only 3 percent of its office supply purchases. For
future office supply contracts, however, Sun might fac-
tor the ability of the potential office supply vendor to
provide recycled-content products into its vendor
selection process.
• In 1997, Herman Miller provided each of its 7,000 employees with a recycled-
content leather toiletries bag as a holiday gift. The bags were manufactured
from the company's own furniture manufacturing scraps. The gift helped the
company promote its own "buy recycled" program and demonstrate that
recycled-content products perform as well as virgin material products.
Energy- and Water-Efficiency Programs
Recycled-content is not the only single environmental attribute companies are
examining. Many companies also are considering energy- and water-efficiency and dis-
covering significant cost savings in addition to the environmental benefits.3
• Anheuser-Busch is expecting to save 500 million gallons of water, 2 trillion
British thermal units of energy, and $60 million per year by 2000 as a result of
its emphasis to reduce utility usage and cost. Its purchase of energy-efficient
chillers for its SeaWorld of Florida theme park is saving more than 1.5 million
kilowatt-hours and about $100,000 in energy costs annually. The company is
expecting to save an additional $40 million a year as a result of its purchase
and installation of bio-energy recovery systems. (See Figure 6 on page 23 for
additional information.) In addition to the cost savings, decreased energy con-
sumption reduces the pollution associated with electricity generation.
• Through its extensive energy conservation program, IBM saved $27 million
in 1997. The savings resulted from a continued focus on and investments in
energy-efficient manufacturing technologies.
3. EPAs Energy Star Program and the U.S. Department of Energy's Federal Energy Management Program
(FEMP) both promote the environmental and cost savings associated with energy- and water- efficiency. As with
recycled content, EPAs EPP Program also promotes energy- and water-efficiency as important environmental
attributes. For additional information on Energy Star, please visit . For information
on the FEMP program, visit .
zz
Private Sector Purchasing
-------
In 1993, McDonald's joined EPA's Green Lights program, which encourages
organizations to conserve energy by purchasing and installing energy-efficient
lighting wherever it is economically feasible. Since joining, McDonald's has
converted 50 percent of its U.S. restaurants, including all of its company-
owned and one-third of its franchised restaurants. The average converted
restaurant annually saves 30,500 kilowatts of energy, reduces its lighting elec-
tricity bill by 40 percent, and prevents carbon dioxide emissions equivalent to
taking seven cars off the road. The company's efforts led EPA to recognize
McDonald's as the 1998 Green Lights Retail Partner of the Year.4
Through The Energy Efficient McDonald's (TEEM) program, the company
is designing and building highly energy-efficient restaurants that use 15 to 20
percent less energy than a typical McDonald's. Each TEEM restaurant
involves the purchase of an array of energy-saving technologies including sky-
lights, computer-controlled heating and air conditioning systems, advanced
energy-efficiency equipment, and sensors to regulate energy use.
Figure 6—Anheuser-Busch's Bio-Energy Recovery System
In an attempt to simultaneously reduce energy consumption and the quantity of waste solids
that must be disposed of, Anheuser-Busch began developing a bio-energy recovery system
in 1983. The system converts wastewater into energy and reduces the quantity of waste solids
by 50 percent. It is expected to save more than $40 million a year by 2000.
1. Brewery
wastewater
is pumped
into enclosed tanks
2. These tanks contain bacteria
which consume organic material—
such as protein, sugar, and starch—
contained in the wastewater.
3. As the bacteria consume the
organics, they also produce methane gas,
which rises to the tops of the tanks.
METHANE TO POWERHOUSE
R USE AS FU
4. The methane is collected, then piped
back to the brewery's powerhouse, where it
supplies about 15 percent of the boiler fuel.
5. The wastewater, with up to
90 percent of the organics consumed,
is sent to a local treatment plant
for final polishing.
WATER TO
TREATMENT PLANT
Hew it Works
Brewery wastewater, which includes organic materials such as protein, sugar, and starch, is
pumped into tanks containing bacteria. The bacteria consume up to 90 percent of the organ-
ic material, producing methane gas that rises to the top of the tanks. The methane gas is col-
lected and piped to the brewery's boilers, providing about 15 percent of each brewery's fuel
needs. After leaving the tanks, the brewery wastewater requires minimal final treatment. This
treatment process reduces the total energy required for wastewater treatment by approxi-
mately 75 percent.
4. For additional information on EPAs Green Lights Program, visit .
Private Sector Purchasing
Z3
-------
Considering Multiple Environmental Attributes
When Making Purchasing Decisions
There are While many successful environmental purchasing programs emphasize single envi-
multiple ronmental attributes, such as recycled content or energy efficiency, companies are
environmental increasingly examining multiple environmental attributes before making purchasing
concerns decisions. Examining multiple attributes allows companies to further define the eco-
with every nomic and environmental differences between products and services when making pur-
purchasing chasing decisions. Some companies only examine environmental attributes of
decision. importance to the company, while others rely on detailed lifecycle assessments to com-
pare products. A lifecycle assessment attempts to measure all of a product's environ-
mental impacts throughout the product's life cycle including raw material acquisition,
manufacture, transportation, use, and disposal.
• To encourage employees to examine the environmental impacts of their pur-
chasing decisions, Warner Bros, established a companywide purchasing poli-
cy emphasizing multiple environmental considerations. As a result of this
policy, the company's purchase of environmentally preferable products is
increasing. Several departments within the studio are purchasing "environ-
mentally friendly" products including paper, janitorial supplies, construction
materials, transportation products, computers, copiers, and printers. The poli-
cy asks employees to maximize one or more of the following attributes:
• Postconsumer recycled-content
• Recyclability
• Durability and reusability
• Reduced packaging
• Decreased use of toxic chemicals in manufacturing
(For a copy of Warner Bros.' purchasing policy, see Figure 7 on page 25)
• After examining its parts washing operations from a multiple environmental
attribute perspective, Anheuser-Busch, over a 3-year period, reduced the
associated costs by 30 percent and the associated hazardous waste generation
and air emissions by 80 percent. When examining alternative cleaning prod-
ucts, the company developed a spreadsheet comparing product attributes such
as pH, flash point, price, and whether the product was solvent- or water-
based. It selected products it might not have considered otherwise that bene-
fitted both the company's bottom line and the environment.
• hi 1991, Patagonia commissioned a lifecycle analysis of its four major fabrics
(i.e., polyester, nylon, cotton, and wool) that showed cotton to be more envi-
ronmentally harmful when compared with the other fabrics. The most envi-
ronmentally damaging stages in a cotton garment's life cycle, according to the
study, are home laundering, farming, dyeing, and finishing. As a result of the
lifecycle analysis, Patagonia began purchasing organically grown cotton for
use in its cotton products, which significantly reduced the adverse environ-
mental impact of an important segment of its product line. Organic cotton
eliminates the use of pesticides or herbicides and requires significantly less
water to produce. Although it is more expensive than other commercial cot-
ton, Patagonia believes its customers equate organic cotton with improved
quality and are willing to pay a little extra for it. Patagonia also is using the
results of additional lifecycle analyses to reduce the environmental impacts of
24 + Private Sector Purchasing
-------
Figure 7—Sales Brochure Providing Environmental Attribute Information
WARNER BROS. PURCHASING POLICY
Warner Bros, recognizes thai purchasing practices can have a profound impact on the
environment Purchasing environmentally will help ovate and sustain markets for products
and technologies thai reduce waste, conserve resources prevent pollution, and enhance
worker health Warner Bros, has already established itself as a leader in environmental
purchasing, and we are committed to continued growth in this area Please make sure your
department adheres lo the following policies and plan your purchases environmentally.
I. Purchase "environmentally friendly" products which include one or more of the
following attributes:
A. High recycled post-consumer content
Recydafoilrty
Dura&intv/re-usab*ty
Reduced packaging
Decreased use Of toxic chemicals in manufacturing (e.g., chlorine, CFCs)
B.
C.
0.
E.
II. Include the following) criteria m the selection
A Comnvtmenrt to supply and increase availability of environmentally sound products
B. VWBingrtesS to urge their auppJiefs to improve their products and go beyond
minimum standards
C. Flexibility in Deducing packaging
D, Environmentally sound practices in manufacturing (pollution, toxins, employee
safety)
ill If you find that the cost of an environmentally preferred product exceeds that of a
standard product, call Shelley Levin Billik at ext. 4-3470 For assistance, before ptacng
/our order,
IV. Foster internal communication and education about environmental purchasing
practices which will include, but not be limited to'
A. Purchasing choices, volume and pricing updates'to executive managcmenl
B. Education and information to studio employees; and purchasing staff on company
purchasing practices (e.g. instruction, newsletters, product labels)
C. The inclusion of environmental criteria in 3! bid processes
V Requ.ne construction and demolition contractors lo Include In the bid process measures
for salvaging and recycfng of construction and demolition (C&.D) waste, proper
handling of solid and hazardous waste, and tonnage reports. In addition, Warmer Bros.
wfl require that recycled and non-toxic construction materials, as we ' as energy
efficiency fostur**. be incon-p-orated as bid alternates in contracts for new
and renovation projecte.
(umd an 2m fttu^&uumt ttt?tzl*a piptf
Private Sector Purchasing
25
-------
its dyes and the metal and plastic components in its products. It shares the
environmental impacts of its products and the company's attempts to mini-
mize them with customers in its catalogs and on its Web site.
Using its Environmental Priority Strategies (EPS) tool, Volvo compares envi-
ronmental lifecycle impacts of different materials before purchasing them for
use in its automobiles. EPS allows the company to measure each component's
energy and resource consumption and air, land, and water emissions through-
out the component's production, use, and ultimate disposal. Based on the
information contained in EPS, Volvo assigns each component an environmen-
tal impact index. When designing a new automobile, Volvo computes an
Environmental Load Unit (ELU) for each new product design based on the
environmental impact indices for each component included in the design. The
ELUs enable the company to compare different materials' environmental
effects and make its design and purchasing decisions accordingly.
