SECRET Green Procurement Office of Greening Government Operations May 4, 2006

2 Presentation Outline Context and Key Changes New Policy on Green Procurement What is it? Implementation Strategy Opportunities and Challenges Integration in Commodity Management Next Steps

3 Context and Key Changes – Embedding Environmental Considerations Now Decentralized and individual choice Moral suasion Cost emphasis at acquisition No baseline No meaningful measurements Future Corporate and strategic approach Matter of practice Life cycle costing approach Evidenced-based baseline Measurement and reporting regimes

4 Policy on Green Procurement Policy on Green Procurement approved Fall 2005 Government-wide scope Policy requirements in compliance with legislative, regulatory, trade and policy obligations Collaborative effort between Environment Canada, Natural Resources Canada, the Treasury Board Secretariat and Public Works and Government Services Canada Effective April 1, 2006

5 Policy Objective To advance the protection of the environment and support sustainable development by integrating environmental performance considerations into the procurement decision- making process Set in the context of achieving value for money and the life cycle approach Contribute to environmental outcomes such as Reducing greenhouse gas emissions and air contaminants Improving energy and water efficiency Reducing ozone depleting substances Reducing waste and support reuse and recycling Reducing hazardous waste Reducing toxic and hazardous chemicals/substances

6 Implementation Strategy Two Pillars Main thrust - the integration of environmental performance considerations into procurement decisions – the same way as cost, performance, quality and availability Departments to set, as appropriate, green procurement targets tailored to mandates, spend patterns and environmental risks The Policy also recognizes that the federal government may wish to target specific environmental outcomes by using procurement as a means to stimulate innovation and market demand

7 Opportunities Government-wide Commodity Management Approach Life Cycle Costing and Value for Money Decisions The Right Thing To Do

8 Challenges Awareness and understanding of environmental considerations – what is green how is it acquired? Competing environmental considerations Availability of information to support value for money decisions Measuring improvements and reporting on successes

9 Integration in Commodity Management Phased approach Unique opportunity to implement through commodity management activities Benefits from a centralized approach to procurement Life cycle assessment to examine costs associated with acquisition, use, maintenance and operation, and final disposal Environmental considerations integrated along side price, quality, performance and availability Purchase environmentally preferable goods and services where value for money is achieved

10 Integration in Commodity Management (con’t) Initial phase underway in five commodity areas Computers (IT Hardware) Digital imaging devices (printers and copiers) Office supplies Fuels & lubricants Furniture Chosen based on Total volume of government spending Level of environmental risk and impact Opportunity for life cycle management Ability of suppliers to respond to environmental criteria

11 IT Hardware Key Discussion Topics Energy consumption and ever increasing PC performance Extending the life of acquired assets Disposal and e-Waste Options to Consider Extend life cycle of IT Hardware Establish Policy and Funding to ensure responsible recycling after use Require Acceptable Eco-Labels Include Energy Requirements Educate to raise awareness of disposal issues

12 Digital Imaging Devices & Print Services Key Discussion Topics Managed Print Services Digital imaging devices include green criteria Print services include environmental considerations in choice of paper Options to Consider ENERGY STAR Indoor Air Quality Third Party Certification of Print Services Cost Management Software / Demand Management Packaging Equipment design to allow for critical updates

13 Next Steps Continue the implementation through commodity management activities including determining the next commodity areas to be examined Develop and promulgate green procurement tools Continue to provide guidance and support federal departments producing Sustainable Development Strategies

14 Contacts Jean Carruthers: Telephone: (819) Dany Carrière: Telephone: (819) Website: