John Parry - Senior APS Consultant

John Parry gives some practical advice on how Irish buyers can reduce their organisations carbon footprint.

Climate change is potentially the biggest risk to face Irish Businesses, Government and consumers.

C0² emissions are increasing, not decreasing to the levels agreed by the Irish Government. It is becoming very clear that the current response to climate change is not equal to the scale of the problem.

The negative economic consequences of burying our heads in the sand now, will result in a cooling off in our economy with serious implications for business and society. 

On the other hand, companies that offer goods and services with a lower climatic impact than their competitors will realise a market advantage.
Purchasing functions have a key role in reducing their Company's carbon footprint. 

By expanding and integrating the "Reduce - Reuse - Recycle -Rethink" philosophy into their planning and procedures, Buyers can significantly reduce waste.

Reduce
educing unnecessary purchases of goods and services is the best way to save money, by ensuring that:

- Products and services are definitely needed.

- Products are fit for purpose, to avoid costly and wasteful mistakes.

- Products are durable and covered by long warranties.

- Packaging is the minimum necessary for protection.

- Disposable products designed for single use are avoided.

- Business travel is reduced, 

Reuse 
- Create a company-wide redundant equipment list - use it before buying new.

- Specify goods which are repairable and easily upgraded.

- Specify goods which come with clear and com-prehensive maintenance, repair and operating instructions and which are supported with guaranteed stocks of easily replaceable parts. 

- Give preference to suppliers that operate take-back schemes for end of life equipment and packaging.

Recycle
- Specify products made from recovered or recycled material.

- Purchase products on which the materials are identified for ease of recycling.

- Avoid products made from mixed materials as these are more difficult to recycle.

- Purchase second-hand equipment and refurbished parts.

- Develop a market for your own waste products.

Rethink
- Sometimes a whole process need re-evaluation.
- Buy in bulk loads instead sacks.
- Develop local suppliers to buy from.
- Redesign your own products using sustainable materials.

A common concern voiced by Procurement functions is that sustainable products are more expensive. However, the more Buyers demand sustainable goods, the cheaper they will become.

By considering the costs throughout the entire life-cycle of a product or service, the most economically, environmentally and socially sustainable choices can be made, which may justify the initial price. 

Life-cycle costs can be included in Procurement Tenders and can be used as negotiation leverage points:

- Direct running costs - energy, water and other resources used over the life of the product.

- Indirect costs - inefficient IT equipment produces more heat, causing the air conditioning unit to work harder, increasing the electricity bill.

- Administration costs - overheads from purchases that require special handling and disposal such as hazardous chemicals and capital equipment.

- Training - the more complex the equipment, the more expensive the training.

There has been much discussion at government level across the world and legally binding agreements made but there have been few signs of strategic leadership. Only four of the top ten Companies in the world have implemented sustainable environmental plans. 

Time is just another commodity that is in short supply.