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Sustainable Purchasing (Advanced Skills) Workshop
Sustainable Purchasing(Advanced Skills) Workshop
Habits to SustainablePurchasing at MQ
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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
7
Check MQ policies1
Consider the Life Cycle2
Consider the Product Life Cycle
Use Disposal
Resources Extracted
ProducDon DistribuDon Use Disposal
Consider the Product Life Cycle
Resources Extracted
ProducDon DistribuDon Use Disposal
Consider the Product Life Cycle
Resources Extracted
ProducDon DistribuDon Use Disposal
Consider the Product Life Cycle
Resources Extracted
ProducDon DistribuDon Use Disposal
Consider the Product Life Cycle
Resources Extracted
Produc>on Distribu>on Use Disposal
Consider the Product Life Cycle
Resources Extracted
ProducDon DistribuDon Use Disposal
Consider the Product Life Cycle
Resources
ProducDon
DistribuDon
Use
Disposal
Recover & Recycle
Resources
ProducDon
DistribuDon
Use
Disposal
Recover & Recycle
Resources
ProducDon
DistribuDon
Use
Disposal
Recover & Recycle
Resources
ProducDon
DistribuDon
Use
Disposal
Recover & Recycle
5 Environmental R’s3
1. Avoid / Rethink
2. Reduce
3. Reuse
4. Recycle
5.
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 …”
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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
be
higher as likely to be replaced
soo
ner.
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
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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.
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7 habits of sustainable purchasing managers
Well Done!
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
