Sustainable Procurement of ICTs

1. Sustainable Procurement of ICTs S TahalooaLLM, MBA, MCIPS Advisor, Procurement Policy Office

2. Sustainable Procurement* Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves “value for money on a whole life basis” in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment *UK SP Task Force and MTF SPP Task Force, 2006

3. Procurement of Sustainable ICTs The aim of the ICT procurement is to evaluate replacement and purchasing in a holistic way, using a total life cycle cost approach. Environmental considerations – alongside quality, performance, price and availability – are integrated into the procurement process, from identification of need to final disposal

4. Drivers of ICT Procurement • High rate of product turnover due to rapid innovations in technology: usually become technically redundant before being physically redundant and contributes to a significant waste and pollution issue, as well as generating emissions in the production, transport and recovery phases of the product life cycle • Materials comprising ICT products are resource intensive: hazardous, precious and rare metals, and contain large volumes of plastics, glasses and other materials

5. Supply Chain Approach: ICT Life Cycle Transport Accounts for 5% of life cycle greenhouse gas emissions Materials A typical PC and 17” LCD monitor contains over 27 materials ICT accounts for 2 % of global CO2 emissions. Smart ICT applications can avoid 5 tonnes of CO2 for every tonne they create Waste Around 75 % of ICT equipment is recycled Manufacture The semiconductor industry uses more than 1,000 hazardous substances Disposal Use Lifetime energy consumed during use may be 50% or more. Electricity costs can be up to $60 a year Source: JISC

6. Supply Chain Approach: ICT Life Cycle • Considering whole product lifetime of a computer, 75% of the environmental damage is done before the computer is switched on for the first time. (Guardian Technology, 2008)

7. Sustainability and Procurement • ICT is responsible for around 2 percent of the world’s carbon emissions)– mainly through the usage of electricity to run the hardware, much of which comes from carbon emitting power stations (Gartner, 2007) • Potential for CO2 reduction by purchasing green computers: Procurement is considered as the most important aspect of green ICT in terms of making an overall impact on sustainability. At least as much energy is spent in manufacturing a PC as it consumes in its lifetime • Over 2.8 million desktop computers are purchased each year by public authorities in the European Union. The purchasing of more energy efficient models would reduce electricity bills and European emissions of greenhouse gases by over 830,000 tonnes CO2 equivalents. (ICLEI) • In Mauritius, in 2008-09, Rs 237 million were spent in procurement of computer equipment (NAO, 2011). An amount of Rs 76,940 was received from sales of 1032 units of computer equipment i.e. an average of Rs 70 per computer equipment.

8. Sustainable Procurement • There are two aspects to sustainable procurement: -nature of the equipment (complying with environmental standards) - nature of the suppliers of the equipment (suppliers’ strategies on sustainability and carbon footprint)

9. Procurement Cycle

10. Procurement Cycle

11. Identification of Needs • Ask whether it is absolutely necessary to purchase and thus avoiding unnecessary consumption • Explore the possibility of extending the ‘useful life’ of products e.g. revise the automatic replacement dates from three to four years, or greater if circumstances allow • Explore the possibilities for reuse or upgrade existing ICT products • Consider reducing the quantity of the products to be procured whilst achieving the same output, through job or desk sharing • Introduce standardisation and variety reduction thus limiting the model range for ease of redistribution, repair, reuse and replacement

12. Developing Specifications: Eco-Labels • Technical requirements include those relating to the social or environmental features of a product, work or service. Example paper made from recycle materials Conditions for use of Eco-Labels: • Specifications are appropriate to define the characteristics of the supplies or services that are the object of the contract • The requirements are drawn up on the basis of scientific information • Eco-labels must be adopted using a procedure in which all stakeholders, such as government bodies, consumers, manufacturers, distributors and environmental organisations can participate. • Must be accessible to all interested parties: Must accept any other means of proof

13. Developing Specifications: Eco-Labels

14. ECMA Eco-Declaration – a European scheme developed by suppliers which covers energy, but also broader environmental issues such as hazardous substances and the company’s environmental policy and management

15. Eco-labels Electronic Product Environmental Assessment Tool (EPEAT) EPEAT is a system that helps purchasers evaluate, compare and select electronic products based on their environmental attributes

16. Examination and Evaluation of Bids

17. Life cycle costing or TCO Approach • Misconception that sustainable products cost more • From “the best value for money” to the “best value across the asset life cycle.” • Purchase price does not reflect the financial and non-financial gains that are offered by environmentally and socially preferable assets as they accrue during the operations and use phases of the asset life cycle • Considering purchase price as well as all future costs: - purchasing costs and all associated costs such as delivery, installation, commissioning and insurance - Operating costs (energy consumption, consumables such as ink or paper) and maintenance costs - Disposal costs/resale value such as removal, recycling or refurbishment and decommissioning • Purchasing energy efficient models is generally a win-win option – reducing running costs, and also reducing environmental impacts

18. Disposal • Over 51 million PCs ended up in landfill worldwide (Gartner, 2007) • Electronic waste is an increasingly important aspect of ICT sustainability. The high rate of ICT equipment turnover (compared to other office equipment) can have significant environmental impacts • Reducing the costs of resale and increasing resale revenues • Buy Back Policy

19. Thank You stahalooa@mail.gov.mu