Hiroyuki Sato Secretary General Green Purchasing Network (GPN) Linking Green Supply Chain and Green Procurement

Outline of Presentation n Role of green purchasing for green supply chain n Necessity of initiatives by public sectors n Green Purchasing Network(GPN) and its leading roles –Principles –Purchasing Guidelines, Database and Data book –Guideline and database on suppliers n Law on Promoting Green Purchasing n Current status of activities and market impact n Conclusions

Role of Green Purchasing for Green Supply Chain Green purchasing; n Reduce energy consumption, waste generation, hazardous substances n Promote to develop “green” products n Accelerate environmentally conscious managements n Then make the supply chain “green”

Necessity of Initiatives by Public Sectors n Have significant impact on the market [about 20% of the market] n Can help to improve reliability of the “green” products n Can reduce the cost of “green” products by creating initial demand n Expand availability of “green” products in local areas n Raise awareness of staff, that can lead to greening the government

Green Purchasing Network (GPN) n Founded in February 1996 to promote green purchasing in Japan by the initiative of Environment Agency n Since then GPN has taken a leading role to promote green purchasing in Japan. n The mission of the GPN –to spread out the concept and practices of green purchasing –to provide guidelines and information necessary for practicing green purchasing.

About GPN n Independent non-profit organization n 2,732 members (as of Nov. 2002) –2,099 corporations –364 governments –269 NGOs, NPOs n Executive Committee: 35 members n Secretariat: 6 staff n Budget: US$600,000/year –Membership fee : 50% –Project income : 40% –Subsidy : 10% Business NGOGovernment

Members of GPN n All of 47 prefectural governments n All of 12 designated cities – Osaka, Nagoya, Fukuoka, Sendai, Sapporo, Yokohama….. n Large businesses –Sony, Canon, NEC, Fuji Xerox, Ricoh, Honda, Toyota, Nissan, Matsushita Electric Industrial, Nippon Steel, Seiko Epson, Hitachi, Toshiba, Mitsubishi Corp., JT, Suntory, Kikkoman, Tokyo Gas, Development Bank of Japan, NTT, JR, Tokyo Electric Power……

Principles of Green Purchasing n Principle 1 n Principle 1 – Deliberate the necessity before purchasing n Principle 2 n Principle 2 - Consider the environmental impact of a product at all stages of its life cycle. –followed by eight detailed aspects including. n Principle 3 n Principle 3 – Assess suppliers' environmental management and activities, n Principle 4 n Principle 4 - Gather environmental information on products and suppliers By Green Purchasing Network(GPN)

GPN Purchasing Guidelines n Copying and printing paper n Copiers, printers, facsimile machines n Personal computers n Motorcars n Refrigerators, Washing machine, TV, Air conditioner n Stationery and office supplies n Toilet and tissue paper n Office furniture n Lighting apparatus and lamps n Uniform and working wear n Offset printing service

n Provide detailed products information of designated environmental aspects, certification of eco-labelling, conformity to the Law criteria, retail price, major functions n Not certificate/recommend specific products n Information on more than 9,000 products of 13 products categories, 600 companies n Updated quarterly n Purchasers can compare products of many producers from environmental point of view n Users can get almost all the main products of major producers in Japanese market GPN Products Data Base

ＧＰＮ Data Base

ＧＰＮデータベース活用ガイド

n GPN start to develop a guideline on selecting suppliers based on the Principle 3. n The guideline will include EMS, waste reduction, information disclosure,…… n GPN will launch a suppliers data base targeting all types of businesses Guideline & Data Base on Suppliers

Law on promoting Green Purchasing n May 2000, the Law on Promoting Green Purchasing Law was enacted, and enforced in n All the State ministries and agencies n All the State ministries and agencies must draw up annual “procurement policy”, to practice the plan, practice it, and are required to to report the result to Environmental Minister. n Local authorities n Local authorities are imposed “efforts” to implement green purchasing activities.

Designated Procurement Items of the Law n All of the State institutions are obligated to implement green purchasing for the designated procurement items n 152 items of 14 categories –Copying and printing paper, Stationery and office supplies, Office furniture, Electric appliance, Office automation equipment, Lighting apparatus and lamps, Motorcars, Uniforms and work wear, Interior, Building material of public project, Services

Current Status of Activities and Market Impact of Green Purchasing Findings from survey by GPN in 2002 n 51% of responding companies have written policies on green purchasing n 36% of them have adopted green purchasing policies on parts and materials. n 52% of them consider suppliers’ EMS and other environmental activities

Current Status of Activities and Market Impact (cont’d) Findings from survey by GPN in 2001 “sales of green products increased in the past couple of years” n 74% of suppliers responded “sales of green products increased in the past couple of years” n 75% of the suppliers have increased the numbers of green products brand n Expansion of green purchasing has had a great impact on the market in Japan

ConclusionsConclusions n Green purchasing is a very effective market- oriented tool to make green supply chain n Public sectors should take the Initiatives n In Japan GPN has succeeded in creating tendency toward implementing green purchasing n We need global collaboration to expand green purchasing and green market –Exchange information and experiences –Support to launch green purchasing activities –Build a global Data Base on products traded internationally and suppliers

If you are interested in the GPN and this presentation, please contact me and/or visit our websites at [ Thank you very much for your attention. Hiroyuki Sato, GPN