Regional Public and Private Sector Green Purchasing/Procurement: Investigation, Analysis and Guidance

Regional Public and Private Sector Green
Purchasing/Procurement:
Investigation, Analysis and Guidance
Linda Wai-Ping HO
A thesis submitted in partial fulfilment of the

Requirements of Liverpool John Moores University
for the degree of Master of Philosophy
May 2013
1
Abstract
Across the world, complex social and market forces are driving green purchasing (GP) as an
instrument to negate the steep environmental price paid for global development. The
ultimate aim is to promote environmentally preferable products and services by greening
the market supply and demand chain. Although Hong Kong is defined by its advance
economic infrastructure, green purchasing is established only in the Government and large
foreign-based multi-national overseas corporations. It has yet to be a mainstream practice
in the general business sector.
This study aimed to evaluate evidence-based factors to assist the development of GP in the
local private sector, notably from the perspective of a Non-Government Organization (NGO).
The study developed a conceptual model to investigate the facilitators and barriers of
private sector GP using the case of Hong Kong. The validity of this model was tested through
the collection of data via a number of surveys.
In the first stage of the study, public opinion on GP was investigated through a street
intercept questionnaire survey in 2006. It was found that the concept of GP was well
understood by the general population, which signifies a potential green market is in place.
In the next stage, the conceptual model was tested through a survey of attitudes and
experiences of GP among practitioners in the business sector. The process involved an
initial questionnaire survey, followed by statistical scrutiny. In order to obtain more
practical information, a follow-up descriptive survey with open-ended questions was
performed with 60 participants from the original survey. Lack of guidance was clearly
identified as a major obstacle by the surveys. To look for practical ways to providing
guidance, the synergistic relationship between Government Green Purchasing (GGP),
2
Private Green Purchasing and ecolabelling was investigated. It is concluded that
ecolabelling is a time-proven instrument to provide such guidance and the government
plays a crucial to expedite growth of green markets and the labelling system.
Keywords: Government green purchasing; government green procurement; sustainable
consumption and production; Ecolabel; green labelling
3
Acknowledgements
I wish to express sincere gratitude to my supervisors, Professor David Bryde, Dr. Richard
Small, Professor Nicholas M. Dickinson and Professor Gilbert Y.S. Chan, for their guidance
and encouragement throughout this research, and to Dr. Ning Yu, Mr. Evan Bowzowsky, Mr.
Akira Kataoka, Mr. Kazuyuki Harada, Mr. Lee Kiyau Loo and Dr. Pathom Chaiyapruksaton
for their advice on technical matters.
I am greatly indebted to all those who have given assistance to this work; in particular, I
thank the members of the Global Ecolabelling Network (GEN), International Green
Purchasing Network (IGPN) and my colleagues for their generous assistance. Special thanks
must be given to Ms Debra Williams for her professionalism in proof reading.
I am profoundly grateful to my colleagues at Green Council for helping with my
administration work while I was preparing for the thesis. Thanks to all procurement officers
contributing to the interviews.
Finally, special gratitude is due to my husband, Dr. Peter S. K. Kwok and my children for
their patience, comfort, encouragement and support throughout the years of research.
Linda W. P. Ho
Hong Kong 2013
4
Table of Contents
Abbreviations 9
List of Tables 5
List of Figures 8
List of Appendices 8
Chapter 1 Background to Study 9
1.1 Introduction 10
1.2 Government Green Purchasing in Hong Kong 10
1.3 Green Purchasing in mega size local and overseas corporations 11
1.4 Green purchasing in the general population 12
1.5 Research question and objectives 13
1.6 Thesis Outline 14
1.7 Chapter Summary 15
Chapter 2 Literature Review 16
2.1 Introduction 16
2.2 Background - A vulnerable planet 16
2.3 Environmental Impact of Products (EIPRO) 18
2.4 Green Purchasing 19
2.5 Government Green Purchasing 22
2.5.1 Motivation 22
2.6 The EU Model 24
2.6.1 Recommended Framework of National Schemes by the EU 25
2.6.2 Evaluating Government Green Purchasing 26
2.6.3 Barriers of GPP 29
2.7 A Brief Review of GPP International Trends 30
2.8 Green Purchasing in the Private Sector 39
2.8.1 Principal Drivers 39
2.8.2 The Strategy Frameworks of business organizations 40
2.8.3 Supply Chain Environmental Management 41
2.8.4 Impacts of GGP on Private GP 49
2.9 Ecolabelling 51
2.9.1 Background of Ecolabelling 52
2.9.2 Ecolabelling and Green Purchasing: implications for various stakeholders
58
2.9.3 Synergistic Relationship between Green Purchasing and Ecolabelling
Programmes 67
2.9.4 International Relationship between GGP and Ecolabelling 68
2.9.5 National Integration of Green Purchasing and Ecolabelling 70
Relationship between Green Purchasing and Ecolabelling in North America 72
Relationship between Green Purchasing and Ecolabelling in Hong Kong SAR 72
Relationship between Green Purchasing and Ecolabelling in Japan 74
Relationship between Green Purchasing and Ecolabelling in South Korea 75
Relationship between Green Purchasing and Ecolabelling in Malaysia 75
Relationship between Green Purchasing and Ecolabelling in Singapore 77
2.9.6 Key Elements for successful coupling of Green Purchasing and Ecolabelling
78
2.9.7 Limitations of ecolabelling 79
5
2.10 Summary 80
Chapter 3 Research Methodology 82
3.1 Introduction 82
3.2. Research Philosophy 82
3.2.1. Positivism versus Interpretivism 83
3.2.2 Discussion and Rationale for Choice of Approach 83
3.2.3 Research Strategy 84
3.3 Theoretical framework 85
3.4 The Survey 95
3.4.1 Sampling Plan 96
3.4.2 Questionnaire Design 97
3.4.3 Response 97
3.4.4 Data Analysis Procedure 100
Chapter 4 Results 103
4.1 Introduction 103
4.2 Effect of company size on green purchasing implementation 103
4.3 Construct validity 105
4.4 Regression Analysis 111
4.5 Summary of Results 116
Chapter 5 A Follow-up Survey 117
5.1 Background 117
5.2 Methods: Descriptive Research 117
5.3 Sample Data 118
5.4 Findings 119
5.4.1 Obstacles in the words of procurers 119
5.4.2 Possible solutions from the words of procurers 123
5.5 Summary of Findings 127
5.6 Limitations 127
Chapter 6 Discussion 128
6.2 Drivers and Barriers from the perspective of an NGO 129
6.2.1 Requirement and Commitment 129
6.2.2 Institutional guidance 129
6.2.3 Ecolabelling and NGOs 130
6.3 Administration of Ecolabelling scheme by NGO - the Singaporean Model 133
6.4 Lessons for Hong Kong 135
Chapter 7 Conclusions 138
7.2 Research question and objectives 138
7.3 Guidance 139
7.3.1. Guidance from NGOs 139
7.3.2 Guidance from Government 141
7.3.3 Suggestions to firms 142
7.4 Contribution to knowledge 143
6
Chapter 8 Limitations and further research 145
8.2 Limitations 145
8.3 Future Research 146
List of References 148
Appendices 177
Appendix A: Task Force Procurement Survey 177
Appendix B: 2006 Green Purchasing Population Survey 181
Appendix C: 2009 Green Purchasing Questionnaire 185
7
List of Tables
Table 1 Comparison of Types I, II and III Ecolabels………………………............................... 57
Table 2 Type I Ecolabels around the World (2008)…………………………………………….. 66
Table 3 Composition of Respondents from Different Business Sectors…...................... 99
Table 4 Response rate of GP policy implementation to size of company………………. 104
Table 5 ANOVA results between LC and SME on GP……………………………………………. 104
Table 6a First run of EFA…………………………………………………………………………………….. 106
Table 6b Second run of EFA with varimax rotation………………………………………………. 107
Table 7a Barriers’ EFA ……………………………………………………………………………………… 110
Table 7b Cronbach’s Alpha for Item-Total …………………………………………………………… 110
Table 8a Step One: Hypothesized Facilitators of GP 8…………………………......................... 112
Table 8b Step Two: Hypothesized Barriers of GP …………………………................................. 113
Table 9a Regression Analysis for all respondents ……………………………………................. 115
Table 9b Regression Analysis for Large Corporations………………………………………….. 115
Table 9c Regression Analysis for SMEs……………………………………………………………… 115
Table 10 Private Sector Participation in Singapore Green Purchasing – SGLS….......... 137
List of Figures
Figure 1 Green Purchasing Equation…………………………………………………......................... 20
Figure 2 Classification of Green Purchasing Strategies…………………………………………. 21
Figure 3 The intended role of Ecolabelling from a policy-maker perspective………… 61
Figure 4 Conceptual model of the influence upon GP private sector……………………… 94
List of Appendices
Appendix A Task Force Procurement Survey…………………………………............................ 177
Appendix B 2006 Green Purchasing Population Survey……………………………………... 181
Appendix C 2009 Survey Green Purchasing Questionnaire…………………...................... 185
8
Abbreviations
APCC Australian Procurement and Construction Council

APRSCP Asia Pacific Round Table on Sustainable Consumption and Production
CEC Commission for Environmental Cooperation
CSR Corporate Social Responsibility
EAP Environmental Action Programme
EC European Commission
EMS Environmental Management System
EPA Environmental Protection Agency
EPD Environmental Product Declaration
EU European Union
GDP Gross Domestic Product
GEN Global Ecolabelling Network
GGP Government Green Procurement
GHG Greenhouse Gas
GIPPER Governments Incorporating Procurement Policies to Eliminate Refuse
GLD Government Logistic Department
GPN Green Purchasing Network
GPP Green Public Procurement
HKEELS Hong Kong Energy Efficiency Labelling Scheme
HKGPC Hong Kong Green Purchasing Charter
HKSAR Hong Kong Special Administration Region
ICLEI International Council for Local Environmental Initiatives
IGPN International Green Purchasing Network
ISO International Organization for Standardization
LCA Life Cycle Assessment/Life Cycle Analysis
LEED Leadership in Energy and Environmental Design
MoE Ministry of Environment
NASPO National Association of State Procurement Officials
NEA National Environment Agency
NGO Non-Government Organization
OECD Organization for Economic Co-operation and Development
OFEE Office of Federal Environmental Executive
SCORE Sustainable Consumption Research Exchange
SCP Sustainable Consumption and Production
UNCSD United Nations Commission on Sustainable Development
UNDESA United Nations Department of Economic and Social Affairs
UNEP United Nations Environmental Programme
USGBC United States Green Building Council
WSSD World Summit on Sustainable Development
9
Chapter 1 Background to Study
1.1 Introduction
This chapter provides an outline of the thesis that follows. The starting point is the
acknowledgement that green purchasing has become established in Government and
large size local and overseas corporations. The concept of buying green is also widely
accepted by the general population. However, the situation in the general business
sector is enigmatic. Following this introduction, the research objectives are stated and a
summary of the entire thesis is outlined.
1.2 Government Green Purchasing in Hong Kong
The Government of Hong Kong Special Administration Region (HKSAR) introduced
green purchasing as a major component of public procurement in 1999.1 By 2000, the
Stores and Procurement Regulations (SPR) were amended to require Government
departments to give consideration, as far as possible and where economically rational,
to purchasing products with improved recyclability, higher recycled content, greater
energy efficiency, reduced use of toxic substances, etc. The Government Logistics
Department (GLD) has developed green specifications for a range of commonly
procured products including recycled papers, environmentally preferable cleaning
materials, clean fuels, etc.
The regulations were solidified in ‘A Policy Framework for the Management of
Municipal Solid Waste (2005-2014)’2 published in December 2005. In 2006, the Chief
Executive, in his annual public policy address, formally encouraged the trade and
1 Source: HKSAR Sustainable Development Homepage --

http://www.susdev.gov.hk/html/en/sd/index.htm (Retrieved on November 25, 2009).
2 EPD (2005) A Policy Framework for the Management of Municipal Solid Waste in Hong Kong (2005-
2014). Retrieved on November 25, 2009 from http://www.epd.gov.hk/epd/msw/htm_en/content.htm.
10
industry sectors to develop and implement green procurement3. At a Task Force
meeting on Economic Challenges in June 2009, the HKSAR Chief Executive announced
in his Policy Address 2009-10 that the Government would expand the scope of Green
Purchasing and take the lead in making Hong Kong a green city through legislation and
specific green measures. In the follow-up, the Central Policy Unit representatives
emphasized the importance of research and development (R&D) endeavours, and
identified that the Government must be responsible for playing a leading role in
promoting industrial environmental performance advancement and leadership along
with green purchasing.
1.3 Green Purchasing in mega size local and overseas corporations
The Government, its affiliated large institutions and mega size corporations have
integrated environmental initiatives into their procurement process. The author
performed a face-to-face task force procurement survey with 12 high calibre
corporations between 2006 and 2009 (Appendix A). The number of staff in these
companies ranged from 3000 to 50000 and the average number of procurement staff is
47. They all have a centralized procurement department functioning as the Government
Logistic Department. Standard proactive environmental programmes in place include
producing “green” (environmentally-sound) products, developing reusable packages,
conserving energy, reducing waste, recycling, creating an environmentally sensitive
corporate culture, and integrating total quality environmental management into the
firm's planning processes. Evidenced based evaluations of the supplier’s engagement to
develop sustainable products are an essential part of their programmes.
3 Chief Executive (2006) Policy Address 2006-07. Retrieved on November 25, 2009 from
http://www.policyaddress.gov.hk/06-07/eng/p66.html.
11
1.4 Green purchasing in the general population
While the above-mentioned study shows that green purchasing in government and
large corporations is well implemented, there was no data on the scenario in the public
domain and business sector. A study in 1998 (Yam-Tang and Chan, 1998) showed that
Hong Kong consumers’ environmental concern is suboptimal but the current status has
not been studied.
In 20064, the author organized a cross-sectional street intercept questionnaire survey
to study the opinion of the general population on green purchasing (Appendix A: Green
Purchasing Population Survey). The interview took place in three major business
districts and seven major housing estates in Hong Kong. Each region was allocated 100
questionnaires. A total of 735 interviews were conducted. The average response rate is
67% in the business districts and an average of 80% in the residential housing estates.
The interview completion rate is 97%. Most of the interviews were completed in less
than five minutes. The result showed that 75% of respondents were willing to pay more
for green products. However, a significant number (59%) of respondents found it
difficult to find their desired green products. Almost 90% of respondents expressed
their need for information on environmentally preferable products and expected the
government to take a stronger role in promoting green purchasing.
The scope of this population survey is narrow and it served the purpose more of a
campaign than a scientific study. The sample was not stratified demographically; there
was no open-coding process or figures that were well intentioned for statistical testing.
4Green Council (2006) Results on the Green Purchasing Survey 2006, p8. Retrieved on November 25,
2009 from http://www.hkgpc.org/html/eng/doc/2006survey_results.pdf.
12
Nevertheless, the result does imply that the general public has a strong desire to ‘buy
green’. It is the realization of this ‘desire’ that inspired the author to explore the green
purchasing practices in the local business sector in greater depth.
1.5 Research question and objectives
The green purchasing programmes have been concentrated on the public and
professional procurement market. The situation in the rest of the business sectors, in
particular the small and business enterprises 5 that constitute most purchasing
activities, is grossly under investigated. What facilitates or inhibits these companies to
join the league? How could government and environmental NGOs provide support? In
order to generate evidence-based data for design guidance there is a need for a
quantitative, empirical study of factors that have an impact on the compliance of the
business sector with green purchasing. This thesis is aimed at filling this gap: it draws
out and empirically tests hypotheses on compliance behaviour, supplementing both the
conceptual and empirical knowledge of the challenges encountered.
This thesis seeks to answer the following research questions:
1. What are the drivers and barriers of green purchasing in the business sector of
Hong Kong?
2. How to provide guidance to the business sector to engage green purchasing?
The steps taken to answer these questions include:
• To review the major literature on green purchasing with regard to its drivers and
barriers. As part of this, the study will identify the range of green purchasing
programmes that are used internationally; the relationship between green
5In accordance with the Industrial Department’s definition, an SME is: a) any manufacturing business
which employs fewer than 100 persons in Hong Kong; or b) any non-manufacturing business which
employs fewer than 50 persons in Hong Kong
13
purchasing and ecolabelling; and the role of NGOs in green purchasing worldwide
will be examined.
• To develop a generic model to determine green purchasing uptake.
• To determine and analyze the significance of these drivers and barriers in the
domestic setting of Hong Kong.
• To identify possible ways that the government and a third-party NGO could
contribute to facilitate the take-off of green purchasing in the business sector.
1.6 Thesis Outline
Following this introductory chapter, Chapter 2 will review literature on green
purchasing with regard to its background, mechanism and development. The review
will include the government and private sector, the relationship of green purchasing to
ecolabelling and the international experiences.
Chapter 3 will discuss the research methodology and review the development of the
questionnaire in both a quantitative and an open-ended format. The review is also
intended to identify component parts of the various constructs and how they are
measured. The final part of the chapter will conclude the construction from the
literature of the conceptual model.
Chapter 4 will discuss the result of the study and the statistical methods utilized.
Chapter 5 will provide the result of a supplementary opinion survey in form of an open-
ended questionnaire survey of the original participating respondents.
14
Chapter 6 will discuss the quantitative and qualitative results of this survey and how
the results could be translated into practice. The researcher argues that ecolabelling
carried out by NGOs would be a good place to start.
Chapter 7 will conclude the study and discuss the managerial implications from the
perspective of an NGO.
Chapter 8 is intended to identify limitations to the thesis and suggest areas of future
research.
1.7 Chapter Summary
This chapter has outlined the thesis that follows. It has emphasized that green
purchasing in the business sector of Hong Kong has not received adequate attention
from academia or from the sector itself. Following this, a brief summary of each chapter
has been provided.
15
Chapter 2 Literature Review
2.1 Introduction
The literature survey encompasses the development of green purchasing and its
implementation in the public and private sectors. It is followed by a review of the
development of an ecolabelling system and its synergistic effect on green purchasing.
2.2 Background - A vulnerable planet
Environmental decay in the Old World ominously prefigured even swifter despoliation
in the New. Marsh’s classic, Man and Nature; Or, Physical Geography as Modified by
Human Action (1864, p.44), sketched the history and depicted the perils of human
impact.
[In] parts of Asia Minor, of Northern Africa, of Greece, and even of Alpine
Europe, the operation of causes set in action by man has brought the face of
the earth to a desolation almost as complete as that of the moon ... The earth is
fast becoming an unfit home for its noblest inhabitant, and another era of
equal human crime and human improvidence would reduce it to such a
condition of impoverished productiveness, of shattered surface, of climatic
excess, as to threaten the depravation, barbarism, and perhaps even extinction
of the species.
This apocalyptic warning is deeply felt by artists. Anton Chekhov, the great Russian
dramatist and writer, used deforestation as the theme in his long play, Ivanov,
performed in 1887(Act Three): “the forests are groaning under the axe…” In his next
play, The Wood Demon(1889, Act One), he visualized that:
Deforestation destroys the habitat of birds and animals and dries up rivers,
whereas planting trees softens the harsh climate and thus helps to civilize man.
Nature did not heal itself; once exploited and then abandoned, land did not
regain its previous plenitude but remained for ages, if not forever, depleted.
16
In the following hundred years, there has been increasing scientific evidence that the
earth, which is approximately 4.5 billion years old6, is failing. Scientists have performed
pathological analysis of the earth and attribute its dysfunctioning to the erosion of the
ecosystem by human activities at a global scale (Steffen et al., 2007; Millennium
Ecosystem Assessment, 2005). The complication of uninhibited growth of destructive
resource consumption patterns (Geng and Cote, 2004; Geng and Dobersteian, 2008)
was made resonant to various stakeholders and ignited political momentum. The need
to rectify present errors and to allay future disaster led to the establishment of the
United Nations Environment Programme (UNEP). It was against this background that
the United Nations launched numerous investigations and commissions. The widely
applauded Brundtland Commission in 1987 brought out the quintessential concept that,
while human economic development has its perils, it might be able to resurrect the
environment: “meeting the needs of the present without compromising the ability of
future generations to meet their own need7” (World Commission on Environment and
Development, 1987).
The Commission introduced the notion that the consuming habits of every global
citizen could have a visible impact on the environment. This approach uses green
purchasing as an instrument to address the environmental effects related to the
production and consumption of goods. This concept was engaged at the 1992 Earth
Summit. The Rio Declaration at that Summit included green purchasing/procurement
as one of the principles of Sustainable Consumption and Production (SCP), which aims
to eliminate unsustainable patterns and enact effective environmental legislation,
6 Age of the Earth, U.S. Geological Survey. 1997. Archived from the original on 23 December 2005.
7Brundtland Commission 1987: http://www.un.org/documents/ga/res/42/ares42-187.htm
17
standards and objectives towards the goal of sustainable development. Subsequent to
the Earth Summit, the United Nations Commission on Sustainable Development
(UNCSD) and the Organization for Economic Co-operation and Development (OECD)8
devised and launched Earth Summit Action Plans, which solidly directed strategies and
actions pertinent to green purchasing.
2.3 Environmental Impact of Products (EIPRO)
The objective of the EIPRO project (2006) in Europe was to identify the products (or
product groups) that had the greatest environmental impact across their life cycle and
thus qualified for an assessment of their improvement potential and, depending on the
outcome of such an assessment, for being addressed within the European Integrated
Product Policy (IPP) process9.
An analysis of the environmental impacts of the product groups demonstrated that for
all impact categories there was a substantial difference between product groupings,
taking into account their full life cycles, and the volumes purchased each year. The
results also showed that there was generally a correlation between the different
categories of environmental impact for a specific product grouping. For example, a
product grouping with a high impact on global warming tended to have a similar impact
on acidification or human toxicity.
8 The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark,
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico,
the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden,
Switzerland, Turkey, the United Kingdom and the United States.
9 European Science and Technology Observatory (2005) Environmental Impact of Products (EIPRO):
Analysis of the life cycle environmental impacts elated to the total final consumption of the EU25.
Summary available at http://ec.europa.eu/environment/ipp/pdf/eipro_summary.pdf
18
It was identified that between 70-80% of all life cycle environmental impacts can be
attributed to food and drink, transport and buildings. Food and drink – 20-30% of the
environmental impacts associated with private consumption were caused by the food
production and distribution chain, ‘from farm to fork’. This increased to more than 50%
for eutrophication. Within this area, meat and meat products had the highest impact,
followed by dairy products.
Depending on the category, the contribution of passenger transport to the total
environmental impacts of private consumption ranged from 15-35%. Based on the data
used for the study, the greatest impact was from cars, despite major environmental
improvements (especially regarding air emissions) in the previous years.
Buildings included housing, equipment and utility. This category is a dominant area of
consumption with respect to environmental impact, accounting for between 20-35% of
the total impacts. The heating of households is one of the most important impacts in
each category, with energy used for hot water and electrical appliances also accounting
for significant impacts, as does the creation of the structure itself.
2.4 Green Purchasing
‘Green Purchasing’, which is used as a synonym for ‘green procurement’10 in this thesis,
basically means purchasing products or services that minimize negative or even
provide positive environmental impacts. It involves considering the full costs and
environmental consequences of a product in all stages of its life cycle, from product
10Around the world, the terms ‘green procurement’ and ‘green purchasing’ are both used frequently and
often interchangeably to categorize strategies, initiatives and actions involved in or related to
identification, selection, investigation, acquisition, use and proper handling (i.e. pre- and post-
consumption) of environmentally preferable (i.e. less environmentally harmful) products and services.
19
development and manufacturing, through distribution and use, to the recovery and/or
ultimate disposal of whatever remains of the product at the end of its life span. The
procuring organizations have to face three dimensions: Environment (Lacoix, 2008),
Economic, (Lacroix, 2007) and Social (Lacroix, 2006).
Environmental
Quality
+ Cost
+ Delivery
+ Impacts
=
Green Purchasing
Figure 1: Green Purchasing Equation
(Source: Commission of the European Communities, 2008)
20
Environmental Dimension
Environmental concerns are the dominant macro-level justification for sustainable
procurement; born out of the growing 21st century consensus that humanity is placing
excessive demands on available resources through unsustainable but well-established
consumption patterns. An example of green procurement efforts in the environment is
vividly exemplified in a figure put forwarded by Min and Galle (1997).
Figure 2: Classification of Green Purchasing Strategies

(Source: Min and Galle, 1997)
Social Dimension
Sustainable procurement is also used to address issues of social policy, such as
inclusiveness, equality and diversity targets, regeneration and integration. Examples
include addressing the needs – whether employment, care, welfare or other – of groups
including ethnic minorities, children, the elderly, those with disabilities, adults lacking
21
basic skills, immigrant populations, and homosexual, bisexual and transsexual
communities.
Economic Dimension
There are economic benefits in the form of efficiency gains from incorporating whole-
life costing into decision-making. In addition, the creation of sustainable markets
(Lacroix, 2006) is essential for long-term growth while sustainable development
requirements foster innovation. There are also potential global applications:
sustainable procurement can favour fair trade or ethical practice (Lacroix, 2005) and
allow extra investment to be channelled towards developing countries. On a
microeconomic level, sustainable procurement offers the chance for economic
redistribution. Targets might include creation of jobs and wealth in regeneration areas,
or assistance for small and/or ethnic minority-owned businesses.
2.5 Government Green Purchasing
2.5.1 Motivation
The key motivation driving GPP schemes is to provide guidance on how to reduce the
environmental impact caused by public sector consumption and to use GPP to stimulate
innovation in environmental technologies, products and services11. During the last few
decades, the public sector has faced increased demands to integrate environmental and
social aspects in its procurement processes. These demands come from stakeholders
such as suppliers, taxpayers, NGOs, authorities and governments.
At the World Summit on Sustainable Development in 2002, public procurement was
identified as an important instrument for stimulating the production of more
11European Commission interpretative communication of 4 July 2001 on the Community law applicable
to public procurement and the possibilities for integrating environmental considerations into public
procurement (COM (2002) 274 final).
22
environmentally sound goods and services. In the same year, the Organization for
Economic Cooperation and Development published recommendations for green
procurement, and in 2003 the European Commission adopted a Communication on
Integrated Product Policy (IPP), which recommended that member states increase the
level of green public procurement (GPP) and elaborate national action plans that set
targets and outlined the concrete measures necessary to implement this policy. In 2006,
the scope was widened when the Marrakesh Task Force on Sustainable Procurement
was established with the aim to promote and support implementation of public
procurement programmes that encourage the uptake of sustainable products and
services (United Nations Department of Economic and Social Affairs, 2009).
Green procurement is defined in EU Commission communication [COM (2008) 400;
p.4]as:
...” a process whereby public authorities seek to procure goods, services and
works with a reduced environmental impact throughout their life cycle when
compared to goods, services and works with the same primary function that
would otherwise be procured.”
When the mission is entitled ‘sustainable procurement’, the general perception is that it
is broadened to also embrace and consider social impacts. For simplicity, in this thesis
the term green procurement is used for the assessed approaches, although some social
aspects are also included.
23
2.6 The EU Model
The EU recognizes that a more sustainable use of natural resources and raw materials
would benefit the environment as well as the overall economy, creating opportunities
for emerging ‘green’ economies. Such a shift could also boost the competitiveness of
European industry by stimulating innovation in eco-technologies and promoting eco-
industries. Public procurement can shape production and consumption trends and a
significant demand from public authorities for ‘greener’ goods will encourage markets
for environmentally friendly products and services. With a collective annual budget of
two trillion Euros or 17% of the EU’s GDP, Europe’s public procurers are a highly
influential group of bodies, who can contribute significantly to drive the establishment
of sustainable production and consumption. In 2003, the OECD noted that public
purchasing was 8-25% of gross domestic product (GDP), with an average of 15% in
OECD countries (Michelsen and de Boer, 2009).
In the Communication and Public Procurement for a better environment (2008)12, the
European Commission proposed that, by the year 2010, 50% of all tendering
procedures should be green in all Member States, where ‘green’ means compliant with
endorsed common core GPP criteria. To facilitate this, the GPP guidance toolkit was
developed.
Green Public Procurement (GPP) focuses only on environmental areas of concern, while
Sustainable Public Procurement (SPP) potentially encompasses a range of areas, but
largely focuses on social and environmental aspects. The traditional focus has been on
environmental issues; however social aspects are rising up the agenda fast. In 2006, the
12 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0400:FIN:EN:PDF
24
scope was widened when the Marrakesh Task Force on Sustainable Procurement was
established with the aim to promote and support implementation of public
procurement programmes that encourage the uptake of sustainable products and
services (United Nations Department of Economic and Social Affairs, 2009).
2.6.1 Recommended Framework of National Schemes by the EU
Key Performance Characteristic - Scheme
1. The stated overall aim for the Scheme should be clear and directly linked to EU policy.
2. An EU GPP Advisory Group should be established, with final responsibility for the
development of the EU GPP Scheme and establishment of criteria.
3. Prioritization and selection of products/services/works should be evidence-based
and a transparent process.
4. Early dialogue with external stakeholders is essential.
5. Information concerning the overall development timetable and specifically the
external consultation process must be made available at the outset.
6. A continuous training programme and supporting information should be a key
element of the GPP Scheme.
Key Performance Characteristic - Criteria
1. The criteria must be developed from lifecycle-based thinking.
2. The evidence used for criteria development must be transparent.
3. The scope of the requirements should be sustainable public procurement, containing
relevant environmental criteria and, where possible and relevant, appropriate social
criteria.
25
4. The criteria must be easy to use, both for procurement professionals and for
suppliers.
5. The criteria development process should have clear, defined roles for stakeholders
and participants.
6. A clear outline of the stages of the criteria development process should be given, with
timetables established for each stage of the process. The whole process should take no
longer than one year.
7. Criteria revision should be performed on a regular, pre-agreed, timeframe. Revisions
should occur at least every three years and at most annually.
Most OECD countries have adopted green purchasing strategies and practices to
varying extents and levels of application. The OECD Council’s Recommendation on
Improving the Environmental Performance of Public Procurement (OECD, 2007) states
that green purchasing should aim to take into account the effects on the environment
exerted by a product or service over its lifecycle, from ‘cradle to grave’.
2.6.2 Evaluating Government Green Purchasing
The 2008 Commission Communication proposing GPP levels of 50% for each Member
State by 2010 also required a verification method. The European Commission was
asked to develop a practical evaluation methodology to measure progress made by
2010 and thereafter.
In January 2009, PricewaterhouseCoopers, Significant and Ecofys released their
study.13 The main objective was to develop a methodology to monitor the current level
13Collection of statistical information on Green Public Procurement in the EU, Report on methodologies
and Report on data collection results, 2009.
http://ec.europa.eu/environment/gpp/pdf/statistical_data.pdf.
http://ec.europa.eu/environment/gpp/pdf/statistical_information.pdf.
26
of GPP in the seven best-performing Member States, and then apply this to establish the
current situation. In addition, the methodology should enable measurement of CO2 and
the financial impact of GPP. The seven best-performing Member States were Austria,
Denmark, Finland, Germany, the Netherlands, Sweden and the United Kingdom.
Ten products most suitable for greening under GPP, as identified by the
Commission
These ten products are cleaning products & services; construction; electricity; catering
& food; gardening; office IT equipment; copying & graphic paper; textiles; transport;
and furniture.
The indicators used for measuring the quantitative level of GPP were:
1. The GPP percentage of total public procurement, in terms of monetary value.
2. The percentage of total public procurement of GGP in terms of number of contracts.
3. The environmental impact of GPP, in terms of CO2 emissions.
4. The percentage of financial impact of GPP in terms of Life Cycle Costs.
The Green-7
The European Commission (EC) has identified seven countries in Europe14 as ‘deep
green’ in terms of public procurement; these are termed ‘Green-7’ (EC, 2007). Two of
these countries, the Netherlands and Denmark, were the first in the world to introduce
green production and consumption into their national policies in 1989 and 1991,
respectively (Kataoka, 2006). A study by the EC in 2006 compared the purchase of
14The seven countries are Austria, Denmark, Finland, Germany, the Netherlands, Sweden and the United
Kingdom.
27
construction materials and found that, while 14% of all OECD countries made solid
green purchases15, 60% of the ‘Green-7’ countries did so. An analysis of tenders issued
by the Green-7’ showed 50% used ecological criteria for paper, printed matter and
printing services, 45% did so for chemical products, rubber and plastic, and 23% for
construction work (Bouwer et al., 2006). The study also identified several key reasons
why the ‘Green-7’ countries were successful in GGP:
o Strong political drivers;
o National guidelines and programmes for GGP;
o Public information resources available via websites and ecolabels;
o The use of innovative tools such as life cycle thinking and green contract
variants in purchasing procedures; and,
o Formation and implementation of environmental management systems
by purchasing authorities
(Source: Bouwer et al., 2006).
To encourage greater uptake of green procurement, the European Commission adopted
a Communication16, setting a target whereby Member States were to achieve a level of
50% GPP by 2010. Providing appropriate information and guidance to procurers, to
enable them to make informed sustainable and green procurement decisions, is a key
challenge in this area. To facilitate this, the GPP guidance toolkit was developed17.
15 More than three clear environmental specifications of each product.

16 Public procurement for a better environment, 16th July 2008
17 Public procurement for a better environment, Communication from the European Commission to the
European Parliament, the Council, the European Economic and Social Committee and the Committee of
the Regions, 16.7.2008, COM(2008) 400 final. 
http://ec.europa.eu/environment/eussd/pdf/com_2008_397.pdf
28
2.6.3 Barriers to GPP
The obstacles that limit the uptake of green and sustainable public procurement have
been identified as follows18:
• Perception of financial burden: higher initial investments and tight budgets
are often the first hurdle. There is also insufficient information on the life
cycle costs of products and the relative costs of environmentally friendly
products and services. Preparation of the Cost/Benefit Analysis of green
products and services needs to be promoted.
• A lack of knowledge about the environment and how to use environmental
criteria: there is a low awareness of the benefits of environmentally friendly
products and services, and some uncertainty remains about the legal options
to include environmental criteria within tender documents.
• Lack of management support: public officials often demonstrate low
awareness of the importance of GPP. Without a dedicated strategic focus,
estimates of future procurement needs and an organizational policy that
strongly promotes GPP, in terms of time and money, the integration of
environmental aspects will remain inadequate.
• Lack of practical tools and information: communicating, disseminating and
coordinating the exchange of best practice are extremely important if a
country is to increase its GPP quotient.
• Lack of training: public administrations in general and the relevant
purchasing officers in particular often lack the technical and legal expertise
to apply green/sustainable procurement standards. Cooperation across
18 http://gpp.itcilo.org/index.php?id=163
29
departments and the consultation of external experts is therefore a crucial
success factor.
2.7 A Brief Review of GPP International Trends
In developed countries and some developing ones, green purchasing practices have
already been established and operate with support from the respective governments
(Li and Geiser, 2005). A diverse range of international, national and regional consortia,
directives and guidelines has been established. For instance, Asia Pacific Roundtable for
Sustainable Consumption and Production (SCP) officials and members have focused
attention upon urban development, corporate cleaner production programmes, supply
chain management, eco-industrial development (Chertow, 2000) and industrial parks
for recycling, along with increasing awareness and understanding of the role of human
factors in bringing about environmental change (Chiu, Ward and Massard, 2009).
Due to the huge purchasing power of the public sector, GGP accounts for the largest
single promoter and contributor to green purchasing. In this regard, there is a
prevalent view that public authorities must act as ‘leaders’ in the process of changes in
consumption towards greener product( Kunzlik, 2003).
In the developing countries, several studies (relatively scarce compared with those on
developed countries) have reported that, although there are severe constraints on the
availability of resources as well as complicated environmental challenges, the effective
application of GGP is more urgently needed and has potentially greater impacts in these
countries (Leung, 2003; Dong, 2004).
30
Internationally, green purchasing (GP) and sustainable consumption are commonly
practised within the building development industry, energy industry, roadwork,
electrical and electronic products, furniture products, timber products, the healthcare
sector, golf course operations, organic food networks and renewable energy generation,
distribution and supply. The main product categories targeted for GP have included:
paper products (recycled, chlorine-free), heating appliances, information technology
equipment, cleaning products, packaging, furniture, motor vehicles, and energy and
waste services. For example, GP has resulted in greater calls for and selection of fuel-
efficient vehicles and energy efficient appliances and lighting in the Australian public
sector; refilled toner cartridges and recycled paper in Austria; and solvent-free paints
and renewable energy options in Switzerland. United Kingdom government officials
recently had to address recommendations that central government buildings and
transport be carbon neutral by 2012.
Generally, national and multinational public sectors have played leading roles in the
introduction, development, promotion and implementation of green procurement. In
this regard, a recent International Green Purchasing Network (IGPN) study identified
that in 2007:
• European Commission green public purchasing was calculated at 1 trillion
Euros (about USD1.5 trillion) which represented over 14% of the total
European Union GDP;
• The US federal government spent about USD500 billion while the American
state and local governments collectively spent an additional USD400 billion
on green purchasing; and
31
• The Japanese national government and local governments spent Yen14
trillion (about USD162 billion) and Yen44 trillion (about USD510 billion)
respectively, which cumulatively represented 17.6% of the GDP (Kataoka,
2006).
This thesis will now outline ‘green’ measures taken by countries that have been
pioneering GPP.
United Kingdom
In the United Kingdom (UK), green purchasing (GP) is targeted at different levels – e.g.
from small businesses to large corporations (Walker and Preuss, 2008) and from food
to sustainable agriculture (Winter, 2003). The office of the Mayor of London, with
support from the London Development Agency, launched a Green Procurement Code in
2001 and re-launched it in 200719. This Code provides free support services for
London-based organizations and is intended to encourage and guide such organizations
to reduce their environmental impacts through responsible purchasing. In 2008, the
renewed Code had a total of 181 signatories who identified that, through their
cumulative efforts, 72,490 tonnes of waste had been diverted from landfills and greener
products had been purchased from over 500 suppliers. Going forward, the renewed
Code encourages signatories to incorporate GP criteria and environmental
specifications into present and future contracts20. Public purchasing is a powerful
19 Details of the Mayor of London’s Green Procurement Code can be found at

http://www.greenprocurementcode.co.uk/.
20 London Development Agency, 2008. London’s Green Procurement – The first annual progress review
of the Mayor of London’s Green Procurement Code. Retrieved on October 16, 2009 from
http://www.greenprocurementcode.co.uk/files/Annual%20Progress%20Review%202008.pdf.
32
function in the UK which involves a total annual budget of approximately £150 billion
(Morgan, 2008).
United States of America
The United States of America (USA) contains one of the largest consumer market
networks in the world. The American states have developed different product classes
with various environmental priorities reflecting their specific and contrasting needs
and market demands. Of particular note, Californian government officials launched an
initiative several years ago to devise and transform into a distinctive, progressive and
leading greener state government (Swanson et.al., 2005). Similar to other consumer
networks, there has been rapid development and progress in designing competitive
purchasing schemes and mechanisms of all types. However, actual experience with
implementing green purchasing has been uneven, particularly for initiatives
undertaken within the regulatory frameworks currently overseen by state commissions
(Tierney and Schatzki, 2009).
China
China has experienced rapid economic growth during the last two decades and moved
quickly to urbanization and industrialization. However, in the absence of a
comprehensive sustainable development programme, this has also given rise to severe
environmental challenges (Geng & Doberstein, 2008; Tian, 2010). The notion ‘pollute
now, clean up later’ results in environmental disasters that hamper and complicate
further development (Geng and Côte, 2004). A monumental 3-12% of China’s GDP is
offset by the cost of environmental damage (SEPA & NBS, 2006).Chinese Government
officials have recognized that GP can and should contribute significantly to national
33
environmental and sustainable development policy strategies and goals. A government
procurement law – Order No. 68 of the President of the People’s Republic of China - was
approved in June 2002 and enacted in January 2003 (Geng and Doberstein, 2008).
China uses open tender purchasing to invite and decide on bids. General government
purchasing in 2003 reached USD20 billion or 6.7% of the national GDP, representing a
64.4% increase over 2002 when total spending was just USD12.21 billion. By 2008,
public purchasing conducted by public tenders reached USD60.66 billion, accounting
for 71.6% of total government procurement (Tian, 2010).
With the promulgation of the Government Procurement List on Energy Saving Products
in 2004, the implementation of government green purchasing (GGP) was firmly
established in China. More recently, the scope of this legislated requirement has been
expanded to involve all levels and types of government agencies. As of June 2009, over
10,000 products grouped under 33 product categories established under the initiative’s
Energy Saving Label Scheme, were recognized and targeted for preferential
procurement status.
Japan
In Japan, the Government enacted its Green Purchasing Law in May 2000, and enforced
it in May 2001. All pertinent institutions are obligated to purchase designated ‘green
purchase items’ in accordance with a list of 200 eligible products listed under 18
product categories including: copy/printing paper products, stationery and office
supplies, office furniture, office automation equipment, lighting equipment,
automobiles, uniforms and work clothes, construction materials and services (hotels
34
and inns, etc.), and others. As of 2007, all central government ministries, forty-seven
(47) provisional governments, twelve (12) designated cities and 68% of 700 cities have
been obliged to comply with this law. As a result, and cumulatively, 95% of all
purchased products within the designated categories were identified ‘green products’.
‘Green product criteria’ have been mainly adopted from the Japanese Ecomark
ecolabelling programme and the Energy Star [energy-efficient products] Programme
(37%), or specially developed and promulgated for this initiative in order to guide the
government purchasers in deciding and selecting preferable and identifiable green
products.
Additionally, the Japanese Government promulgated a Law Concerning the Promotion of
Contracts Considering Reduction of GHG Emissions by the State and Other Entities ‘Green
Contract Law’ in 2007. This Law stipulates environmental contracting conditions and
requirements for inclusion by government agencies and public institutions in the
establishment and awarding of contracts for electric power, automobiles, energy
services companies projects, and building designs.
Even though the Green Contract Law focuses more on the reduction of greenhouse
gases (GHG) aspects of specific products and services, it complements the Law on
Promoting Green Purchasing in terms of establishing a Japanese legal framework for
government green purchasing. Further, when combined with Japan’s national
ecolabelling programme and national and multinational green purchasing networks,
the two laws offer strong incentives and stimuli for considerable and quick expansion
of GP activities in Japan.
35
Korea
In Korea, legislation on the promotion of the purchase of environmentally preferable
products was enacted in December 2004, and enforced in July 2005. The Law
authorizes the Ministry of the Environment (MoE) to set up ‘Purchasing Guidelines for
Environmentally-friendly Products’, and directs public agencies to prepare and
announce purchasing strategy plans and initiatives and report on these annually.
Government agencies are obliged to purchase designated green products from the list
of products qualifying for and labelled with the Korean Ecolabel, Energy Saving Mark or
Good Recycled Mark.
Since 2005, the implementation of the Green Purchasing Law has resulted in a
tremendous increase in the amount of green purchasing in the Korean public sector,
from USD 255 million in 2004 to USD 770 million in 2005 and USD 850 million in 2006.
Korea Eco-Product Institute officials have predicted that the level of green purchasing
will reach USD 1400 million in 2010, representing 80% of all government purchasing
(Moon, 2006).
Taiwan
A Taiwanese ‘Government Procurement Law’ for public enterprises and administrative
offices was enacted in 1998 and came into full effect in May 1999. This Law guides and
allows government purchasers to consider and purchase green products at 10% higher
prices than competing regular products. Taiwan’s government is increasingly using
green purchasing as an effective instrument to control municipal solid waste and to
mitigate the adverse environmental impacts of consumption.
36
To accommodate the green consumption trend in the 21st century, the Taiwan
Government promulgated a Green Procurement Policy in July 2001. This Policy
established the levels and categories of environmentally preferable products that the
government would purchase going forward. The green purchasing component was
initially set at 30% for all government agencies, meaning that each was required to
purchase and report purchasing of at least this amount of products in the prescribed
product categories (e.g. 30% of all office stationery and paper products purchased were
required to be ‘green’). To further encourage green consumption and energy saving,
along with promoting a healthy and safe environment, the government required all
departments to purchase products identified and certified as ‘low pollution’, ‘energy
saving’, and/or ‘recyclable’. In 2006, the prescribed ‘green products’ share of overall
purchasing for the selected product categories were set at 80%, and was raised in 2007
to 83%. More recently, Executive Yuan representatives have expressed a desire to
expand the scope of products involved.
Additionally, Article 22 of the Resource Recycling Act states that government agencies,
public schools, public enterprises and organizations, and military authorities must
preferentially purchase government-recognized environmentally preferable products,
renewable resources produced within the national territory, and/or recycled products
in which at least a certain proportion of renewable resources are used as raw materials.
The ‘First Batch of Environmentally Preferable Product Items Requiring Preferential
Procurement by Government Agencies, Public Schools, Public Enterprises and
Organizations, and Military Authorities’ contains the environmentally preferable
product categories and annual purchasing targets.
37
Currently, there are forty-four (44) designated green product categories which qualify
for the preferential purchasing treatment. They include: office paper, stationery,
computers, refrigerators, air conditioners, water-saving toilets, compost, recycled wood
products, water-based paints, cleaning products, and others.
In determining which products merit green purchasing preference status, the
Taiwanese Government has bestowed top priority status on products certified and
labelled under the national Green Mark (Type-I Ecolabelling) Scheme. This action has
significantly raised the profile and recognition of the Scheme and its ecolabel among
both public and private sector organizations as well as general consumers. Since the
government green purchasing programme’s implementation in 2002, annual green
purchasing spending has increased from 2.6 billion NT dollars [about USD80.9 million]
(for the second half of 2002) to 5.6 billion NTD [about USD174.2 million] (2003) and
reached 6.77 billion NTD in 2008. Concurrently, the numbers of Green Mark licensed
products have also increased from 576 in 2002 and 717 in 2003, to 876 in 2008 (Yu,
2009). These statistics demonstrate the close relationship between successful
ecolabelling and government green purchasing programmes.
Thailand
Sustainable production strategies and initiatives in Thailand have targeted the
producers and manufacturers. With the Thai Government being the largest national
consumer (contributing 11%-17% of the GDP), the public sector is playing a lead role in
promoting, introducing and advancing green purchasing. The Ministry of Natural
Resources and Environment is the lead agency while the Pollution Control Department
has been tasked to research, develop and establish criteria for green products
38
(Pinthong, 2006). A Governmental Management Plan promulgated by the Thai
Government in March 2005 required all government agencies to initiate green
purchasing activities within four years. All governmental agencies (at departmental
level) must have adopted and implemented a ‘purchase green products program’ by
2011 (starting from 25% of agencies in 2008 to 100% compliance by 2011).
2.8 Green Purchasing in the Private Sector
2.8.1 Principal Drivers
The recognition that their purchasing practice could take them to environmental
destruction is a tipping point in the mindset of consumers (Boeck and Ward, 1997;
Carter and Narasimhan 2000). The emergence of empowerment – “how we as a global
civilization can undo these deteriorations and reclaim control of our destiny and shape
our future” (Al Gore, The Future, p xiii) – sets the stage for a green market.
These vibrant, watchful civil societies coupled with regulatory compliance act as the
principal driver for corporate greening. Besides satisfying a consumer’s needs, it has to
benefit the environment in the long term. Marketing managers must realize that the
criteria used by consumers to evaluate products have changed. Consumers now
consider the environmental consequences of products before making their purchase
decisions. A product that has negative environmental consequences can be severely
disadvantaged as consumers consider the impact of that product upon the environment
(Follows & Jobber, 2000). Treading this path requires more comprehensive means to
reduce pollution through attacking its sources at every stage of the product life cycle,
which includes raw material extraction, transportation, manufacturing, product use,
recycling, and disposal (Matos & Hall, 2007) Specific corporate environmental
39
strategies range from simple environmental impact assessment (EIA) and waste
minimization to more sophisticated eco-efficiency and green supply chain, as follows, to
prevent pollution and, ultimately, total product stewardship or green supply chain.
2.8.2 The Strategy Frameworks of business organizations
These strategies include the following:
1. Compliance as a defence: firms can be reactive in environmental management and
simply comply with existing regulations. Environmental issues are generally seen as a
regulatory nuisance to be met only because noncompliance would result in severe
financial penalties (Handfield et al., 1997).
2. Cleaner production and waste reduction (Sinding, 2000).
3. Ecoefficiency: The World Business Council for Sustainable Development (WBCSD,
2006) defines eco-efficiency in terms of delivery of competitively priced goods and
services designed to satisfy human need and enhance quality of life, while
progressively reducing environmental impacts and resource intensity throughout the
life cycle to a level at least in line with the earth’s estimated carrying capacity.
4. Design for environment (DFE): this incorporates considerations of materials’
recyclability and reusability; the materials’ long-term impact on the environment; the
amount of energy required for the product’s manufacture and use; the capability for
easy disassembly for remanufacturing; and considerations of the product’s durability
and disposal characteristics (Sarkis, 1998).
5. Green supply chain: this involves evaluating the total environmental effects of
products through the entire life cycle of products and services (Handfield et al., 2005).
Extending green activities throughout the supply chain represents an evolution over
environmental assessment focused on firm-specific impacts and end-of-pipe analysis,
40
and is now part of many organizations’ broader sustainable efforts (Matos & Hall,
2007).
2.8.3 Supply Chain Environmental Management
Translation of the passionate “green purchasing movement” into practice offers a
platform for heated debates between academia, business consultants and green
entrepreneurs.
The concept of supply chain environmental management has dominated the managerial
principle in the past few decades. This concept is a multidisciplinary issue that emerges
mainly from performing environmental management practices in the context of supply
chains (Sarkis, 2006).
According to Sarkis (1999), the supply chain system should include purchasing and in-
bound logistics, production, distribution and reverse logistics. A recent definition
(Handfield and Nichols, 1999) goes as follows: the supply chain encompasses all
activities associated with the flow and transformation of goods from raw materials
(extraction) through to the end user, as well as associated information flows. Unlike the
traditional environmental management, the concept of green supply chain assumes full
responsibility of a firm towards its products from the extraction or acquisition of raw
materials up to final use and disposal of products (Hart, 1997). It represents application
of environmental management principles to the whole set of activities spanning the
entire customer order cycle, including design, procurement, manufacturing and
assembly, packaging, logistics, and distribution (Handfield et al., 1997; Zsidisin & Siferd,
2001).
41
Examples of green supply chain practices could include reducing packaging and waste,
assessing vendors on their environmental performance, developing more eco-friendly
products and reducing carbon emissions associated with transport of goods. Green
supply chain management can reduce costs and improve organizational performance
(Carter et al., 2000) or act as a marketing tool (Wycherley, 1999).
However, it is not just about being environmentally friendly; green supply chain is also
about good business sense and higher profits (Srivastava, 2007). Porter and van de
Linde (1995) considered greening a competitive initiative because investment in
greening can bring resource protection, waste elimination and improvements in
productivity. Furthermore, according to Srivastava (2007), with good management of
the green supply chain, there is no need to sacrifice quality, cost, reliability, and
performance in order to reduce the ecological impact of industrial activities.
Green supply chain initiatives could be categorized into:
(1) Ecodesign or design for the environment (Zhu, Sarkis and Lai, 2007)
• Design for reduction or elimination of environmentally hazardous
materials such as lead, mercury, chromium and cadmium (Zsidisin and
Siferd, 2001).
• Design for reuse, which is a design that facilitates reuse of a product or
part of it with no or minimal treatment of the used product (Sarkis,
1998).
• Design for recycling, which is a design that facilitates disassembly of
the waste product, separation of parts according to material, and
reprocessing of the material.
42
• Design for remanufacturing, which is a design that facilitates repair,
rework, and refurbishment activities, aiming at returning the product
to the new or better than new condition.
• Design for resource efficiency, including reduction of materials and
energy consumption of a product during use, in addition to promoting
the use of renewable resources and energy (APO, 2004).
(2) Green purchasing (Hamner, 2006)
• Product content requirements: buyers specify that purchased products must
have desirable green attributes such as being recycled or reusable items.
• Product content restrictions: buyers specify that purchased products must
not contain environmentally undesirable attributes such as lead, CFCs, or
plastic foam in packaging materials.
• Product content labelling or disclosure: buyers require disclosure of the
environmental or safety attributes of purchased product content. Such
disclosure can be done using green seals and indicators of relative
environmental impact such as the scientific certification system offered by
various commercial organizations.
• Supplier questionnaires: buyers send questionnaires to suppliers asking
them to provide information about their environmental aspects, activities
and/or management systems.
• Supplier environmental management systems: buyers require suppliers to
develop and maintain an environmental management system (EMS).
However, the buyer does not require the supplier to certify the system.
43
• Supplier certification: buyers require suppliers to have an EMS that is
certified as fully compliant with one of the recognized international
standards such as the British Standard 7750 (BS 7750), ISO 14001 from the
International Organization for Standardization (ISO), and the European
Union Eco- Management and Audit Scheme (EMAS).
• Supplier compliance auditing: buyers audit suppliers to determine their
level of compliance with environmental requirements.
(3) Reverse logistics (Sarkis, 1998; Carter and Ellram 1998)
Reverse logistics focuses primarily on the return or take-back products and materials
from their point of consumption to the forward supply chain for the purpose of
recycling, reuse, remanufacture, repair, refurbishing, or safe disposal. Reverse logistics
encompasses the traditional logistics activities of transportation and inventory
management, but its focus is to get product back from customers rather than moving
product to customers.
Used or end-of-life products are returned into the forward supply chain for three main
purposes:
• Reuse is the process of collecting used products from the field, and distributing
or selling them used. Thus, although the ultimate value of the product is reduced
from its original value, no additional processing is required.
• Remanufacturing is the process of collecting a used product or component from
the field, assessing its condition, and replacing worn, broken, or obsolete parts
with new or refurbished parts. In this case, the identity and functionality of the
original product is retained.
44
• Recycling is the process of collecting used products, disassembling them (when
necessary), separating them into categories of like materials (e.g. specific plastic
types, glass, etc.), and processing them into recycled products, components,
and/or materials. In this case, the identity and functionality of the original
materials is lost.
Practice of Green Purchasing in the business sector
Among all the stages of a supply chain, purchasing plays an important part as a
strategic initiator of the chain in an organization; also, it is integrally involved with the
formation of trading partnerships. In this sense, the purchasing function is in a critical
position to influence an organization’s response to concerns about the natural
environment (Zsidisin & Siferd, 2001).
Under pressure from a wide range of stakeholders, large, high profile firms have
answered the call of green purchasing in developed countries (Srivastava, 2007). For
instance, Ford Motor Company demanded that all of its suppliers with manufacturing
facilities (including about 5,000 companies worldwide) obtained a third-party
certification of environmental management system (EMS) for at least one of their plants
by the end of 2001, and for all plants by 2003. It is not easy to do this; therefore, the
truth is the firm needs to have enough financial support. Hence, in order to help the
suppliers establish their own environmental management system, Ford offers
awareness seminars and training for its suppliers, for them to be like any world-class
organization and attain their goal of environmental excellence, which requires a
specific amount of financial resource (Rao, 2002).
Japanese and European leading companies that have decided to go along with green
45
procurement activities are experiencing tangible benefits. Strategic sourcing can create
value through increased overall cost efficiency, enhanced reputation and market share,
and reduced environmental risks and liabilities.
Economic benefits are achieved when reducing supplier-generated wastes and
surpluses, when decreasing handling expenses and risks associated with waste disposal,
and from suppliers’ savings from improved efficiencies - which may be passed along to
buyers in the form of reduced prices.
Competitive advantage is achieved through innovation. This occurs when efficient
production is enhanced through suppliers’ use of cleaner technologies, process
innovation, and waste reduction. This is especially true when suppliers and customers
work together to find new ideas.
Improved public image is achieved when the greening of a company’s suppliers can
contribute to that company’s overall reputation among customers, investors,
employees, and other stakeholders.
Tangible benefits that are typically achieved by companies comprise:
• Cost reductions due to lower waste management fees, lower hazardous material
management fees. Savings from conserving energy, water, fuel and other
resources and easier compliance with environmental regulations (Lacroix,
2008B), (Lacroix, 2006B).
• Demonstration of due diligence;
• Reduced risk of accidents, reduced liability and lower health and safety costs;
(Hill, 1993).
46
• Support of environmental/sustainability strategy and vision (Lacroix, 2007),
(Lacroix, 2006A);
• Improved image, brand and goodwill; improved employee and community
health through cleaner air and water; less demand for landfill and less demand
for resources (Lacroix, 2008B), (Lacroix, 2006A); and
• Increased shareholder value.
While there are a number of other quantifiable measurable benefits that can be
achieved from implementing green procurement, cost savings and risk reduction are
perhaps the most universal across all types of industries and organizations. Qualitative
benefits such as improved image, brand or ability to meet policy commitments is
another key benefit and is of note in a business and public sector climate that is
increasingly influenced by the public, nongovernmental organizations and employees
who are well informed and educated around the environmental and social issues
related to products and services. How both public and private sector organizations
measure these benefits varies. They often quantify direct costs’ savings, environmental
benefits, or money spent, or they estimate hidden or indirect savings.
As one of the earliest countries that implemented GP, Taiwan’s greening of the
suppliers took off in a novel way (Rao, 2002). As is widely known, the companies in this
sector often serve as suppliers to large firms; however, the sector has highly dispersed
characteristics, is typically unregulated in nature and has limited financial resources.
Therefore, a corporate synergy system (CSS) model was initiated to link the suppliers
and the buyers (Rao, 2002). Rao also pointed out that many Taiwanese companies have
taken advantage of this new system to improve their competitiveness, enhance
47
products’ quality and environmental performance, and reduce the cost of production.
The Ministry of Economic Affairs and many commercial banks have helped firms to
implement industrial waste minimization, thus supporting this move in Taiwan.
Moreover, Antonio (2000) did admit that industrial waste minimization was
successfully implemented among small and medium enterprises.
Actually, greening the supply chain in South East Asia has started taking root already,
for example in South East Asia. According to Rao (2002), ISO 14001-certified
companies are the sign of environmental awareness, at least among the leading
companies. The data of Rao’s research showed 79% of the companies were holding
awareness seminars for their suppliers, 76% were informing the suppliers about the
benefits of cleaner production and technologies and 71% were guiding suppliers to set
up their own environmental programmes. Rao (2002) also commented that a major
part of the world’s manufacturing will be taking place in South East Asia in the
following decade. This would create many opportunities for this region, but would also
bring about a substantial environmental burden. As a result, green supply chain and
green purchasing would become more and more important.
Despite differences in emphasis, green procurement activities in both the public and
private sectors take four main approaches:
• Procuring ecolabelled products or services
• In-house product/service evaluations
• Third-party product/service evaluations
• Supply chain initiatives
(Lacroix, 2008A)
48
These approaches are often initiated within the administrative, procurement,
environmental or operational departments of private firms. Green procurement
activities often rely on established product standards, labels and certifications that
declare the environmental attributes or performance of the product. Private companies
often use in-house and third-party evaluations to make informed green procurement
decisions. Private businesses, however, are reluctant to establish green procurement
activities unless there are clearly demonstrated business benefits for themselves
and/or their customers.
In developing countries with pressing economic or political issues where green
purchasing is not at the top of government priorities, multinational corporations that
practice GP at headquarters could trickle this down to local small and medium-sized
enterprises (SMEs), offering a transparent supply chain route through which GP can be
promoted in these countries (Loo, 2004).
In essence, the triple bottom line impacting business is: increase profits, respect the
planet and do good for their people (Schrader, 2010).
2.8.4 Impacts of GGP on Private GP
Governments have an active dual role to play in the green purchasing market, as both
purchasers and regulators. Stevens (2010) suggested that governments could directly
control SCP through regulation and taxation and indirectly influence SCP by motivating
and encouraging consumers to purchase green goods and services through the creation
of a new green market. Moreover, through the use of their purchasing power, they may
influence the market to advance social and environmental objectives (McCrudden, 2004;
49
Faith-Ell et al., 2006). Kunzlik (2003, p.175) has argued that, “public authorities must
act as ‘leaders’ in the process of changes in consumption towards greener products”.
Government spending power can help to strengthen market demand for environmental
goods, services and technologies by influencing industry to develop the means to meet
these needs, particularly where public purchasers command a large market share, such
as for computers, energy-efficient building, and public transport. Governments can
even provide incentives for moving to cleaner technologies by lowering the costs of
these technologies through economies of scale. This in turn can help private consumers
to gain easier access to more affordable and environmentally preferable products.
Stevens (2010) suggested that governments can directly control purchasing behaviour
through regulation and taxation and indirectly influence GP by motivating and
encouraging consumers to purchase green goods and services through the creation of a
new green market. Some governments and many progressive non-governmental
groups have actively promoted green purchasing/procurement activities since the
early 1990s, with the result that product categories have gradually expanded to include
paper, office supplies, motor cars, office automation equipment (computers, printers
etc.), furniture, clothing, food, lighting equipment and household appliances, as well as
such services as banking, construction, cleaning, printing, hotels, transportation and
electricity supply.
GGP has a decisive impact on the private sector by setting a powerful example to
business, industries and individuals, thus promoting sustainability across society. A
trickle-down effect in which green purchasing extends to all sectors in society could
50
result in a reduction in the environmental burden, improvement in environmental
consciousness, demonstration of environmental achievements and the promotion of
environmentally preferable living (IGPN, 2010). A study by Caldwell in 2005 found that
“key suppliers” can be created through inadvertent public procurement (Caldwell et al.,
2005). This chain of reactions would help to create a sustainable market for green
products.
While public and private sector purchasing are similar in many ways, an important
distinction between them is the role each plays in the supply and demand dynamic of
the market. The government typically buys finished products - products that were
designed and manufactured by private sector companies and services.
Private sector companies, however, are both buyers and suppliers of products and
services. As buyers, both the government and private industry are concerned with
product price, performance, and availability. However, the decisions of the suppliers
are determined by their ability to sell the manufactured products and the services they
provide. Consequently, companies must concern themselves with each purchase’s
impact on their production costs and schedules, product performance, customer
reactions, sales, and profits - concerns that are rarely part of the government’s
purchasing equation.
2.9 Ecolabelling
Structure of this section:
1. Literature survey on the background of ecolabelling.
2. Implication of ecolabels to various stakeholders in green purchasing.
51
3. Synergistic relationship between Government Green Purchasing (GGP) and
ecolabelling.
4. A survey on the current status of government green purchasing (GGP) and
ecolabelling in Europe, North America and Asian countries.
5. Discussion of the key elements of the success of ecolabelling in GGP; and how it
could be translated to help green purchasing in private sectors.
2.9.1 Background of Ecolabelling
To steer society towards green purchasing, relevant and accessible information about
both products19 and organizational performance is a prerequisite. An ecolabel can
provide venues for consumers and professional procurers to make and communicate
informed decisions. This allows the producers and the retailers to interact and adapt
accordingly.
The core purpose of ecolabelling is to: “Reduce stress on the environment by encouraging
the demand for and supply of products and services that are more environmentally
responsible” (from ISO 14024). Ecolabelling started in the late 1970s with the German
Blue Angel. This was a reaction to the shift in focus from production to products and
from regulative to push-pull approaches. Today there are over 300 ecolabels on the
global market (Case, 2009). In view of this proliferation, several organizations have
tried to establish international convergence and have started to structure and classify
environmental labels (Ahrne and Brunsson, 2008). Examples include the International
Organization for Standardization (ISO), the Global Ecolabelling Network (GEN) and the
International Social and the Environmental Accreditation and Labelling Alliance
19 Products here include physical artifacts, software, processes, services and combinations of these.
52
(ISEAL). In the late 1990s, ISO published standards for three types: type I (ISO 14024),
what we normally refer to as an ‘ecolabel’ (see below), type II (ISO 14021), classified as
self-declared environmental claims without third-party certification, and type III (ISO
14025), which is quantified environmental data based on life cycle assessments. Overall
principles for all three types were also described in a separate standard, ISO 14020
(ISO, 2000).
The standard of interest for this thesis, ISO 14024, defines a type I programme as a:
Voluntary, multi-criteria-based third party programme that awards a
license which authorizes the user of environmental labels on products
indicating overall environmental preferability of a product within a
particular product category based on life-cycle considerations. (ISO, 1999)
International Organization for Standardisation (ISO)
The standardisation of green products (e.g. common categories and definitions,
harmonized labels/certification criteria, standardized performance testing, etc.) can
facilitate purchasing and promoting worldwide. One route for achieving this is through
the International Organization for Standardisation (known as the ISO), which has
affiliations with many international organizations, such as the Asian Productivity
Organization (APO), European Commission (EC), Global Ecolabelling Network (GEN),
International Institute for Sustainable Development (IISD), Organization for Economic
Co-operation and Development (OECD), and the United Nations Environment
Programme (UNEP). The ISO provides guidelines in such areas as safety and
environmental impacts, and requires third-party compliance certification.
53
ISO 14000, the ISO’s environmental standard regarding environmental management
systems (EMSs) was originally developed in 1996 and updated in 200422 to promote
the adoption of an environmental management system that addresses the
environmental aspects of individual organizations’ processes, products and services
(ISO, 2009). An EMS entails monitoring, evaluation, reporting and implementation. The
certification of a company’s EMS demonstrates the transparency of its environmental
values, particularly at the international level where increased global development,
outsourcing and competition have resulted in greater industry connectivity (Seuring &
Miller, 2008). A certified company also benefits because of increased efficiency in their
administration, which leads to reduced costs and helps expand a business’
environmental and financial performance (Chen, 2005). Of particular relevance to this
thesis is the incorporation of green purchasing into the framework of ISO 1400023; EMS
allows an organization to evaluate its environmental performance, and green
purchasing is one of the key aspects. This course of action encourages and enables
pollution prevention implementation prior to the disposal stage as well as green
consumption education and engagement, with associated environmental and financial
benefits (Chen, 2005). While this ISO 14000 aspect links well with the earlier stated
need for an international definition of green purchasing, the Standard does not offer
practical solutions or guidelines for governmental bodies to implement and conduct
GGP.
In 1993, the ISO established a technical committee (TC207/SC3) to develop
international environmental label standards. In 1998, the ISO published ISO 14020 –
Environmental labels and declarations – General Principles. Subsequent ISO efforts
22Available at http://www.iso.org/iso/catalogue_detail?csnumber=31807
23ISO 14000 – Environmental Management Introduction handbook can be downloaded from:
http://www.iso.org/iso/theiso14000family_2009.pdf
54
have focused on three main types of voluntary performance labels (note that there are
many other types plus variations of these three prominent types):
1. ISO 14024:1999 Environmental labelling Type I (Guiding Principles and
Procedures) - Type I labels are based on multiple criteria and have independent third-
party certification based on life cycle considerations. Establishment of the principles
and procedures of the product are included - selection of product categories, product
environmental criteria and product characteristics - for assessment and must
demonstrate compliance. Products that meet the requirements are certified for ISO
14024, most commonly used by ecolabel programmes worldwide.
2. ISO 14021:1999 Environmental labels and declarations Type II (Self-declared
environmental claims) - Type II labels are informative, self-declarative environmental
claims made by manufacturers, importers, distributors, retailers and others, without
third-party certification. These claims can be made in the form of statements, symbols
or graphics, product literature, or digital or electronic media. The standard describes
selected terms commonly used in environmental claims and gives qualification for their
use, general evaluation and verification methodology for self-declared environmental
claims.
3. ISO 14025:2006 Environmental labels and declarations - Environmental labelling
Type III labels first published in March 2000 are for programmes that present
environmental product declarations (EPDs) according to LCA parameters. They are
verified by a qualified third party, based on ISO 14025 standards, and provide
quantitative information based on the LCA outcomes for the product or service in
question. Type III EPDs are geared towards business-to-business transactions
55
providing information in quantified environmental “report cards” using predetermined
conditions, such as chemicals or emissions used in manufacturing.
56
Table 1: Comparison of Types I, II and III Ecolabels
Type Requirements Selective Science- Third party Trade Operators

based Verification Mark
I Multiple Yes Life Cycle Required Yes Mostly
Analysis government
supported by
NGO
II Mostly single No No Preferred No Manufacturers
III Multiple No Life Cycle Required Yes Mostly

Assessment government
supported by
NGO/trade
association
(Source: Global Ecolabelling Network (GEN) Information Paper: Introduction to

Ecolabelling. July 2004)
57
2.9.2 Ecolabelling and Green Purchasing: implications for various stakeholders
Implication for private consumers
Type I ecolabels are typically endorsed by third parties and undergo rigorous testing
before they are awarded. The recognition and trust in the label is important for
consumer purchasing satisfaction (Thøgersen, 2002). Consumers can trust the logo
because it is based on comprehensive international standards and qualifications, while
producers can demonstrate their environmental consciousness and reassure
consumers that they are reducing their environmental impacts (Lozano et al., 2010).
Ecolabelling provides consumers with information on the characteristics of a product,
while also promoting the practice of more environmentally sound production methods
(Schumacher, 2010).
In summary, ecolabelling is seen as a consumer tool that:
• Informs consumers about product content and production processes to better
understand environmentally relevant purchasing choices
• Encourages demand for environmentally friendly products
• Gives consumers choice and orientation in a broad array of products
• Empowers consumers in influencing producer behaviour
• Encourages responsibility in consumer behaviour (aims at sustainable
consumption)
58
Implication for public purchasers
Firstly, having a national ecolabel programme symbolizes the government’s reach
beyond the bureaucratic doors into both the business community and society at large.
Secondly, ecolabelling is a standard tool that better enables green purchasing policies
in government procurement. Ecolabelling is helpful in setting the tendering criteria for
the procurement process. Thereafter, the label is helpful as verification, since procurers
often lack the capacity to follow up on the criteria (Leire and Thidell, 2009).
Public and professional procurement has become a frequent and recurring theme in the
ecolabelling world. It allows ecolabelling organizations to focus on a smaller organized
consumer group, that is, professional buyers at the institutional level. Ecolabelling
organizations, such as the Canadian Environmental Choice, focus their limited
promotional budget on a few big buyers. Public procurement therefore represents the
success of ecolabelling in credibility and acceptance at the political institutional level.
The private purchasers’ perspectives and green purchasing
Private companies are exposed to the harsh reality of competition. At the same time,
they experience increased attention for their actions from a number of stakeholders,
such as customers, governments, media and investors (Mont and Leire, 2009). The
important roles of the procurer as a gate-keeper for what enters the company and as a
supply chain manager point to the potential of green procurement to manage risks,
promote and spur innovation for sustainability among suppliers, and thus also to
promote competitiveness of the company (Schumacher, 2010).
59
Implication for retailers
For retailers, ecolabels have been described as helpful in building a more general
understanding of the environmental issues that are in focus among different actors
along the product chain (Thidell, 2009). Studies show that retailers appreciate the
simplified information provided by a label, since this decreases their workload
(Heiskanen et al., 1998). The label is also an information carrier that helps the retailer
to make consumer preferences visible.
Implication for suppliers
The ecolabel is a marketing mechanism that suppliers can use to inform consumers and
professional purchasers of their product in a way that is perceived as environmentally
friendly (Schiesser, 2004). Secondly, for producers who are proactive in pursuing
change, ecolabelling reduces their risk by demonstrating a workable change in
processes. It may also have a multiplier effect as producers compete to surpass existing
criteria. Thirdly, ecolabelling provides a high standard of guidance for producers who
could not afford an internal environmental management programme, or producers who
otherwise shy away from ecodesign. Ecolabelling again provides producers with
workable guidelines by which to operate. The ecolabel licence gives such producers
third-party verification and recognition in environmental stewardship.
60
Implications for policy makers
Ecolabelling is a means for policy makers to use market forces to push towards a better
sustainability performance of products. Ecolabelling can also be seen as a means to
reveal market acceptance of sustainability requirements and thus successively pave the
way for regulative initiatives, as shown in Figure 3. By the public sector’s promotion of
products with reduced negative impacts on environmental and social systems, society
at large is gaining from green procurement. By setting the example, the public sector
sends a clear message to society at large and may also pave the way for the private
sector, since corporate procurement processes take place all along the supply chain,
thus triggering the integration of green procurement upstream (Leire, 2009). Thirdly,
ecolabelling is a good public relations tool for politicians who claim commitment to
environmental protection. Considered the soft alternative to eco-taxes, ecolabelling
provides a publicly acceptable forum for politicians to test the environmental
viewpoints of the voting public.
Figure 3: The intended role of Ecolabelling from a policy maker’s perspective