Herman Miller conducts an abbreviated lifecycle analysis on all of its new
products to quantify the environmental and economic impacts of its designs.
The results of the lifecycle analyses help the company determine what materi-
als to incorporate into its products. As a result of one analysis, the company
redesigned a chair to eliminate the use of foam rubber. Instead, Herman
Miller designed the chair with a plastic and fiberglass mesh frame, which it
determined reduced the product's environmental impact and improved com-
fort. Lifecycle analyses also have encouraged the company to switch to water-
based and powder-based coating systems instead of more traditional painting
or staining processes; to increase its use of recycled wood; and to continue its
policy of using wood from sustainably managed forests.
With databases containing information on more than 800,000 products and
components, Daimler-Chrysler examines multiple environmental attributes
when making purchasing decisions. The databases include information on
toxicity, chemical exposure and release, and recyclability and provide the man-
ufacturer with an opportunity to compare products based on potential envi-
ronmental hazards and costs. Evaluating environmental information is part of
the company's lifecycle cost analysis. The analysis looks at environmental and
occupational health and safety impacts as well as recycling considerations bal-
anced against traditional business decision drivers, such as cost and perfor-
mance, to improve the decision-making process. Once a product has been
identified as preferable based on the lifecycle analysis, the database ensures
that the preferred product is purchased.
26 + Private Sector Purchasing
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Canon formally announced its multiple attribute green purchasing program
in 1997 with the publication of the Green Procurement Standards and the Green
Procurement Standards Guidebook. These books include an index for evaluating
purchases based on the potential environmental impacts of both the product
and the product's manufacturer. The index rates potential suppliers' corporate
environmental structure along 35 parameters in 7 categories and examines 28
product-specific parameters in 11 categories. A product's environmental
preferability is based on the overall combined score. Canon established a pref-
erence for products with scores above a predetermined threshold. (See box
below for additional information.)
When making environmentally preferable purchasing decisions, Canon examines
the environmental performance of both the product and the product's manufacturer
and assigns an overall environmental score. The product-specific portion of the
score is based on 28 attributes in the following 11 categories:
• Legal and voluntary environmental
regulations.
• Resource conserving features.
• Energy saving features.
• Environmental impacts during use.
• Hazardous chemical substances con-
tained in products.
• Recyclability.
• Proper treatment of used product.
• Minimal packaging.
• Lifecycle assessment.
• Eco-labels.
• Product information disclosure.
The product manufacturer's score is calculated from 3 5 parameters in the following
seven categories:
• Corporate environmental philosophy. • Environmental evaluations.
• Environmental planning.
Corporate environmental reporting.
• Employee environmental education
programs.
• Corporate organization with respect
to environmental issues.
• Environmental management systems.
A product's overall environmental preferability score is computed by combining the
product-specific and product manufacturer scores.
A Multilayered,
Multiattribute
Approach
Private Sector Purchasing
Z7
-------
Patagonia believed its customers
would appreciate the benefits of
organic cotton clothing.
Resolving Competing Attributes
Once companies begin examining multiple environmental attributes for the prod-
ucts they manufacture and begin looking for ways to maximize those attributes, they
sometimes discover that improving one environmental aspect harms other environ-
mental aspects or adversely affects other important product attributes like price or per-
formance. Consequently, companies must determine which attributes are most
important to their customers and to the company. As described below, companies have
made these determinations in a variety of ways.
• Following its lifecycle analysis on the environmental impacts of modern cot-
ton production, Patagonia debated whether to switch to organic cotton in
all of its product lines. While making the switch would significantly
reduce the company's environmental "footprint" without reducing
(and perhaps even increasing) product quality, organic cotton was
significantly more expensive. Some of the extra costs would have
to be passed onto the customer or Patagonia would have to
wait until organic cotton was less expensive.
After a great deal of internal debate, Patagonia decided that as
an outdoor company committed to making the outdoors an enjoy-
able experience, it had to make the switch. Enabling its customers
to enjoy the outdoors means ensuring there will always be an
outdoors to enjoy. It also was convinced that its customers
would understand the environmental benefits of using
organic cotton and would be willing to pay a little more to
do so. In its catalogs, Patagonia presents its use of organic
cotton as part of its overall commitment to quality, which
includes helping to preserve a quality outdoor environment. Cus-
tomers have responded positively to the new product lines.
Patagonia recognized, however, that determining the "environ-
mentally correct" course of action is not always easy. While
water-based garment coatings are available to protect color and
enhance durability, Patagonia continues to use solvent-based coatings
for these purposes. Less VOCs are released and fewer toxins are used with
water-based coatings, but they are not yet durable enough to meet Patagonia's
performance standards. From an environmental perspective, Patagonia
believes the solvent-based coating is more environmentally friendly because of
the increased durability it provides. While water-based coatings would
improve the environmental performance of the product, the reduction in
quality would cause the garment to wear out far sooner than it would have
otherwise. Patagonia believes its environmental and performance require-
ments are interrelated and, therefore, the company has determined it is
unnecessary to reduce its performance requirements to meet its environmen-
tal objectives.
IBM also balances competing environmental, cost, and performance issues. In
the mid-1990s, the packaging department significantly reduced the packaging
required to safely ship IBM products, which generated enormous cost savings
and environmental benefits by reducing material consumption. IBM pub-
lished this information in its Environmental Packaging Guidelines, which it
shares with its suppliers.
28
Private Sector Purchasing
-------
To further improve the environmental performance of its products, IBM is
increasingly designing its products to be easily disassembled so that equip-
ment can be easily upgraded or recycled if it becomes outdated. As a result,
products are less sturdy and require additional packaging during shipping.
Although IBM might use additional packaging materials for some new
designs, it believes the overall environmental performance of its products has
improved. IBM had to balance the positive environmental attributes associat-
ed with products that could be easily disassembled and recycled with the
potentially negative environmental impacts of increasing its packaging.
In another example of environmental tradeoffs, IBM considered requiring its
suppliers to eliminate polyurethane foam from the packaging used to ship
components to the company in favor of a biodegradable material IBM
thought might be more environmentally preferable. Upon further investiga-
tion, IBM determined that the environmental improvement resulting from
the switch to the biodegradable packaging material was only marginal. While
such an action would have slightly reduced the environmental impacts associ-
ated with polyurethane foam, it also would have eliminated the revenue IBM
earns from recycling polyurethane. After examining the environmental and
cost benefits, IBM decided against the new requirement.
When Ben & Jerry's was evaluating paper for its corporate letterhead, it
wanted to use the most environmentally preferable paper available. Many peo-
ple encouraged the company to use a 100 percent recycled-content paper with
high postconsumer content or a tree-free paper made from hemp or kenaf.
Others promoted the use of totally chlorine free (TCF) paper, which elimi-
nates the use of chlorine compounds to bleach the paper. Ben & Jerry's deter-
mined that eliminating chlorine, which has been linked with dioxin
contamination, was the most important environmental issue associated with
paper production. At the time of the decision, TCF paper was not available
containing recycled-content and was not yet used by tree-free paper manufac-
turers. As a result, Ben & Jerry's selected a TCF paper over the other "envi-
ronmentally friendly" alternatives.
In the past at Sun Microsystems, each corporate headquarters employee
could order personalized corporate stationary that included the employee's
name, title, address, and phone number. It was traditionally available only in
quantities of 500 sheets or more. Sun recently modified this process and now
uses a standard letterhead for each Sun location. Employees are no longer able
to purchase customized stationary and can order smaller amounts of stationary
at one time. This significantly reduces the waste and costs previously generat-
ed when an employee moved or changed positions. When the company
reevaluated its corporate letterhead, it decided not to purchase recycled-con-
tent paper for purely aesthetic reasons. Although various recycled-content
options are available, Sun decided to continue using a specific high-grade
paper that does not contain recycled content.
During PSE&G's investigation of environmentally benign cleaning solvents, it
examined several nonhalogenated, or less toxic, solvents. Among the products
it compared, the nonhalogenated solvents were all more flammable. In the
environment in which the solvents were to be used, flammability was a greater
concern than toxicity. PSE&G, therefore, selected a less-flammable solvent
over competing products with other favorable environmental attributes.
Private Sector Purchasing + 29
-------
• As part of its social and environmental objectives, The Body Shop attempts
to avoid the use of animal-derived ingredients and petroleum-based and syn-
thetic chemicals whenever possible. Every product, however, must meet strin-
gent performance requirements, which sometimes requires the use of
chemicals it would otherwise avoid. For example, The Body Shop uses syn-
thetic musk and whale oils because it believes the synthetic alternatives are
more environmentally preferable than the natural alternatives, which would
involve destroying the animals from which the oils would be collected.
The Body Shop also compared the environmental impacts associated with
biodegradable and recyclable product packaging. While biodegradable pack-
aging sounded environmentally preferable, the company determined that
most biodegradable products will only degrade in very specific conditions and
that those conditions are not likely to occur in modern landfills. Other
biodegradable products degrade into potentially hazardous constituents. After
examining the available biodegradable packaging alternatives, the company
decided not to use biodegradable packaging but to continue providing its
products in refillable and recyclable containers.
