Green or sustainable purchasing is practiced by companies interested in social responsibility and in burnishing their corporate image. Green purchasing involves incorporating environmental considerations into new and existing procurement practices. The goal is to identify and reduce environmental impacts throughout the supply chain and maximize resource efficiency.
Saving you some green
Although many larger organizations have embraced sustainable purchasing, smaller companies have often shied away, fearing the extra costs involved. It's true that many environmentally friendly products and services may cost more to purchase, but that's not the whole picture.
When analyzing procurement costs, it’s helpful to look at the entire lifecycle of the products you buy. In other words, how much a product might cost you (and the environment) from beginning to end, including raw material extraction, production, packaging, distribution and disposal.
Looking at it from this angle, you might find green purchasing can actually save you money through reduced waste, decreased disposal costs and lower resource consumption.
The facts of product life
In a lifecycle assessment, you evaluate a broad spectrum of environmental attributes relating to the product, the manufacturing process and the manufacturer. Although those attributes can vary depending on the product or service, here are six major categories to evaluate:
Product feedstock. What raw materials were used to make the product? Environmentally friendly products should be made (at least partly) from bio-based or recycled materials.
Manufacturing processes. How was the product made? Does the manufacturing of the product involve significant use of energy and water? Look for products from companies that use closed-loop manufacturing processes to minimize waste and resource use.
Distribution. Does the distribution of the product require long transport involving extensive use of fossil fuels and potential air or water emissions? Choose products that are manufactured and sold locally or transported with minimum environmental impact.
Packaging. Is the product packaged in materials (cardboard, plastic, etc.) that are 100% recyclable? Packaging that’s made from secondary or recycled materials is preferable.
Usage and maintenance. Look for durable and repairable products to avoid waste and costly disposal. Also, find out if the product contains ingredients that might cause health or environmental concerns, such as hazardous chemicals or volatile organic compounds.
End of life and disposal. Ask yourself if the product is designed to be recycled or reused at the end of its useful life, or if it's meant to be discarded as waste. Does the product contain hazardous materials or other ingredients that may make disposal or reuse complicated?
A lifecycle cost analysis could become much more complex, given the amount and type of products and services under consideration. The information above is intended as an overview of things to consider as you try to get a better picture of how green purchasing might impact your organization.