Hiroyuki SatoHiroyuki SatoSecretary GeneralSecretary General

Green Purchasing Network (GPN)Green Purchasing Network (GPN)

Hiroyuki SatoHiroyuki SatoSecretary GeneralSecretary General

Green Purchasing Network (GPN)Green Purchasing Network (GPN)

Linking Green Supply Chain and Linking Green Supply Chain and Green ProcurementGreen Procurement

Outline of PresentationOutline of PresentationOutline of PresentationOutline of Presentation

Role of green purchasing for green supply chain Necessity of initiatives by public sectors Green Purchasing Network(GPN) and its

leading roles– Principles– Purchasing Guidelines, Database and Data book– Guideline and database on suppliers

Law on Promoting Green Purchasing Current status of activities and market impact Conclusions

Role of Green Purchasing for Role of Green Purchasing for Green Supply ChainGreen Supply ChainRole of Green Purchasing for Role of Green Purchasing for Green Supply ChainGreen Supply Chain

Green purchasing;Green purchasing; Reduce energy consumption, waste

generation, hazardous substances Promote to develop “green” products Accelerate environmentally conscious

managements Then make the supply chain “green”

Necessity of Initiatives by Public Necessity of Initiatives by Public SectorsSectorsNecessity of Initiatives by Public Necessity of Initiatives by Public SectorsSectors

Have significant impact on the market [about 20% of the market]

Can help to improve reliability of the “green” products

Can reduce the cost of “green” products by creating initial demand

Expand availability of “green” products in local areas

Raise awareness of staff, that can lead to greening the government

Green Purchasing Network (GPN)Green Purchasing Network (GPN)Green Purchasing Network (GPN)Green Purchasing Network (GPN)

Founded in February 1996 to promote green purchasing in Japan by the initiative of Environment Agency

Since then GPN has taken a leading role to promote green purchasing in Japan.

The mission of the GPN – to spread out the concept and practices of green p

urchasing– to provide guidelines and information necessary fo

r practicing green purchasing.

About GPNAbout GPNAbout GPNAbout GPN

Independent non-profit organization 2,732 members (as of Nov. 2002)

– 2,099 corporations – 364 governments– 269 NGOs, NPOs

Executive Committee: 35 members Secretariat: 6 staff Budget: US$600,000/year

– Membership fee : 50%– Project income : 40%– Subsidy : 10%

Business

NGOGovernment

Members of GPNMembers of GPNMembers of GPNMembers of GPN

All of 47 prefectural governments All of 12 designated cities – Osaka, Nagoya, Fuku

oka, Sendai, Sapporo, Yokohama…..

Large businesses– Sony, Canon, NEC, Fuji Xerox, Ricoh, Honda, Toyot

a, 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 PurchasingPrinciples of Green PurchasingPrinciples of Green PurchasingPrinciples of Green Purchasing

Principle 1Principle 1 – Deliberate the necessity before purchasing

Principle 2Principle 2 - Consider the environmental impact of a product at all stages of its life cycle.– followed by eight detailed aspects including.

Principle 3Principle 3 – Assess suppliers' environmental management and activities,

Principle 4Principle 4 - Gather environmental information on products and suppliers

By Green Purchasing Network(GPN)

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

Provide detailed products information of designated environmental aspects, certification of eco-labelling, conformity to the Law criteria, retail price, major functions

Not certificate/recommend specific products Information on more than 9,000 products of 13 produc

ts categories, 600 companies Updated quarterly Purchasers can compare products of many producers

from environmental point of view Users can get almost all the main products of major pr

oducers in Japanese market

GPN Products Data BaseGPN Products Data Base

ＧＰＮ Data Base

ＧＰＮデータベース活用ガイド

GPN start to develop a guideline on selecting suppliers based on the Principle 3.

The guideline will include EMS, waste reduction, information disclosure,……

GPN will launch a suppliers data base targeting all types of businesses

Guideline & Data Base on SuppliersGuideline & Data Base on Suppliers

Law on promoting Green PurchasingLaw on promoting Green PurchasingLaw on promoting Green PurchasingLaw on promoting Green Purchasing

May 2000, the Law on Promoting Green Purchasing Law was enacted, and enforced in 2001.

All the State ministries and agenciesAll 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.

Local authoritiesLocal authorities are imposed “efforts” to implement green purchasing activities.

Designated Procurement Items of Designated Procurement Items of the Lawthe LawDesignated Procurement Items of Designated Procurement Items of the Lawthe Law

All of the State institutions are obligated to implement green purchasing for the designated procurement items

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 Current Status of Activities and Market Impact of Green PurchasingMarket Impact of Green PurchasingCurrent Status of Activities and Current Status of Activities and Market Impact of Green PurchasingMarket Impact of Green Purchasing

Findings from survey by GPN in 2002 51% of responding companies have

written policies on green purchasing 36% of them have adopted green

purchasing policies on parts and materials.

52% of them consider suppliers’ EMS and other environmental activities

Current Status of Activities and Current Status of Activities and Market Impact (cont’d)Market Impact (cont’d)Current Status of Activities and Current Status of Activities and Market Impact (cont’d)Market Impact (cont’d)

Findings from survey by GPN in 2001 74% of suppliers responded “sales of “sales of

green products increased in the past green products increased in the past couple of years”couple of years”

75% of the suppliers have increased the numbers of green products brand

Expansion of green purchasing has had a great impact on the market in Japan

ConclusionsConclusionsConclusionsConclusions

Green purchasing is a very effective market-oriented tool to make green supply chain

Public sectors should take the Initiatives In Japan GPN has succeeded in creating

tendency toward implementing green purchasing We need global collaboration to expand green We need global collaboration to expand green

purchasing and green marketpurchasing 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 [http://www.gpn.jp/]

Thank you very much for your atteThank you very much for your attention.ntion.

Hiroyuki Sato, GPNe-mail: hv6h-stu@asahi-net.or.jp