Working Closely with Suppliers to Enhance
Environmental Performance
Suppliers In order for many companies to implement environmentally preferable purchasing
provide additional activities, they must work closely with suppliers to ensure they adequately understand
opportunities the company's performance, price, and environmental requirements. Numerous corn-
to improve a panics now survey suppliers to assess their ability to help the company achieve its envi-
company's ronmental objectives.
nerformance * The Body Shop's Ethical Audit and Environmental Departments developed
a ratings system to evaluate existing and potential suppliers. Suppliers are eval-
uated on a number of environmental and social justice criteria and rated on a
scale from one to five stars. Vendors with higher ratings receive a larger per-
centage of The Body Shop's business. Anheuser-Busch, Ben & Jerry's,
Canon, Collins & Aikman, Herman Miller, and Sony have similar evalua-
tions in place although each uses slightly different performance measures.
• Volvo has a set of supplier requirements for its more than 500 worldwide sup-
pliers. (See Figure 8 on page 31 for additional information.) In addition, Volvo
requires each supplier to complete a detailed environmental self assessment to
ensure they are familiar with and are in compliance with Volvo's environmen-
tal policies.
"We expect an environmental commitment from absolutely
everyone who is interested in selling their products to us."
—Lena Gevert, Volvo Cars purchasing department
30 + Private Sector Purchasing
-------
Figure 8—Environmental Requirements for Volvo Group Suppliers and Contractors
The Volvo Group Environmental Policy presents the commitment to environmental work
within the Volvo Group. Environment together with Quality and Safety is a core value for
Volvo.
Suppliers of production materials, equipment, services and consumption goods play a vital
part in the development and production of Volvo products. A true holistic approach means
that Volvo commitment on environmental care must be reflected in the supplier network.
All suppliers and contractors must have knowledge of the Volvo Group Environmental Policy
coupled with internal working procedures including the following aspects:
• an environmental management system. Suppliers of production materials and major con-
tractors must be certified—or have a time plan for certification—according to ISO 14001
or EMAS. All other suppliers and contractors must be able to report on their environmen-
tal work, including organization, fulfillment of legal demands, and environmental results.
• objectives and action plans for the reduction of environmental impact. Best industry stan-
dard should be the ultimate objective.
• follow-up of development activities regarding environmental care within its industry and
maintain an open dialogue with Volvo concerning achievements and trends.
• environmentally related data from production and products must be available for Volvo to
enable environmental assessments.
• chemicals or materials involved in products or services delivered to a Volvo company must
fulfill the requirements stated in the Volvo "black" and "grey" lists. Any presence of listed
chemicals must be accounted, and have phase-out plans.
• planning and choice of packing materials, and handling of excess and rejected materials in
such a way that the total environmental impact is minimized for the delivered products and
services.
• consideration of recyclability and the use of recycled materials when selecting materials
and design solutions.
These requirements are part of the Volvo Group Purchase Agreement for production materi-
al. Any deviations must be documented. The application for other suppliers and contractors
are clarified in the attachment. Each Volvo company is responsible for the implementation
and follow-up.
Authorized 10 September 1998
AB Volvo
Arne Wittlov
Executive Vice President, Chairman of Global Issue Board Strategic Sourcing
Private Sector Purchasing
31
-------
• DaimlerChrysler requires its suppliers to disclose their material content in
self-disclosure certifications. These statements and the data are reviewed by
the company. After comparing analyses, each vendor is assigned an environ-
mental rating. The environmental rating is part of the total rating of the sup-
plier. In this way, environmental issues are part of the total evaluation of the
supplier and become part of the normal business decision-making process. As
a general rule, the higher the rating, the more likely it is the supplier will con-
tinue to receive significant business.
Suppliers are Companies also are redefining their relationships with their vendors. Many compa-
partners in the njes (Jo not perceive their vendors solely as product suppliers but as partners in the pro-
production duction process. As a result, companies and their vendors are working together to save
process. money and improve environmental performance.
• In an attempt to further promote environmentally conscious manufacturing
and purchasing practices, Herman Miller holds semiannual conferences for
its employees and invites all of its suppliers. The conferences include national-
ly recognized experts in waste minimization, pollution prevention, lifecycle
analysis, environmental design, and packaging.
• PSE&G and Perrigo both developed similar relationships with their chemi-
cal suppliers. The supplier for each company tracks the companies' on-site
chemical inventories to maintain proper inventory levels. If an employee mis-
takenly orders a product that is already on site, the vendor will alert the
employee rather than delivering additional product.
Perrigo took an additional step by establishing financial incentives for its sup-
pliers to reduce the quantities of chemicals purchased. The company shares
the cost savings resulting from decreased chemical purchases with the chemi-
cal suppliers. As a result, it is in the suppliers' financial interest to minimize
sales. This, in turn, saves additional money for the company because it no
longer pays to acquire unneeded chemicals and it significantly reduces the
costs to dispose of outdated overstock.
• When Collins & Aikman was trying to reduce the volume of VOCs in its
carpet products, it worked closely with several suppliers. In an attempt to
meet the more stringent environmental requirements, a few suppliers com-
pletely reformulated existing products or modified manufacturing processes.