(Source: adapted from Tojo and Lindhqvist, 2010)
61
Support for Ecolabelling
Governments can support voluntary ecolabelling programmes with financing tools and
consumer awareness-raising programmes (Stevens, 2010). A Global Ecolabel Monitor
survey24 of 113 ecolabels from around the world was carried out by the World
Research Institute and Big Room Inc. in 2009, and found that the most important tools
to help improve ecolabels’ effectiveness were: financial requirements, staff and
expertise resources, marketing and communications, and consumer awareness. The
Global Ecolabel Monitor survey also noted that 58% of ecolabels were operated by non-
profit organizations, while only 8% were run by government organizations. The
transparency of ecolabel standards was available to the public 87% of the time,
allowing for greater trust and a more informed, trustworthy purchase decision. Their
research was very comprehensive and provided a much-needed update to the ecolabels
website (www.ecolabelindex.com).
While ecolabelling requirements around the world tend to be voluntary in application,
there are some exceptions. A 2006 survey by the Global Ecolabelling Network (GEN)
found that some of the Asian governments tend to adopt a mandatory-based system
under GGP programmes. Japan, Korea and Chinese Taipei have all enacted laws and
regulations to enforce and regulate purchasing within governmental offices. However,
in Europe, a more holistic approach of providing resources and support has persuaded
businesses to voluntarily label their products.
24 http://www.ecolabelindex.com/downloads/Global_Ecolabel_Monitor2010.pdf
62
Effectiveness of Ecolabelling
An EU study of the three types of ISO labels by Allison and Carter (2000) found that, for
ecolabelling to be effective, invalid claims must be controlled and eliminated through
government action, such as regulation, monitoring and eradicating false environmental
claims. Ecolabels will fail if consumers become sceptical and uninvolved in purchasing
green products and feel that self-proclaimed green products make false claims. Self-
proclaimed, non-certified, ‘fake’ labels as methods of ‘greenwashing’25 are rampant and
deter consumers from purchasing genuine green products. Each ecolabel must have
distinct goals and objectives with clear and transparent guidelines, and there must be
thorough labelling arrangements with manufacturers and producers. If there is a lack of
direction and central organization, fewer producers will voluntarily label their products,
resulting in a market full of false labels and certifications (Schumacher, 2010).
The effectiveness of ecolabelling has been hard to prove and research on this is limited.
One recognized reason for this is the inherent difficulty in coupling the effect to the
cause, i.e. in this case to distinguish the effects of an ecolabel from the effects of other
measures (Thidell, 2009). Furthermore, although direct benefits, e.g. lower resource
use per unit, are relatively easy to quantify, the indirect benefits, e.g. from an increased
environmental awareness in general, are harder to quantify. No solid methodology to
do this is established. However, some studies have been conducted and indicate some
effects. Cadman and Dolley (2004) describe different scenarios based on different
market penetrations for EU-flower-labelled products substituting an “average” product.
25 “greenwash” items refers to false, misleading uncertified environmental claims on a product in an

attempt to lure misguided consumers into purchasing uncertified product. Terrachoice from Canada
has done extensive research on greenwashing and has identified the seven sins, which is now the most
referenced definition of greenwash.
63
The conclusion is that, even at a modest 5% market share, appreciable savings in terms
of energy, water and raw material consumption could be achieved. Studies of the
Nordic Ecolabel also state that indirect effects such as improved performance of non-
labelled products and increased environmental awareness in general are generated by
the ecolabel (Leire and Thidell, 2005, Thidell, 2009).
Survival of Ecolabels
A separate independent study on the survival of ecolabels found that success depended
on how and when the ecolabel was launched, cost, market attractiveness and
alternatives readily available in the market (Lozano et al., 2010). Successful certified
firms were found to eliminate uncertified environmental initiatives in the market over
time. The ecolabel effectively became a brand with marketable criteria, and consumers
came to trust in the label enough to invest their money in greener goods. A study by
Horne (2009) found that an ecolabel’s success was also dependent on its coverage of
environmental issues, the participation of stakeholders, acceptance and independence,
and measurable sustainable consumption efforts. From a producer’s perspective, the
decision to pursue ecolabels is often due to regulatory gains, demand effects, cost
efficiency and technical assistance (Lozano et al., 2010). Through strategic marketing,
ecolabels offer alternative products and services in the same category available in the
market, encouraging manufacturers to develop and supply environmentally preferable
products. It is an indirect environmental policy enforcer, rather than an explicit
demand or control.
In summary, ecolabels serve to be an identification tool for environmentally preferable
products and services, thus making it easier to procure such items when conducting
64
government green purchasing. The contributions of GEN to the ecolabelling sector have
been substantial in consolidation and ratification of common criteria. Table 2 below
identifies Type I ecolabels around the world; the vitality of an ecolabel can be assessed
by the year it was established and the number of certified products/services.
65
Table 2: Type I Ecolabels around the World (2008)
Country Ecolabelling Programme Year Licenses Issued Certified
Established to Companies Products/Services
Australia Good Environmental Choice 2000 180 1,600
Label (GECA)
Canada EcoLogo Programme 1988 386 7,000
China China Environmental 2001 1,059 40,245
Labelling
Chinese Green Mark 1993 250 4,400
Taipei
European European Ecolabel/ 1992 400 754
Union “The Flower”
Hong Kong Hong Kong Green Label 2000 23 64
Japan EcoMark Programme 1989 1,631 4,544
Korea Environmental Labelling 1992 1,281 6,005
Programme
Germany Ecolabel Blue Angel 1978 545 4,200
New Environmental Choice New 1990 37 1,064
Zealand Zealand
Nordic Nordic Swan 1989 1,619 5,000

Countries26
Singapore Green Label 1992 - 550
Thailand Green Label 1993 37 18 (213 Models)
United Green Seal Inc. 1989 286 3,300
States
Energy Star** 1992 3,000+ 40,000+
(Source: GEN, 2008 Annual Report, P.6,
** Energy Star Source: EPA, 2010)
26 Nordic countries are Denmark, Finland, Iceland, Norway and Sweden.
66
2.9.3 Synergistic Relationship between Green Purchasing and Ecolabelling
Programmes
An ecolabelling scheme has been an essential part in Government Green Purchasing
(GGP) in many parts of the world (Chen, 2005; Bjorner et al., 2004). Green labelling
may be used effectively to fill the information gap, clearly identified by many
government purchasers as a major obstacle in implementing green procurement. This
could be done through the adoption of ecolabelling product criteria in the tendering
language and technical specifications for government procurement or even direct
identification of ecolabelled products as green products.
The importance of public procurement on the growth of the consumer market of
ecolabelled products
The practice of GGP often has a tremendous effect on the growth of the ecolabelled
products’ market, which would otherwise have a small market share. Ecolabelling
practitioners and observers have noted that, once an ecolabelling programme’s product
categories are identified as a purchase target in a GGP programme, the level of
procurement interest and actual sales levels may rise dramatically. This is because a
government mandate offers government purchasers concrete and solid incentives to
purchase ecolabelled products. While not well documented and as yet unproven, it
seems there can also be something of a “ripple effect” where products perceived as
preferable by government authorities may be similarly given preferential treatment by
purchasers in other sectors (Salzman, 1997). In addition, since GGP programmes
typically have some performance-tracking mechanisms, they help the ecolabelling
programme in tracking its implementation effectiveness.
67
Development of categories
In deciding on the targeted product categories, the GGP and ecolabelling programmes
often look to each other in deciding future product categories to work with. The GGP
programmes will often pick product categories that are available in an ecolabelling
programme. And, when a government selects product categories that are not yet in an
ecolabelling programme, the latter would often have to work hard to develop product
criteria for such a category.
Development of green products
GGP encourages the development and advancement of green products by the nature of
a competitive free trade market. As advancements take place in resource efficiency and
ecodesign of products, the step-by-step development of criteria gradually shifts the
market towards more efficient products and services. As an ecolabel programme
establishes product standards, it also is able to determine the percentage of
manufacturers able to meet these standards. Over time and pressure, the market shifts
to “more efficient” being the norm. Thus, the product standard shifts higher, towards
lower toxic chemical concentrations/emissions, better producer take-back
programmes, etc. Through the evolving product standards, manufacturers constantly
have to alter their product, raising the bottom line. This process helps the gradual
quality improvement of GGP, and the ecolabelled products that are emerging in the
market.
2.9.4 International Relationship between GGP and Ecolabelling
While individual governments direct and regulate their own GGP, the export/import
and international marketing of an increasing number of green products encourages and
68
requires greater consistency and some degree of “harmonization” between national and
regional (i.e. multinational) GGP programmes and initiatives (as well as in the
complementary areas of ecodesign and green technology advancement). The Global
Ecolabelling Network (GEN) and the International Green Purchasing Network (IGPN)
are the two main NGOs working to establish and utilize an international network of
green purchasing and ecolabelling programmes to consult, collaborate and harmonize
their efforts towards a unified global green purchasing framework.
One prominent example of an international consultation, cooperation/collaboration
and mutual recognition system is the Global Ecolabelling Network’s Internationally
Coordinated Ecolabelling System27 (GENICES), which was initiated in 2003. By sharing
ecolabelling management and operational techniques, worldwide collaborative effort
towards efficient and durable ecolabels will aid governments in pursuing and making
environmentally sound purchases on an international scale. Currently, the
establishment of GENICES is particularly useful for those GEN members in their early
stages of developing product criteria as they can consider and adopt best practices and
credible product-specific core ecolabelling criteria from other leading, more established
ecolabelling programmes.
Through mutual recognition agreements between countries, green product
specifications can evolve to have common denominators. With international trade so
prevalent, products sharing common core environmental aspects and performance
attributes become recognized and accepted in numerous countries. Increasing the flow
of relevant knowledge, experience sharing and technology advances around the world
27 http://www.globalecolabelling.net/docs/genices/genices.pdf
69
will further expand and evolve the international market for, and supply of,
environmentally preferable products. The application of known and familiar
environmental performance certification/verification ecolabels increases consumers’
trust and confidence in their green purchases.
2.9.5 National Integration of Green Purchasing and Ecolabelling
As an instrument to promote and implement sustainable consumption, ecolabelling
benefits from government involvement. Consumers distrust many independent
industry-led labels because they believe that large corporations have no morals or
ethics (Horne, 2009). Generally speaking, citizens trust and often expect their
governments to guide them towards a sustainable future in an unbiased, “public
interest” and helpful way, including in circumstances where GGP programmes identify,
recognize, promote and sometimes even incorporate third-party ecolabels (i.e. ISO
Type I and III labels).
It is noteworthy that governments can also impose various measures that complement
and benefit ecolabelling programmes, including: strict product bans and standards;
taxation, levies and subsidies; incentive programmes such as take-back programmes
and deposit-refunds; and extended producer responsibility requirements.
Governments have increasingly recognized the merits of ecolabels as voluntary
instruments to guide the greening of products and their processes as well as services.
Ecolabelling programmes’ product criteria and certifications, due to their need to
remain relevant and responsive to ever-changing market and technology conditions,
70
undergo routine review and occasional revision in order to remain “leading edge”, as
well as to facilitate precise, quantitative and clear distinction from alternative products
in the marketplace on an ongoing basis. While traditional “top-down command and
control” methods have been and continue to be used by national governments in some
instances to guide, monitor and improve the quality of environmental products
promoted for production and selected for procurement, governments are unable to
continually update such instruments to remain relevant and appropriate under rapidly
evolving international technological, industrial and market dynamics and conditions.
Due to international political dynamics, government generated and imposed product
environmental specifications and requirements are also more susceptible to
international challenges associated with economic globalization and free trade
considerations (Müller, 2002).
Relationship between Green Purchasing and Ecolabelling in Europe
Broadly speaking, many countries in Europe have well implemented GGP programmes
that have benefited greatly from three key factors: strong and sustained government
commitment and activity; substantial consumer demand and support for such
initiatives; and the success of the EU Flower and various national governments’ own
voluntary ecolabelling programmes leading influence in the marketplace.
71
Relationship between Green Purchasing and Ecolabelling in North America
US’ incentives and pressure on the IT industry reinforced the use of Energy Star
certification in 1992. The proclaimed energy savings allowed the government to
publically announce estimated overall savings and commitment to energy savings in
offices around the country. Without the government’s demand for Energy Star IT
products, perhaps the single attribute label would not have been internationally
recognized as it is now. Energy Star is now the most widely recognized energy savings
label and has become broadly accepted and relied upon as a green purchasing tool for
governments, private businesses and the general public.
Relationship between Green Purchasing and Ecolabelling in Hong Kong SAR
To promote green purchasing to businesses, industries and major consumer groups,
government officials commissioned the Green Council to develop, launch and begin
promoting and administering a Hong Kong Green Purchasing Charter (HKGPC)28 in
October 2007 (Ho et al., 2010). The Hong Kong Green Labelling Scheme (HKGLS) was
also created, associated with the HKGPC. The Green Council’s role is to administer the
label and provide guidance and assistance for benchmarking and determining green
purchasing specifications so that purchasing officers can concentrate their efforts on
surveillance, supply chain management and other green purchasing aspects (Ho, 2008).
To promote energy efficient products, the Electrical and Mechanical Services
Department (EMSD)29 developed the Mandatory Energy Efficiency Labelling Scheme.30
In 2009, only three types of products were enforced: room air conditioners,
28 More information regarding the Hong Kong Green Purchasing Charter is available at www.hkgpc.org
29 Electrical and Mechanical Services Department provides Government departments and public
institutions’ electrical, mechanical, electronic engineering and building services.
30 http://www.gov.hk/en/residents/environment/energy/efficiencylabel.htm
72
refrigerating appliances and compact fluorescent lamps. The EMSD further specified
that, starting in March 2010, washing machines and dehumidifiers would also join the
ecolabelling scheme. The Government has been incorporating “energy label”
recognition as a mandatory tender requirement in its purchases of office equipment
and electrical appliances, such as photocopiers.
Relationship between Green Purchasing and Ecolabelling in the People’s

Republic of China
The Government Procurement List for Environmentally Labelled Products, which
requires preferential purchases of ISO Type I ecolabelled products, was implemented
for central government agencies and provincial level governments in 2007 and was
extended to all levels of government as of 2008 (Deng, 2006). Close to 3,000 products
are listed in 14 categories under China’s ISO Type I Environmental Labelling
Programme, and the total value of GGP in China amounts to RMB3.5 billion (USD538
million).
Relationship between Green Purchasing and Ecolabelling in Chinese Taipei

Chinese Taipei has a government-supported labelling programme. A Review Committee
and Implementation Body, which approves product categories, monitors the Green
Mark Programme and criteria, supervises the use of the Green Mark logo, and conducts
product testing and inspection (Yu, 2003). The Green Mark Type I ecolabelling
programme certified products enjoy top priority purchasing status. Annual GGP
spending in Chinese Taipei increased from NTD2.6 billion (USD89 million) in the latter
half of 2002 to NTD5.6 billion (USD1.89 million) in 2003 and NTD6.77 billion
(USD232.88 million) in 2008. For the Green Mark programme, the number of certified
products increased from 576 in 2002 to 876 in 2008.
73
In the private sector, the Chinese Taipei: Taiwan Green Purchasing Alliance (TGPA)
promotes green purchasing by operating an online green product store31. It offers
hundreds of certified products to consumers and retailers. There are also 863 retailers
registered as ‘Green Stores’ at the Environment and Development Foundation (GEN,
2008). One of the ways the Foundation promoted GP to the public was through an Eco
Hotel Contest in 2008, in which 43,000 online voters selected the 19 most
environmentally friendly hotels in Chinese Taipei (GEN, 2008).
Relationship between Green Purchasing and Ecolabelling in Japan
The Eco Mark Programme was founded in 1989 and meets the principles of ISO 14020
(environmental labelling and declaration) and ISO 14024 (Type I environmental-label
display). The programme emerged out of concerns about urban pollution and global
environment issues during the 1980s (Eco Mark, 2007). A working group composed of
industry members, consumers and specialists was formed to establish the certification
criteria, and the Japan Environment Association manages the programme. The
certification criteria focus on the life cycle of products, taking quantitative analysis into
consideration to ensure selection of the least environmentally damaging product and
one that works towards sustainability (Eco Mark, 2007). The working groups make
recommendations on sustainable products to the Eco Mark Committee on Product
Categories and the public is eligible to comment on the proposal for a period of sixty
days on the Eco Mark News and Home32 pages. The Japanese GGP has adopted 94% of
the product criteria from the Eco Mark programme to guide government purchases in
deciding and selecting preferable and identifiably green products.
31 TGPA online store: http://www.buygreentw.net

32 http://www.ecomark.jp/english/index.html
74
Relationship between Green Purchasing and Ecolabelling in South Korea
The Korean Government developed the Korean Environmental Labelling programme
(KELA), which launched in 1992 and complies with ISO 14024 standards. It offers a
Type I KELA Ecolabel, and there is also an EDP (Environmental Declarations of
Products), which complies with ISO 14025 Type III Environmental Labelling, and bases
certification on LCA and quantifiable information (KELA, 2002). The EDP programme
was established in 2002 and covers nine environmental impact categories, such as
resource depletion, global warming potential, ozone depletion potential, acidification
potential, eutrophication potential and photochemical ozone creation potential (KELA,
2002).
The Good Recycled Mark was created in 1997 under the “Act on Promotion of Saving
and Recycling of Resources” and is operated by the Korean Agency for Technology
Standards, while the Energy Saving Mark was created in 1998 under the “Act on Energy
Use Rationalization” and is managed by the Korea Energy Management Corporation (Im,
2006).
In 2009, the Korea Environmental Industry and Technology Institute (KEITI) launched
all existing Korean ecolabelled products; as a subsidiary organization of the Ministry of
Environment it allows for a more harmonized movement towards GGP.
Relationship between Green Purchasing and Ecolabelling in Malaysia
Malaysia does not have a national ecolabelling programme. However, KeTTHA is
working closely with the Standards and Industrial Research Institute of Malaysia
(SIRIM) to develop standards, certifications and labelling mechanisms that would
75
facilitate the government and private sector in moving towards GP (Silivarajoo, 2010).
KeTTHA focuses primarily on green technology development. The SIRIM QAS
International33 is Malaysia’s leading certification, inspection and testing body and it has
created its own ecolabelling product criteria based on Malaysian Standards for
degradable plastics packaging material, recycled paper, biodegradable cleaning agents,
electrical and electronic equipment, and components with restricted hazardous
substances (SIRIM, 2010).
Despite these initiatives, GGP is still in its development stages in Malaysia. An NGO, the
Green Purchasing Network Malaysia (GPNM), was founded in September 2003, and
stepped in to the breach to promote GP to buyers, suppliers and manufacturers, and to
encourage sustainable consumption and production methodologies (GPNM, 2011).
GPNM’s criteria for Basic Green Purchasing consist of environmental
sustainability/conservation with consideration of price and quality, consideration of
LCA from manufacturing to disposal, energy/resource efficiency, use of materials that
are or can be recycled, a commitment to long-term use, correct utilization and
appropriate disposal of procured goods and services, reduction of pollution, and
efficient utilization of goods and services to reduce environmental impacts (GPNM,
2011). When a product complies with one or more of the Basic Green Purchasing
Criteria, it is deemed an eco-product, although GPNM does not enforce or certify
products or services.
However, as we see with other countries, an ecolabel provides a credible and identified
source of an environmentally preferable programme. The SIRIM ecolabel is a marketing
33 http://www.sirim-qas.com.my/
76
tool which allows a company to position its products as environmentally friendly, and
give its products a competitive edge over the others (GPNM, 2011). The Malaysia
EcoLabel34 provides product certification from SIRIM under a non-descript programme.
Relationship between Green Purchasing and Ecolabelling in Singapore
The Singapore Environment Council launched the Singapore Green Labelling Scheme
(SGLS) in May 1992, which is a non-profit organization working to develop and
administer green product certifications. An advisory committee supports the SGLS with
representatives from government, private and academic sectors, and statutory boards.
Singapore’s Building and Construction Authority also administers a Green Mark which
endorses environmentally friendly buildings, much like the LEED certification in the US.
Tremendous energy savings are expected from Singapore’s Green Mark35 Green
building scheme, with support from the Singapore Green Building Council, by the
provision of environmentally preferable construction products36. Existing government
buildings with an air-conditioned floor space of greater than 10,000 m2 will have to
attain the Green Mark GoldPLUS standard by 2020, which is expected to reduce energy
consumption by 25-30% with a payback period of six to ten years (MEWR & MND,
2009).
34 SIRIM Ecolabelling Scheme Brochure available at http://www.sirim-

qas.com.my/pdf/2011/brochure/SIRIM%20Eco-Labelling%2017%20Nov%202011.pdf
35 Building and Construction Authority’s Green Mark Scheme launched in 2005 to initiate the green
building sector in Singapore

