The Campus Environmental Audit: Purchasing
  • Introduction
  • Purchasing at the University of Pennsylvania
  • Relevant Environmental Concepts
  • The Audit
  • The Results
  • Purchasing Programs at Other Universities
  • Recommendations and Conclusions
    •

    Introduction

    The University of Pennsylvania purchases total over 4.2 million dollars per year. The demand is fueled for products ranging from paper to facsimiles to construction materials. The customers include professors, administrators, and students. Each purchase responds to a relevant need and has a complementary environmental effect. However, as purchasing primarily affects our waste, energy, and water, it also represents an opportunity to encourage reuse and recycling of materials and reduce environmental impacts.

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    Purchasing at the University of Pennsylvania

    Organizational Mission and Structure

    Purchasing at the University of Pennsylvania is organized through the University of Pennsylvania Purchasing Department. The department, located on the fourth floor of the 3401 Walnut Building, is dedicated to providing "professional, efficient and effective procurement services to the University Community in response to a changing environment and changing customer needs.(1)" Its mission is fourfold: The organization of the diverse array of centrally purchased products purchased by the University is seen by Figure 5. The department has the authority to negotiate all procurement agreements and administer all purchases of goods and services. Yet, the following items are managed by other departments:
  • Food 
    		•
  • Insurance 
    		•
  • Printing, Graphic Arts 
    		•
  • Resale Items 
    		•
  • Books 
    		•
  • Accounting & Banking Services 
    		•

    Purchasing Agreements

    Purchasing products and/or services through the Purchasing Department is performed in three primary fashions. First, there are catalogs of office product catalogs and accompanying order forms(See Appendix). The office product order form represents a summary of most frequently purchased items. Second, departments fill out requisition forms for equipment and purchases(See Appendix). The forms include the item description, manufacturer, costs, agreement terms and authorization. Finally, items are bid on by suppliers. General terms and conditions typically include:

    type of agreement, dollar volume, prices, options for renewal, acceptable manufacturers, inventory requirements, payment and order methods.

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    Relevant Environmental Concepts

    Careful purchasing can support four principal environmental practices: source reduction, waste stream diversion, recycling, and closing the loop(Table 1). However recycled products are commonly made of three different types of materials:
    Table 1: How does Purchasing affect the Environment 
    Source Reduction:  using less of what will eventually become waste. 
    Waste Stream Diversion:  reducing waste by use of recyclable, reusable, and longer lasting items with less environmental impacts. 
    Recycling:  converting waste into new products & goods. 
    Closing the Loop:  increasing demand for recycled materials. 

    The amount of recycled material is dependent on percentage weight composition. Total recycled content is described by both post- and pre-consumer waste. Yet, the more environmental friendly product has more post consumer waste.

    In addition to the raw materials content, products also affect the environment based on other materials and their respective end use. Products can be nontoxic or organic. Products can also be recyclable or biodegradable(naturally decomposing).

    When evaluating environmental impacts of products, it is important to take into account the costs and impacts over the product life cycle. This approach, called life cycle analysis, looks at a product based on its immediate and longterm effects. A large disposal cost may outweigh the benefits of a short term savings or a small disposal cost can make a purchase economically feasible.

    The Audit

    To define the effects of the University of Pennsylvania purchases on the environment, the Green University Audit detailed the following purchasing questions:

    1. How many reams or tons of high-grade writing paper and copy paper does UPenn purchase annually? What percentage used is made of recycled materials?

     2. What is the associated cost?

    3. What recycled materials are purchased by the University? What is the cost difference between these products and their virgin equivalents?

    4. What energy efficient products and equipment is purchased by the University?

     5. Does Penn use any environmentally sound construction materials?

     6.What types of janitorial supplies does Penn use?

    7. What programs have been established at UPenn to promote the use of ecologically sound products (such as organic produce, compact fluorescent bulbs, non-toxic cleaning products?)

    8. Does UPenn have a policy of preferentially buying products - such as paper products, building materials, oil, and tires - made from recycled materials instead of virgin materials?
     