Working closely with its suppliers provided Collins & Aikman with opportu-
nities to improve its products' environmental attributes and the environmental
performance of the company and its suppliers in ways that it might not have
achieved otherwise.
• To increase its recycling rate and decrease its waste volume, Anheuser-Busch
worked closely with its suppliers to establish a standard for the plastic strap-
ping used to bind shipments of incoming materials. Prior to this effort, the
company was unable to recycle the strapping material in any significant vol-
ume because of the wide variety of colors and plastic resins each supplier used.
Recognizing that it was buying not only the product, but also the strapping,
Anheuser-Busch worked with its suppliers to establish two, color-coded,
single-resin plastics for use in strapping materials. The color-codings indicate
resin type so that the resins can be easily separated for recycling. As a result of
its effort and the cooperation of its suppliers, Anheuser-Busch is currently
recycling more than 700 tons of plastic strapping a year. This program and
32 + Private Sector Purchasing
-------
others have significantly increased the company's recycling rate and decreased
its waste disposal volume and costs.
Ben & Jerry's worked closely with one of its suppliers to reduce the packag-
ing associated with its berry shipments. It encouraged the supplier to use con-
tainers that can be shipped back to the supplier, cleaned, and used again.
Taking this concept one step further, Ben & Jerry's worked with one of its
paper suppliers to develop its ECO-pint ice cream containers. According to
the company, the unbleached paperboard containers eliminate the adverse
environmental impacts associated with chlorine bleaching and the resulting
dioxin emissions. (See below for more information.)
Like Ben & Jerry's, Anheuser-Busch encourages its suppliers to ship mate-
rials in reusable totes. The totes save both Anheuser-Busch and its supplier
money and eliminate the cost and potential liability associated with the dis-
posal of empty drums and other single use containers.
Ben & Jerry's, the Vermont-based, all natural ice cream manufacturer, has joined
the ranks of companies offering its products in packaging the company considers
environmentally preferable. Beginning in February 1999, the company began dis-
tributing its top-selling World's Best™ Vanilla in its new unbleached paperboard
ECO-Pint.
For more than 2 years Ben & Jerry's has been working to ensure its new ECO-
Pints meet the company's environmental and commercial demands, as well as
Food and Drug Administration requirements. When the company first decided to
pursue this project, chlorine-free pulp could only be found in Europe and import-
ing it was prohibitively expensive. The company, however, encouraged a U.S.
paperboard mill to manufacture the chlorine-free packaging material.
ECO-Pints are constructed from unbleached brown (kraft) paperboard with an
exterior clay coating on which the company logo is printed. Ben & Jerry's plans to
convert a significant number of its containers to the ECO-Pint by the end of
1999.
According to the company, standard paper manufacturing uses chlorine com-
pounds as a bleaching agent. The bleaching process can discharge millions of gal-
lons of wastewater containing chemicals such as dioxins, which are carcinogenic
and highly toxic. Avoiding products that are produced using chlorine is part of
Ben & Jerry's ongoing environmental purchasing program.
The company hopes the ECO-
Pint will become the industry
standard for ice cream contain-
ers and is sharing its information
on unbleached packaging mate-
rials with any interested parties.
For more details, visit the
Ben & Jerry's Web site at
.
Ben iL Jerry's
ECO-Pint
Packaging
Private Sector Purchasing
33
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Conclusions
This report describes a wide variety of approaches private sector companies
are using to implement environmentally preferable purchasing. The
practices of companies described provide insights and lessons that
might be valuable for others interested in environmental purchasing.
The following conclusions can be made based on the information in
this report:
Private Sector Companies Are Increasingly
Adopting Environmentally Preferable
Purchasing Practices
This report includes numerous examples of companies voluntarily incorpo-
rating environmentally preferable purchasing principles into their purchasing
policies because it makes good business sense. More than 368,000 consumers refer
to Green Seal's Choose Green Reports and more than 1,800 Japanese organizations have
joined GPN. Other business groups, including Business for Social Responsibility
() and the Alliance of Motion Picture and Television Producers, are
developing materials promoting environmental purchasing to their members. These
numbers and trends illustrate increasing interest in environmentally preferable pur-
chasing initiatives.
Environmental Purchasing Has Economic and
Environmental Benefits
Applying environmentally preferable purchasing principles has saved companies
money. Examining environmental impacts throughout a product's entire life cycle can
help companies identify opportunities to reduce costs. It also can provide companies
with cost-neutral opportunities to improve environmental performance.
Additionally, companies employing environmentally preferable purchasing princi-
ples are significantly reducing their energy- and water-consumption, decreasing their
use of limited natural resources, reducing waste, and minimizing the use of potentially
hazardous substances. All of these actions benefit the environment and also might ben-
efit a company's bottom line.
Companies Are Actively Promoting
Environmental Purchasing
Companies are increasingly promoting the environmentally preferable attributes of
their products. They also are encouraging customers to consider environmental attrib-
utes when making purchasing decisions. McDonald's encourages consumers to "buy
recycled" by providing information on tray liners and other paper products used in its
stores. Volvo, Collins & Aikman, and Patagonia all routinely provide environmental
information on the products they sell in their sales literature.