(Comparable to US’ LEED)
36 Singapore Green Building Council is composed of construction companies in support of the
government to push for the construction of green buildings in Singapore http://www.sgbc.sg/
77
2.9.6 Key Elements for successful coupling of Green Purchasing and Ecolabelling
Drawing from points raised and discussed earlier in this study, and from the 2006
survey by the European Commission and the Global Ecolabelling Network (GEN),
certain key elements for success in implementation and advancement of both GGP and
ecolabelling programmes can be identified. These include:
Political support: a common main driver behind the early development and launch of
green purchasing internationally appears to have been/continues to be the
introduction and implementation of new and significant legislation (either at a national
or local level). Further, all of the well-established and positive programmes have
benefited from strong political support and endorsement not only at the outset, but on
a continuing and sustained basis. Research by Lozano et al. (2010) shows an ecolabel’s
lifespan is determined by the initial amount of support as well as continual support
from participants.
Establishment of complementary supply and demand stimulation and facilitation
programmes/initiatives: both types of programmes seem to evolve and succeed more
quickly and to a greater extent when complementary GGP and ecolabelling
programmes are in place and somewhat integrated. While GGP programmes can
function and progress without ecolabelling and some ecolabelling programmes operate
in jurisdictions that have not implemented major GPP programmes, these “stand-alone”
programmes seem less influential and successful. The Hong Kong Green Label Scheme’s
growth and expansion is limited by the non-existence of a GGP policy.
Programmes should be fundamentally similar to others, but customized to
accommodate and address local circumstances: the evolution of most of the more
78
entrenched and productive GGP and ecolabelling programmes investigated has
involved an initial pilot programme and the subsequent development, implementation
and refinement of a full-scale programme tailored to suit the local conditions (i.e.
physical, demographic, social and regulatory). Clearly, programmes have been
successfully developed and implemented under a wide range of national cultures and
local conditions (i.e. urban, rural, and mixed). This suggests that, in principle, there are
no particular reasons why such programmes could not be applied successfully
elsewhere, provided that sufficient account is taken of local conditions during their
development and operational management.
Importance of a public education campaign: a common point of emphasis has been the
importance of carrying out an effective public education campaign prior to and during
the implementation of the programmes. In some cases, the public education campaign
has been continued to sustain and enhance programme awareness, interest, and
involvement levels.
2.9.7 Limitations of ecolabelling
One main inherent limitation with ecolabels is that they do not address the total
consumption and the consumer behaviour. Information on the sustainability
performance of a product will not be enough, since in many situations the most
sustainable alternative is no purchase at all. The need for more research on how to
motivate and foster sustainable consumption is recognized, and this issue needs to be
addressed in a trans-disciplinary approach. As regards green procurement criteria,
these too do not directly address the total consumption of the procuring organization.
However, the full mission of green procurement does, as part of an organizational
79
strategy for procurement processes. Further, although both instruments strive to take a
life cycle perspective, neither of the instruments is today efficiently affecting the user
phase and the end-of-life phase of the product, since these phases take place after the
verification. However, the actors within those phases are important participants in the
recommended enhanced criteria development process and in the resulting stakeholder
dialogues. It should be possible to require suitable user information and disassembly
manuals in the criteria (Thidell, 2009).
Another problem for both ecolabelling and green procurement is the verification
possibility. Since every criterion should be possible to verify, either by a labelling
programme or by some other authorized body with higher local presence. This
process restricts the way in which the criteria can be phrased and the aspects that are
possible to include in them.
Mandatory labels via government interventions may be a better solution in the
following circumstances:
1. For sectors with imminent sustainability impacts such as the building or energy
industry.
2. Products which the labelling programmes do not want to make ‘legitimate”’ as an
ecolabel may stimulate greater consumption of these products and result in a
negative overall impact on the environment (Dosi and Moretto, 2001). Examples of
these products are cigarettes and weapon.
2.10 Summary
The subject literature review has examined the current literature in relationship to the
models of success in green purchasing in various countries and the criteria used to
judge success. This review has identified the current stakeholders involved in order to
80
have an optimal outcome. Due to the international scope of this thesis, all monetary
figures have been converted to USD; rates are based circa January to May 2011.
Although the current literature neither presents a unanimous single model nor method
of measuring success, the review has shown the various stages in the development of
constructs, and articulated the latest theories and challenges to them.
81
Chapter 3 Research Methodology
3.1 Introduction
The research question and research objectives were outlined in Chapter 1. The purpose
of this chapter is to:
• Discuss the research philosophies;
• Explain the research approach;
• Expound the research strategy.
Within the literature review there are various research models on green purchasing for
public (Gelderman, 2006) as well as business sectors (Bansal, 2000). This chapter
details the development of the current hypotheses and the statistical methods
employed to test them. This will enable the reviewer to consider the reliability and
validity of the methods used.
3.2. Research Philosophy
A research philosophy is a belief about the way in which data about a phenomenon
should be gathered, analyzed and used. The term epistemology (what is known to be
true) as opposed to doxology (what is believed to be true) encompasses the various
philosophies of research approach. The purpose of science, then, is the process of
transforming things believed into things known: doxa to episteme. Two major research
philosophies have been identified in the Western tradition of science, namely positivist
(sometimes called scientific) and interpretivist (also known as anti-positivist) (Galliers,
1991).
82
3.2.1. Positivism versus Interpretivism
Positivists believe that reality is stable and can be observed and described from an
objective viewpoint (Levin, 1988), i.e. without interfering with the phenomena being
studied. Interpretivists contend that only through the subjective interpretation of and
intervention in reality can that reality be fully understood. The study of phenomena in
their natural environment is key to the interpretivist philosophy, together with the
acknowledgement that scientists cannot avoid affecting those phenomena they study.
Positivism adopts a clear quantitative approach to investigating phenomena as
opposed to interpretivist approaches, which aim to describe and explore in depth
phenomena from a qualitative perspective. As stated by some contemporary scholars,
while quantitative and qualitative research methods are often seen as opposing and
polarized views, they are frequently used in conjunction with one another (Webb 1989,
Polit, 2001).
3.2.2 Discussion and Rationale for Choice of Approach
This researcher’s over-riding concern is that the research undertaken here should be
relevant to the research question. Green purchasing is a human behaviour with feelings
beyond the scope of positivism. This thesis has adopted a mixed approach with multi-
methods for data collection. This has been described as critical multiplism (Guba and
Lincoln 1998). It implies that, as in positivism, the need for rigour, precision, logical
reasoning and attention to evidence is required, but, unlike positivism, this is not
confined to what can be physically observed. Multiplism refers to the fact that research
can generally be approached from several perspectives. In this research, the researcher
has tried to avoid what may be characterized as methodological monism, i.e. the
83
insistence on using a single research method. This is not due to an inability to decide
between the various merits and demerits of the various alternatives. Instead, the
researcher believes that all methods are valuable if used appropriately; that research
can include elements of both the positivist and interpretivist approaches, if managed
carefully.
3.2.3 Research Strategy
In testing the validity of the hypotheses on the uptake of green purchasing, the
researcher has embraced the positivist philosophy to verify statements through
examination and observation of external reality. As this research seeks to have a broad
overview of the uptake of GP domestically, ‘survey methods’ have been selected. Survey
methods have the major advantages of overcoming geographical limitations and are
accessible to a large number of organizations. A short questionnaire with four
questions (Appendix B) was prepared and distributed in three formats - an online
version, MS Word and PDF to target groups. Quantitative analytical techniques were
then used to draw inferences from this data regarding existing relationships. The later
part of this chapter will explain the construct measurement of research constructs and
hypotheses to be tested.
A key weakness in the quantitative survey is that it is very difficult to understand the
causes of or processes involved in the phenomena measured. Hence, a qualitative
survey with open-ended questions on green purchasing was delivered to respondents
in a follow-up study. The use of flexible and multiple methods is desirable when
studying a small sample in depth over time. The researcher interacts with those being
researched, and findings are the outcome of this interactive process, with a focus on
meaning and understanding the situation or phenomenon under examination.
84
In summary, this thesis is composed of two phases. Phase I study uses a quantitative
approach to verify the hypotheses whereas Phase II study is a qualitative study to
investigate the opinion of the respondents on the barriers and possible solutions to
engaging green purchasing.
3.3 Theoretical framework
This section proposes hypothesized variables to explain the implementation and non-
implementation of green purchasing in the private sector, which are based on the
literature study and the interviewing of 12 experts. These 12 experts come from
government, international theme parks, academic institutions, property development
and transportation. The average number of purchasing staff directed by these experts is
47. The exploratory variables in this study are clustered into four groups: Institutional
Guidance, Requirement and Commitment, Competitors’ Influence and Barriers.
The point of departure for the hypotheses is the professional engagement of the author
as an executive in a non-government organization for ‘environmental causes’ in Hong
Kong. The researcher has crossed paths with local and overseas corporations,
government agencies and other NGOs. This professional engagement provides the
author with a bird’s eye view as well as an insider’s view of the development of green
purchasing in Hong Kong and its neighbouring countries. It also allows the author to
comprehend the limitations of the business sector in a pragmatic manner. In view of the
explorative nature of this study and the relatively primitive state of GP in the domestic
business sectors, the conceptual model focuses on environmental and economic
dimensions only. Discussion of social and ethical issues is limited to dialogue with
professional procurers in the follow-up study.
85
The establishment of a theoretical foundation is critical for all scientific research since
it serves an important role in defining, establishing and explaining relationships
between concepts or constructs. It is difficult to develop meaningful relationships from
empirically generated data without theory. Based on the hypothesized variables, the
researcher has proposed a conceptual framework (Figure 4) that draws on a model of
the influences of procurement directives upon compliance among procurement
professionals in the EU (Gelderman et al., 20063). The current model provides a general
framework to examine the facilitators and barriers of implementing green purchasing
policies in companies. The thesis will then present the design of a survey among
purchasing officers/managerial officers to test the hypothesis. The result will answer
the research question: “What are the drivers and barriers of green purchasing in the
business sector of Hong Kong?”. It provides evidence-based direction to help companies
in Hong Kong from the perspective of a third-party NGO.
Procurement studies in European firms and the US are voluminous; this study is the
first of its kind in Hong Kong. It seeks to contribute to green purchasing literature in
regions with a similar dilemma to Hong Kong. This study makes one particular
contribution: the researcher has modified a conceptual model designed for Government
Green Purchasing to study private green purchasing. This framework could be used for
analysing other factors that may affect green purchasing in public and private sectors.
Secondly, the investigation and result discussion is analysed from the perspective of an
NGO who has a mission to support the private sector. The list of facilitators and barriers
for study is not designed to be exhaustive. Selection depends on whether the result is
going to help a local NGO to plan a strategy in supporting the business sector in green
purchasing. For example, a third party has no immediate influence on a business’
86
financial capability regarding environmental management cost, although it is one of the
major barriers studied in major literature (Min and Galle, 2001).
Sustainability is a three-pillared principle of harmonizing social, economic and
environmental systems and goals in the form of efficient resource use, ecological
balance, social equity, economic stability, and environmentally accountable production
and consumption patterns. The three areas are so strongly interdependent that only
progress that is parallel will be successful over the long term (Schrader, 2010).
However, this is an exploratory study of a group of subjects where the investigator was
unsure of their understanding of sustainability purchasing. It was therefore decided not
to push too far for the time being and social equity was left out of this study.
87
Interrelationship among Research Constructs
Exploratory Variables
This section proposes hypothesized variables to explain the implementation and non-
implementation of green purchasing in the private sector. The exploratory variables in this
study are clustered into four groups: Institutional Guidance, Requirement and Commitment,
Competitors’ Influence and Barriers.
Carter et al. (1998) tested the company-specific factors of top and middle management
support, mission statement, departmental goals, and training and evaluation for their
respective impacts on environmental purchasing. Also, they compared German purchasing
managers’ involvement in environmental purchasing with that of US purchasing managers.
Their findings suggest that middle-level purchasing managers can at least facilitate
incremental adoption of environmental purchasing activities. Purchasing department goals
had a significant relationship with environmental purchasing. This finding may be due to
the need for functional and departmental goals to address organizational inefficiencies and
provide strategic direction. Carter and Carter (1998) developed an empirically theoretical
model that examines how inter-organizational factors both drive and constrain purchasing’s
involvement in environmental activities. Four external forces - customers, suppliers,
competitors, and government agencies - were tested in relation to purchasing activities. The
results indicated that the output sector (downstream channel members) was the primary
driver of environmental purchasing, while the regulatory sector did not have significant
impact.
88
Factor A: Institutional Guidance
With support from the United Nations Environment Programme (UNEP) and initiatives such
as the International Green Purchasing Network, green purchasing in Asia is picking up fast.
Many countries have formulated GP policies, regulations and guidance to promote green
purchasing. Regulations and laws relating to green purchasing in the public sector are
instituted in South Korea, Japan, and Taiwan. Government regulations are generally
considered as important drivers of green purchasing (Walker, 2011). However, government
regulatory green purchasing compliance has not been included in this study because there
is no such law in Hong Kong. Lobbying for legislation is not the objective of this study, and
the researcher has repeatedly stressed that this thesis is intended to study ways to help the
business sector rather than finding ways to punish businesses for their non-compliance.
Government involvement is a complex issue. Governments need to be involved if there is
any expectation that they will integrate the voluntary initiatives into their own policy
framework and incentive structures. Government involvement can also help foster public
confidence in and acceptance of the initiative. However, it needs to ensure that
government’s initiatives are not construed as a non-tariff barrier to trade, which could
happen if governments are seen to be imposing schemes with standards that foreign
competitors are not able to meet.
However, the researcher does intend to investigate government policies that could support
green purchasing in Hong Kong. At this moment, there is not much incentive in the form of
recognition or financial aspects nor is there guidance from the government on GP in the
business sector.
89
This thesis will examine the importance of institutional guidance in the uptake of green
purchasing. Both government departments and NGOs are considered as institutions in this
study. These five items are listed in the questionnaire (question 4):
Government “Lead by example” (Kunzlik 2003).
Identification of green commodities (Leire et al., 2005)
Provision of training courses (Leung, 2003)
Information dissemination (Ramayah et al., 2010)
Recognition of achievement (Loo, 2004)
Hypothesis 1: Institutional guidance is an important facilitator of private green purchasing.
Factor B: Requirement and commitment
Government regulations and legislations have been traditionally considered as the most
important external factors driving companies and government departments to go green
(Green et al, 1998, Zhu and Sarkis, 2008). According to the guidelines set by the
International Chamber of Commerce (ICC), the environmental audit programme should
entail the implementation of a company-wide environmental policy that facilitates
continuous environmental performance improvement and promotes green purchasing
(Weinstock, 1993). With increased concern over environmental liabilities, the buying firms,
which take environmental regulatory compliance more seriously, tend to get involved in
green purchasing practices more actively than the others. Such a tendency seems to be
more prevalent among large firms than small firms (Min and Galle, 2001).
Government green purchasing stems from national policy: if public purchasers do not
comply with GP requirements, finance departments may refuse payment (Kataoka, 2006).
90
In the private sector the government is simply not able to enact financial penalty in
accordance with the purchasing behaviour of the companies. Furthermore, compliance with
environmental legislation is no guarantee for improved environmental performance
(Bowen et al., 2001a; Carter and Carter, 1998). Hong Kong is thriving in a free market with
minimal intervention and regulation from the government. Companies and society at large
are generally sensitive to and against stringent regulations. Successful experience of strong
government interventions may not be applicable in this city, and is one of issues studied in
this thesis.
On the other hand, internal drivers such as top-level management commitment are found to
be equally if not more important (Walker & Jones, 2012; Walker et al., 2008). The larger
businesses have been the pioneers in embracing the concept of green purchasing and the
focus of numerous studies (Zhu, and Sarkis, 2004). Large customers may influence smaller
suppliers to meet sustainable SCM practices, and exert pressure in the supply chain (Baden,
2009). Specifically, the follow questions in this factor box will be explored:
Government requirement
Tendering requirement of clients
Top management’s commitment
Hypothesis 2: Requirement from government or clients and commitment from top
management are important drivers for green purchasing in companies.
Factor C: Competitor Influence
Gaining competitive advantage in terms of financial return and public image are important
drivers for green management practices (Porter and Van de Linde, 1995; Walker 2008).
91
Proactive environmental strategy from competitors could set industry norms or legal
mandates that drive technical innovations for other companies to follow (Caldwell et al.,
2005). This is particularly important for large corporations that have to follow international
trends. Competition pressure could also come from affiliated companies or divisions within
a corporate organization (Hanna et al., 2000, Rao & Holt, 2000). A study (Bansal & Roth,
2000) indicated that the frequency of interactions and resource dependencies increased
interconnectedness within the field, as organizational members transferred their
understanding of the organizational environment, including the natural environment, to
each other. Proximity further facilitated these transfers. As DiMaggio and Powell (1983)
predicted, shared understandings resulted in the mimicking of each other's actions. In this
box, the following questions will be explored:
• Efforts taken by other progressive Hong Kong companies
• Efforts taken by affiliated companies/divisions within the corporation
• Efforts by direct competitors
• International trends
Hypothesis 3: External and internal competitors have a positive impact on private green
purchasing.
Factor D: Barriers of Green Purchasing
Historically, cost has been used as the prime performance measure. An investigation of
green purchasing practices in US firms showed that cost concerns are the most important
barrier for not taking environmental factors into account in the purchasing process (Min
and Galle, 2001). It is not intended to include this factor in this study because it is not an
item that could be helped by a third-party NGO even though the answer is written on the
92
wall. Beyond mere cost, the influence of environmental value for money in relation to GP
(Rao and Holt, 2005) was considered equally important. Training and education are the
prime requirements to achieve successful implementation of green initiatives in companies
(Ravi & Shankar, 2005).
For instance, inadequate training leads to difficulty in preparing procurement specifications
(Bowen et al., 2001). Purchasing managers also found it difficult to integrate ethical issues
in their buying (Cooper et al., 2000) and ‘environmental illiteracy’ is widespread in small
companies. Organizations may provide rewards for green employees. Employees may be
helped when they face green problems and may be provided with support to learn green
information (Cater and Dresner, 2001). Absence of green alternatives, lack of customer
pressure and suboptimal socio-economic infrastructure are particularly detrimental to GP
in developing countries (Luthra et al., 2011). In particular, the following barriers will be
investigated:
• Perceived poor efficiency
• Difficulty in integrating GP policy
• Insufficient in-house knowledge
• Insufficient supply of product or service.
• Inadequate guidance
• Insufficient internal incentive
Hypothesis 4: Internal and external barriers have a negative impact on implementing green
purchasing.
93
Implementation of Green Purchasing Policy or
Institutional Guidance +
Requirement and Commitment +
Practices
Competitor Influence +
Barriers to GP -
Figure 4: Conceptual model of the influence upon green purchasing in the private
sector
The hypothesized variables impacting uptake of GP in private companies are illustrated in
Figure 4. The model posits that institutional guidance, requirement and commitment, and
competitor influence positively contribute to GP. In addition, the model predicts that
companies tend to comply less with GP when they encounter the situations listed in the
barrier box.
94
Hypotheses to be tested
Hypothesis 1: Institutional guidance is an important facilitator of private green purchasing.
Hypothesis 2: Requirement from government or clients and commitment from top
management are important drivers for green purchasing in companies.
Hypothesis 3: External and internal competitors have a positive impact on private green
purchasing.
Hypothesis 4: Internal and external barriers have a negative impact on implementing green
purchasing.
3.4 The Survey
The most important methodological challenges of a survey methodologist include making
decisions on how to:
• Identify and select potential sample members.
• Contact sampled individuals and collect data from those who are hard to reach
(or reluctant to respond).
• Evaluate and test questions.
• Select the mode for posing questions and collecting responses.
• Train and supervise interviewers (if they are involved).
• Check data files for accuracy and internal consistency.
• Adjust survey estimates to correct for identified errors.
(Groves et al., 2009)
95
3.4.1 Sampling Plan
Since there is no local database of procurement professionals in the private sector, the
sample is based upon contacts of the Green Council gathered over the years. It could be
postulated that at least some level of environmental awareness is present in the contacts,
which decreases the strength of random sampling. This is not considered to affect the
validity of this study, as it does not intend to explore the prevalence of companies with a
green initiative.
The survey took place between February and October 2009. over 8,000 contacts were
approached via email or telephone. Questionnaires were distributed and returned via email,
facsimile and mail during the period from February to October 2009. At the same time, the
questionnaire was posted on the Green Council and Hong Kong Green Purchasing Charter
(HKGPC) websites in order to expand the spectrum of the potential recipients. As a further
measure to increase the response rate and ensure responses from key sources, telephone
surveys were conducted incorporating the simple questionnaire.
Methods to increase response rates:
1. Respondent-friendly survey questionnaire - a brief, closed-ended dichotomous
format.
2. Invitations were sent out from the Green Council, which is a contact of the
respondents.
3. Multiple requests.
4. Convince respondents that they can make a difference.
96
3.4.2 Questionnaire Design
The questionnaire targets firms’ representatives; there are 20 items for the five constructs.
The respondent has to answer in a closed-ended dichotomous format for the purpose of
statistical analysis. The constructs are: (1) Implementation of Green Purchasing, (2)
Institutional guidance, (3) Requirement and commitment, (4) Competitor influence, and (5)
Barriers. Among the 206 respondents, 60 procurement officers were invited for a phase II
qualitative survey using the same set of questions but put in an open-ended format.
3.4.3 Response
There were 206 respondents (response rate: 2.5%) from different business sectors (Table
3). One hundred and four respondents (50.5%) came from small and medium-sized
enterprises’ (SMEs) personnel and 102 (49.5%) from large corporations (LCs)37 All
respondents were managerial level or above, but were not limited to procurement officers.
Around 50% of all the respondents identified that their companies had GP in place.
The potential for non-response bias was tested using the procedure recommended by
Armstrong and Overton (1977) in which the data is classified into a first category of
returned questionnaires (first-wave, early respondents) and a second category of returned
questionnaires (second-wave, late respondents). To establish the presence of non-response
bias, first-wave respondents were compared with second-wave respondents on relevant
variables. All tests indicated that no statistically significant differences were found between
the first wave and the second wave of respondents. Based upon the assumption that late
37In accordance with the Industrial Department’s definition, an SME is: a) any manufacturing business
which employs fewer than 100 persons in Hong Kong; or b) any non-manufacturing business which
employs fewer than 50 persons in Hong Kong
97
respondents are similar to non-respondents, it is concluded that the study does not suffer
from non-response bias.
98
Table 3: Composition of Respondents (total 206) from Different Business Sectors
Number of Percentage
Business Sectors
Respondents (%)
Accountancy 1 0.5
Architectural, surveying and planning 6 2.9
Agriculture and fisheries 2 1.0
Commercial 5 2.5
Education 8 3.9
Engineering 12 5.9
Finance 3 1.5
Financial services 1 0.5
Health services 2 1.0
Import and export 14 6.9
Industrial 19 9.3
Information technology 14 6.9
Legal 3 1.5
Medical 5 2.5
Real estate and construction 16 7.8
Social welfare 12 5.9
Sports, performing arts, culture and publication 3 1.5
Textiles and garment 1 0.5
Tourism 4 2.0
Transport 7 3.4
Wholesale and retail 10 4.9
Catering 3 1.5
Consulting 9 4.4
Government affiliated bodies 2 1.0
Laboratory 2 1.0
Manufacturer 10 4.9
Utilities 5 2.5
Certification Service 3 1.5
NGO 5 2.5
Other38 17 8.3
38 Other industries included art production and supply, office retail, cleaning supplies/services,
electronic industries, event/exhibitions management, interior design, pest control, printing, public
services, research, and trade promotion.
99
3.4.4 Data Analysis Procedure
SPSS for Windows version 17 was used for analysis.
The correlation between SME and LC and the existence of green purchasing policy
ANOVA was examined with analysis of variance between the means of groups.
Exploratory Factor Analysis
In conducting a survey study, it is necessary to generate a large dataset, as it is difficult
to interpret results from scattered questionnaire items. In view of that, social scientists
often utilize statistical methods to extract meaningful items. ‘Exploratory Factor
Analysis’ is developed aiming to constitute underlying ‘factors’ from the large dataset
and it is always used to test the dimensionality of the dataset in order to generate new
factors for further analysis. Exploratory factor analysis was used to assess the validity
of the constructs and to identify a possible underlying factor structure.
Factors with underlying meanings are constituted by EFA based on the pattern of
responses. Factor loadings of each item show the association between those particular
factors with question items. It should be cautioned that only a factor loading greater
than 0.4 should be considered during interpretation. The factor solutions confirmed the
intended factor structure, i.e. the resulting components were clearly related to the
items that were supposed to constitute the corresponding constructs. Indeed, the items
that should be related were strongly correlated (convergent validity); the items that
theoretically should not be related did not correlate (discriminant validity).
100
It is often found that one question item loads on two or more factors significantly.
Rotation can be adopted in this condition to differentiate it from others. Varimax
rotation, aiming to minimize within factor variation, but to maximize the variations
between factors, is often used to generate distinctive factors.
Regression Analysis
To find out causality is always the objective of research study. Multiple regression
analysis, a more advanced method than correlation, can explain how the independent
variable could explain the dependent variable and whether it is statistically significant
or not.
Regression coefficient indicates the effect of independent variable on dependent
variable, with the range from -1 (perfect negative relation) to +1 (perfect positive
relation). The closer to 1, the higher the possibility that the variance of dependent
variable could be accounted for by that independent variable.
Multiple regression analysis has commonly been used in green procurement studies to
reveal the determinants of companies in implementing green procurement policies
(Gelderman et al., 2006; Min and Galle, 2001). Similarly, this research adopts the same
approach to understand those determinants in a local context.
101
3.5 Chapter Summary
Following a review of the literature this chapter provided the rationale for considering
the methods appropriate to answering the researcher’s question and objectives. The
researcher has articulated the research approach to be adopted and provided clear
justifications throughout this chapter of why certain research choices were preferred
over others.
102
Chapter 4 Results
4.1 Introduction
This chapter outlines the findings of the questionnaire surveys. Details of statistical
methods and analysis are laid out.
4.2 Effect of company size on green purchasing implementation
Question 1 looked into the relationship of green purchasing implementations in SMEs
and large corporations. A one-way between subjects ANOVA was conducted to compare
the effect of company size on green purchasing implementation (Tables 4 and 5). There
was no significant effect of company size on the implementation of green purchasing
policy at the p<.05 level for the three conditions [F(1, 204)=2.343, p=0.127].
103
Table 4: Response rate of GP policy implementation to size of company
Study group Yes GP No GP Total
Large Corporation 54 48 102
Small Medium Enterprise 50 54 104
Total 104 102 206
Table 5: ANOVA results between LC and SME on GP
q1
Sum of Mean
Squares df Square F Sig.
Between 2.34
.585 1 .585 .127
Groups 3
Within
50.910 204 .250
Groups
Total 51.495 205
104
4.3 Construct validity
Exploratory factor analysis was used to assess the validity of the constructs and to
identify a possible underlying factor structure. To simplify the dataset and to identify a
possible underlying factor structure, exploratory factor analysis was applied for items
related to the hypothesized facilitators (Questions 2, 3 and 4) and barriers (Question 5)
respectively.
Hypothesized Facilitators (Factor A-C)
For the hypothesized facilitators, two rounds of Exploratory Factor Analysis (EFA)
were used (Tables 6a and 6b). In the first run, most items loaded heavily on more than
one factor and distinct factors with underlying structure could not be identified (Table
6a). Therefore, EFA with varimax rotation was performed. Varimax rotation can
maximize the difference inter factors. It also serve to minimize variation within that
particular factor so as to gauge more distinct factors for further analysis (Table 6b).
105
Table 6a: First run of EFA – no distinguishable results
Factor A Factor B Factor C
q2a .503 .653 .291
q2b .592 .567 .084
q2c .414 .465 .387
Q3a .582 .052 -.574
Q3b .669 .138 -.295
Q3c .593 .162 -.515
Q3d .302 -.433 .024
Q4a .499 -.295 .139
Q4b .510 -.245 .337
Q4c .657 -.413 .127
Q4d .605 -.372 .145
Q4e .672 -.263 .090
Eigenvalues 3.764 1.725 1.102
% of Variance 31.363 14.373 9.182
106
Table 6b: Second run of EFA with varimax rotation
Factor A Factor B Factor C
q2a-gov .025 .859 .160
q2b-Tendering .071 .737 .362
q2c-Top .118 .724 .000
Q3a .169 .032 .801
Q3b .269 .270 .639
Q3c .126 .148 .778
Q3d .494 -.173 .078
Q4a .579 .076 .119
Q4b .622 .213 -.027
Q4c .759 .055 .197
Q4d .703 .070 .161
Q4e .660 .156 .261
Eigenvalues 3.764 1.725 1.102
% of Variance 31.363 14.373 9.182
Cronbach's .738 .730 .702
alpha
107
After the second round of EFA, three distinct factors could be generated and all the
factors could account for 55% of variance. The first factor comprises Q6d and all the
items from Q4, while the second factor contains only items in Q2. And the third factor
consists of question items Q3a to Q3c, which are of similar properties.
A reliability analysis has been performed in order to ensure the internal consistency of
the indicators that constitute each construct. Cronbach’s alpha is a measure of the
degree to which the items reflect the same underlying construct and therefore the
scale’s internal consistency. The Cronbach’s alpha coefficient of a scale should be above
0.6. Cronbach’s alpha is:
- 0.738 for Institutional Guidance (Factor A)
- 0.730 for Requirement and Commitment (Factor B)
- 0.702 for Competitor Influence (Factor C)
- 0.719 for Barriers (Factor D).  
The result of the reliability analysis indicates an acceptable internal consistency and
reliability of the constructs.
Hypothesized Barriers (Factor D)
Similarly, EFA has been performed for Q5a to Q5f, which were designed to measure the
deterrents of GP implementation (Tables 7a and 7b). The result shows that all the items
fall heavily on the first factor and the percentage of variance explained could be as
much as 42%.
108
It may be argued that this box should be divided into two factors, yet the eigenvalue of
factor 2 is barely above 1 and the explanatory power is 25% lower than the first factor.
In addition, the item-total statistics obtained by the reliability test of the first barrier
factor (Table 7a) show that any deletion of questionnaire items would lower the
Cronbach's alpha. In that case, it is advised that all these six items should be treated as
one combining factor.
109
Table 7a: Barriers’ EFA
Factor 1 Factor 2
q5a .478 .493
q5b .635 -.486
q5c .782 -.020
q5d .587 .614
q5e .781 -.030
q5f .581 -.429
Eigenvalues 2.536 1.042
% of Variance 42.261 17.370
Cronbach's .719
Alpha
Table 7b: Cronbach’s alpha for Item-Total

Cronbach's Alpha if Item
Deleted
q5a .718
q5b .686
q5c .638
q5d .697
q5e .637
q5f .700
110
4.4 Regression Analysis
Multiple regression analysis has been performed to determine the influence of the
above variables on the implementation of Green Purchasing policy. Three distinct
regression equations, one for all companies and the other two for large corporations
and small-to-medium sized companies respectively, have been generated using Q1
(implementation of GP) as the dependent variable, and the coefficients of the above
factors generated in the factor analysis formed independent variables (Tables 8a, 8b
and 8c).
These three distinct equations could be used to identify the facilitators and barriers for
all companies in general and also the factors for large corporations and SMEs
separately.
111
Table 8a: Step One: Hypothesized Facilitators of GP
Factor A: B: Requirement C: Competitor
Question Institutional & Commitment Influence
Guidance
Q2a-Gov .025 .859 .160
Q2b-Tendering .071 .737 .362
Q2c-Top .118 .724 .000
Q3a-Other HK .169 .032 .801
Q3b-Within Corp .269 .270 .639
Q3c-Direct .126 .148 .778
Competitors
Q3d-Intl Trends & .494 -.173 .078
Efforts
Q4a-Lead Example .579 .076 .119
Q4bb-Identification .622 .213 -.027
Q4c-Training .759 .055 .197
Q4d-Information .703 .070 .161
Q4e- Recognition .660 .156 .261
Eigenvalues 3.764 1.725 1.102

% of Variance 31.363 14.373 9.182
Cronbach's Alpha .738 .730 .702
112
Table 8b: Step 2: Hypothesized Barriers of GP
Factor/Questions Barriers
Q5a .478
Perceived inefficiency in expenditure
Q5b .635
Difficulty in integrating policy
Q5c .782
Insufficient knowledge
Q5d .587
Inadequate supply of products/service
Q5e .781
Inadequate guidance/training
Q5f .581
Insufficient internal incentives
Eigenvalues 2.536
% of Variance 42.261
Cronbach's Alpha .719
113
Question 5 investigated the major deterrents to GP implementation.
In order of strongest to weakest barrier, they were:
(e) Inadequate guidance and/or training on GP implementation
(c) Insufficient in-house knowledge for identification of “green” products/services
(b) Difficulty in integrating GP policy into the company’s existing policy
(d) Inadequate market supply of “green” products/services for comparison and
selection
(f) Insufficient internal corporate incentive
(a)Increases in expenditure without significant improvement in environmental
performance
Step 3: Regression Analysis
Multiple regression analysis has been applied, in order to determine the influence of
the exploratory variable on the uptake of GP. The overall fit of the model can be
assessed using the F-value and is statistically significant at P < 0.01. The researcher
developed three equations to assess the model in three situations. Using Q.1
(implemented GP or not) as the dependent variable, the following analysis examines
the effects of exploratory factors A to D (Tables 9a, 9b and 9c).
Equation 1 assessed all companies irrespective of size; equations 2 and 3 assessed LCs
and SMEs separately.
114
Table 9a: Regression Analysis for all respondents
Equation 1: All respondents (n=206)
Beta Sig.
Constant .502 .000
Factor A (from step 1) .286 .000
Factor B (from step 1) .351 .000
Factor C (from step 1) .150 .041
Factor D (from step 2) -.183 .022
F = 14.063** Note: ** p=.01
Note: The above equation could explain 22% of all variance (with R2 = 0.22)
Table 9b: Regression Analysis for Large Corporations

