purchasing Tag

Are there too many eco-labels and green ratings?

Flickr / Jeff Keen

This is a good question and one we hear often at Reeve Consulting. In a recent article on GreenBiz.com, Joshua Saunders of GoodGuide tackles this issue and presents some valuable insights.

With over 300 eco-labels in the global marketplace, and more being added each year, manufacturers, businesses and consumers are faced with increasingly complex decisions when it comes to green ratings.

To simplify ecolabel decisions, Saunders suggests an oligopoly of labeling organizations with larger barriers to entry is needed. Essentially a handful of credible certification programs, labels and rating systems to dominate the market. A distinction is made between this and a “one choice” market, with Saunders stressing the importance of competition between ecolabels to fuel transparency, rigor, credibility, service and price.

Greenbiz.com

In fact it seems we’re not far from an ecolabel market dominated by a few suppliers. As Saunders rightly describes, ecolabels are segmented by product category, industry and geography. When purchasing a product, one doesn’t actually choose from 300 ecolabels, but a smaller subset that applies to the product in question.

Saunders also explains that, while more ecolabels are being introduced each year, more consolidation is taking place among the labeling organizations.  An example of this is the recent acquisition of the Canadian certification program TerraChoice by UL. This is exciting news, and we’re interested to learn about the next steps for Terra Choice when we connect with our colleagues Scott McDougall and Angela Griffiths.

Saunders article ends by stating there’s little doubt that the sustainable labeling field is moving towards greater collaboration and consolidation.  That’s good news because ecolabels are becoming an increasingly important tool for corporate and consumer purchasing. Everyone will benefit from more credible labeling and rating systems.

Read Joshua Saunders full article HERE.

City of Edmonton Council Unanimously Accepts Reeve Developed Sustainable Purchasing Policy

Flickr / Stella Blu

Edmonton has now joined the ranks of other progressive Canadian municipalities that attempt to eliminate sweatshop labour in their supply chain. The new Sustainable Purchasing Policy (SPP) encourages City staff and suppliers to look at ways to reduce environmental and social impact by purchasing sustainable products and services.

In consultation with City of Edmonton staff, Reeve Consulting developed a policy that provides formal direction to continue excellent efforts around “green” purchasing and now compliments this with emphasis on the social side of the equation. To assist with policy implementation, Reeve designed a complete package for the City that includes the procedures and tools to effect significant change with a focus on rewarding suppliers who demonstrate leadership.

Last year, the City spent approximately $1.5 billion on construction, products and services. Using the Reeve developed tools, the City will initially focus on incorporating sustainable purchasing practices in ten product categories. Over time, sustainable purchasing criteria will be incorporated into all product categories.

Reeve Consulting is thrilled by Council’s unanimous support of the SPP and thoroughly enjoyed working with City staff who are so energized and enthused about making Edmonton’s supply chain sustainable.

Ethical & sustainable purchasing around the dinner table

What happens when you bring some of the leading policy makers and practitioners in ethical and sustainable purchasing together over dinner? Lively and informative discussion on maintaining VANOC’s Ethical and Sustainable Purchasing (ESP) momentum, the influence of larger contracts vs. smaller ones, concerns of audit fatigue, as well as the importance of supplier engagement and looking inward at your own practices were all subjects discussed in a recent congregation of Vancouver-based thought leaders.

On November 30th Reeve Consulting hosted an Ethical and Sustainable Purchasing dinner with the goal of facilitating conversation between some of Vancouver’s movers and shakers and exploring the opportunities and challenges facing the ESP movement.

The wide range of guests included:
• Kai Alderson, Fasken Martineau
• Rory Carr, RC Products
• Harvey Chan, Mountain Equipment Co-op
• Daryl Doyle, SAP
• Councilor Geoff Meggs, City of Vancouver
• Monica Netupsky, VANOC licensing
• Melorin Pouladian, Lululemon
• Denise Taschereau , Fairware
• Tim Reeve, Reeve Consulting
• Kevin McCarty, Reeve Consulting
• Amanda Mungal, Reeve Consulting

Over dinner, the desire to ensure the momentum created by VANOC is maintained post-Vancouver 2010 was discussed. Small licensees, in particular, have been able to leverage the VANOC license to encourage factory compliance and there is concern that the once the Olympics is over the influence small companies have on their supply chains will dwindle.

Common challenges raised by purchasers were both lack of buying power relative to overall factory production and audit fatigue on behalf of factory owners. Rory stated that he heard reports of one factory that had to conduct nearly one audit a week to keep up with the demands of factory compliance. Harvey suggested one possibility for addressing audit fatigue is to place more emphasis on direct engagement with suppliers and less emphasis on using a particular audit. If a factory has passed a standard audit then accepting those results while directly engaging the factory owner may bring about a more fruitful outcome. These comments lead into deep conversation on ways to share factory audit information without losing competitive edge and better ways to directly engage suppliers.

Monica and Denise both suggested that educating consumers needs to be a high priority in furthering the ESP momentum fueled by VANOC. Rory suggested that combining this with some kind of positive recognition for companies that practice ESP rather than negative recognition might help consumers make more informed choices. Often consumers are made aware of the companies they shouldn’t buy from rather than the good ones they should buy from.

Melorin and Daryl recognized the significant opportunity for large companies to move beyond “greening” their retail product by “greening” their operations. Denise agreed, stating that in her work she often finds that “green” companies have put so many resources into their retail product that they have none left for internal operations and often turn to her when they realize their promotional items are in direct contrast to their own retail product.

Also, there was a good discussion of how purchasing organizations can contribute to human rights violations by putting unreasonable demands on their suppliers. For example, when a large order is needed immediately, then it may be that employees are required to work longer days that are in violation with international labour conventions. It was agreed that it is important for purchasing organizations to recognize their influence on factory labour conditions in order to help their suppliers comply with international labour standards.

The dinner wound down with everyone feeling energized and more connected. The Reeve Team really enjoyed hearing what our industry colleagues had to say and looks forward to another opportunity to continue these discussions.