Sustainable+Purchasing (Advanced+Skills)+Workshop€¦ · Sustainable behaviour and purchases can...

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Sustainable Purchasing(Advanced Skills) Workshop

Habits to SustainablePurchasing at MQ

Sustainability – who cares?

Some learnings for us

Ethics

Reputa>on/ Income

1. Suppliers may support environmental or social practices that we do not agree with – we need to ask the questions.

2. If we don’t, stakeholders will. This can cause us loss of income and reputation.

Some learnings for us

1. Suppliers may support environmental or social practices that we do not agree with – we need to ask the questions.

2. If we don’t, stakeholders will. This can cause us loss of income and reputation.

3. Sustainable behaviour and purchases can save us money.

Ethics

Reputa>on/ Income

Financial Savings

Financial value

Environmental value

Social value+

Sustainable =

Habits to SustainablePurchasing at MQ

Check MQ policies1

Consider the Life Cycle2

Consider the Product Life Cycle

Use Disposal

Resources Extracted

ProducDon DistribuDon Use Disposal

Resources Extracted

Produc>on Distribu>on Use Disposal

Resources Extracted

Resources

ProducDon

DistribuDon

Disposal

Recover & Recycle

Resources

ProducDon

DistribuDon

Disposal

Recover & Recycle

Resources

ProducDon

DistribuDon

Disposal

Recover & Recycle

Resources

ProducDon

DistribuDon

Disposal

Recover & Recycle

5 Environmental R’s3

1. Avoid / Rethink

2. Reduce

3. Reuse

4. Recycle

Biggest impact

Ask ourselves these ques>ons – and ask our suppliers : how do they apply the 5R’s to their products?

Ask about the 5R’s

Ask about Social impacts4

How are condi>ons for people and animals?

Use Sustainable Suppliers5

Iden>fy sustainable suppliers

Check if they are MQ approved.• Konica Minolta – mulDfuncDonal devices• Office Max – StaDonery• Hydrafilta – preferred water filtraDon supplier• Equigroup/Commonwealth bank – preferred leasing supplier

Check if government preferred supplier.

Ask if your colleagues have used any suppliers.

Find them on Sustainable Product websites e.g. • Green pages www.greenpages.com.au• EcoSpecifier www.ecospecifier.org• Eco Buy www.ecobuy.org.au• GECA www.geca.org.au

Check third party endorsement and cer>fica>on

Environmental Cer>fica>on and accredita>on -‐ examples include:

• Energy Star eg. For electrical equipment (h\p://www.energystar.gov.au/index.html) • EPEAT – eg for computers (h\p://www.epeat.net/) • GreenPower/GoldPower – for renewable energy• Environmental Choice Australia – covers a range of products eg. Furniture, cleaning products

(h\p://www.geca.org.au/) • Water and Energy Labelling schemes (h\p://www.waterraDng.gov.au/ and h\p://

www.energyraDng.gov.au/)

Social and environmental Cer>fica>on and accredita>on schemes – examples include:

• Forestry CerDficaDon scheme – eg. For paper products• Fairtrade eg. For Coffee

Watch out – greenwashing in progress!

Green wash falls into 3 groups of misleading messages.

1. What our company does (to help protect/save the environment).

2. What our company can do

3. What you can do (to help protect/save the environment).

Don’t’ be vague

Show the proof

Be specific

Don’t hide

trade-‐offs

The sin of carbon offseZng.

Carbon Offsets

Offset provider

Total Carbon you need to

offset (Tonnes)

Cost to offset with them

A 6 $215

B 13 $308

C 10 $111

D 6 $81E 9 Does not sell

offsets

Joint statement on carbon offsets

“… Carbon offsets do not … reduce emissions overall…. Purchasing offsets should only be seen as a last resort aeer other measures to reduce or avoid

emissions have been thoroughly explored

… there are strong concerns over the environmental credibility … and the contribu>on of the projects to sustainable development.