Equation 2: Large corporations (n=102)
Beta Sig.
Constant .490 .000
F = 4.041** ** p=.01
Note: The above equation could explain 14.7% of all variance (with R2 = 0.147)
Table 9c: Regression Analysis for SMEs
Equation 3: SMEs (n=104)
Beta Sig.
Constant .498 .000
F = 9.622** Note: ** p=.01
The above equation could explain 28.8% of all variance (with R2 = 0.288).
115
4.5 Summary of Results
This study shows that, in Hong Kong, the size of the companies does not affect the
adoption of green purchasing policy.
The following variables are found to exert significant influence on green purchasing
implementation:
• Institutional Guidance (positive).
• Requirement and commitment (positive).
• Perceived barriers (negative).
These results imply a confirmation of Hypotheses 1, 2 and 4. For the competitor
influence construct, no significant impact could be established in this model. Based on
the regression analysis, hypothesis 3 is not supported.
116
Chapter 5 A Follow-up Survey
5.1 Background
To further evaluate the barriers and facilitators identified in the returned questionnaire,
the respondents were invited to participate in a more in-depth survey through either
face-to-face or telephone interviews.
5.2 Method: Descriptive Research
The researcher employed Descriptive research w in this survey. In survey method
research, participants answer questions administered through interviews and
researchers describe the responses given. In order for the survey to be reliable and
valid, it is important that the questions are constructed properly. Without any clear
guidelines, a conversational interview in this setting might not give the answers needed
in the analysis. And analysing without any factors supporting and directing the analysis
might give it a lack of focus into a loose sample of quotes and statements.
The interview protocol in this follow-up survey is developed on the basis of reviewed
literature and the discussions with two green management experts from large
corporations. The major aim is to explore the ways to overcome the obstacles of green
purchasing and putting the drivers into action. The conceptual model is used as a
framework supporting the structure of the interview.
To allow for a greater variety of responses from participants, the researcher used the
open-ended question format. Interviews were taped and transcribed. Secondary data
were collected such as annual environmental and financial reports, environmental
policies, supplier evaluation questionnaires and internal newsletters. The transcripts
117
were coded using themes identified in the literature and from actual terms used by
interviewees. There were two interviewers, who independently coded and compared
their coding structures to ensure similar themes were emerging. Quotes that best
explained a particular situation were chosen to illustrate key points.
5.3 Sample Data
A total of 60 respondents agreed to participate – thirty-three affiliated with SMEs and
twenty-seven affiliated with large corporations. All organizations were from Hong Kong.
One-third of the respondents were operational management representatives of their
companies including managers, general managers, senior managers, marketing
managers and assistant general managers. The remaining respondents comprised:
executive management officials including executive directors, principal management
directors, chief executive officers and directors (17%), procurement and finance
department officials (15%), environment department officials (10%), corporate
services officials (10%), and company officials representing other divisions. Based
upon the responses recorded, twenty-seven of the sixty companies represented already
had GP policies, procedures and/or regulations in place.
118
5.4 Findings
5.4.1 Obstacles in the words of procurers
Increases in expenditure without significant improvement in environmental
performance
A common opinion expressed was that companies should be willing to continue GP
practices for the sake of the environment. It was also suggested by several
commentators that, with product design improvements, technological advancements
and potential scaling up of market size, green products and services’ prices would likely
decrease. One other comment was that continued purchasing of a particular and more
expensive “green alternative” product would be contingent upon not only price and
environmental performance considerations, but also upon determination of good
overall product quality and fitness for purpose.
“Constraints on technological advancement, incompatible price cost and
availability of green products hinder GP development”
Difficulty in integrating GP policy into a company’s existing policy(ies)
Several respondents suggested that green purchasing (GP) initiatives and activities
could be introduced and embarked upon through a “case-by-case” arrangement, with
efforts subsequently made to try to integrate the GP processes and procedural
initiatives as far as possible into the existing core policy (ies) of the company. It was
pointed out that this would provide time for pertinent management and staff to
establish and get comfortable with the new systems and efforts as well as to arrive at
suitable means to integrate GP policy aspects into or formulate complementary policy
to existing core policy. There was a strong view expressed and shared that senior
119
management commitment and instruction to formulate and integrate policy is/would
be essential. One final comment was that, if green purchasing were to become a
legislated private sector requirement, it is probable that all Hong Kong companies
could and would find a way to achieve policy integration.
“Sharing of GP information is difficult as companies tend to keep
information confidential because green product can benefit themselves
and also their competitors”
Insufficient knowledge on identification of “green” products/services
It was proposed that support - training, information dissemination, etc. - from other
professional, non-profit and government entities could greatly assist business
managers in introducing and educating their staff on GP considerations and practices.
Further, the commentators suggested that GP would become much more significantly
and broadly adopted if public authorities would: (i) take the lead in determining
“greener” products and services, (ii) identify and distinguish these environmentally
preferable products and services through the application of a standardized
environmental label (or some other recognition means), and (3) provide private sector
purchasing authorities and officials with corresponding awareness-raising sessions (e.g.
workshops, seminars, etc.) and training opportunities.
“Inadequate knowledge of GP”
“Sharing of GP information is difficult as companies tend to keep
information confidential because green products can benefit themselves
and also their competitors”
120
Inadequate supply of “green” products/services for selection in the market
While suggesting that, by acting collectively, companies may be able to apply some
pressure/influence on suppliers to offer “green” alternatives, an interesting perspective
offered by several commentators was that the Government should lead in this regard
and is well positioned, as a very large volume purchaser of a wide range of products
and services, to exert much greater influence and positively stimulate market supply
and demand. Another interesting suggestion was that there should be greater effort
and attention applied to educational and promotional initiatives targeted at and for the
benefit of locally-based supply industries and businesses. This suggestion was based
upon an observation that most GP practitioners in Hong Kong were generally seeking
and sourcing green products and services from overseas suppliers.
“Constraints on technological advancement, incompatible price cost and
availability of green products hinder GP development”
Inadequate guidance and/or training on GP implementation
Several commentators suggested that current and potential GP practitioners should
seek information, raise awareness, and share experiences and accomplishments
through various means including: the Internet, workshops, exhibitions and seminars.
While recognizing that such efforts could be time consuming and may incur costs, they
stressed that valuable insight and guidance could be achieved through these means.
Further, and in this regard, they expressed a desire to have the Government and other
relevant professional bodies consult with local companies and other relevant
121
stakeholders and then prepare and offer comprehensive GP guidelines and training
courses customized to recognize and address local conditions and needs.
“Lack of support from the government (e.g. policy) and social concern about
GP”
Insufficient incentive in terms of financial support and commitment from top
management
It was proposed that, if strong senior management support and incentive does not exist
within a company, the implementation and application of GP practices may still be
stimulated by external forces/developments. In this regard, it was suggested that, if
Government officials were to establish and facilitate a green products/services supply
chain and take a lead role in implementing, promoting and supporting green public
purchasing, this might lead to greater interest and support from top management
officials.
“Absence of viable incentive to practise GP except for ethical reasons”
“Not a major factor to be considered at the operational level for different
industries - time is more important”
Socio-economic environment may impact upon the sustainability of GP implementation
A specific suggestion offered was that consideration for tax reductions and subsidies
related to the purchase and use of greener product and service alternatives, along with
the development and deployment of an educational and promotional campaign – i.e.
122
“pay for the priceless environment” – could make GP more attractive, popular,
sustainable and well implemented in the private sector.
5.4.2 Possible solutions from the words of procurers
Environmental Labels
Ecolabelling was said to benefit producers in four different ways. Firstly, ecolabelling
helps producers to develop products and production processes in the ‘right direction’ -
towards increased environmental efficiency. Ecolabelling standards are typically a good
indicator of the future environmental framework within which an industry will operate.
Close contact with ecolabelling organizations gives producers an early start in making
process changes that often become future regulations. Secondly, for producers who are
proactive in pursuing change, ecolabelling reduces their risk by demonstrating a
workable change in processes. It may also have a multiplier effect as producers
compete to surpass existing criteria. Thirdly, ecolabelling provides a high standard of
guidance for producers who could not afford an internal environmental management
programme, or producers who otherwise shy away from eco-design. Ecolabelling again
provides producers with workable guidelines by which to operate. Finally, producers
benefit from ecolabelling if they exercise the first mover advantage in ecodesign and
environmentally friendlier production processes. The ecolabel licence gives such
producers third-party verification and recognition in environmental stewardship.
Collaboration with suppliers
A general view expressed by the respondents was that they individually and on a single
company basis had minimal clout and influence with their suppliers in terms of
123
encouraging and directing the provision of greener alternative products/services.
Nevertheless, over 60% of the respondents identified that they had made efforts to
encourage their suppliers to begin generally offering green product/service
alternatives, and approximately 75% of this sub-group of respondents had actually
tried to alter their product supply chains by incorporating product/service
environmentally preferable specifications in their requisition and purchasing processes.
Regarding another initiative suggestion, 88% of the respondents expressed interest
and willingness to formally network in order to share their information and experience
and gain insight from others.
Initiation from a small scale
In reaction to four strategy suggestions (and an invitation to offer additional
suggestions), approximately 35% of the respondents advocated sector-wide but
company-specific GP schemes focused initially upon office stationery supplies (i.e.
commonly and frequently bought and high volume consumed products such as paper,
etc.). Somewhat complementary, 18% saw greatest merit in taking a “project-by-project”
and “expanding scope over time” approach rather than trying to embark on
comprehensive and extensive full company implementation initiatives. In contrast to
the two sector-wide GP initiation strategy suggestions, about 30% recommended that
greatest attention and focus be given specifically to the product manufacturers
[possibly as a strategy to simultaneously stimulate and begin facilitating both greener
production and consumption], while 9% recommended special and initial attention and
focus be directed and applied to service companies [possibly as a strategy to
simultaneously stimulate and begin facilitating both greener services’ provision and
consumption].
124
Senior Management Support
Notably, and not unexpectedly, 93% of the respondents identified that senior
management commitment plays a crucial role in GP implementation, and proposed the
following key management roles and functions:
• Broad and significant decision-making, including making the critical decision to
initiate green purchasing as well as determining and establishing the [re-]allocation
of financial and personnel resources to properly entrench it;
• Consideration, establishment and dissemination of policy direction and guidance;
• Arrangement for and overseeing of regular performance monitoring in order to
potentially direct changes and enhancements;
• Encouraging, directing and facilitating staff training;
• Contemplating, organizing and possibly enabling knowledge sharing and awareness-
raising schemes and initiatives; and
• Devising and implementing an “award and penalty system” in order to trigger and
foster staff support for and strong effort in GP implementation and delivery.
Promotion, training and workshops
A common suggestion was that a broad "promote and demonstrate by example” strategy
could be a major and effective way to encourage and guide increases in GP adoption
and activity levels in Hong Kong. To pursue and act upon this strategy, it was proposed
that private sector officials and companies increase support for and get involved in
existing and future ‘green’ events and initiatives (e.g. green carnivals, knowledge
sharing/awareness-raising and training workshops and seminars, etc.), at which green
purchasing approaches, processes and reference materials could be presented and
discussed.
125
Government Efforts
In this regard, the respondents provided the following three suggestions:
• Government authorities should formulate, legislate and offer tax deductions or
subsidies for green product suppliers and/or purchasers/users;
• Government authorities could consider and potentially make green purchasing a
legislative requirement;
• Government officials should commit resources to and put greater efforts into green
purchasing promotional, instructional and monitoring/assessment campaigns; and
• Government officials should increase promotional and awareness-raising efforts,
support for, and application and facilitation of greener products and services’
recognition and labelling schemes (e.g. the Hong Kong Green Label Scheme40), as well as
other environmental systems (e.g. Environmental Management System) and resources.
Recognition of Green Purchasing As ‘Basic Good Business Practice’
• Asked to support or refute this position, the respondents generally agreed with it, and
suggested that its implementation can help develop or enhance a company’s positive
public image and provide long-term economic benefits through cost avoidance and
savings.
40 Details of the Hong Kong Green Label Scheme can be found at www.greenlabel.org.hk.
126
5.5 Summary of Findings
The participants reflected that the most notable barrier is lack of guidance from
government or professional bodies. Without adequate knowledge, the participants
found it difficult to integrate GP policy in their companies, which is the most
fundamental step to start. The participants generally agreedd that an ecolabelling
system and Green Database would help them to identify green products and seek
suppliers.
5.6 Limitations
1. This opinion survey is performed for ease of administration and economical
utilization of the existing sample and resources. It should be regarded as for
reference only.
2. This opinion survey is subject dependent and may have validity issues, errors
due to non-response, and is limited by response choices.
3. It is important to emphasize that descriptive research can only describe a set of
observations or the data collected. It cannot draw conclusions from that data
about which way the relationship goes.
127
Chapter 6 Discussion
6.1 Introduction
A review of literature shows that, apart from Japan and Taiwan, studies on green
purchasing in the business sector in Asia are scarce. Research into facilitators and
barriers on private GP is virtually non-existent in Hong Kong. This research is intended
to contribute to the collection of generic data that could help the development of
strategies for the business sector to take off in green purchasing.
The researcher examined a number of interdisciplinary theories and existing models
for relevance and theoretical directions to assist in developing a conceptual model. This
model was tested for relevance via a quantitative survey. After the hypothesized
facilitators and barriers were validated, solutions were formulated with primary data
collected from a follow-up descriptive survey and secondary data collected from
literature and experience of other countries.
Based on the findings of our study, the researcher selected “guidance” for in-depth
discussion because it is the place where a third-party professional body, notably an
NGO, could provide assistance. The following section will link the findings to the
possible reactions from different stakeholders and uncover the clues to guide an NGO
in strategic planning to advance green purchasing in the local business sector.
128
6.2 Drivers and Barriers from the perspective of an NGO
6.2.1 Requirement and Commitment
The importance of government regulation and policy as external drivers has not received
significant challenges since its establishment in literature (Carter and Eltram, 1998; Min
and Galle 2001). Tendering requirement is also widely recognized as a crucial factor
(Sharfman and Anex 2007; Vachon and Klassen 2008; Vachon and Klassen 2007). Top
management commitment as an important internal driver is also in line with other
studies (Min and Galle 2001; Wycherley 1999).
This study offers no dispute with the indispensability of these three factors but there is
little that a third-party NGO could contribute to these three items.
6.2.2 Institutional guidance
Institutional guidance is a statistically significant factor in both the facilitator and the
barrier constructs. Adequate guidance and knowledge facilitate green purchasing
whereas insufficient hinders. The effect is particularly strong in SMEs, which is
congruous with other studies (Hervani and Sarkis 2005; Walker and Presuss 2008).
Barrier items like insufficient knowledge, green products, and internal incentives are
also more or less consequences of insufficient guidance. The managerial implication is
that providing education, information and training programmes would be the strategic
directives for an NGO.
Literature has shown that ecolabelling could work synergistically with green purchasing
in public and private sectors. Despite its limitations and setbacks, environmental
labelling has been widely practiced and is time proven in developed countries. There is
129
an existing Green Labelling Scheme in Hong Kong but its full potential is grossly under-
utilized. The responses from the interviewees in the supplementary survey support the
view that environmental labels should gain greater importance in Hong Kong. The
following section will examine the key elements of ecolabelling and how it could play an
important role in Hong Kong.
6.2.3 Ecolabelling and NGOs
It should first be noted that there is a difference between criteria setting and promotion
of the programme, and the certification or label award process. The first is operational
and represents the ‘spirit’ of the organization. The second is functional and represents
the credibility of the programme.
Non-government organizations (NGOs) can effectively serve as a communication bridge
between consumers and retailers with a sustainable agenda and create a green market
demand by influencing the consumer sector towards sustainable products (Kong et al.,
2002). They can work with retailers to connect them to consumers, and work on behalf
of consumers by pressuring producers to produce sustainable products. In the end, they
help to empower consumers by promoting the availability of greater choice. An d success
can be highly correlated to the presence and active involvement of an NGO, which can
make a difference in gaining public awareness, recognition and acceptance.
NGOs can work alongside business/industry to develop ecolabelling programmes for the
consumer. As Mont and Peplys (2008) have noted, the combined effect of inter-
governmental, business and NGO activities can be an effective strategy for moving
towards more sustainable consumption. NGOs can help to promote ecolabelling through
such methods as campaigning, consumer information and education, consultation on
130
policy design, criteria development, verification, product testing of ecolabelled products,
stakeholder representation on ecolabelling boards, and the promotion of corporate
social responsibility (CSR) (UNEP, 2009).
NGOs have also launched GP programmes and ecolabels around the world to encourage
the purchase of environmentally preferable goods in public and private sectors. Such
efforts have been seen in Australia (Good Environmental Choice Australia), Hong Kong
(Green Council), and Singapore (Singapore Environment Council). These NGOs have
implemented ecolabelling systems in the absence of government-led initiatives.
The Global Ecolabelling Network (GEN) is a non-profit international organization
founded in 1994, comprised of ecolabelling practitioners managing and/or delivering
ISO Type I ecolabelling programmes around the world. The GEN supports its members
by compiling and disseminating current information and connects ecolabelling
organizations around the world so they can co-operate and share their experiences and
product knowledge. In 2003 the GENICES - Global Ecolabelling Networks’ Internationally
Coordinated Ecolabelling System41 - was launched to promote the sharing of best
practices, especially among GEN members in the early stages of adopting ecolabels.
The GENICES has five guiding principles: (1) participation is voluntary and open solely to
GEN members; (2) multilateral mutual trust will be developed through formal
methodologies; (3) members will cooperate and collaborate on product certification,
criteria development and reviews; (4) common product certification, criteria
development and reviews will be carried out using formal methodologies; and (5)
41 http://www.globalecolabelling.net/docs/genices/genices.pdf
131
GENICES will continue to evolve. Ecolabels serve to be an identification tool for
environmentally preferable products and services, thus making it easier to procure such
items when conducting government green purchasing. The contributions of GEN to the
ecolabelling sector have been substantial to consolidate and ratify common criteria
around the world. Table 9 identified Type I Ecolabels around the world, identifying the
vitality of an ecolabel with the year established and the number of certified
products/services.
Some NGOs focus on one single environmental/social attribute. Examples include
forestry (Forestry Stewardship Council), marine (Marine Stewardship Council), organic
(International Federation of Organic Agriculture Movement), and other attributes to
ensure credibility of standardized labels and stakeholder interests (Sustainability
Purchasing Network, 2008). The Forestry Stewardship Council (FSC) issues one of the
most prominent NGO endorsed labels. The FSC was established in 1993 in the wake of
worldwide concern over global deforestation. Its role is to oversee and guide appropriate
consumption and production of forest products and it provides a label managed through
third-party accreditation. This label indicates if a product, process or service conforms to
standards set by international consensus (FSC, 2011). The FSC now manages forests all
over the world and its label is recognized and respected for sustainable forestry
practices.
132
6.3 Administration of Ecolabelling scheme by NGO - the Singaporean Model
The Singapore Environment Council (SEC)42 is an independently managed, non-profit
NGO set up in 1995 to coordinate and promote environmental causes through
community, education and industrial activities.
Advisory Committee
The SEC has an advisory committee of representatives from the government, private
sector, academic institutions and statutory boards. These include the National
University of Singapore, Nanyang Technological University, Consumers Association of
Singapore, Singapore Retailers Association, National Environment Agency (NEA),
Public Utilities Board, and Ministry of Environment and Water Resources.
Funding
The Lee Foundation and The Shaw Foundation43 both donate to the SEC to support
green programmes. The NEA also provides funds for activities that support
government-initiated policies and programmes.
Activities
The SEC organizes numerous on-going activities and programmes to promote
environmentally responsible practices by businesses and citizens, with some emphasis
on the use and merits of ecolabels and other credible and formal environmental
certifications (i.e. ‘ecocertifications’).
42http://www.sec.org.sg/
43The Lee Foundation and The Shaw Foundation are both charitable organizations in Singapore for the
betterment of the community and welfare of its people
133
Ecolabels
A distinctive eco-certification is the EcoOffice Label which encourages public and
private offices in Singapore to comply with the Online EcoOffice Rating System. To help
businesses achieve the Green Office Label, an Eco-Office kit, a Green Procurement
Guidebook44, and a much more comprehensive step-by-step guide on How to Green
Your Office45 have been produced, highlighting and guiding what environmental
specifications to look for when making alternative choices. Some governmental offices
have also taken the initiative to attain the EcoOffice Label, including the National Parks
Board, NEA, Public Utilities Board and Southwest Community Development Council.
The EcoOffice Label has had the desired effects of encouraging owners and managers of
regular offices in Singapore to re-evaluate their environmental footprint and make
substantial changes to their office supplies and equipment, as well as raising employees’
level of awareness regarding environmental impacts and consequences of their
decisions and actions.
One of SEC’s major contributions to GP is their administration of the Singapore Green
Labelling Scheme (SGLS). The SGLS was initiated in 1992 by the Ministry for the
Environment and Water Resources and has been administered by the SEC since 1999.
This national ISO Type I ecolabel encourages manufacturers in and around Singapore to
become Green Label-certified and offer their environmentally preferable products for
procurement and use in both the public and private sectors. A good example of the link
that has been established between the SGLS and GP initiatives has been the call for and
44 http://www.ecooffice.com.sg/templates/madeyourweb/pdf/ecooffice01_proc_guide.pdf
45http://www.ecooffice.com.sg/templates/madeyourweb/pdf/Step_by_step_guide_How_to_green_your_
office.pdf
134
use of SGLS certified/labelled products46 during construction or retrofitting of
buildings, especially with the Grant for Energy Efficient Technologies (GREET)
programme offered by the NEA.
6.4 Lessons for Hong Kong
The Governments of Hong Kong and Singapore agree on an important aspect in Green
Purchasing: providing free and open markets to enhance the willingness of companies
to sign voluntary initiatives. However, their approach differs on a very important issue:
the funding and incentives provided by government to its agencies to consider and
conduct environmentally preferable purchasing.
It is generally acknowledged and realized that GGP can be a major incentive in the
development and growth of markets for green products. If public agencies are expected
(i.e. encouraged but not required) to re-allocate part of their core annual budgets for
green purchases, then the likelihood of self-motivation and initiative may be very low.
However, if they can receive grants and funding from their central governments tied
specifically to green purchasing activities and initiatives, then it is more likely they will
invest effort in eco-fitting their facilities and changing purchasing practises to reduce
costs along with water and energy consumption. Through such targeted funding and
incentives, a government can indirectly encourage green purchasing and green markets
without having to introduce laws or regulations that would otherwise take years to
implement.
46It is a mutual relationship between the two programmes, one of providing an incentive to purchase
and the other to provide the service of an online database enabling purchases of SGLS products..
135
Despite the funding differences, there are many common initiatives and themes for
Hong Kong and Singapore. Green purchasing programmes are developing out of the
two respective NGOs’ initiatives and activities. The Green Council and SEC are aiming to
achieve complete GGP by establishing their private sectors’ interest levels first and
producing substantial green product databases for their governments to garner
interest in and promulgate GGP policies and regulations. Complete GGP is achieved
when the governments proactively engage in green purchasing of ecolabelled goods,
embracing the social, environmental and economic benefits of doing so. Through the
establishment of the internationally recognized Type I ecolabels, the Green Council and
SEC hope to encourage and guide their respective governments to recognize the
potentials and favourable conditions created for green purchasing.
6.5 Chapter Summary
This chapter described the results of the study and the testing of the conceptual models.
In doing so, it confirmed or contradicted some of the current literature with regard to
the barrier to and facilitators of green purchasing.
136
Table 10: Private Sector Participation in Singapore Green Purchasing – SGLS
Singapore Green Labelling Scheme
Year Initiated 1992
NGO Affiliation Singapore Environment Council
Labelling Objectives Help consumers to distinguish green-labelled
products from those which are less
environmentally friendly or uncertified, so
they are able to make a more informed choice
in their purchase.
Add value to products by helping with market
access to countries that require third-party
validation of the environmental attributes of
imported products.
Number of Product Categories 15 Categories
1,500 Products
Public Events Singapore Environmental Achievement
Awards (annually since 1996)
Awards and Endorsements Schools’ Green Audit Awards
Project EcoOffice
Singapore Green Labelling Scheme
Singapore Environmental Achievement
Awards
Energy Smart Hotel Award
Water Efficiency Labelling Scheme
Green Label Community Club Certification
Green Label Food Court Certification
Green Label Hotel Certification
(in development)
Source: Singapore Environment Council http://www.sec.org.sg/index.php
137
Chapter 7 Conclusions
7.1 Introduction
Hong Kong is a highly sophisticated city; the commerce and academic accomplishment
is prolific. Incongruously, the attention given to green purchasing is not at the level that
it should be. Academic studies on this subject are virtually non-existent. This study
sought to fill this gigantic knowledge cavity by investigating private sector green
purchasing from various perspectives.
This chapter reviews the original objectives set out in the introductory chapter; it
presents a summary of the main findings and discusses the guidance that could be
provided by an NGO in achieving green purchasing in the private sector.
7.2 Research question and objectives
The ultimate ambition of academia is to shape the biggest picture and weave the
essential elements together on a monumental subject. From this grand theoretical
framework, later researchers select puzzle pieces that they think relevant for their own
subspecialty. Green purchasing is one of the essential components of environmental
chain management practice in the business world and is the primary subject in this
study.
The aim of this thesis was twofold. The first objective was to identify the various
internal and external factors that encourage or constrain firms in engaging in green
purchasing activities, which is the first research question of this thesis. Initial
investigations of green purchasing trends in Government and mega corporations as
well as a population survey serve as the background. A literature survey review
provides a basis on the understanding of the positive and negative elements in
implementation of green purchasing in firms. Key enablers were customer
138
requirements, reputational risk, organizational factors including strategic, people and
functional issues, and stakeholder involvement (including NGOs and Government).
Barriers to progress included pressures to reduce costs, other organizational priorities,
the ability of buyers to tackle the subject, and accounting methods that focus on short-
term measures.
When the data collection and analysis were conducted, the researcher found that all of
the factors identified in the literature were corroborated as they were mentioned by at
least one of the interviewees. This study did provide broad confirmatory evidence for
the conceptual model but the ultimate agenda of the author goes to the second research
question
-how to help the business sector in engaging green purchasing from the perspective of an
NGO?
The researcher collected primary data from a follow-up descriptive survey and
secondary data from a literature review looking at international experiences. It is
concluded that an ecolabelling system administered by an NGO and supported by the
Government would be a viable option. The entering of ecolabelling criteria into the
tendering requirement of Government Procurement is important in the development of
a labelling scheme.
7.3 Guidance
7.3.1. Guidance from NGOs
The results do not deviate from mainstream research that adequate guidance is a key
factor to implementing green purchasing in the business sector. The result of this
research leads the researcher to the following suggestions:
139
Green Product Database
A key element of successful guidance from NGOs is the establishment, maintenance and
provision of a Green Products Database. The central purpose of a green products and
services database is to provide potential purchasers with current information on the
identity, key attributes and availability of environmentally preferable products and
services being produced and offered for consumption. A thorough and comprehensive
database that further indicates the environmental specifications or third-party
certifications of leading products and services may significantly stimulate favourable
production, provision, selection and consumption. The convenience of an online
database encourages purchasing officers to browse and pursue the purchasing of
environmentally preferable products and services that are available on the market
from various supply sources.
Green purchasing guidebooks
To help public sector procurers to identify more sustainable products, the Government
Procurement Service has introduced ‘Greenticks’ for online government purchasing in
the United Kingdom. There are 3 different types of ‘Greenticks’ that indicate if a
product meets ‘minimum’ or ‘best practice’ standard for sustainability. Government
agencies are able to purchase pre-selected official procurement agency-approved green
products.
Although there are numerous and varying definitions, reasons and conditions
regarding green purchasing, guidebooks enable purchasers from the private and public
sectors within countries, states, and cities to acquire credible, relevant and common
awareness and information regarding environmentally preferable products and
140
services, which frequently leads to comparable and complementary efforts and
decisions, and results in a national movement.
Training of procurers
This training could be installed as mandatory for all government sector purchasing
authorities and officials. It should incorporate awareness raising and information-
sharing regarding: product specifications, procurement procedures and legislations in
place or proposed, existing challenges and proposed means and measures to address
the challenges, etc. Such initiatives would contribute to keeping sector GGP goals and
processes consistent and evolving in a coordinated and effective manner. Participation
in these training events should not be restricted to government purchasing officials, but
also include attendance and contributions from programme suppliers, green
purchasing experts and NGOs to aid insight as well as share distinctive knowledge and
experience.
7.3.2 Guidance from Government
1. Legislating green purchasing practices is a possible way to facilitate and accelerate
the adoption of green production and consumption in the private sector;
2. Provide tax deductions and/or subsidies for companies which supply green
products/services and/or select, purchase and use green products/services;
3. Establish a government-wide directive and mechanism to guide and enable
government purchasers to give consideration and preference to green products and
services. These products and services may have slightly higher initial costs but this
could be balanced by lower life cycle operating and disposal costs.
4. Provide “know-how” guidance to local private sector GP practitioners and other
141
interested parties, including making readily available public sector green
specifications and outlines of public sector green purchasing processes, procedures
and other initiatives;
5. Increase and enhance public and private sector as well as general public
promotional and educational efforts regarding green purchasing;
6. ‘Lead by example’ in order to create and sustain sufficient market demand so that
suppliers/distributors/manufacturers are motivated to offer greener products and
services, while also providing strong guidance and proven results for the private
sector purchasing community;
7. Provide more substantial and formal promotion and support of existing
environmental performance recognition and labelling (i.e. “ecolabelling”) schemes
and systems, like the Hong Kong Green Label Scheme, and consider developing and
introducing complementary environmental labelling schemes as well as other
guides and tools to assist in green purchasing initiatives and activities.
7.3.3 Suggestions to firms
1. Join and actively participate in the Hong Kong Green Purchasing Charter (and any
other emerging or future green purchasing networks) in order to increase
knowledge and awareness, gain guidance from other practitioners, and seek allies to
cooperate and collaborate in this regard;
2. Implement and enhance GP efforts in a systematic manner that includes
establishment and regular review of core policies, objectives, procedures, guidelines,
and monitoring and audit measures; the monitoring and audit measures are
essential for ensuring green products’ quality and performance, and can guide any
appropriate procedural revisions, additions and enhancements;
142
3. Ensure that sufficient management and operational staff time and resources are
allocated for the purpose of GP knowledge acquisition.
4. Take advantage of local, regional, national and international ecolabelling schemes’
environmental performance leadership criteria and ecolabelled products lists and
databases when formulating purchasing specifications and/or seeking credible
third-party recognition and certification of “greener” products and services;
5. Arrange, schedule and conduct regular GP training workshops and other initiatives
in order to establish and increase staff knowledge, awareness and competency in
the GP field;
6. When and as appropriate, employ qualified and recognized professional
organizations and experts to providing consultancy services on GP;
7. To the greatest extent possible, seek out and incorporate green specifications into
the company’s tendering ‘terms and conditions’ to encourage staff to partake in
green purchasing and suppliers to provide green products and/or services.
7.4 Contribution to knowledge
From a local perspective, this study is the first of its kind in Hong Kong; it contributes in
building a knowledge base on green purchasing in the business sector of Hong Kong.
The research questions that the study sought to answer explored how companies vary
in perceptions of facilitators and barriers to green purchasing practices and the
possible solutions. The result indicates vividly that guidance is the key factor in the
development of green purchasing. In this study, SMEs and Large Corporations do not
differ significantly in their perceived importance of green purchasing. The findings thus
provide important evidence-based directions to institutions that are committed to
advance green purchasing in Hong Kong. From the literature review and study of
143
international experiences, this research posited that ecolabelling is an essential
component of guidance and that could be effectively administered by NGOs.
The targeted audience of this thesis includes academics, policy makers, leaders and
product developers in the public and private sectors, procurers and consumer
organizations. The research forms a foundation for better utilization of the full
potential of these existing and well-proven instruments to support green purchasing in
Hong Kong’s business as well as public sector.
From an academic perspective, the conceptual model adapted from Government Green
Purchasing (Gelderman et al., 2006) is proven applicable in the private sector. The
model posits that institutional guidance, requirement and commitment, and competitor
influence positively contribute to GP. In addition, the model predicts that companies
tend to comply less with GP when they encounter the situations listed in the barrier box.
This model could serve as a framework to investigate other variables in future studies.
7.5 Chapter Summary
This chapter provided conclusions by summarising the results and discussions of the
previous two chapters and brought together the various topics researched in a
coherent and logical manner. The chapter also discussed the research’s contribution to
knowledge.
The next chapter highlights limitations to the current research and suggests areas of
further research.
144
Chapter 8 Limitations and further research
8.1 Introduction
The researcher acknowledges that there are some limitations of this study, which are
discussed in the next section, and then suggests areas for further research.
8.2 Limitations
1. Inherent in the survey method is the observation that only volunteers participate.
This might mean that respondents are somewhat more aware of, or engaged with,
the green purchasing agenda than non-respondents.
2. Second, the model is not fully specified. The constructs and their underlying
relationships require greater precision in order to be predictive. To understand GP
in the private sector, the researcher needs to further explore the contexts that
precipitate these motivations and their interactions. In the current sample,
purchasing companies far outnumbers suppliers, thus affecting the generalizability
of results. This is quite inevitable as there has been a massive exodus of industries to
China in the past decades.
3. Thirdly, only economic and environment dimensions were investigated in this study.
The construct did not include social performance (SRP-socially responsible
purchasing) even though little has been studied regarding the incorporation of
social aspects into the procurement activities by both business and public sectors
(Walker 2010).
4. Furthermore, this study was conducted in an Asian setting but only in one city; the
degree of inference to the whole region is difficult to assess.
145
5. This is a cross-sectional study. A stronger causal relationship could have been
drawn through the use of longitudinal studies.
6. Although a substantial portion of this study was allocated to ecolabelling, the value
of the ecolabel is seen as being more relative in that it encourages consumers and
producers to take that crucial step in respecting the environment. This research has
not produced evidence to establish the correlation between ecolabelling schemes
and environmental issues. Ecolabelling is a long-term initiative that dictates studies
in its own right.
8.3 Future Research
To rescue the planet through green purchasing is a monumental issue; the list of
research avenues is endless. The academicians envisage a sustainability framework;
executives of consultancy firms or environmental NGOs decode the framework and
develop strategies to follow the framework in ways that are pragmatic to the real
business world. Given the complexity of the business world, a one-size fits all approach
could not possibly allow a company ‘doctor’ to diagnose the most-needed facilitator or
the most fearsome barrier, not to mention how to put it into ‘clinical’ practice and
provide guidance.
Any researcher knows very well that ‘Data is King’; the author has not yet done with the
valuable respondents. The added value of this piece of work is the rapport developed
with the respondents during the process of preparation; it delivers an opportunity to
recruit them for future studies, and to expand the sample via a snowball effect. Any
programme developed for ‘Guidance’ must be scrutinized in order to gain relevance. It
is necessary to establish criteria for economic and environmental measurement and
146
form the basis of future longitudinal studies. Some of these measureable parameters
(Harrison, 1999) include:
• Change in expenditure
• Change in the use of toxic substances
• Change in carbon footprint
• Change in energy and resource conservation
• Number of green alternatives from suppliers
• Staff awareness of GP and related green policy
• Business opportunities with clients
Green purchasing is a part of so many systems - to name a few: economic, non-
discrimination psychological, national sovereignty, reverse subsidization, and local
culture. The analysis here focused on the most elementary stage of green purchasing;
its multi-disciplinary nature and impact far exceeds the scope of this study. Perhaps an
important outcome of this thesis is to generate more studies on green purchasing from
different facets; be it in Hong Kong or other Asian countries with suboptimal green
purchasing practice. To the author, this study represents opening the door to a
labyrinth of challenges.
147
List of References
Allison, C. and Carter, A. (2000). Study on different types of Environmental Labelling
(ISO Type II and III Labels): Proposal for an Environmental Labelling Strategy.
Environmental Resources Management.
http://ec.europa.eu/environment/ecolabel/about_ecolabel/reports/erm.pdf
[Last accessed: 28 January 2011.]
APO (Asian Productivity Organization) (2004). Eco-Products Directory 2004. Asian
Productivity Organization, Tokyo.
Anbumozhi, V. and Kanda, Y. (2005). Greening the production and supply chains in Asia:
is there a role for voluntary initiatives? Institute for Global Environmental Strategies:
Kansai Research Centre Discussion Paper. KRC-2005-No.6E
Antonio, L. C. (2000). Corporate strategy systems in Taiwan. Business and Environment
6(5), 13-15.
Aschhoff, B. and Sofka, W. (2009). Innovation on demand – Can public procurement
drive market success of innovations? Research Policy 38: 1235-1247.
Baden, D.A., Harwood, I.A. and Woodward, D.G. (2009). The effect of buyer pressure on
suppliers in SMEs to demonstrate CSR practices: An added incentive or
counterproductive? European Management Journal 27: 429-441.
148
Bjørner, T.B., Hansen, L.G. and Russell, C.S. (2004). Environmental labeling and
consumers’ choice – an empirical analysis of the effect of the Nordic Swan. Journal of
Environmental Economics and Management 47: 411-434.
Boeck, S. and Ward, S. (1997). ``Passively green'', USA Today, January 1, p. 1A.
Bouwer, M., Jonk, M., Berman, T., Bersani, R., Lusser, H., Nappa, V., Nissinen, A., Parikka,
K., Szuppinger, P. and Viganò, C. (2006). Green Public Procurement in Europe 2006 –
Conclusions and Recommendations. Virage Milieu & Management bv, Korte Spaarne 31,
2011 AJ Haarlem, the Netherlands.
Available from http://ec.europa.eu/environment/gpp/pdf/take_5.pdf
[Last accessed: 23rd March 2011]
Buenstorf, G. and Cordes, C. (2008). Can Sustainable consumption be learned? A model
of cultural evolution. Ecological Economics 67: 646-657.
Cadman, J. and Dooley, P. (2004). The Direct and Indirect Benefits of the European Eco-
Label – Final Report. Study on behalf of DG Environment. London.
Availabe at:
http://ec.europa.eu/environment/ecolabel/about_ecolabel/revisions/ever_interimrep
ort.pdf
[Last accessed: 23rd March, 2011]
149
Caldwell, N., Walker, H., Harland, C., Knight, L., Zheng, J. and Wakeley, T. (2005).
Promoting competitive markets: The role of public procurement. Journal of Purchasing
& Supply Management 11: 242-251.
Carter, C.R. and Ellram, L.M. (1998). Reverse logistics: a review of the literature and
framework for future investigation. Journal of Business Logistics, 19(1), pp. 85-102.
Carter, J.R. and Narasimhan, R. (2000), Sourcing's role in environmental supply chain
management. SupplyChainManagementReview, Vol.3, No.4, pp.78-88.
Case, S. (2009) The Future of Green Labels. Available at:
http://gov.pro.com/green/content/green-label-value-200910
(Last accessed: 21 February 2011.)
Chan, H.W., Qian, K. and Lam, T.I. (2009). The market for green building in developed
Asian cities—the perspectives of building designers. Energy Policy 37: 3061-3070.
Chen, C.C. (2005). Incorporating green purchasing into the frame of ISO 14000. Journal
of Cleaner Production 13: 927-933.
Chiu, S.F., Ward, J.V. and Massard, G., 2009. Introduction to the special issue on cleaner
production and regional sustainable development initiatives in the Asia Pacific region.
Journal of Cleaner Production, 17(14): 1237-1240.
150
Chertow, M. R., 2000. Industrial symbiosis: literature and taxonomy. Annual Review of
Energy and the Environment, 25: 313-337.
Chiu, S.F.A., Ward, J.V. and Massard, G. (2009). Introduction to the special issue on
cleaner production and regional sustainable development initiatives in the Asia Pacific
region. Journal of Cleaner Production 17 (14): 1237-1240.
Clark, G. (2007). Evolution of the global sustainable consumption and production policy
and the United Nations Environment Progamme’s (UNEP) supporting activities. Journal
of Cleaner Production 15: 492-498.
Cooper, R., Frank, G. and Kemp, R. (2000). A multinational comparison of key ethical
issues, helps and challenges in the purchasing and supply management profession: the
key implications for business and the professions. Journal of Business Ethics 23, 83–100.
Deng, T., 2006. The development of the Chinese environmental labeling programme.
Economic Observation 13 (4): 23-29 (in Chinese).
DiMaggio, P.I. and Powell. W.W. (1983). The iron cage revisited: Institutional
isomorphism and collective rationality in organizational fields. American Sociological
Review, 48:147-160.
Dong, K. (2004). The effectiveness and efficiency of government procurement. Policy
Forum 24 (2): 32-37 (in Chinese).
151
Eco Mark Office (2007). Guidelines for Eco Mark Programme Implementation. Available
from http://www.ecomark.jp/english/youkou.html.
[Last accessed: 25 January, 2011.]
Eltayeb, T.K., Zailani, S. and Jayaraman, K. (2009). Going Green Through Green Supply
Chain Initiatives Towards Environmental Sustainability. Operations & Supply Chain
Management 2 (2) pp 93-110
Eltayeb, T.K., Zailani, S. and Jayaraman, K. (2010a). The examination on the drivers for
green purchasing adoption among EMS 14001 certified companies in Malaysia. Journal
of Manufacturing Technology 2: 206-225
Eltayeb, T.K., Zailani, S. and Ramayah, T. (2010b). Green supply chain initiatives among
certified companies in Malaysia and environmental sustainability: Investigating the
outcomes. Resources, Conservation and Recycling 55: 495-506.
Environmental Protection Agency (2009). Energy Star Overview of 2009 Achievements.
Available from
http://www.energystar.gov/ia/partners/annualthesiss/2009_achievements.pdf
Environment Protection Agency (2010). EPA’s Final Guidance on Environmentally
Preferable Purchasing. Available at
http://www.epa.gov/epp/pubs/guidance/finalguidance.htm.
152
European Commission (2004). Buying green! A handbook on environmental public
procurement. Available at
http://ec.europa.eu/environment/gpp/pdf/buying_green_handbook_en.pdf
[Last accessed: 11 May, 2011.]
European Commission, 2008. Green Public Procurement and the European Ecolabel:
Fact Sheet. Training Toolkit: Module 1 – Managing GPP Implementation. Available at
http://ec.europa.eu/environment/gpp/pdf/toolkit/module1_factsheet_ecolabels.pdf
European Commission (2010). Commission Staff Working Document, Lisbon Strategy
evaluation document. Available at
http://ec.europa.eu/archives/growthandjobs_2009/pdf/lisbon_strategy_evaluation_en
.pdf
[Last accessed: 12 April, 2011.]
Faith-Ell, C., Balfors, B. and Folkeson, L., 2006. The application of environmental
requirements in Swedish road maintenance contracts. Journal of Cleaner Production 14:
163-171.
Falk, J.-E., Frenander, C., Nohrstedt, P. and Ryding, S.-O. (2004) Environmental
management in procurement and purchasing, Stockholm: Jure Förlag.
153
Follows, S. B. and Jobber, D. (2000). Environmentally responsible purchase behaviour:
A test of a consumer model. European Journal of Marketing, 34(5/6), 723-746.
Forest Stewardship Council (FSC), 2011. About Forest Stewardship Council. Available
from http://www.fsc.org/about-fsc.html
[Last accessed 24 February 2011.]
Galliers, R.D. (1991). Choosing Appropriate Information Systems Research Approaches:
ARevised Taxonomy. In: Nissen, H.-e., Klein, H.K. and Hirschheim, R. (Eds), Information
Systems Research: Contemporary Approaches and Emergent Traditions, pp. 327–345.
Elsevier Science Publishers, North Holland
Geng, Y. and Côtѐ, R. (2004). Applying industrial ecology in Asia rapidly industrializing
countries. International Journal of Sustainable Development and World Ecology 11 (1):
69-85.
Geng, Y. and Doberstein, B. (2008). Greening government procurement in developing
counties: Building capacity in China. Journal of Environmental Management 88 (4): 932-
938.
Global Ecolabelling Network (GEN) (2004). Introduction to Ecolabelling.
[Accessed: 21 January 2011 from
http://www.globalecolabelling.net/docs/documents/intro_to_ecolabelling.pdf ]
154
Global Ecolabelling Network (GEN) (2006). Summary report of the GEN Survey on
Government Green Procurement.
[Accessed: 1 Feb 2011 from
http://www.igpn.org/news/pdf/GEN%20GGP%20Survey%20Analysis052006V1.3.pdf]
Global Ecolabelling Network (GEN) (2008). Global Ecolabelling Network Annual Report
2008. Available at
http://www.globalecolabelling.net/docs/annual_reports/08annual_report08.pdf
Good Environmental Choice Australia (GECA) (2010). GECA 2009/2010 Annual Review.
Available at
http://www.geca.org.au/corporate/Publications/Annual%20Review%202010.pdf
Government of Canada (2009). Policy on Green Procurement. Available at
http://www.tpsgc-pwgsc.gc.ca/ecologisation-greening/achats-
procurement/document/politique-policy-eng.pdf
[Last accessed 12 March 2011.]
Government of Hong Kong (2011). Hong Kong Statistics. Census and Statistics
Department.
Available from
http://www.censtatd.gov.hk/hong_kong_statistics/statistics_by_subject/index.jsp?subj
ectID=1&charsetID=2&displayMode=T
155
[Last accessed: 1 March 2011.]
Government of Singapore (2010). E2 Singapore News. Available from
http://www.e2singapore.gov.sg/news_061108.html
[Last accessed 2 April 2011.]
Government of Singapore (2011a). Public Sector taking the Lead on Environmental
Sustainability.
Available from http://www.e2singapore.gov.sg/public-sector.html.
Government Logistics Department (Hong Kong) (2011). Replies to written questions
raised by Finance Committee Members in examining the Estimates of Expenditure 2011-
12. Available at http://www.gld.gov.hk/eng/download/FSTB%28Tsy%29-Eng.pdf
[Last accessed 17 May, 2011.]
Green K., Morton B. and New S. (1998). Green purchasing and supply policies: do they
improve companies' environmental performance? Supply Chain Management: An
International Journal 3(2): 89-95
Green Purchasing Network Malaysia (GPNM) (2011a). About Us. Available at
http://www.gpnm.org/e/p/about.html.
156
Green Purchasing Network Malaysia (GPNM) (2011b). Better Source for green
technology. Available at http://www.gpnm.org/e/articles/Definition-of-Green-
Technology-by-KETTHA-Ministry-of-Energy-Green-Technology-and-Water-a5.html
Green Seal (2010). 2009 Green Buying Research. Available from
http://www.greenseal.org/NewsEventsandInitiatives/MarketResearch.aspx
Groves, R.M., Fowler, F. J., Couper, M.P., Lepkowski, J.M., Singer, E. and Tourangeau, R.
(2009). Survey Methodology. New Jersey: John Wiley & Sons. .
Guba E.G. and Lincoln, Y.S. (1998) Competing paradigms in quantitative research. In:
Denzin N.K. and Lincoln Y.S. (Eds) The Landscape of Qualitative Research. London: Sage.
Handfield, R.B. and Nichols, E.L. (1999) Introduction to Supply Chain Management,
Prentice-Hall, Upper Saddle River, NJ.
Harrison, K. (1999). Voluntarism and Environmental Governance, Department of Politics,
University of British Columbia, August 1999. Available online:
http://www.2.arts.ubc.ca/cresp/khvolun.pdf
Hamner, B. (2006). Effects of green purchasing strategies on supplier behavior. In:
J.JSarkis, (eds) (2006) Greening the Supply Chain. London: Springer. Chapter 2, pp. 25-
37.
157
Hart, S.L. (1997). Beyond greening: strategies for a sustainable world. Harvard Business
Review, 75(1), pp. 66-76.
Hervani, A., Helms, M. and Sarkis, J. (2005), Performance measurement for green supply
chain management, Benchmarking: An International Journal, Vol. 12 No. 4, pp. p330-53.
Heiskanen, E., Kärnä, A., Niva, M., Timonen, P., Munch, A.F., Rosenschöld, E., Pripp, L.
and Thidell, A. (1998). Environmental improvement in product chain. Tema Nord
1998:546. Nordic Council of Ministers. Copenhagen.
Ho, L.W.P. (2008). The Synergy between Green Purchasing and Eco-labelling
/Environmentally Preferable Products. Materials division of the Hong Kong Institution of
Engineers and CLP-Engineering Projects Department. Green Council Presentation 17
March 2008 [PowerPoint].
Ho, L.W.P., Dickinson, N.M. and Chan, G.Y.S. (2010). Green procurement in the Asian
public sector and the Hong Kong private sector. Natural Resources Forum 34(1): 24-38.
Hong Kong Productivity Council (2006). Further Development of Environmentally
Responsible Product Specifications and Review on Market Availability. Available from
http://www.epd.gov.hk/epd/English/environmentinhk/waste/studyrpts/files/Execut
ive_Summary_Eng.pdf
158
Horne, R.E. (2009). Limits to labels: The role of eco-labels in the assessment of product
sustainability and routes to sustainable consumption. International Journal of Consumer
Studies 33: 175-182.
Im, H.J. (2006). Green Purchasing Activities in Korea: Focusing on the Green
Procurement Law. IGPN Conference in China 2006.
Available at:
http://www.igpn.org/workshop/pdf/Presentation%20by%20HJ%20Im%20
(English).pdf
International Green Purchasing Network (2010). Green purchasing: the new growth
frontier. Policies and programs to enhance green business growth in Asia,
Europe and the United States. Available from
http://www.igpn.org/DL/Green_Purchasing_The_New_Growth_Frontier.pdf
[Last accessed: 10 May 2011.]
International Organization for Standardization (2009). Environmental Management:
The ISO 14000 Family of International Standards. Available from
http://www.iso.org/iso/theiso14000_family_2009.pdf
Japan Ministry of the Environment (MoE) (2000). Law Concerning the Promotion of
159
Procurement of Eco-Friendly Goods and Services by the State and Other Entities. Available
from http://www.env.go.jp/en/laws/policy/green/index.html
Japan Ministry of the Environment (MoE) (2007). Learning from advance approach of
local governments: Green Contract Law in Detail Brochure. Tokyo, Japan
Japan Ministry of Environment (2010). Basic Policy on Promoting Green Purchasing.
Available from http://www.env.go.jp/en/laws/policy/green/2.pdf
Kataoka, A. (2006). IGPN and Green Purchasing Activities in Asia. International Green
Purchasing Network. Available at
http://www.igpn.org/workshop/pdf/Akira%20Kataoka%20-
%20India%20workshop%20March%2006.pdf
Khan, Z. (2008). Cleaner Production: an economical option for ISO certification in
developing countries. Journal of Cleaner Production 16: 22-27.
Korea Environmental Industry & Technology Institute (KEITI) (2010). Working
Towards Green Growth. Brochure on Organization and Activities. Available from
http://eng.keiti.re.kr/
160
Korea Environmental Labelling Association (KELA) (2002). Korea Environmental
labelling Association Information Booklet. Seoul, Korea.
Kong, N., Salzmann, O., Steger, U. and Ionescu-Somers, A. (2002). Moving
business/industry towards sustainable consumption: the role of NGOs. European
Management Journal 20: 109-127.
Kumar, S. and Putnam, V. (2008). Cradle to cradle: Reverse logistics strategies and
opportunities across three industry sectors. International Journal of Production
Economics 115: 305-315.
Kunzlik, P. (2003). Case law analysis-marking the market work for the environment:
acceptance of (some) “green” contract award criteria in public procurement. Journal of
environmental Law 15 (2): 175-201.
Lacroix, R. (2008A), Green Procurement and Entrepreneurship, Harokopeio University,
Scientific conference “Innovation-Entrepreneurship”, 15 May 2008, 23 pages,
(Proceedings on CD), Athens, Greece.
Lacroix, R. and Stamatiou, E. (2007), Green Architecture and Sustainable Development:
Applications & Perspectives, 3rd IASME/WSEAS Int.Conf. on Energy, Environment,
Ecosystems and Sustainable Development (EEESD'07), Agios Nikolaos, Crete Island,
Greece, July 24-26, 2007, ISSN 1790-5095, ISBN 978-960-8457-88-1, pp 602-605. 18]
161
Lacroix, R. and Stamatiou, E. (2006). The French Experience with Habitat, Sustainability
and Quality of Life, WSEAS International Conf., Vouliagmeni, Greece, 11-13 July 2006,
Journal WSEAS Transactions on Energy, Environment, Ecosystems and Sustainable
Development, issue 5, Vol. 2, May 2006 (ISSN 1790-5079) pp 584-590. 
Lacroix, R. and Stamatiou, E. (2006). Green Roofs – A 21st Century Solution to the
Urban Challenges of Green Space, Air Pollution, Flooding & Energy Conservation,
WSEAS InternationalConference Vouliagmeni, Greece, 11-13 July 2006, Journal WSEAS
Transactions on Energy, Environment, Ecosystems and Sustainable Development, issue 6,
Vol. 2, June 2006 (ISSN 1790-5079) pp 909-918. [20]
Leire, C. and Thidell, A. (2005). Product-related environmental information to guide
consumer purchases – a review and analysis of research on perceptions, understanding
and use among Nordic consumers. Journal of Cleaner Production 13: 1061-1070.
Leung, R. (2003). Survey on green purchasing activities in Asian countries: Republic of
China. Taiwan Environmental Management Association. Available from
http://www.apo-tokyo.org/gp/e_publi/survey_gpp/roc_report_tema.pdf
[Last accessed: 16 October 2006.]
Li, L. and Geiser, K., 2005. Environmentally responsible public procurement (ERPP) and
its implications for integrated product policy (IPP). Journal of Cleaner Production, 13:
705-715.
162
Loo, L.K. (2004). Green Purchasing in ASEAN – the role of government. Green Purchasing
Network Malaysia. Available at http://www.city.sendai.jp/kankyou/kanri/icgps-
e/pdf/3-1.pdf
Lozano, J., Blanco, E. and Rey-Maquieira, J. (2010). Can ecolabels survive in the long run?
The role of initial conditions. Ecological Economics 69: 2525-2534.
Luthra S. and Kumar V. (2011). Barriers to implement green supply chain management
in automobile industry. JIEM, 2011-4(2):231-257.
Ma, P. (2006). New regulations on energy-saving products and their impacts.
Government Procurement Information 11: 56-59 (in Chinese).
Mayor of London (2009). Mayor of London’s Green Procurement Code Progress Review.
October 2009. Available from
http://www.greenprocurementcode.co.uk/files/2009%20Annual%20Progress%20Re
view%20report.pdf
[Last accessed 12 May, 2011.]
McCrudden, C. (2004). Using public procurement to achieve social outcomes. Natural
Resources Forum 28: 257-267.
163
Michelsen, O. and de Boer, L. (2009). Green Procurement in Norway; a survey of
practices at the municipal and county level. Journal of Environmental Management 91:
160-167.
Millennium Ecosystem Assessment (2005). Statement of the MA Board.
Available at: http://www.unep.org/maweb/en/index.aspx
[Last accessed 12nd May, 2011]
Michelsen, O., Fet, A.M. and Dahlsrud, A. (2006). Eco-efficiency in extended supply
chains: a case study of furniture production. Journal of Environmental Management 79:
290-297.
Ministry of Economic Development (MED) (2010b). Government Procurement. Available
from http://www.business.govt.nz/procurement/for-agencies/key-guidance-for-
agencies/procurement-planning-and-implementation
[Last accessed: 24 June 2011.]
Ministry of Environment and Water Resources & Ministry of National Development
(MEWR & MND), 2009. A Lively and Liveable Singapore: Strategies for Sustainable
Growth. Available at
http://app.mewr.gov.sg/web/contents/ContentSSSS.aspx?ContId=1299
[Last accessed: 11 April 2011.]
Min, H. and Galle, W.P. (1997). Green purchasing strategies: trends and implications,
International Journal of Purchasing and Materials Management, Vol. 33 No. 3, pp. 10-17.
164
Min, H. and Galle, W.P. (2001). Green purchasing practices of US firms, International
Journal of Operations & Production Management, Vol. 21 No. 9, pp. 1222-38.
Moon, S.K., 2006. Green purchasing in Korean using the National Procurement System.
Retrieved from http://www.iclei-europe.org/uploads/media/C3_Moon_small.pdf on
29 September 2009.
Mont, O. and Plepys, A. (2008). Sustainable consumption progress: should we be proud
or alarmed? Journal of Cleaner Production: 16, 531-537.
Morgan, K. (2008). Greening the Realm: Sustainable Food Chains and the Public Plate.
Regional Studies 42.9, 1237-1250.
Muller, E. (2002). Environmental Labelling, Innovation and the Toolbox of
Environmental Policy – Lessons Learned from the German Blue Angel Program.
Federation of German Consumer Organizations, Berlin.
Organization of Economic Co-operation and Development (OECD) 2007. Improving the
Environmental Performance of Public Procurement: Report on Implementation of the
Council Recommendation. Available at
http://www.oecd.org/officialdocuments/displaydocumentpdf?cote=env/epoc/wpnep
%282006%296/final&doclanguage=en
[Last accessed: 29 April. 2011.]
165
Organization of Economic Co-operation and Development (OECD) 2009. OECD
Principles for Integrity in Public Procurement. Available at
https://bvc.cgu.gov.br/bitstream/123456789/3505/1/oecd_principles_for_integrity.p
df
[Last accessed: 7 February 2011.]
Office of the Federal Environmental Executive (OFEE) 2007. Instructions for
Implementing Executive Order 13423. Available from
http://www.ofee.gov/Resources/Guidance_reports/Guidance_reports_archives/eo134
23_instructions.pdf
Nash, H.A. (2008). The European Commission’s sustainable consumption and
production and sustainable industrial policy action plan. Journal of Cleaner Production
17: 496-498.
National Archives and Records Administration (2009). Federal Register: Part VII The
President, Executive Order 13514 – Federal Leadership in Environmental, Energy, and
Economic Performance. Available from http://edocket.access.gpo.gov/2009/pdf/E9-
24518.pdf
[Last accessed: 2 February 2011.]
National Association of State Procurement Officials (NASPO) (2010). NASPO: Green
Purchasing Policy Statement. Available from
http://www.naspo.org/content.cfm/id/Green_Policy_Statement
166
Nissinen, A., Parikka-Alhola, K. and Rita, H. (2009). Environmental criteria in the public
purchases above the EU threshold values by three Nordic countries: 2003 and 2005.
Ecological Economics 68: 1838-1849.
Palmujoki, A., Parikka-Alhola, K. and Ekroos, A. (2010). Green public procurement:
Analysis on the use of environmental criteria in contracts. Review of European
Community & International Environmental Law 19 (2): 250-262.
Parikka-Alhola, K. (2008). Promoting environmentally sound furniture by green public
procurement. Ecological Economics 68: 472-485.
Polit, D.F. et al (2001). Essentials of Nursing Research: Methods, Appraisal and Utilization.
Philadephia: Lippincott.
Pinthong, R., 2006. Thai Governmental Green Purchasing and Procurement. Retrieved
from
http://www.greengrowth.org/download/GGPD_CD_resources_for_website/2_Rangsan_
Pinthong.pdf on September 29, 2009.
Preuss, L. and Walker, H. (2011). Psychological barriers in the road to sustainable
development: evidence from public sector procurement. Public Administration 89:
493-521.
167
Ramayah, T., Lee, J.W.C. and Mohamad, O. (2010). Green product purchase intention:
Some insights from a developing country. Resources, Conservation and Recycling 54:
1419-1427.
Rao, P. (2002). Greening the supply chain: A new initiative in South East Asia.
International Journal of Operations & Production Management, 22(06), 632-655.
Rao, P. and Holt, D. (2005). Do green supply chains lead to competitiveness and
economic performance? International Journal of Operations & Production Management
25 (9–10), 898–916.
Ravi, V. and Shankar, R. (2005) Analysis of interactions among the barriers of reverse
logistics. Technological Forecasting & Social Change 72(8):1011-29.
Salzman, J. (1997). Informing the green consumer: The debate over the use and abuse
of environmental labels. Journal of Industrial Ecology 1(2): 11–22.
Sarkis, J. (1998). Evaluating environmentally conscious business practices, European
Journal of Operational Research, 107(1), pp. 159-174.
Sarkis, J. (1999), How Green is the Supply Chain? Practice and Research, Clark University,
Worcester, MA.
168
Seuring, S. and Müller, M. (2008). From literature review to a conceptual framework for
sustainable supply chain management. Journal of Cleaner Production 16: 1699-1710.
Schiesser, P. and Shinn, M. (2004). European Environment Bureau evaluation of the
European Ecolabel criteria and scheme, Brussels. Study on behalf of the European
Environment Bureau.
Schumacher, I. (2010). Ecolabelling, consumers’ preferences and taxation. Ecological
Economics 69: 2202-2212.
Silivarajoo, P. (2010). Green Technology: A Driver Towards Sustainable Development.
KeTTHA Presentation. Available at
http://www.epu.gov.my/html/themes/epu/images/common/pdf/Green_Technology.
pdf
Sharfman, M., Shaft, T. and Anex, R. (2007). The road to cooperative supply-chain
environmental management: trust and uncertainty among pro-active firms, Business
Strategy and the Environment, Vol. 18 No. 1, pp. 1-13.
Shultz, C.J. II and Holbrook, M.B. (1999), "Marketing and tragedy of the commons: a
synthesis, commentary and analysis for action", Journal of Public Policy and Marketing,
Vol. 18 No. 2, pp. 218-29.
169
Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature
review. International Journal of Management Review, 9(1), 53-80.
Standards and Industrial Research Institute of Malaysia (SIRIM), 2010. Malaysian
Standards. Available at
http://www.sirim-qas.com.my/pdf/Malaysian%20Standards.pdf
State Environmental Protection Administration & National Bureau of Statistics (SEPA &
NBS), 2006. GDP Accounting Study Report 2004 Issued. Available at
http://www.gov.cn/english/2006-09/11/content_384596.htm.
Steffen, W., Crutzen, P.J. and McNeill, J.R. (2007) The Anthropocene: are humans now
overwhelming the great forces of Nature. Ambio: A Journal of the Human Environment,
36, 614-621.
Stevens, C. (2010). Linking sustainable consumption and production: The government
role. Natural Resources Forum 34: 16-23.
Sustainability Purchasing Network (2008). Sustainability Purchasing Trends and Drivers.
Available at http://www.corostrandberg.com/pdfs/SPN-IC-
SustainabilityPurchasingTrendsUpdated%20Paper%20082.pdf
170
Swanson, M., Weissman, A., Davis, G., Socolof, M.L. and Davis, K. (2005). Developing
priorities for greener state government purchasing: a California case study. Journal of
Cleaner Production 13: 669-677.
Swedish Environmental Protection Agency (2010) Green Public Procurement - A Matter
of Knowledge, Will and Understanding - Report 6326.
Tian, F. (2010). Green public procurement in China: current practices, barriers and
opportunities. In proceedings of the IEEE ICMASS: 1-4.
The Economist (2004). A Great Wall of Waste. Available from
http://www.economist.com/node/3104453?story_id=3104453
Thidell, A. (2009) Influences, effects and changes from interventions by eco-labelling
schemes - What a Swan can do? Doctoral Dissertation. The International Institute for
Industrial Environmental Economics (IIIEE), Lund University. Lund.
Thøgersen, J. (2002). Promoting "green" consumer behavior with ecolabels. IN DIETZ,
T. A. S., P.C. (Ed.) New Tools for Environmental Protection: Education, information and
voluntary measures. Washington DC, National Academy Press.
Tierney, S. and Schatzki, T., 2009. Competitive Procurement of Retail Electricity Supply:
recent Trends in State Policies and Utility Practices. The Electricity Journal, 22(1): 50-62.
171
Tojo, N and Lindhqvist, T. (2010). Product-oriented Environmental Interventions -
Bundling of effective policy instruments. IIIEE Report 2010:1. IN UNIVERSITY, I. I. F. I. E.
E. A. L. (Ed.). Lund.
Tukker, A., Emmert, S., Charter, M., Vezzoli, C., Sto, E., Andersen, M.M., Geerken, T.,
Tischner, U. and Lahlou, S. (2008). Fostering change to sustainable consumption and
production: an evidence based view. Journal of Cleaner Production 16: 1218-1225.
United Nations and United Nations Environment Programme (2011). Background
Paper #1. 10-Year Framework of Programmes on Sustainable Consumption and
Production (10YFP): A Review of Options for Institutional Structure. Available at
http://www.un.org/esa/dsd/csd/csd_pdfs/csd-19/Review-of-,
Models_BGpaperFinal_31_12_10clean.pdf.
United Nations Environment Programme (2009). Section 8.2 Green Public
Procurement. Training of Trainers “Ecolabelling: what it is and how to do it” Module D
available at
http://ecolabelling.unep.fr/sites/eco-label/default.asp?site=eco-
label&page_id=56831328-1A4F-4D02-8BBA-D49BBB7E306C
United Nations Environment Program and United Nations Department of Economics
and Social Affairs (2008). Overview of the Marrakech Process and Guidelines for the
172
Working Groups. Available at
http://www.uneptie.org/scp/marrakech/consultations/regional/pdf/Background_Pap
er_West_Asia_March08.pdf
[Last accessed 21 March 2011.]
Vachon, S. and Klassen, R.D. (2007). Supply chain management and environmental
technologies: the role of integration, International Journal of Production Research, Vol.
45 No. 2, pp. 401-23.
Vachon, S. and Klassen, R. (2008). Environmental management and manufacturing
performance: the role of collaboration in the supply chain, International Journal of
Production Economics, Vol. 111 No. 2, pp. 299-315.
Walker, H., Brammer S., (2011). Sustainable procurement in the United Kingdom public
sector. Supply Chain Management: An International Journal 42: 125-137.
Walker, H., Di Sisto, L. amd McBain, D. (2008). Drivers and barriers to environmental
supply chain management practices: Lessons from the public and private sectors.
Journal of Purchasing & Supply Management 14: 69-85.
Walker, H. and Preuss, L. (2008), Fostering sustainability through sourcing from small
businesses: public sector perspectives, Journal of Cleaner Production, Vol. 16 No. 15, pp.
1600-9.
173
Webb C. (1989) Action research: philosophy, methods and personal experiences.
Journal of Advanced Nursing 14, 403-410.
Weinstock, M.P. (1993), Environmental auditing: a measure of safety, Occupational
Hazards, May, pp. 73-5.
Whitehouse, (2010). Federal Agency Strategic Sustainability Performance Plans, Council
on Environmental Quality. Available from
http://www.whitehouse.gov/administration/eop/ceq/sustainability/plans.
WBCSD (2006). Eco-efficiency. Available at: http:// www.wbcsd.org/DocRoot/
WBCSD (World Business Council for Sustainable Development) (1996). Sustainable
Production and Consumption: A Business Perspective. Conches–Geneva, Switzerland:
WBCSD.
WCED (World Commission on Environment and Development) (1987). Our Common
Future. New York: The Oxford University Press.
Winter, M., 2003. Embeddedness, the new food economy and defensive localism.
Journal of Rural Studies, 19: 23-32.
Wycherley, I. (1999). Greening supply chains: the case of the Body Shop International.
Business Strategy and the Environment 8, 120-1227.
174
Yam-Tang, E. P. Y., and Chan, R. Y. K. (1998). Purchasing behaviours and perceptions of
environmentally harmful products. Marketing Intelligence & Planning, 16(6), 356-362.
Young, C., Ni, S. and Fan, K. (2010). Working towards a zero waste environment in
Taiwan. Waste Management & Research 28: 236-246.
Yu, N. (2003). Green Mark Ecolabelling and Government Green procurement, Green
Council, Environmental Division of the Hong Kong Institution of Engineers and Hong
Kong Waste Management Association. Taiwan: Environment and Development
Foundation.
Yu, N., 2009, National Seminar on Green Procurement in the Public Sector and its
Impact on the Green Supply Chain. Kuala Lumpur, Malaysia, March 21, 2009.
Zhao, W. and Schroeder, P. (2010). Sustainable consumption and production: Trends,
challenges and options for the Asia-Pacific region. Natural Resources Forum 34, 4-15.
Zhang, Z. (2008). Asian energy and environmental policy: Promoting growth while
preserving the environment. Energy Policy 36 (10), 3905-3924.
Zhu, Q. and Sarkis, J. (2004), Relationships between operational practices and
performance among early adopters of green supply chain management practices in
Chinese manufacturing enterprises, Journal of Operations Management, Vol. 22 No. 3, pp.
265-89.
175
Zhu, Q., Sarkis, J. and Lai, K. (2007). Green supply chain management: pressures,
practices and performance within the Chinese automobile industry. Journal of Cleaner
Production, 15(11-12), 1041-1052.
Zhu, Q., Sarkis, J. and Lai, K. (2008). Green supply chain management implications for
“Closing the loop”. Transportation Research Part E: Logistics and Transportation Review
44: 1-18.
Zsidisin, G. A., and Siferd, S. P. (2001). Environmental purchasing: A framework for
theory development. European Journal of Purchasing & Supply Management, 7, 61-73.
176
Appendices
Appendix A: Task Force Procurement Survey
Capacity Building Task Force Procurement Survey