Conclusions + 35
-------
Different Companies Can Reach Different
Environmental Purchasing Decisions
Different companies can reach different purchasing decisions even when faced with
the same set of environmental information. Environmentally preferable purchasing is a
process; it is not an outcome. Consequently, the results might not be the same for
every company. All businesses face different price and product performance require-
ments and different local environmental concerns that can lead companies to make dif-
ferent determinations about the environmental preferability of their purchases.
Environmental Purchasing Will Continue To Expand
While many companies and individual consumers already recognize and enjoy the
benefits of environmentally preferable purchasing, many more are just now learning
about them. As additional companies and individuals learn the important advantages it
offers, environmentally preferable purchasing will continue to expand. Increasing num-
bers of purchasers will demand products that provide superior performance at a rea-
sonable cost and with minimal adverse environmental impacts.
In addition, as more and more entities adopt environmentally preferable purchasing
practices, it becomes increasingly easier for others to do so. By promoting environ-
mentally preferable purchasing throughout the federal government, EPA is making it
easier for nongovernment entities and individuals to identify and purchase environ-
mentally preferable products. The process works both ways because the environmen-
tally preferable purchasing interests and practices of private sector companies also are
making it easier for federal agencies to purchase environmental products. The U.S.
Department of Interior, for example, will begin pilot testing biodegradable plates and
soup bowls it deems environmentally preferable. This would have been less likely with-
out the purchasing power and interests of private sector companies with similar con-
cerns stimulating the demand for and availability of such products. As a result, the
economic and environmental advantages of environmentally preferable purchasing will
continue to expand.
"Our environmental purchasing efforts and the efforts of others are helping to
expand markets for environmental products and are making it easier for others to
purchase such products. Hopefully, as more and more companies adopt similar
initiatives, the number of "environmentally friendly" products will continue to
increase and it will be even easier for everyone to find competitively priced
environmental products."
— Bob Langert, McDonald's Corporation, Director of Environmental Affairs
36 ^ Conclusions
-------
Appendix: Description of
Participating Companies
T
he companies that participated in this case study represent a broad spectrum of companies from
a variety of industries. This appendix provides a brief overview of each company and provides
Web site addresses to obtain additional information.
ANHEUSER-BUSCH
COMPANIES
Anheuser-Busch Companies, Inc., is the world's largest beer brewing company with more than
100 production, entertainment, and service facilities, more than 24,000 employees, and yearly
gross sales of almost $13 billion. In operation since 1852, Anheuser-Busch has led the brewing
industry in sales since 1957. Worldwide, Budweiser is brewed in more than 10 countries and
distributed in more than 80. For additional information, please visit .
BEN&JERRtfS
VERMONT'S FINEST • ICE CREAM & FROZEN YOSURT™
Ben & Jerry's is a leading maker and distributer of quality all-natural ice cream products. Ben &
Jerry's was founded in 1978 by childhood friends Ben Cohen and Jerry Greenfield with an ini-
tial investment of $12,000. Today, Ben & Jerry's employs more than 800 people with net annual
sales exceeding $200 million. Ben & Jerry's ice cream products are distributed in all 50 states
with more than 120 "scoop shops" in 20 states and Washington, DC. Internationally, Ben &
Jerry's scoop shops can be found in Canada, Israel, and the Netherlands. For additional infor-
mation, please visit .
THE BODY SHOP
Skin & Hair Care Products
The Body Shop is a maker of high-quality skin and hair care products. It strives to use natural
ingredients in all of its products. The Body Shop originated in the United Kingdom and cur-
rently has more than 1,500 branches in 47 markets throughout the Americas, Europe, and Asia.
The Body Shop ranks second in specialty cosmetics retail sales. For additional information,
please visit .
Cation
Canon is a worldwide leader and provider of home, office, and industrial technology products.
Canon's dedication to chemistry, electronics, and optical and mechanical sciences research has
made them a leading technology supplier. Canon Group Companies employs more than
10,000 people at more than 20 companies throughout North, Central, and South America and
the Caribbean. It is a multibillion dollar corporation providing its customers with the industry's
latest electronic products. For additional information, please visit .
Appendix + 37
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COLLINS&AIKMAN
floorcoverings
Collins & Aikman manufactures innovative, durable, and quality floor covering products engi-
neered to perform well in high-traffic environments. The company was founded in 1964 and
has since become a well-known, well-respected leader in the floor covering industry. Collins &
Aikman is not only committed to producing quality products, it also is committed to providing
its employees with a safe and healthy working environment. For additional information, please
visit .
