hiroyuki sato secretary general green purchasing network (gpn) green purchasing in japan - progress,...
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Hiroyuki SatoHiroyuki SatoSecretary GeneralSecretary General
Green Purchasing Network (GPN)Green Purchasing Network (GPN)
Hiroyuki SatoHiroyuki SatoSecretary GeneralSecretary General
Green Purchasing Network (GPN)Green Purchasing Network (GPN)
Green Purchasing in JapanGreen Purchasing in Japan
- Progress, Current Conditions, and Future - - Progress, Current Conditions, and Future -
What is green purchasing?What is green purchasing?
PricePrice QualityQuality Conveni-Conveni-enceence
+EnvironmentEnvironment
=
Green purchasingGreen purchasingGPN
When you purchase something, consider the necessity, taking the environment, as well as quality and price into account, and try to purchase a product or service with the least environmental impact from the businesses of those who make a conscious effort to care for the environment.
<< Basic rule of green purchasingBasic rule of green purchasing >>
What does “green purchasing” mean?What does “green purchasing” mean?
Principles of Green PurchasingPrinciples of Green PurchasingPrinciples of Green PurchasingPrinciples of Green Purchasing
Principle 1Principle 1 – Deliberate the necessity before purchasing
Principle 2Principle 2 - Consider the environmental impact of a product at all stages of its life cycle.– followed by eight detailed aspects.
Principle 3Principle 3 – Assess suppliers’ environmental management and activities,
Principle 4Principle 4 - Gather environmental information on products and suppliers
By Green Purchasing Network(GPN)
Green purchasing changes a corporation
Green purchasing changes a corporation
CorporationCorporationConsumerConsumer
Green purchasing
Green product
Eco-designEco-design
Environmentally Environmentally conscious managementconscious management
Encouraging environmentally conscious managementand product development through the market
Establish a sustainable societyEstablish a sustainable societyGPN
Green marketGreen market
Governments and corporations Governments and corporations are large scaled-consumer. are large scaled-consumer.
End user
Material supplier
Manufacturer/service business
Raw material supplier
Pro
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Dev
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Env
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Construct a green supply chainConstruct a green supply chain
Green Purchasing Network (GPN)Green Purchasing Network (GPN)Green Purchasing Network (GPN)Green Purchasing Network (GPN)
Founded in February 1996 to promote green purchasing in Japan by the initiative of Environment Agency
Since then GPN has taken a leading role to promote green purchasing in Japan.
The mission of the GPN – to spread out the concept and practices of green purchas
ing– to provide guidelines and information necessary for pra
cticing green purchasing.
About GPNAbout GPNAbout GPNAbout GPN
Independent non-profit organization 2,732 members (as of Nov. 2002)
– 2,099 corporations – 364 governments– 269 NGOs, NPOs
Executive Committee: 35 members Secretariat: 6 staff Budget: US$600,000/year
– Membership fee : 50%– Project income : 40%– Subsidy : 10%
Business
NGOGovernment
Members of GPNMembers of GPNMembers of GPNMembers of GPN
All of 47 prefectural governments All of 12 designated cities – Osaka, Nagoya, Fukuoka,
Sendai, Sapporo, Yokohama…..
Large businesses– Sony, Canon, NEC, Fuji Xerox, Ricoh, Honda, Toyota,
Nissan, Matsushita Electric Industrial, Nippon Steel, Seiko Epson, Hitachi, Toshiba, Mitsubishi Corp., JT, Suntory, Kikkoman, Tokyo Gas, Development Bank of Japan, NTT, JR, Tokyo Electric Power……
Necessity of Initiatives by Necessity of Initiatives by Public SectorsPublic Sectors
Necessity of Initiatives by Necessity of Initiatives by Public SectorsPublic Sectors
Have significant impact on the market [about 20% of the market]
Can help to improve reliability of the “green” products
Can reduce the cost of “green” products by creating initial demand
Expand availability of “green” products in local areas
Raise awareness of staff, that can lead to greening the government
Law on promoting Green PurchasingLaw on promoting Green PurchasingLaw on promoting Green PurchasingLaw on promoting Green Purchasing
May 2000, the Law on Promoting Green Purchasing was enacted, and enforced in 2001.
All the State ministries and agenciesAll the State ministries and agencies must draw up annual “procurement policy”, to practice the plan, practice it , and are required to to report the result to Environmental Minister.
Local authoritiesLocal authorities are imposed “efforts” to implement green purchasing activities.
Designated Procurement Items Designated Procurement Items of the Lawof the Law
Designated Procurement Items Designated Procurement Items of the Lawof the Law
All of the State institutions are obligated to implement green purchasing for the designated procurement items
152 items of 14 categories– Copying and printing paper, Stationery and office
supplies, Office furniture, Electric appliance, Office automation equipment, Lighting apparatus and lamps, Motorcars, Uniforms and work wear, Interior, Building material of public project, Services
Law on Promoting Green Purchasing, Designated Procurement Items -1
“Evaluation criteria” and “Items to be considered”
Law on Promoting Green Purchasing, Designated Procurement Items -1
“Evaluation criteria” and “Items to be considered”
Copying paper:Copying paper: Used paper: 100%, brightness: less than 70% Printing paper:Printing paper: Used paper: 70%, brightness less than 70% Stationery:Stationery: Recycled plastics: 40%/Use of thinned wood, Used
paper: 50% 【 Considerations 】 Change or refill of consumable stores, “R” design
Office furniture:Office furniture: Recycled plastics: 10%/Use of thinned wood, Least emission of formaldehyde/Used paper: 50%【 Considerations 】 Repairable, Parts exchangeable
Copying machines:Copying machines: Energy-saving standards/International Energy Star standards 【 Considerations 】 Recovery and recycling of cartridges
Personal computers:Personal computers: Energy-saving standards 【 Considerations 】 Recovery of products, “R” system, Reuse of parts, Use of recycled plastics
Refrigerators:Refrigerators: Energy-saving standards 【 Considerations 】 Impacts of coolant and insulation materials on global warming, Use of recycled plastics
Air-conditioners:Air-conditioners: Energy-saving standards 【 Considerations 】 Use of recycled plastics
Motorcars:Motorcars: Low-pollution vehicles, transitional low-emission vehicles (TLEV) 【 Considerations 】 Reduction of lead, Use of recycled materials
Fluorescent devices:Fluorescent devices: Hf inverter/Energy-saving standard Uniforms and working wear:Uniforms and working wear: Recycled PET resin 10% or more 【 Conside
rations 】 Recovery and recycling of products Printers, facsimile machines, television sets, VTRs, Fluorescent tubes, curtaiPrinters, facsimile machines, television sets, VTRs, Fluorescent tubes, curtai
ns, carpets, blankets, glovesns, carpets, blankets, gloves Solar power generation system, fuel cells, solar thermal utilization systemSolar power generation system, fuel cells, solar thermal utilization system Public construction:Public construction: Use of recycled materials, Use of low-pollution type co
nstruction machines Diagnosis on energy savingDiagnosis on energy saving
Law on Promoting Green Purchasing, Designated Procurement Items -2
“Evaluation criteria” and “Items to be considered”
Law on Promoting Green Purchasing, Designated Procurement Items -2
“Evaluation criteria” and “Items to be considered”
Movements of Law on Promoting Green Purchasing
~ Addition and Review of Designated Procurement Items ~
Papers: Addition of 5 items including OCR papers, tissue paper, etc.Stationery: Addition of 18 items including cloth adhesive tape, desk mats, etc.Apparatus: Addition of 3 items including coat-hangers, umbrella stands, etc.OA apparatus: Addition of display, Partial alteration of energy-saving standardsMotorcars: Addition of LPG vehiclesInterior: Addition of futon mats, beds and mattressesEquipment: Addition of kitchen garbage processing equipmentPublic construction: Addition of 17 items including slag aggregate, earth and
sand, paints, insulation materials, insulation sash doors, automatic clocks, etc.Services: Addition of restaurants and reuse of tiresPrinting: Addition of standard for printing ink, Change of category to services
GPN
Impact of the LawImpact of the LawImpact of the LawImpact of the Law
A Survey shows 18 % of local governments “started the green purchasing under the influence of the law.”
Many of companies manufacturing “designated procurement items” accelerated development of “green” products which can meet the criteria.
