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Green Purchasing & Green Marketing
Prof. Hideki NakaharaMusashi Institute of Technology
Chair of GPN Japan
GREEN MARKETING CONFERENCE 17th OCTOBER 2006,SEOUL
How much is enough?
These matter changed our Lifestyle during 20 century in Japan!!
1st Convenience Store 2nd Mobile phone 3rd Internet 4th Television5th Computer 6th Micro wave Ouven 7th Computer Game 8th Car9th Credit Card 10th First Food
Products and Services
Acceptance
Sustainable Production
Sustainable Consumption
Sustainable Society
Sustainable Development
WSSD
Producers Network (BtB)
Households
Quality of Life
Happiness
Clothing
Mobility
Leisure
Housing
Function Based approach
Market
Social Infrastructure
Product(BtC)
Product(BtG)
Government
Life Cycle Approach
Life Style
Eco Label
IPP EPP
Green Procurement
Acceptability
LCA LCC Eco Efficiency
Economy
Environment
Society
ConceptToolPolicy
PSS
Value
Do You Prefer to Buy Eco-Products?
Preferring eco-products as much as possible
Taking into account environmental aspect to some extent as well as other aspects
Not motivated by environmental aspects
43%51%
6%
Buying only eco-products 1%
Year 200 1
JAMA Information on Motorcars
JEMA Information on Home Appliances
GPN Data BaseEnergy Saving Catalog
Low Emission Vehicle Guidebook
Considering whole life cycle Focusing specific aspect(s)
SYMBOL
DATA
Various Environmental Labellings
Type LabelⅢ
Eco Mark ( ISO Type LabelⅠ )Eco Mark ( ISO Type LabelⅠ )
GPN Guidelines/DatabaseGPN Guidelines/Database
Symbols from Third partiesSymbols from Third parties
Criteria of Green Purchasing LawCriteria of Green Purchasing Law
Self Declaration Label Self Declaration Label
ISO Type Ⅲ Label( e.g Eco-Leaf)ISO Type Ⅲ Label( e.g Eco-Leaf)
88%88%
48%48%
43%43%
33%33%
23%23%
7% 7%Source: GPN “ Green Purchasing Questionnaire Survey”( 2003)
Product Related Information Used by Green Institutional Purchasers
Green Procurement in Business Sector
Already implemented
Consider to introduce
No plan
57%25%
18%
Survey by MoE Japan in 2005
2,524 respondents (large sized companies)
Effect of Green Purchasing
GPN Annual Suppliers Survey, Japan 2001 Survey• 74% of 673 supplier companies responded “sales amounts
of green products have increased in the past couple of years”.
• 75% have increased green products brand.
2002 Survey • 74% of 802 suppliers responded “customers’ interest in
green products has increased.
2003 Survey • 58% of 722 suppliers responded “green products sales
have increased in the past year”.• Domestic market size of green products is roughly
estimated at 50 trillion yen.
Market Size of Environmental Business of Japan
29.9
47.2
58.4
0
10
20
30
40
50
60
Y2000 Y2010 Y2020
Pollution prevention
Efficient ResourceUtilization TOTAL
(Trillion yen)
Government estimates 47 trillion yen (4,200 billion US$) in 2010.
Source: MoE Japan 2003
Products• Printing and Copying Paper • Copiers, Printers, Facsimiles• Personal Computers• Stationery and Office Supplies • Office Furniture• Motor Vehicles• Refrigerators• Washing Machines• TV Sets • Air Conditioners • Toilet and Tissue Paper• Lighting Equipment • Uniforms and Work Wear
Green Purchasing Guidelines for 15 Products and Service Areas
Services• Offset Printing
Service• Hotels and Inns
Suppliers Evaluation Checklist
Target fields of Green Purchasing
Office SupplyMotorcar
PC
Paper
Furniture
Work wear
Distribution
Food
Hotel & Meeting
Banking
Lighting Electric Appliance
CanteenCatering
ServicesProducts
Parts and MaterialsCleaning
Printing
Printer
Construction
ElectricityEnergy
Information Found in GPN-Database
Example for “Copiers”Example for “Copiers”Brand nameCompanyCopying speedEnergy StarGP Law conformity Power consumption for stand-by and off modeTwo-sided copyingUse of recycled plasticsUse of reused partsToner cartridge recyclingUse of PVCEco-Label certificationPrice
Users can get and compare environmental performance information for hundreds of registered brands.
Information format is consistent with relevant GPN Purchasing Guidelines
GPN DB - Registered Products
Score System of Eco-Challenge DB
Policy & EMSPolicy & EMS
Waste managementWaste management
Food & Beverage Food & Beverage relatedrelated
Energy/water conservationEnergy/water conservation
Green purchasingGreen purchasing
• Performance is indicated with radar chart• 89 check points are classified into 5 categories• For each category, score of 0 - 5 is calculated
Role of GPN in the Market
Suppliers PurchasersGPN
Products Information
Green Products & Information
Data BaseProducts Information
GuidelineParticipation in Consensus building process
Guideline for
PurchasingGuideline for
product development
Green Purchasing
Common guidelinesComparable product information
Participation in Consensus building process
Next Decade of the GPN • Promote green purchasing among individual
consumers as well as institutional purchasers
• Educate pupils and school teachers
• Provide more information focusing on food, clothes, house, and various services
• Launch local networks and support their activities targeting SME, municipalities, and consumers
• Diffuse green purchasing globally
Conclusions• Customers already started green
purchasing/procurement across the world and had made reasonable successes.
• Businesses are increasingly required to supply eco-products, eco-components, and eco-services from customers throughout the supply chain.
• To be competitive in the global market, businesses should enhance environmentally sound management, development of eco-products, and green purchasing.
PurchaserPurchaserPurchaserPurchaser BusinessBusinessBusinessBusinessGreen marketGreen market
Green purchasing & Green Business
Eco-design,Eco-design,LCA, EMSLCA, EMS
Green Purchasing encourage environmentally conscious Management and eco-product development through the market
IndividualsIndividualsGovernmentsGovernmentsCorporations Corporations
Green purchasing
Green product
Win-Win
Producers Network (BtB)
Quality of Life
Happiness
Clothing
Mobility
Leisure
Housing
Function Based approach
Market
Social Infrastructure
Product(BtC)
Product(BtG)
Government
Life Cycle Approach
Life Style
Eco Label
IPP EPP
Green Procurement
Acceptability
LCA LCC Eco Efficiency
Economy
Environment
Society
ConceptToolPolicy
PSS
Value
Households
Talk the Walk、 UNEP
Find Fundamental Solutionby Changing the Input
WasteWaste
PollutionPollution
Hazardous Hazardous
substancessubstances
Carbon Carbon
DioxideDioxide
Recycling
Reduce inputReduce input
Non-hazardous materialNon-hazardous material
Easy-to-recycleEasy-to-recycle
Energy savingEnergy saving
Resource savingResource saving
Make the input greenMake the input green
RecycledRecycledmaterialmaterial
Reduce the outputReduce the output
Thank you for your kind attention.GPN Website : http://www.gpn.j
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