If/when we buy offsets to offset the unavoidable work related emissions, (we) are commihed to only purchasing offsets from projects which have been

cer>fied by the Gold Standard …”

Do whole of life cosDng6

The total cost is not just the purchase price……

The total cost throughout its life includes:

• the iniDal purchase cost, -‐ this is what most purchasers think of• Usage and disposal costs – this is MQ’s total cost

• Environmental and social costs – these costs are typically not factored in.

MQ’s direct costs

External costs

MQ purchasing policy is that we consider all costs

Total $$ cost of an item =

• training and support• labour• consumables• energy supply and

consumpDon• contract and supplier

management

• disposal• re-‐sale• ongoing

liabiliDes• decom-‐

missioning

AcquisiDon CostsMaintenance

CostsOperaDng Costs

End of life costs

• cost for contracts and tenders

• purchase price• delivery charge• insurance and taxes• installaDon and

commissioning

+• labour• spare and replacement

parts• reduced output with

age• downDmes• servicing and

inspecDon • lost profits• breakdown

Which printer would you purchase?

Printer A$350

Printer B$450

Both have the same delivery cost ($30).

ExamplePrinter A Printer B

Buy buyPurchase Cost 350 450 Delivery cost 30 30 Total purchase costs 380 480

Life span (warranty) 1 1+2

Add Extended warranty purchasedExtended warranty purchased 50 Ink & Toners 450 350 Maintenance & Repair* 600 300 Energy Cost 500 350 Total OperaDng costs 1,550 1,000

Less Residual sales value 0 50

Add Disposal Cost 10 0

A.Total Financial Cost 1,940 1,430

B. Environmental Value/Cost

Likely to be thrown away sooner Has a useful life beyond 5 years.

B. Environmental Value/Cost No end of life responsibilityXerox remanufactures printers and ink cartridgesB. Environmental Value/Cost

Made in ChinaMade in Australia (low carbon miles)

C. Social Value Unknown OH&S policies in China Xerox has strong social policiesVery sim

plified

example

* In fact, costs fo

r printer A likely to

higher as likely to be replaced

What are the benefits of Whole of Life Costing?

Is it better to buy or lease?

Opera>ng Leases can be helpful in Usage and Disposal

Resources Extracted

Produc>on Distribu>on Use Disposal

Provide some instrucDon and advice back to the supplier

Dear Supplier,

Macquarie University is commi8ed to incorpora:ng sustainability into its ac:ons and prac:ces as part of its responsibility to the community and the environment.

To use (operate) your purchase in a sustainable way may we suggest:XxxxxXxxxxXxxxxx

At the end of its life, we suggest:XxxxxXxxxxx

Thank you,

Products: What would you do to ensure a more sustainable purchase?

1. Look at the policies and checklists on line

2. Consider the life cycle issues for your product / service

3. Adopt the 5R’s thinking: Avoid, Rethink, Reduce, Re-‐use, Recycle, Recover.

4 . Ask – about social impacts

5. Use Sustainable Suppliers

6. Provide some feedback to the user

Group ExerciseFill in targets by department

Who’s responsibility is it?

Barriers?

Look at MQ policies and checklists on line

Consider the life cycle issues for your product / service

Adopt the 5R’s thinking: Rethink, Reduce, Re-‐use, Recycle, Recover.

Ask – about social impacts.

Use Sustainable Suppliers

Do a Whole of Life, value for money analysis

Provide advise and sugges>on back to user.

7 habits of sustainable purchasing managers

Well Done!

Tell us:• how you encouraged a more sustainable

purchase for the University.• Use the one page form.• Have this signed by your Head.

Submit this by: xxxxx

Winners• Chosen by your Heads at the next

Procurement Leaders Workshop • Winners announced: xxxx• Winners win:• Winner prize – • Top 2 runners up – • Next 8 runners up -‐

Drae – to be completed by Sustainability Team.Sustainable Marathon

Marathon submission formMarathon submission formMarathon submission formMarathon submission form

Name: Faculty/Dept/Unit:Faculty/Dept/Unit:

Product or service area:Product or service area:Product or service area:

Commentary:Commentary:

Impact:Financial

Environmental Environmental

Social

Sustainable+Purchasing (Advanced+Skills)+Workshop€¦ · Sustainable behaviour and purchases can...

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