The objectives of this tool are to assist public authorities across Europe to:
Following the advice in this tool will help you position yourself in such a way that you can start influencing the market and work with the market for more and better green products.
The tool helps you engage with suppliers and the market and sets out a range of steps you could follow. The key advice given in the tool is as follows:
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If you can only do a few things then:
Experience on developing long term relationships with suppliers and influencing the market for more environmentally sustainable products and services is growing. A number of the case studies in this toolkit shows how one authority, Goteborg has been building such relationships. Not only has it been possible to procure greener products this way but also to influence the design of products to make them more sustainable and to develop a market for these. Refer to case studies 33 and ??
1.0 Getting your own house in order
1.1 Good Procurement
1.2 Understanding the real procurement need and associated environmental issues
1.3 Environmental Policies
1.4 Environmental Management Systems (EMS)
1.5 Internal Training
1.6 Marketing and awareness
2.1 Important Questions to ask
3.0 Specification
3.1 Eco-Labels
3.2 Industry Codes of Practices relating to operations (CoP)
3.3 Innovation
3.4 Quick Wins
4.1 Contract Conditions
4.2 Training and Support
4.3 Checking EMS Certification and other Green Claims
4.4 Developing Improvement Programmes
4.5 Auditing Suppliers
4.5 Approvals and recognition
4.6 Monitoring
4.7 ;Recording improvement progress on a Supplier Database
5.0 Opportunities for collaboration
5.1 Collaborative Working
5.2 Creating significant volumes by joint procurement with other organisations
5.3 Using brokering organisations
6.0 Incentives
6.1 Business support for improved environmental performance
6.2 Grant Programmes and taxes
6.3 Subsidies
7.1 Promote Best Practice
7.2 Industry Awards
Your procurement systems should be functioning effectively and operating in an efficient manner that adds value to the organisation and encourages innovation and best practice.
Good knowledge regarding the use of the product or service within the organisation is essential. Products may be more environmentally friendly, but if they are poorly chosen regarding fitness for purpose it can create negativity towards future attempts to improve the sustainability of procurement.
Case study 18 – KBC pens and recycled paper
This good knowledge also needs to extend to an accurate understanding of the basic principles of sustainability to ensure that procurement choices meet your organisations intentions to improve environmental performance. One such principle is to only buy as much as is actually required and effectively trying to reduce the amount of purchases made.
Before encouraging your suppliers to improve their environmental performance it is important have your own robust green procurement policies and procedures, i.e. you must get your own house in order before expecting others to do so.
It is essential to understand the importance of having your own procurement and environmental management policies and strategies. These will lay the foundation of support in your organisation for procuring environmentally sustainable goods and services. It will also provide confidence to the suppliers you are trying to create a dialogue with, that your organisation is serious about environmentally friendlier products and services.
Case study 34 – London Borough of Sutton Timber Policy.
Refer to Tool A – Green Procurement Policy for the steps needed to set up a standard policy for Green Procurement.
Refer to Tool C –Barriers section 8.5 - enforcement
Environmental Management systems can be very successful at reducing an organisations impact on the environment and can be used to control and improve the impact of procurement procedures. Policies and strategies lay a foundation of support for green procurement and EMS procedures will provide a process for monitoring and addressing environmental issues at the various stages of procurement.
Refer to Tool B – Managing the Procurement Process for environmental management system procedures on public sector procurement process.
Benefits of an EMS within Procurement
For Greener procurement to become really established in organisations in-house procurement training must include information on managing the environmental aspects of the entire procurement process. The following areas can be considered in training packages for procurement officers or those involved in letting contracts:
Case study 19 – London Borough of Sutton – Training of procurement officers
There should also be sessions for politicians, explaining the tendering processes and how procurement affects so many areas of the public authorities’ business and other national or regional initiatives.
It is also essential that in addition to training of procurement staff other internal marketing takes place to raise awareness of environmental procurement within the organisation.
Examples include:
As and when you develop in house expertise and improve your own environmental performance you will be in a position to start influencing your suppliers and the market. The rest of this tool deals with various ways you can interact with and eventually influence the market.
If you are to encourage your suppliers to become greener then you must first fully understand the market they operate in. This includes identifying
Refer to LEAP Tool C- Dealing with Barriers to Green Procurement supply market.
A series of questions are listed below to help you define the market and assess the opportunities and impacts available for enhancing it to become more environmentally sustainable. Some possible actions have also been listed.
(A) Are you purchasing from an established or saturated market (stationery) or a new market? (E.g. renewable energy installations)?
In existing markets competition can be high therefore a competitive edge can be gained for a company by introducing greener products, particularly where individual purchase price is low.
ACTIONS for existing markets:
ACTIONS for new markets:
Refer to LEAP Tool C - Dealing with Barriers to Green Procurement (5.3 Poor supply market) for more detail on general barriers to green procurement.
(B) Will the prospective suppliers tend to be large or small in size?
The size of the suppliers in the market will affect the way you purchase. Small businesses, although they may be able to offer more flexible and innovative solutions will be less inclined to cope with complicated tender procedures and PQQ requirements.
ACTIONS for small suppliers:
ACTIONS for large suppliers:
(C) Does your procurement present a high or low risk to them?
If what you have requested requires product development will the investment required too much, or is the contract length too short. Perceived high risk can limit the number of suppliers tendering, and can be costly on resources and finances if contracts are not filled or contract variations are required.
ACTIONS to counteract risk
(D) What is your relationship and influence with the supplier like (i.e. are you core business or a nuisance)?
The matrix below illustrates how attractive your business can be perceived by the market (and thus your influence over the market). This will, of course, vary depending on the particular market and depending on your reputation, but it can usually be determined by asking yourselves the following questions:
When you have answered these questions you can make a judgement as to where you should be on the box below.
The quality of previous tenders received can be a good representation of your position in the box.

In order to encourage market development your contracts need to be attractive to suppliers (i.e. you need to be in the ‘develop’ or ‘core’ box) - they need to be confident that, if they were to invest in developing environmental credentials, there will be a future market (with you and with others). Refer to Tool E for specifications which are adapted to larger market availability of products.
Potential actions depending on what box you are in:
ACTIONS – If you place yourself in the boxes titled ‘Nuisance’ or ‘Exploit’
Simplify procurement: (Both for yourselves and suppliers);
Provide suppliers with support for environmental improvements
Incentives:
ACTIONS – If you place yourself in the boxes titled ‘Develop’ or ‘Core’
(E) How much or how fast is the market changing through technology or legislation?
It is important to understand this to ensure that you do not develop prescriptive or out of date specifications.
ACTIONS:
Case study 33 – City of Goteborg, Sweden; also Tool C
(F) Have you got information about your total spending?
One of the key basics of any effective procurement management is to have reliable data on procurement activities. For example, data on what products/ services you are purchasing, volumes purchased, number of suppliers, staff / contractor compliance to the public authorities’ policy is essential for effective management.
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Specific performance targets are also a good way of measuring improvement made in areas and provide a goal and clear direction for staff and contractors on the public authorities’ goals.
You can use specifications in several ways to influence markets for green products:
Eco-labels are designed to allow product manufacturers to receive an accredited, independently verified and therefore credible label that certifies that their product meet certain environmental criteria and requirements.
Using all or part of the criteria for an eco-label in specifications, where based on scientific knowledge, can be an easy way to specify more environmentally sound products and will encourage the market to produce more products that meet eco-label criteria.
Refer to Tool F –for the conditions around the use of eco-label criteria that you must be aware of as outlined in new EU directives.
Refer to LEAP Tool G – Information on Specifications, Products and Consortia for more information on specific products.
Codes of Practice (CoP) can be set up by non-governmental organisations or Industry organisations and they require some kind of action and accountability from the supplier.
Suppliers can be encouraged to sign up to CoP by requiring proof of meeting the equivalent standard of a Code in their specifications. However when promoting a CoP as a means of improving the environmental performance or enhancing a market for a particular product or service it is important to first understand the environmental issues the CoP covers. This is to ensure it really does push for advances on environmental issues rather than just meeting regulatory requirements.
Case studies 36 – codes of practice
Case study –Considerate Constructors scheme Appendix 7; Tool E
In some cases by knowing the market and understanding new ‘green’ product developments it is possible to include something new into the specification. (Working groups should be developed to investigate new products and keep up to date with latest developments and integrate ‘keeping up to date’ with new products into employees training requirements). However this can only be done if the purchaser feels clear that it meets with internal policies and value for money and that the market is able to satisfy the need or move towards satisfying the need.
Case study 31 – London Borough of Lambeth – Cleaning Contract and the use of Micro-fibre cleaning cloths
Quick wins are ‘greener’ specifications that the market can already easily meet and so can be easily incorporated into contracts or small scale purchases. Generally they do not have significant cost implications. Examples of quick wins will vary between countries and market.
Whilst quick wins may not directly enhance a markets’ environmental credentials it will send out a strong message to the market on the importance of environmental issues within your purchasing. For example going from 10% to 100% green on a commodity which is already being bought.
In addition their successful use within your organisation may also provide the good will needed to gather political or internal management support to allow you to undertake further procurement activities with a stronger market enhancement aspect.
Refer to Tool G – Information on Specifications, Products and Consortia for more information on specific products
For OGC Quick wins see: http://www.ogcbuyingsolutions.gov.uk/environmental/products/environmental
_quickwins.asp
Once the specification and contract has been developed there are still many activities that you can undertake that will enhance the market.
Public authorities can impose performance conditions on the company that wins a call for tender that would be applicable during the performance of the contract. These may range from:
These conditions must be established in the call for tender. |
Examples of specific additional conditions:
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Many public authorities offer suppliers free or subsidised training.
Case study 20 – London Borough of Sutton - supplier training
Tips
For your larger contracts:
Suppliers who claimed to have IS14001 or EMAS certification in their tenders should be asked to supply details of:
You should also check that the certification body was authorised by a national regulatory body to issue certificates and that the scope of the certificate covers the appropriate locations and services.
Many public authorities work proactively with some of their suppliers in what can be termed as ‘supplier development programmes’ or ‘environmental improvement programmes’.
These programmes can enable public authorities to work with suppliers to improve their own environmental performance and that of their products/services.
Refer to LEAP Tool C – barriers for section 2.3 on market supply chain.
These can consist of site visits, audits, developing and monitoring action plans and putting in place mechanisms for regular and open dialogue and feedback between buyer and supplier.
Case study 35 – London Borough of Sutton Greening supply chains in partnership
Case study 33 - Driving Innovation and Market Development - Goteborg
Ideally suppliers should be assessed at the tender or contract-award stage, however there is likely to be suppliers that have not been assessed if you are implementing this into an existing supply chain. For example you could set a target to visit 25 firms a year to carry out an environmental audit.
As mentioned earlier the Contract conditions can state that a representative from your organisation will require access to site visits and environmental audits during the contract to carry out an environmental audit. The example Environmental Audit Checklist (Appendix 1) can be used as an aid. This will help you work with the supplier to identify potential environmental improvements based on risk and significance. The identified improvements can then be jointly agreed as an essential part of the Environmental Improvement Programme (EIP). This agreement must be signed by a senior manager within the supplier and should set out the time scale (for example improvements must be implemented within one year from the agreement date) and monitoring and reporting arrangements.
Tip
If the representative conducting the audit is not from purchasing (i.e. this activity is taking place outside the scope of any particular contract letting process) then it is important to let service contract managers know you are approaching their suppliers and to let them know the outcomes of the meetings. i.e. Environmental improvement plans agree/progress on these plans. Any environmental improvements identified as specific to the contract, can then be fed into the procurement process when the contract is re-let.
If your suppliers/contractors are already operating to a standard, which leaves little reasonable scope for improvement then no improvement programme will be required.
However for those that make improvements as part of the contract conditions and EIP then it is important to write to a senior manager to inform them that the company has met your requirements. It is beneficial to provide suppliers with recognition of their good work, For example:
During and at the end of the Environmental Improvement Programme it is important to monitor whether the agreed improvements have been achieved plus discover more about the suppliers’ experiences, beneficial or otherwise. If resources permit a follow-up audit is the preferred option. A record denoting suppliers’ progress and approval status should be maintained.
Once compliant with the EIP, suppliers could then be awarded a ‘green flag’ (or similar) on a purchasing/payments database.
This ‘green flag’ status will then be one of the factors taken into account by purchasing officers when selecting tender short lists and tender adjudication. It is important to stress to staff letting contacts, that even if a supplier has a green flag status, the staff will still have to carry out an assessment of the environmental impacts of the contract they are letting. Appendix 2 is an example of assistance provided to staff to help with this.
The use of ‘green flags’ for goods or services should be acceptable provided a number of safeguards are built in:
Equality. The products and or services that you aim to procure and later mark out have to be well defined with clear technical specifications or/and as "green variants". Eco labelling criteria can be used, but you must accept all types of evidence of compliance, not only eco-labelling licences. All tenderers have to get the same chance to compete on this issue. Contract clauses. Add a contract clause in the tender documents (and later in the contract) that includes an acceptance from the tenderer/supplier that "green flags" will be used to encourage purchasing officers to buy specific products or services.
Much is to be gained from working jointly with suppliers and across purchasing organisation boundaries, to share best practice, problem solving and information and resources.
Case study 30 – Lewisham renewable electricity
Public sector can have significant buying power, which may be increased further through joint procurement (either with other public bodies or through consortia) enabling them to:
There has been a growth in the number of operating consortia over the past few years. This is due to the fact that value for money and market enhancements can be obtained from the influence over the market. It is also an effective way for authorities to work collaboratively when setting specifications and evaluating tenders and also to compare the ways in which their services are provided.
Benefits of using consortia:
Case study 29 – South East Regional Centre of Excellence
Case study 28 – Vantage Lloyds TSB marketplace
Case study 27 - Pinnacle
Refer to Tool F for the conditions around the use of eco-label criteria that you must be aware of as outlined in new EU directives.
Refer to Tool G – Information on Specifications, Products and Consortia for more information on specific products.
Also Tool D joint procurement
Brokering organisations can provide purchasers with information and contacts that would take a substantial amount of time to source. For example London Remade and the Waste Resources and Action Programme (WRAP) in the UK work towards increasing markets for recycled products. Both of these organisations are publicly funded and assist public authorities with information on what recycled products are available, who the suppliers are, technical specifications to ensure products are appropriate for use and need - all at no cost.
Case study 24 - London Remade
Case study 14 – Ernst and Young
Case study 25 - WRAP
There are a range of support mechanisms from public authorities and grants and taxes from central government that can help improve environmental performance and support new environmental technologies.
The attainment of EMS registration involves a lot of organisational work, manpower and expense. For these reasons the registration to an EMS may not be relevant for a Small to Medium Enterprises (SME's). As a purchaser you must recognise this and offer assistance such as referring suppliers to agencies/charities who can provide free or low cost support. This work 'greens' your own supply chain but eventually also that of the supplier and its subcontractors.
Public authorities in a similar geographic area or with similar supply chains shared resources and advice much more could be achieved with less outlay.
Case Study 32 - Sandwell Metropolitan Borough Council.
Grant programmes can act as a form of government subsidy to support particular technologies and encourage their uptake and affordability. Tax incentives can also work towards making a product more affordable and thus more attractive, by making other more harmful products less affordable. Public authorities can take advantage of both of these to help suppliers reduce product costs and support innovation.
The UK Climate Change Levy is imposed on brown electricity at the rate of 0.43 p/kWh, assisting in making green electricity more affordable. Sweden has an Energy Tax and Carbon tax, encouraging renewable sources of energy as they are exempt, however fuels used in electricity production are not covered by these taxes which has led to the most significant renewable energy increase being in biomass heating. |
UK Landfill tax encourages waste collection services to reduce the amount they landfill and move towards increasing services such as recycling, composting and waste to energy that are exempt from landfill tax. |
In the UK several taxes and fees are lower for alternative fuel vehicles than conventional fuel vehicles. They are exempt from the London Congestion Charge; receive up to 25% reduction on Vehicle Excise Duty; between 40-75% reduction in Fuel Duty dependent on fuel type; and Company Car Tax Benefit is up to 6% lower. |
The UK Aggregates levy came into effect in the UK in 2002 to incorporate environmental costs into the price of virgin aggregates. It is set at a rate of £1.60 a tonne, with the purpose of increasing the use of alternative materials such as wastes from construction and demolition that would otherwise go to landfill. |
Examples of subsidies were, for example, two major grant programmes in the UK which provided significant cost reductions on renewable energy installations through two Grant programmes, Clear skies with grants varying with technology, and DTI Major Photovoltaic Demonstration Programme with grants up to 50%. These have now been replaced by the low carbon buildings programme.
Schemes in other parts of Europe include feed in tariffs, reduced interest rates on loans and capital grants. Germany, Spain, Austria, Denmark, France and the Netherlands are some of the countries that operate feed in tariffs. They vary in amount and time payments continue, according to the technology and country. Capital grants are offered by many countries including the UK, Germany, Spain, Austria and the Netherlands.
Sweden operates an RPS scheme similar to the UK’s Renewables Obligation certificates.
To make the most out of market enhancing activities and contracts it is important to publicise successful work to other public authorities. This will encourage replication supporting new markets further. Examples of ways to publicise such activities are:
Case study 7 – Belfast City Council
Industry Awards can help to enhance markets for both public authorities and suppliers by offering publicity, support, Kudos and in some cases cash prizes.
Promoting or supporting Industry Awards that reflect sustainability issues can also push for innovation in a market and increase suppliers knowledge of opportunities and new markets.
Case study 37 – Industry awards
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ENVIRONMENTAL AUDIT QUESTIONNAIRE
Contract Environmental Assessment Checklist
This checklist helps you meet the requirements under EMAS and in Council
Standing Orders to do a ‘pre-tender environmental assessment’ for contracts worth over £100,000. It helps you decide
a) what environmental impacts the contractor should address in the environmental method statement, and
b) non-negotiable environmental specifications within the tender documents.
a) require the contractor describe how they will minimise the impact, in their environmental method statement.
b) require the contractor to comply with any relevant Council policy or standard. For example; use of recycled paper, FSC timber, providing products with a defined level of energy efficiency etc.
Impact | Is impact relevant to the contract? | Is impact relevant to the contract? | Council policies applying | Suggested specifications/ info. to request from potential contractors.(you may have other ideas) |
Air pollution | YES | NO | Council policy is to act against pollution | Ask for their methods to reduce air pollution within the contract |
Water pollution | YES | NO | Council policy is to act against pollution | Ask for their methods to reduce air pollution within the contract |
Waste production | YES | NO | Council policy is to discourage waste and encourage recycling | Ask for their methods to reduce waste produced and recycle waste, within the contract |
Land contamination | YES | NO | Council policy is to act against pollution | Ask for their methods to reduce land contamination within the contract |
Use of materials | YES | NO | Environmental Purchasing Policy. You should look at this Policy or use the Environmental Purchasing Checklist & Guide to find out what specific policies the Council has on materials. | Ask for compliance with the Council policy on the materials relevant to the contract |
Use of energy/water | YES | NO | Energy/Water Efficiency: Council policy is to promote energy/water efficiency and to purchase products which are the most energy efficient available Green Energy: Council policy is to endorse the purchase of ‘green energy’ (i.e.: energy which comes from renewable sources). | - Ask for their methods on energy efficiency within the contract. - Specify energy efficient products (Energy Ratings A-G exist for many appliances - otherwise ask for other information) - Ask whether the contractor purchases ‘green energy’. |
Noise | YES | NO | Council policy is to act against antisocial levels of noise | Ask for their methods to reduce noise within the contract |
Dust/ Odour/ Light emissions | YES | NO | Council policy is to act against pollution | Ask for their methods to reduce dust/odour/light emissions within the contract. |
Effect on ecosystems | YES | NO | Council policy is to protect and enhance open spaces, waters, trees and hedges. There is also a disposal of felled timber policy (contact the Biodiversity Officer) | Ask for their methods to minimise impacts on local ecosystems and wildlife within the contract. Ask for compliance with disposal of felled timber policy |