This week we will look at how to include green ICT requirements in procurement of products and services. Previously we looked at strategies for efficiently using ICT equipment to minimise energy and materials use. But much of the environmental benefit comes about by selecting the right products and services. How do you ensure that your hardware, software and services suppliers provide green products?
The Australian Government Commonwealth Procurement Guidelines state that:
"Procurement encompasses the whole process of acquiring property or services. It begins when an agency has identified a need and decided on its procurement requirement. Procurement continues through the processes of risk assessment, seeking and evaluating alternative solutions, contract award, delivery of and payment for the property or services and, where relevant, the ongoing management of a contract and consideration of options related to the contract."
Large organisations, will typically have complex procurement policies with detailed processes. Some of theProcurement Principlesconsidered by the Australian Government are: Value for Money, Competition, Efficient and Effective Use of Resources, as well as Accountability.
Green ICT considerations may be included in each stage of the calculations. Costs will be effected where, for example, higher efficiency power supplies are required. Consideration might be given to purchasing smaller quantities of equipment to be used more intensively. The equipment may need to be to a higher quantity, to allow for more intensive use, as well as requirements for materials to meet recycling and hazardous materials standards. The source of the equipment may play a larger role with the energy use in delivery being considered. As well as the direct benefit of the product to the organisation, its effect on the environment and the community generally needs to be considered. Purchasing arrangements may go beyond conventional legal contracts and involve long term partners, which commit one organisation to another.
ICT procurement is typically indirect procurement. That is ICT procurement activities concern "operating resources" for the organisation's operations. This contrasts with direct procurement, where raw materials are used in making some other product.
Procurement may involve a Tendering process, with potential suppliers submitting bids. Usually the potential supplier which submits the lowest bid which complies with the requirements is accepted. However, other criteria in addition to price may be used to assess tenders. Green ICT requirements may be included in the requirements and/or could be included in the criteria used for assessment.
Large organisations are likely to have a formal Corporate Sustainability or Green Procurement Policy intended to apply to products and services, including ICT. The policy will include a general statement of aims, including a commitment to improve the environment, reduce the environment impacts and promote sustainable development. This is done by integration of environment performance in the procurement process.
As an example of green procurement Tata Consultancy Services Limited provide on their web site:
Such policies can have different levels of enforcement. As an example the Australian Government's Measures to Support Environmentally Friendly ICT includes a requirement for all departments and agencies to purchase office equipment that complies with the US Environment Protection Agency Energy Star standard. However, there is no requirement for reporting compliance, nor has this been covered in audits of agency purchasing.
The Queensland Government's Operational Concept - Sustainable procurement include a requirement for agencies to set sustainability targets and report against them annually, but leaves the actual targets to the agencies to set.
The Australian Government's Energy Efficiency in Government Operations (EEGO) Policy (EEGO) was adopted in 2006 and aims to improve energy efficiency of Government operations.The policy requires annual reporting of energy performance by agencies and portfolio energy intensity targets by 2011. While use of an Australian version of the US EPA Energy Star program is required for appliances, the policy is in the main referring to buildings, and so doesn't cover desktop PCs and other ICT equipment in buildings. The policy refers to the Department of the Environment, Water, Heritage and the Arts (DEWHA) undertake scoping studies to identify energy efficiency opportunities for computer centres, but there are no reports on progress with this.
A Department of the Environment, Water, Heritage and the Arts (DEWHA) RFT for Desktop PCs and servers included extensive and detailed environmental requirements (RFT 0708-705 — Provision of Desktop, LAN, Helpdesk, and Midrange Services - Release, Department of the Environment, Water, Heritage, 7 August 2008). Suppliers were required to include details of power consumption, cooling requirements and ewaste disposal. The RFT included mandatory Energy Star specifications and a silver rating, on the Electronic Product Environmental Assessment Tool (EPEAT™) specifications.
The department warned they may test equipment in the tender process or later. The supplier was required to commit to report annually on minimising environmental impacts, specify packaging waste specifications and look at recyclable and biodegradable packaging, as well as have a take-back program for packaging. Tenderers are required to also comply with, the guideline Green Marketing from the Australian Competition & Consumer Commission in 2008.
Apart from energy efficiency requirements, the tender required printers which can use 100% recycled content paper (but without any specific standard for paper being specified).
The Australian Department of Innovation, Industry, Science and Research Request for Tender for "Supply and maintenance of IT equipment" (August 2008) included similar environmental standards to the DEWHA RFT, but did not make energy saving mandatory. Tenderers were required to detail the heat output and power consumption of desktop PCs and Laptops configurations and how the claims were independently verified.
A later Australian National Audit Office (ANAO) Request for Tender for IT Hardware included energy saving requirements for up to 400 notebooks and 100 desktops computers (ATM ID ANAOCM2008/1071, 15-Aug-2008). The tender document included a requirement to supply details of "Energy Rating" with: Energy Star Compliant, EPEAT rating or similar, Energy Consumption. Details of energy consumption was required for computers when: On and Operating Sleep, Standby, Switched Off but power point on. However, the energy efficiency rating was not a mandatory requirement of the tender.
The Energy Policy Act of 2005 requires US federal agencies to procure products, including ICT, complying to the US EPS ENERGY STAR. Executive Order 13423 requires the agencies to activate the "sleep" features of ENERGY STAR on computers and monitors and requires agencies to buy EPEAT* registered products.
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Procurement process in your organisation: Describe the Procurement process in your organisation, or or an organisation you are familiar with. Is there a Tendering process, with formal assessment criteria? Describe any Green Procurement Policy in your organisation. If there is no such policy, outline what could be in such a policy.