Understanding Green Procurement In a democracy, one must use the power of the ballot to elect the candidate with the best attributes. So too is the case in capitalism! Every Lev, Euro, or Dollar you spend is a vote for the approval of the products and services you buy. In a democracy, one must use the power of

Meeting Plan Green Procurement Explained - Ward Miller, Consultant denkstatt Bulgaria The European Ecolabel Scheme: Use of the European Ecolabel in Green Public Procurement Approaches - Nadejda Hristova, Senior Expert in Industrial Pollution Prevention, Ministry of Environment and Waters Case Study Presentation - Milen Georgiev, COO Mercurius-Sofia Presentation by Ceder Foundation CSR Committee Expansion – discussion & volunteers confirmation - Dana Leff, CEO Abcro AmCham thanks denkstatt for its in kind support advising Green Project

 AmCham Green Project Theme 1: Enhancing Energy Efficiency in the Office… Before we get started… a quick review 1.Bruntland Commission definition of sustainable development: “meeting the needs of the present without compromising the ability of future generations to meet their own needs"  AmCham Green Project Theme 2: Improving Resource Management 2.Mainstream practice cradle to grave  Fault by product design - born, bought, used, and polluting 3.What is a prerequisite for sustainable resource management?  Product born, bought, used, and recycled as nutrient or technical capital  C2C or Cradle to Cradle:

Takeaways from Resource Management… 1.Use lifecycle assessment - measures the environmental impact resulting from the existence of a product or service, which potentially increase EBITDA 2.Embed the 3Rs in your organization: Reduce On a finite planet, we don’t have infinite resources Reuse One person’s waste is another’s treasure Recycle & Recovery Resources leave the environment and enter the economy, then what? Nutrient & Technical Capital 3.Make informed decisions to increase EBITDA 4.What gets measured, can be managed!!!

Presentation Plan  Warning: this is for you…  Understanding GP & related terms  GP: not a matter of if, but when  Examples & First steps Explaining Green Procurement (GP)

Understanding GP & related terms Economic Procurement Green Procurement Sustainable Procurement Taking into account environmental considerations during the procurement process Purchasing practices targeting only a minimum expenditure Considering both economic and environmental factors as well as social aspects when making purchasing decisions Evolving Procurement Practices

Lifecycle Costing (LC)  Remember lifecycle assessment?  LC is the same thing applied to accounting  Lifecycle Costing  A methodology comparing the Net Present Value of products based on BOTH initial and future costs by accounting for factors like energy use during operation, maintenance, and disposal. Understanding GP & related terms

 Entrepreneurial efforts to be first  Environmentalists’ grassroots movements 85% of EU Citizens feel policymakers should consider the environmental as important as the economic & social policies  Macro-level policy & legislation Lisbon Strategy: EU aims to become ‘the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion’ by 2010  Micro-level policy & legislation National Action Plan on greening public procurement GP: Not a matter of if, but when… Where did Green Procurement come from? START NOW & TAKE THE LEAD!!!

 Eco-Labels Voluntary licensing of a product using a third party’s trademark signifying environmental preferability based on eco-aspects of the product or service GP: Not a matter of if, but when… How do you know what’s green? Objective – through the use of scientifically accepted and valid methods based on international standards for life cycle assessment (LCA). Flexible - through enabling any change or improvement of the EPD as required by the company/organisation after due external review and verification. The main advantages of EPDs, for those using EPD information for various purposes, are that they are regarded as being: Comparable – because the information in EPDs are being collected and calculated based on international accepted and harmonised calculation rules. Credible– through the requirements for routine inspections, review, approval and follow-up by an independent verifier.  Self-declared environmental claims Good idea, gone bad…  Environmental Product Declaration (EPDs) Uses the ISO standard to provide relevant, verified, and comparable environmental information based on LCA of specific product groups

1.Create political support for a GP policy 2.Form a working group or technical committee 3.Situation and expenditure analysis 4.Define the scope of GP, set targets 5.Develop and action plan – Tendering Information / Qualification System Training Communication 6.Make a framework for measuring and monitoring Examples and First Steps Do you have an EMS? If so, think integration! Remember an EMS speaks to overall environmental management, not the environmental characteristics of products What is measured, can be managed! Make informed decisions: to reveal opportunities for improving the overall efficiency of management practices If not, here’s how to get started:

Procurement Targets  General target:  By the end of 2010 ensure that 50% of tenders include environmental considerations.  Specific targets:  By the end of 2012 ensure that 20% of the electricity purchased is generated by renewable sources.  By 2010 ensure no purchased products contain ozone depleting chemicals. Examples and First Steps

 Understanding the GP business case:  Linking Lifecycle Costing  Compare all costs, not simply the initial purchase price:  Usage costs (energy/water consumption)  Maintenance costs  Disposal costs/resale value  Building running costs can be up to 85% of the life-cycle costs!  Its all about EBITDA! Examples and First Steps

Examples & First steps: LCA – tool in action

Examples & First steps: LCA – tool in action

 What is measured, can be managed!  Make informed decisions & maximize EBITDA  Sustainable procurement requires C2C thinking  Systemization of procurement practices is key  The AmCham website will host this presentation as a reference for improving profits and the environment! Green Procurement = Better World "Socialism collapsed because it did not allow prices to tell the economic truth. Capitalism may collapse because it does not allow prices to tell the ecological truth." – Oystein Dahle, former Vice President, Exxon, Norway

d e n k s t a t t Bulgaria Thanks you for your attention! Boyan Rashev – Klimentina Rasheva – Ward Miller – denkstatt Bulgaria OOD T (+359) M (+359) E W If you have individual questions about how to improve your procurement practices, please contact: