introducing the sustainable purchasing leadership council

Introducing the Sustainable Purchasing Leadership Council

For more information: Jason PearsonExecutive Directorjason@purchasingcouncil.org

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A key barrier to market transformation is habitual institutional purchasing.

1. Opportunity2. Challenges3. Solution

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Opportunity for strategic leadership

4Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

Managers do things right.Leaders do the right thing.

Opportunity for strategic leadership

5Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

Opportunity for strategic leadership

6Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

Opportunity for strategic leadershipHealth careHousingFinancial services and insuranceFood servicesTransportation servicesRecreation servicesEducation servicesCommunications servicesPersonal care servicesHospitality services

7Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

Opportunity for strategic leadership

8Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

Opportunity for strategic leadership

± 100 million US jobs70% of US employment

± 4 billion Mt CO2e10% of global GHG

9Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

1 Purchaser = 100’s of Consumers

Purchasing Organizations

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…are uniquely positioned to demand transparency into the upstream and downstream impacts of goods and services.

…are capable of incorporating sustainability criteria into purchasing decisions at a scale that can shift markets.

…are specially equipped to drive down the cost of sustainable products and services so that everyone can afford them.

…are already responsible for ensuring that end-users understand, like and adopt new products and services.

Marketplace Stakeholders

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• Suppliers• Policymakers• Public Interest Advocates• Professional Societies• Trade Associations• Certifiers• Standards Developers• Consultants• Researchers

1. Opportunity2. Challenges3. Solution

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Root Challenge

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The lack of standardization in how sustainable purchasing is defined, guided, measured, and rewarded.

1. Update/Timeline2. Opportunity3. Challenges4. Solution v1.0

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What is a credible claim?

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“products”

“green”

“purchasing”

“sustainable”

1. Opportunity2. Challenges3. Solution v2.0

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Could we collaborate tolaunch a shared program for guiding, measuring, and recognizing leadership in sustainable purchasing?

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2012 2013 2014

GPR Meeting / US EPA HQ / Jan 2012

Analogy: USGBC / LEED

* Green building is estimated at 44% of non-residential new construction in 2012.

BEFORE (early 1990’s) AFTER (early 2010’s)

Market fragmented by inconsistent guidelines ➔ LEED provides buyers and suppliers with common language

No shared training program for green building ➔ LEED AP makes training accessible to everyone

Can’t differentiate credible from greenwash ➔ LEED identifies credible standards and eco-labels

Leadership recognition based on marketing ➔ Leadership recognition based on performance

Shared challenges solved project by project ➔ Shared challenges addressed through LEED versioning

Documentation is expensive and rare ➔ Documentation costs steadily decrease

Creativity consumed reinventing the wheel ➔ Creativity focused on innovation

ROI demonstrated on case by case basis ➔ ROI of LEED approach consistently documented

Green building is expensive ➔ Building LEED-certified adds negligible cost

“A common standard is impossible.” ➔ A common standard is widely embraced and used.

“Green building will always be niche.” ➔ Green building is becoming the norm.*

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2012 2013 2014

Steering Committee formed

Anastasia O’Rourke, Co-ChairPrincipal, DEKRAFounder, EcoLabel Index

Josh SilvermanDirector, OSESUS Department of Energy

Jonathan RifkinGreen Purchasing CoordinatorNASPO / City of Washington, DC

Chris O’BrienDirector of SustainabilityAmerican University

Yalmaz Siddiqui, Co-ChairSenior Director, Environmental StrategyOffice Depot

Cynthia CummisManager, GHG ProtocolWorld Resources Institute

Mark RossoloPublic Affairs DirectorUL Environment 

Nancy GillisSenior ManagerErnst & Young, LLC

Dennis McGavisDirector of EHS, SustainabilityGoodyear Tire & Rubber Co.

US EPA Liaison:Alison Kinn BennettSenior AdvisorEPP Program, US EPA

US GSA Liaison:Brennan ConawayProcurement Analyst US General Services Administration

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2012 2013 2014

Jason PearsonExecutive DirectorJun 2012

Executive Director hired

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2012 2013 2014

Introducing SPC Concept / US EPA HQ / Aug 2012

purchasing categories5

64% of total spending

83% of estimated impacts

Insight: Analysis and prioritization sharpens focus; reduces complexity.

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2012 2013 2014

AASHE Pilot completed / Nov 2012

SPLC Approach

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Pilot: Higher Education Purchasing

purchasing categories5

64% of total spending

83% of estimated impacts

Insight: Analysis and prioritization sharpens focus and reduces complexity

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Pilot: Higher Education Purchasing

purchasing categories5

64% of total spending

83% of estimated impacts

Insight: Analysis and prioritization sharpens focus and reduces complexity

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2012 2013 2014

Sam HummelDirector of Outreach & OperationsApr 2013

Jason PearsonExecutive DirectorJun 2012

Director of Outreach hired

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2012 2013 2014

Launch Event / American University / Jul 2013

Moderated by Joel Makower and broadcast by

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2012 2013 2014

City of Portland, OR

City of San Francisco, CA

City of Washington, DC

State of California

State of Michigan

State of Minnesota

U.S. DEPARTMENT

of AGRICULTURE

Founders Circle formed

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2012 2013 2014

Strategic Partners engaged

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2012 2013 2014

Founding Summit / NAS / Aug 2013

Projects by June 20141. Definition/Principles of LeadershipA high-level definition (or set of principles) for leadership in sustainable purchasing for use by the Council to guide its work and by individual organizations to set goals and priorities.

2. Sustainable Purchasing Program GuidanceA program to integrates existing hotspot-specific and product-specific guidance with spend management and procurement processes found in a variety of contexts.

3. Guidance on Spend AnalysisGuidance on the range of datasets and methodologies available or under development for use by large institutions to evaluate the impacts associated with their total spend.

4. Guidance on Prioritization and Action PlanningGuidance to help organizations to: 1) identify priority areas of spend; 2) identify proven strategies for addressing those priority areas; and 3) bundling those strategies into an action plan that produces an overall ROI.

5. Solicitation-Ready Category GuidanceGuidance for specific purchasing categories, leveraging the work of the Green Products Roundtable and other organizations.

6. Rating System v1.0An initial version of the Council’s rating system for institutional leadership in sustainable purchasing, developed through a voluntary standard development process.

Final version of Definition & Principles of Leadership

Landscape scan of existing guidance programs

A support infrastructure for the community of practice

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2012 2013 2014

Website launched

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2012 2013 2014

Sam HummelDirector of Outreach & OperationsApr 2013

Jason PearsonExecutive DirectorJun 2012

Christina MackenDirector of ProgramsDec 2013

Director of Programs hired

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2012 2013 2014

Sam HummelDirector of Outreach & OperationsApr 2013

Jason PearsonExecutive DirectorJun 2012

Christina MackenDirector of ProgramsDec 2013

Director of Programs hired

Current Staff

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2012 2013 2014

Membership opens / Oct 2013

Fortune 500 Members

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2012 2013 2014

Principles release / May 8

Principles for Leadership in Sustainable Purchasing

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A consistent, practical definition of leadership in sustainable purchasing.

Organizations can collectively advance a positive future for people and the planet

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2012 2013 2014

Guidance v1.0 release

SPLC Guidance for Leadership in Sustainable Purchasing

Version 1.0

Scheduled for release December, 2014

THANK YOUwww.purchasingcouncil.org/membership

Sam HummelDirector of Outreachsam@purchasingcouncil.org

For more information: Jason PearsonExecutive Directorjason@purchasingcouncil.org