Increase in the number of organizations that have promoted green purchasing
~ it has become to rapidly grow in around 1996 when GPN established~
GPN
16 28 35 45109
217
398
577
802
962
1128
16 20 22 31 53 76 121 178256 297
402
0
200
400
600
800
1000
1200
92 93 94 95 96 97 98 99 00 01 02-03 (Estimates)
Office supplies
Year
Num
ber
of o
rgan
izat
ions
Parts, materials and packaging materials
Present Status in Public SectorsPresent Status in Public SectorsPresent Status in Public SectorsPresent Status in Public Sectors
All the central government ministries practices green purchasing
All the 47 prefectural governments and 12 designated cities are engaged in green purchasing
47% of 700 cities implement green purchasing organizationally
Particularly advanced areas ; papers, office supplies, office furniture, OA & IT equipments, motorcars, uniforms, and electric appliances
Current Status of Business SectorsCurrent Status of Business SectorsCurrent Status of Business SectorsCurrent Status of Business Sectors
Findings from survey by GPN in 2002 51% of responding companies have written
policies on green purchasing 36% of them have adopted green
purchasing policies on parts and materials. 52% of them consider suppliers’ EMS and
other environmental activities
Market Impact of Green PurchasingMarket Impact of Green PurchasingMarket Impact of Green PurchasingMarket Impact of Green Purchasing
Findings from survey by GPN in 2001 74% of suppliers responded “sales of green “sales of green
products increased in the past couple of products increased in the past couple of years”years”
75% of the suppliers have increased the numbers of green products brand
Expansion of green purchasing has had a great impact on the market in Japan
Outline of Green Procurement of Outline of Green Procurement of Parts and MaterialsParts and Materials
Outline of Green Procurement of Outline of Green Procurement of Parts and MaterialsParts and Materials
Green procurement of parts and materials have been expanding around electric equipment and machinery manufacturers.
Environment has been added to the conventional consideration points of quality, cost and delivery.
Green procurement standards and targets are set for carrying out the activities.
The following combination of assessments forms the mainstream.– Evaluation of parts and materials (chemical contents, etc.)– Evaluation of suppliers’ corporate structures
Efforts are made to gain cooperation of business partners through seminars, presentation of successful cases, and positive support.
The campaign has been expanded to include business partners in Asia and other parts of the world.
Toward the greening of world-wide industries through the supply chain.
Incentives to Green Procurement of Incentives to Green Procurement of Parts and MaterialsParts and Materials
Incentives to Green Procurement of Incentives to Green Procurement of Parts and MaterialsParts and Materials
〈 Evaluation of parts and materials 〉 Cooperation with trade partners is indispensable to upgrade the
“greenness” of the company’s own products.– Respond to the needs of customers for green purchasing– Reduce the risks at the time of disposal based upon EPR (Extended
Producer Responsibility) Avoid the risks relating to chemical substances Reduce environmental impact throughout the product life cycle
and reduce the cost of disposal.〈 Evaluation of suppliers 〉 The business partners can strengthen their management structure
by establishment of an environmental management system. Cost reductions can be realized through the reduction of waste,
energy and resource saving, etc.
Green Procurement ― Movement on Green Procurement ― Movement on “Evaluation of parts and materials”“Evaluation of parts and materials”
Green Procurement ― Movement on Green Procurement ― Movement on “Evaluation of parts and materials”“Evaluation of parts and materials”
Investigation of chemical contents in parts and materials– Prohibited substances: Substances to be abolished or substituted– To-be-reduced substances: Substances to be reduced– Controlled substances: Substances to be adequately controlled
Other items to be considered (Energy and resource saving, recyclability, packaging materials, etc.)
Carrying out the survey on suppliers. General parts are put into the data base within the company and used by the designing division. Special parts are to be developed under mutual cooperation.
Reduction of lead in soft soldering, reduction of hexavalent chrome in steel plates, reduction of halogen family substances, etc. are the points to be appealed.
Green Procurement ― Common Green Procurement ― Common Approaches to Investigating Chemical Approaches to Investigating Chemical
SubstancesSubstances
Green Procurement ― Common Green Procurement ― Common Approaches to Investigating Chemical Approaches to Investigating Chemical
SubstancesSubstances Manufacturers in the electric industry, etc. established the “guidelines
for common investigation of green procurement” in March 2002.– As of September 2002, 28 corporations have joined in the move including Canon, Fuji Xerox,
Fujitsu, Hitachi, Seiko Epson, Toshiba, IBM Japan, Ricoh, Mitsubishi Electric, Matsushita Electric Industrial, NEC, NTT, etc.
This has been to minimize the cost of investigation to each of the companies and to upgrade the precision of research
Common items of investigation are limited to chemical contents of materials.– 28 groups of substances have been designated for the investigation.– It does not refrain member corporations from carrying out additional research of their own.
