1. Green Purchasing & Green Marketing
GREEN MARKETING CONFERENCE 17th OCTOBER 2006,SEOUL
Green Purchasing & Green Marketing
Prof. Hideki Nakahara
Musashi Institute of Technology
Chair of GPN Japan

2. How much is enough?
In 1994, United Nation asked for Mr Peter Mentwel. Peter is a very famous Photo Journalist.
He said please show your every products in your home. He took pictures at 29 countries.
In a case of US, there were about 6,000 product in home.
So I want to ask how much is enough？

3. These matter changed our Lifestyle during 20 century in Japan!!
1st Convenience Store 2nd Mobile phone
3rd Internet 4th Television
5th Computer 6th Micro wave Ouven
7th Computer Game 8th Car
9th Credit Card 10th First Food
Now, the influence of the American dream has spread in the whole world.
The Result, In Japan, there were about 9,000 products in Japanese home.
In 2000, Japan Economic Journal researched “ what changed our life style in 20 century”
1st is Convenience Store, 2nd is Mobile phone, 3rd is Internet , 4th is Television, 5th is Computer , 6th is Micro wave Cooking,
7th is Computer Game, 8th is Car, 9th is Credit Card, and last 10th is First Food.

4. The WWF estimates that three times the Earth’s resources would be needed if all human beings were to consume as does the average European, and up to five times were North-American lifestyles to become the standard. On average, the human ecological footprint (i.e. the resources we take and the waste and emissions we make) has overcome the Earth’s capacity to produce esources and absorb our waste since the middle of the 80’s. What is obvious for fossil energy is also true for other resources: we are currently over-consuming a limited stock.

5. Sustainable Production
Sustainable Development
Sustainable Society
Sustainable Production
Products and Services
Acceptance
WSSD
This shows the concept of Sustainable Consumption. We used to try to reduce Environmental Burden from the production side but this time, we would try to think of it from the consumer side. We would build Society together with Production side and Consumer side.
Sustainable Consumption

6. Function Based approach
Economy
Environment
Society
Life Cycle Approach
LCA LCC Eco Efficiency
Function Based approach
PSS
Market
Life Style
Clothing
Product(BtC)
Housing
Quality of Life
Producers
Network (BtB)
Acceptability
Households
Leisure
Product(BtG)
Mobility
Happiness
Social Infrastructure
The company provides green products and service for the market with the technology of Life Cycle Assesement, Life Cycle Costing and environmental efficiency. Nowadays, the trend towards service economy of the product is carried out by the method of Product Service System. New business called PSS has appeared. The information service to a market has a common environmental label. Type 1 labels, such as an eco-mark according to a third party certificate in an environmental label. Type 2 label is self-declaration. And Type 3 label using the LCA technique is the information using LCA. A user does green procurement using three kinds of these label information.
However, if things consumer needed are green products, there is no telling whether or not a consumer purchases positively. nsumer buys required goods and service with various life stages from the fundamental life scene of living , eating, living to transportation, communication, and leisure. A consumer's purchase purpose is for products to purchase and is raising the quality of life, satisfaction, and convenience. And a consumer wants a rich life to come to hand. The company has to get a consumer to receive green products , if a company wants a consumer to choose green products and service. It is a consumer's acceptance. That is, a company needs to establish marketing for increasing a consumer's acceptance .
Eco Label
Green Procurement
Concept
IPP
EPP
Tool
Policy
Government
Value

7. Do You Prefer to Buy Eco-Products?
Not motivated by environmental aspects
Buying only eco-products　 １％ ６％
Taking into account environmental aspect to some extent as well as other aspects
Preferring eco-products as much as possible
４３％
According to our survey, it is answered that 94% of a Japanese consumer may buy green products. However, the consumer who certainly purchases green products is only 1%. It is ready for 43% to buy green products. 51%, points other than the environmental aspects are evaluated and the choice is made. And 6% of consumer has answered that the environmental aspect is not the target of choice.
５１％
Year ２００1

8. Considering whole life cycle Focusing specific aspect(s)
Various Environmental Labellings
Considering whole life cycle
Focusing specific aspect(s)
SYMBOL
This figure is the environmental label currently used in the Japanese market in order to make a consumer recognize the green products in a market.
GPN Data Base
DATA
Energy Saving Catalog
Type Ⅲ Label
Low Emission Vehicle Guidebook
JAMA Information on Motorcars
JEMA Information on Home Appliances

9. Product Related Information Used by Green Institutional Purchasers
Eco Mark （ISO TypeⅠLabel）
88%
GPN Guidelines/Database
48%
Symbols from Third parties
43%
Criteria of Green Purchasing Law
33%
According to our survey in 2003, this figure is the environmental label and environment information which are used for selection of a consumer's green products. It is answered that the direction of an abbreviation half is utilizing the GPN guideline and the GPN database as one of the sources of information at the time of choosing products.
Self Declaration Label
23%
ISO Type Ⅲ Label（e.g Eco-Leaf） 7%
Source: ＧＰＮ “Green Purchasing Questionnaire Survey”(２００３）

10. Green Procurement in Business Sector
Already implemented
No plan
18%
57%
25%
Consider to
introduce
According to research of the Ministry of Environment in 2005, 57% of the major company of Japan has already performed glee supply, and 25% is taking green procurement into consideration.
2,524 respondents (large sized companies)
Survey by MoE Japan in 2005

11. Effect of Green Purchasing GPN Annual Suppliers Survey, Japan
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.
Our GPN surveys obtained the following results about the effect of green procurement.
In 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.
In 2002 Survey
74% of 802 suppliers responded “customers’ interest in green products has increased.
In 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.

12. Market Size of Environmental Business of Japan
Government estimates 47 trillion yen (4,200 billion US$) in 2010.
(Trillion yen)
Regarding Market Size of Environmental Business of Japan. Ministry of Environment estimates 47 trillion yen (4,200 billion US$) in 2010.
Source: MoE Japan 2003

13. Green Purchasing Guidelines for 15 Products and Service Areas
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
Services
Offset Printing Service
Hotels and Inns
Now we made the Green Purchasing Guidelines for 15 Products and Service Areas and Suppliers Evaluation Checklist.
Suppliers Evaluation Checklist

14. Target fields of Green Purchasing
Motorcar
Hotel & Meeting
Printing
Office Supply
Paper
Products
Services
Distribution PC
Printer
Cleaning
Parts and Materials
This chart is our Target fields of Green Purchasing.
Furniture
Work wear
Electricity
Energy
Banking
Canteen
Catering
Lighting
Food
Electric Appliance
Construction

15. Information Found in GPN-Database
Users can get and compare environmental performance information for hundreds of registered brands.
Example for “Copiers”
Brand name
Company
Copying speed
Energy Star
GP Law conformity
Power consumption for
stand-by and off mode
Two-sided copying
Use of recycled plastics
Use of reused parts
Toner cartridge recycling
Use of PVC
Eco-Label certification
Price
This is an example of database of our HP. Users can get and compare environmental performance information for hundreds of registered brands.
Information format is consistent with relevant GPN Purchasing Guidelines

16. GPN DB - Registered Products
These are the examples of registered product of our database.

17. Score System of Eco-Challenge DB
Performance is indicated with radar chart
89 check points are classified into 5 categories
For each category, score of is calculated
Policy & EMS
Green purchasing
Waste management
This is the Score System of Eco-Challenge DB. Performance is indicated with radar chart 89 check points are classified into 5 categories such as Green purchasing, Energy/water conservation, Environmental Policy & EMS, Waste management, and Food & Beverage related. For each category, score of is calculated.
Energy/water conservation
Food & Beverage related

18. Role of GPN in the Market
Green Products & Information
Purchasers
Suppliers
Green Purchasing
Products Information
ＧＰＮ
Products Information
Data Base
Guideline for
Purchasing
Guideline for
product development
This is our role of GPN in the market toward green market.
Guideline
Participation in
Consensus building process
Participation in
Consensus building process
Common guidelines
Comparable product information

19. 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
We GPN started in 74 organizations in 1996 grew rapidly on about 3,000 organizations in these ten years.
And the following plans were made for the following ten years.
1st is to Promote green purchasing among individual consumers as well as institutional purchasers
2nd is to Educate pupils and school teachers
3rd is to Provide more information focusing on food, clothes, house, and various services
4th is to Launch local networks and support their activities targeting SME, municipalities, and consumers
5th is to Diffuse green purchasing globally

20. 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.
We have reached the following conclusions through the activity for ten years.
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.

21. Green purchasing & Green Business
Purchaser
Green market
Business
Win-Win
Individuals
Governments
Corporations
Eco-design,
LCA, EMS
I convince that Green Purchasing encourage environmentally conscious Management and eco-product development through the market. The following thing is required especially in order for both a consumer and a company to become a winner in a green market.
Green product
Green Purchasing encourage environmentally conscious
Management and eco-product development through the market

22. Function Based approach
Economy
Environment
Society
Life Cycle Approach
LCA LCC Eco Efficiency
Function Based approach
PSS
Acceptability
Market
Life Style
Clothing
Product(BtC)
Housing
Quality of Life
Producers
Network (BtB)
Households
Leisure
Product(BtG)
Mobility
Happiness
Social Infrastructure
It is a consumer's receptiveness that it is the required in order to establish a green market. Even if good green products and service come out to a market, if a consumer does not accept these, a green market collapses. A Japanese consumer's biggest concerns buy anywhere the green products which can be bought anywhere. When throwing away the products which became unnecessary, a consumer can cooperate easily recycling of products. It can contribute to solution of an environmental problem because a consumer buys green products and uses them. Especially the consumer is holding the biggest concern in prevention of global warming. If the consumer is inferior in the quality of green products compared with former product quality, he will not buy it by any means. Especially the consumer has concern strong about the safety of food. A consumer is very sensitive about the safety and health which are called tracerbility, organic food, and a genetically modified organism.
Moreover, a consumer has come to make a severe judgment to corporate activity. Has the company observed the law or not? Is the company doing action which protects human rights? The eye of a consumer's surveillance to a corporate social responsibility is very sharp.
Eco Label
Green Procurement
Concept
IPP
EPP
Tool
Policy
Government
Value

23. UNEP made the figure which illustrated these things plainly
UNEP made the figure which illustrated these things plainly. However, a big trap is shown in this figure. This Sustainable Lifestyle Marketing is greatly influenced by the following five factors. 1st is the political system of the country, 2nd is the economic system, 3rd is the a social system, 4th is the technical capabilities and last 5th is the change of an environmental impact. A success will not be carried out, if these external factors which affect decision making of business is recognized continuously and a marketing strategy is not made.
Talk the Walk、UNEP

24. Find Fundamental Solution by Changing the Input
Make the input green
Reduce the output
Reduce input
Non-hazardous material
Easy-to-recycle
Energy saving
Resource saving
Waste
Pollution
Hazardous
substances
Carbon Dioxide
Our hope is toMake the input green, Such as reducing input non-hazardous material, easy-to-recycle, energy saving, and resource saving, And to Reduce the output such as reducing waste, pollution, hazardous substances, and carbon dioxide.
Recycled material
Recycling

25. Thank you for your kind attention.
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