©HermanMiller
Herman Miller is the second largest manufacturer of office furniture in the United States and
has been nationally recognized for its environmental stewardship and its innovative designs. In
fact, some of its products have become permanent exhibits in major museums such as the New
York Museum of Modern Art and the Smithsonian Institute. In 1998, Herman Miller generat-
ed revenues totaling $1.72 billion and currently has 6,500 employees spanning 40 countries.
For additional information, please visit .
DAIMLERCHRYSLER
DaimlerChrysler, a maker of automobiles and transportation products and services, is the
resulting union between North America's Chrysler Corporation and Western Europe's Daim-
ler-Benz. The merging of the two industry giants in 1998 produced the third most profitable
company in the world with total revenues of EUR 131.8 billion in the first year alone. The
company currently has 441,000 employees with manufacturing plants across 34 countries. For
additional information, visit .
IBM was founded in 1911 to manufacture clocks, scales, and punch card tabulators. Today,
IBM is a multinational information technology company providing high-quality advanced
computer products throughout the world. As the world leader in new patents, IBM is continu-
ally at the forefront of research and development. IBM currently employs more than 265,000
people in more than 150 nations with total revenues exceeding $78 billion. For additional
information, please visit .
38 ^ Appendix
-------
mdis
I®
McDonald's is the world's leading food service retailer with more than 24,000 restau-
rants in more than 110 countries. In 1997, the 12,380 U.S. McDonald's franchises and
company-owned restaurants earned more than $17 billion. Approximately 85 percent
of the McDonald's restaurants in the United States are owner-operated franchises. For
additional information, please visit .
NEC is recognized as a worldwide leader in high technology and offers a wide range of
products and services in communications, computer peripherals, semiconductors, and
personal computers. In 1998, NEC generated more than $37 billion in revenues and
currently has 152,000 employees, 118 manufacturing plants in 20 countries, and more
than 15,000 products. For additional information, please visit .
patagonia
A manufacturer of durable and high-quality outdoor apparel, Patagonia was named
one of Fortune 500 magazine's "100 Best Companies to Work for in America" in 1998
and 1999. Patagonia has approximately 1,000 employees and 18 retail stores worldwide
with offices in North America, Europe, and Japan. In 1998, the company generated
more than $165 million in revenue. For additional information, please visit
.
Perrigo is the leading manufacturer of generic and "store brand" pharmaceuticals, per-
sonal care, and nutritional products in the United States. The company has more than
11 manufacturing facilities across the country occupying a total of 2 million square
feet. In 1998, the company generated revenues of more than $903 million. For addi-
tional information, please visit .
PSEG
Public Service Electric and Gas Company (PSE&G), a subsidiary of the Public Service
Enterprise Group, is one of the top ten largest combined electric and gas companies in
the United States. PSE&G is New Jersey's oldest and largest regulated utility. It is the
major supplier of electricity and gas in New Jersey, servicing 2.2 million customers in
more than 300 urban, suburban, and rural communities. For additional information,
please visit .
Appendix + 39
-------
Sony Corporation is a leading manufacturer of audio, video, communications, and
information technology products for the consumer and professional markets. It gener-
ated more than $52 billion in revenues worldwide in fiscal year 1998. It also is one of
the leading music, motion pictures, television production, and computer entertainment
companies in the United States, employing more than 25,000 employees. For addition-
al information, please visit .
microsystems
Sun Microsystems Inc., is a leading provider of high-quality hardware, software, and
services for establishing intranets. The company was founded in 1982 and has grown to
a Fortune 500 company with more than $9.5 billion in revenues, 26,000 employees,
and operations in 150 countries. For additional information, please visit
.
T TOKYO GAS
With more than 12,000 employees and more than 218,000 miles of gas lines, Tokyo
Gas is Japan's largest distributor of processed, centrally supplied natural gas. The
company serves more than 8 million customers in Japan and generated more than
$1 billion in revenues in 1998. For additional information, please visit
.
Volvo maintains a strong share of the U.S. automobile market and is one of the world's
leading manufacturers of heavy commercial vehicles such as trucks, buses, construction
equipment, and propulsion systems for marine and industrial applications. The compa-
ny has more than 70,000 employees with assembly plants located in Europe, North and
South America, Asia, and Australia. Approximately 90 percent of sales are outside of
Sweden, where its' corporate headquarters are located. For additional information,
please visit .
Warner Bros., a subsidiary of Time Warner, is a media and entertainment company
with interests in filmed entertainment, television production and broadcasting, record-
ed music, and cable television programming. It also operates a chain of specialty retail
stores worldwide. For additional information, please visit .
40
Appendix
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We want to hear from you! Please tell us about your environmentally
preferable purchasing activities and efforts. We are collecting and shar-
ing information, tools, and hints about what works and what doesn't, as
environmentally preferable purchasing evolves and expands. Please con-
tact the EPP program by e-mail, regular mail, or fax:
Environmentally Preferable Purchasing Program
U.S. Environmental Protection Agency
401M Street, SW (7409)
Washington, DC 20460
e-mail: epp.pilot@epa.gov
FAX: 202 260-0178
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