The move aims at establishing a global standard through discussions with industrial associations in Europe and the United States.
As for common data base of parts and materials, discussions are underway among
concerned parties.
Targeted Chemical Substances (List A)Targeted Chemical Substances (List A)
(1) Focused on laws and regulations relating to wastes, prohibitions on production and usage, and wastewater.
(2) Weighting of list A items is left to the judgement of each member company.
(3) The investigation is principally limited to families of substances. Further details are left to each member company.
(4) Answers are given on intentionally added substances or on substances known to be contained.
(5) No threshold values are given. (Answers are based on responsibilities of member companies.)
List A (28 groups of substances)
Interpretation of List A
※1 Chromium compounds other than hexavalent chrome and metallic chrome※2 Nickel compounds other than metallic nickel※3 Halogen family resin additives other than paraffin chloride, PBB and PBDE※4 Azo compounds forming specific amine※5 Substances designated by Montreal Protocol
Green Procurement ― Movements on Green Procurement ― Movements on “evaluation of suppliers”“evaluation of suppliers”
Green Procurement ― Movements on Green Procurement ― Movements on “evaluation of suppliers”“evaluation of suppliers”
Emphasize the importance of establishing an Environmental Management System (EMS).– Require major suppliers to obtain ISO14001 certification.– Many businesses demand the establishment of EMS not limited to ISO.– Some businesses are proposing a system to simplify ISO and to gradually
upgrade, in order to modify the burden on the suppliers’ side.– Many businesses are providing support and consultation for the
establishment of EMS. Other than the above, the following activities are also
considered.– Environmental policy, organization, plan, environmental education,
compliance with the law, disclosure of information– Product assessment, development of environmentally conscious parts and
materials, green procurement– Recovery and recycling of used products and packaging materials
Many businesses declare that unless the requirements are fulfilled within the specified period, trade transactions shall be discontinued.
Evaluation Criteria in Product Selection (Guidelines)
~ 60% for eco-mark, 53% for GPN guidelines ~
GPN
9%
11%
13%
32%
53%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Others
None in particular
Standards, etc. by other organizations
Evaluation criteria of Law on Promoting Green Purchasing
GPN purchasing guidelines
Approval criteria of eco-mark
Environmental Labels by Third-party Organizations, etc.
Environmental Labels by Third-party Organizations, etc.
Eco-markEco-markInternational Energy StarInternational Energy Star Save-energy labelSave-energy label
FSC Forest FSC Forest accreditationaccreditation
PET bottle recycling PET bottle recycling recommendation markrecommendation mark
Certification of low Certification of low emission vehicleemission vehicle
GPN Purchasing GuidelinesGPN Purchasing GuidelinesGPN Purchasing GuidelinesGPN Purchasing Guidelines Copying and printing paper Copiers, printers, facsimile machines Personal computers Motorcars Refrigerators, Washing machine, TV,
Air conditioner Stationery and office supplies Toilet and tissue paper Office furniture Lighting apparatus and lamps Uniform and working wear Offset printing service Hotels and inns
Purchasing Guidelines for MotorcarsPurchasing Guidelines for Motorcars
1) The automobiles shall have high fuel efficiency and low carbon dioxide (CO2) emissions.
2) The automobiles shall have low levels of nitrogen oxides (NOx), hydrocarbons (HC), carbon monoxide (CO), and particulate matter (PM) in their emissions.
3) The automobiles shall use coolants for air conditioning that have a little contributory impact on ozone layer depletion and global warming.
4) The automobiles shall use reduced levels of lead. 5) The automobiles shall be designed for ease in disassembly and recy
cling of their parts when no longer in commission. 6) The automobiles shall use large amounts of recycled parts. 7) The automobiles shall make little external noise.
Features of GPN GuidelinesFeatures of GPN GuidelinesFeatures of GPN GuidelinesFeatures of GPN Guidelines
Guidelines for main product areas to be targeted in green purchase Listing of the matters to be considered in selecting the products Focus the check points to about 10 items at the most, which are
important and can be differentiated. (In case of products) The guidelines are not meant for giving the standards of “green
products” but moderately suggesting the viewpoints and directions of consideration.
The guidelines provided the opportunities of obtaining the information in those fields which are not covered by eco-mark, etc.
The guidelines are used as indications by many purchasing organizations, as well as becoming the indication of product development of the manufacturers.
Provide detailed products information of designated environmental aspects, certification of eco-labelling, conformity to the Law criteria, retail price, major functions
Not certificate/recommend specific products Information on more than 9,000 products of 13 produc
ts categories, 600 companies Updated quarterly Purchasers can compare products of many producers fr
om environmental point of view Users can get almost all the main products of major pro
ducers in Japanese market
GPN Products Data BaseGPN Products Data Base
Accumulation of GPN Data BaseAccumulation of GPN Data BaseAccumulation of GPN Data BaseAccumulation of GPN Data Base
Accumulate the data base in accordance with the information format set out alongside the guidelines of purchase
Broadly encourage relative manufacturers to provide information
Manufacturers wishing to provide information shall make the registration and input their data through the Internet
The secretariat checks the data and makes them public
The expenses are borne by the manufacturers as publication fees
GPN Data Base
GPNデータベース活用ガイド
Current Status and Features of Current Status and Features of GPN Data BaseGPN Data Base
Current Status and Features of Current Status and Features of GPN Data BaseGPN Data Base
Provide useful information for actual purchasing such as detailed environmental information, acquisition of environmental labels, conformity with standards of the Law on Promoting Green Purchasing, price, major functions, etc.
Product information of various businesses can be compared horizontally.
Information is available for almost all major products of major manufacturers
Do not recommend specific products Overall judgement on superiority of products is left to the purchasers. About 9,000 products of 600 companies in 13 product fields are
included in the data base. Renewals of data are made 4 times a year with biannual publication of
the “Data Book”.
Type Ⅲ Environmental Labelling
TypeⅠEco-Labelling
Easiness ofJudgment
Availabilityof DetailedInformation
GPN Data Base
Information for Green PurchasingInformation for Green PurchasingInformation for Green PurchasingInformation for Green Purchasing
Grading System
GPN start to develop a guideline on selecting suppliers based on the Principle 3.
The guideline will include EMS, waste reduction, information disclosure,……
GPN will launch a suppliers data base targeting all types of businesses
Guideline & Data Base on SuppliersGuideline & Data Base on Suppliers
ConclusionsConclusionsConclusionsConclusions
Green purchasing is a very effective market-oriented tool to make green supply chain
Public sectors should take the Initiatives In Japan GPN has succeeded in creating tendency
toward implementing green purchasing We need global collaboration to expand green We need global collaboration to expand green
purchasing and green marketpurchasing and green market– Exchange information and experiences– Support to launch green purchasing activities – Build a global Data Base on products traded internationally
and suppliers
Factors that have Supported Successful Diffusion of Green Purchasing in JapanFactors that have Supported Successful Diffusion of Green Purchasing in Japan
Green Purchasing Network (GPN) has succeeded in wide-range involvement of businesses and administrative organizations in the move.
– Major businesses representing Japan and local governments became the promoters of the campaign.
– The Environmental Agency backed up the establishment and activities of GPN.– Success stories were introduced by the commendation system and seminars.– A network was successfully established for the first time, with the involvement of b
usinesses, administration and NGOs as equal parties of purchasers. A social climate was successfully formed making “green purchasing”
another basic environmental activity same as “recycling” and “energy saving”.
There has been an active and wide-spread exchange of environmental information on products. (GPN data base, eco-mark, corporate brochures on eco-products, etc.)
The social zeal for ISO 14001 certification has become the favorable wind.
The movement was dramatically accelerated by the establishment and enforcement of the Law on Promoting Green Purchasing.
Incentives to Green PurchasingIncentives to Green Purchasing
By implementing green purchasing, the positive stance of businesses toward environmental issues can be demonstrated to the public.– Green purchasing has become one of the obligatory items for
environmental reports. Awareness of the employees can be enhanced through
green purchasing.– It gives constructive impact on product development, sales,
recycling and other environmental activities. Reviewing of purchase practices, reduction of
purchase quantities, etc. may bring cost reduction effects.– Reduction of life cycle cost (LCC) can also be expected.
International NetworkInternational NetworkInternational NetworkInternational Network
GPN (Japan) Korean GPN GPN Malaysia European GPN North American Green Purchasing Initiative ICLEI (International Council for Local Environmental
Initiatives) United Nations World Bank APO (Asian Productivity Organization)
If you are interested in the GPN and this presentation, please contact me and/or visit our websites at [http://www.gpn.jp/]
Thank you very much for your atteThank you very much for your attention.ntion.
Hiroyuki Sato, GPNe-mail: [email protected]