     

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    The Results

    Office Products

    The University of Pennsylvania purchases 28,000 reams of copy paper annually. The official letterhead and envelopes of the University are made of 50% post consumer content, of which 15% is post-consumer waste. They are both purchased at no extra cost to the University. Copy paper, now used frequently for copying and laser printing, is available in both recycled and virgin stock. The recycled paper has either 25% or 20% post consumer content and is available at $0.80 and $0.05 less than virgin equivalents.

    The University also supplies office products through an agreement with Staples. The catalog features over 95 different items with recycled materials. Aggregate to all these office products, recycled purchases represent about 5% of the total volume purchased.
     
     

    Energy Efficient Products

    The University of Pennsylvania uses energy efficient computers that reduce energy consumption when not being used. The products, available in conjunction with EPA's Energy Star Program, comprise a small percentage of the University's computers. Energy saving computers are primarily new models, that represent 85-90% of new purchases and 5-10% of present university computers.

    The University purchases no energy saving fax machines or copiers.
     
     

    Other Products

    The University doesn't focus on purchasing construction materials that have a certain percentage of recycled materials. The recycled content, if any, are coincidental.

    The University doesn't utilize more environmentally friendly janitorial supplies that are non toxic.
     
     

    Purchasing Programs and Policies

    The University of Pennsylvania has no formal policy stating preference for environmental products or alternatives. The requisition forms do not specify the desire to purchase environmental products. However, the office products order form displays, through the use of asterisks, which commonly ordered products are made of recycled content(See Appendix).

    When switching the University letterhead and envelopes to a recycled stock, Carol Meisinger, Director of Publications, headed an effort to find the 50% recycled, 15% post-consumer paper. Letters were sent out to numerous suppliers to assure the selection of a high quality product with no additional costs.

    The Purchasing Department and Recycling Superintendent, Al Palanti, were active in discussing the need for purchasing recycled materials with the University of Pennsylvania departments in 1991. They visited 15-20 departmental purchasing agents about recycled office products. They showed samples and encouraged the departments to test the products. The results were encouraging and since the departments satisfied with the recycled products have continued to purchase them.

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    Purchasing Programs at Other Universities

    Rutgers University

    Rutgers University's "environmental economic" purchasing effort was begun in 1998 in response to a state law requiring waste diversion. The purchasing staff worked actively to adapt bid specifications and contracts to encourage behavioral and educational change through a four step process. First, they began by issuing requests for information(RFI) from all their suppliers(Figure 6). Second, they required the largest suppliers to develop packaging and shipping material reuse and reduction plans. Third, a significant amount of environmental contract language has been incorporated into requests for quotes(RFQ). This has led the University to purchase recycled decks, ceiling tiles, wall boards, insulation, plastic lumber, roofing products, snow fences and parking bumpers. Finally, the department has worked closely with university personnel to ensure quality and identify new alternatives. In conjunction with the custodial staff, a recycled plastic garbage bag was identified that saves the University $18,000 annually over the virgin bags. The director of the Rutgers University Purchasing Department, Kevin Lyons states "cost savings, more than any factor, have driven us to exceed compliance rates.(4)"

    University of Wisconsin

    Stimulated by student interest, the University of Wisconsin, established a guide for UW departments and the Environmentally Sensitive Homepage (http://env.fpm.wisc.edu/swap/buy_recycled/br_homepage.html). Within each are definitions of recycled materials, 10 reasons for purchasing of recycled products(Table 2), and a checklist for environmentally sensitive purchasing decisions(Table 3). In addition, the Homepage consists of an on-line search able catalog for recycled products. Users can enter a product and receive a relevant list of recycled products and their respective costs.
    Table 2: 10 Reasons for Purchasing Recycled Products 
    1. Creates long term markets 
    2. Reduces the disposal of recyclable 
    3. Convinces manufacturers to use more recycled materials 
    4. Conserves resources and energy 
    5. Creates jobs and economic development
    6. Satisfies legislative mandates
    7. Sets an example for the private sector 
    8. Provides a proactive approach to waste management 
    9. Enhances organization's image 
    10. Saves money 
    Table 3: Checklist for environmentally senstive decisions
    1. Do I really need this product?
    2. Can I buy it used? 
    3. Could I repair or refurbish the old item instead? 
    4. Can I loan or lease it from someone else?
    5. Does it contain recycled/recovered materials
    6. Will this product reduce waste in my office 
    7. Is it made from non toxic materials 
    8. What kind of packaging is used?
    9. Enhances organization's image? 
    10. Is it reusable or recyclable? 

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    Recommendations and Conclusions

    Structural

    Looking for environmental alternatives requires an understanding of the system as it is. The information of what we purchase and at what volume needs to be accessible for comparison purposes. In three independent interviews conducted with purchasing agents, the specifics records were neither inaccessible on paper or computer because they did not exist or were not available to the public. Therefore, I recommend utilizing management information systems to organize the University's procurement. Tracking purchases allows one to understand current operations and measure performance from year to year. Whereas, inaccessibility is the reason, an open operations policy should be utilized in order to encourage exploration of mutually beneficial opportunities.

    Greening

    A. Products 1. The University purchases 75% of its copy paper from a recycled grade. The University can procure the remaining 25% with Great White Recycled Content Laser/Copy Paper. The result would be a cost savings of $5600 and procurement of a 25% post consumer waste content paper.

     2. The University of Pennsylvania's office supply catalog contains 93 types of products with recycled materials. A percentatge of these products are even cost effective.
     

    B. Process 1. Problem: The University has no criteria for environmental procurement decisions.

    Solution: The University of Pennsylvania should establish procurement guidelines that emphasize recycled materials. University of Illinois' policy states "The University will purchase products with recycled material content whenever cost specification, standards, and availability are comparable to products without recycled content.(5)" This demonstrates commitment and is a framework for decision making.

     2. Problem: The University procurement agents were not aware of products available from the environmental marketplace.

    Solution: The University should send Requests for Information(RFI) to all suppliers. The benefits include opportunities to minimize environmental impacts, find cost efficient alternatives, reduce waste, and reduce costs of decreased waste production. The costs of this initiative is the printing and mailing of the letters.

    3. Problem: The University needs a means to specify interest in procuring environmental products. Solution: The University should specify environmental criteria in their requests for quotes(RFQ) on all products. 4. Problem: The University needs a mechanism to ensure the quality of recycled products and satisfaction of the end users.

    Solution: The University of Pennsylvania Purchasing Department should discuss RFI RFQs with relevant product users. For example, input from facilities maintenance will help best evaluate the product quality and requirements for cleaning supplies with less toxics.

    5. Problem: The University needs a means to encourage departments to purchase environmentally sensitive products.

    Solution 1: The University should redesign their requisition forms to encourage environmentally friendly decisions. The office products requisition form should utilize recycled symbols instead of asterisks and offer only recycled products if cost and quality are comparable.

    Solution 2: The University should outreach to Penn's Departments to make them a partner in the greening process. This requires designing a brochure describing the benefits of environmental products. An outline can be seen in Table 5. In addition, environmentally friendly material should be made available through the world wide web.

    Table 5: Environmentally Friendly Products Brochure Outline
    1. Myths and fears of environmentally friendly products
    2. Definition of environmentally related terms
    3. Benefits of environmentally friendly products 
    4. A checklist for environmentally friendly decision marking 
    5. How to purchase environmentally friendly products: requisition forms, the world wide web, the office products catalog.

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    Back to the Penn Environmental Group Homepage

    1 University of Pennsylvania Purchasing Department. 2 University of Pennsylvania Purchasing Department. 3 University of Pennsylvania Purchasing Department. 4 Source: Jullian Kerry, Ecodemia, National Wildlife Foundation, Washington, DC, 1995, pg. 7. 5 April Smith, Campus Ecology, Living Planet Press, Venice California, 1990, pg. , 60.