February 22, 2011
Please identify which sector you represent:

○Property/Developer ○Transportation
○Government Authority ○Education
Where applicable please select which aspect of sustainable development

(Economic, Environment, Social) is most dominant or considered.
1. To what extent is procurement regulated by plans/policies in your company?

○ There are no plans/policies
○ Applies to few procurement activities
○ Applies to most procurement activities
○ Plans/policies is very thorough and applies to all procurement activities
2. Does your company’s procurement take sustainability into account?

○ Not at all
○ It is included in plans/policies
○ It is included and applied in SOME procurement activities
○ It is included and routinely applied in procurement
3. Is your company’s procurement:

○ Centralized (purchasing is responsibility of single unit in particular
products/services)
○ Decentralized (responsibility shard between departments)
○ Outsourced (separate private company carries out procurement on behalf of your company)
4. How many people are involved in your company’s procurement department?

○ Please indicate: ________________
5. Is procurement included in the company’s approach to sustainable development?

○ Yes
If so, which aspects does it cover? (check all that apply)
○Economic ○Environmental ○Social
○ No
6. For which of the following positions does your company provide training on procurement?
(check all that apply)
○ Procurers ○ Budget Holders ○ Finance Managers
○ Senior Managers ○ Lawyers ○ None
○ Other: ______________________________________
177
7. Does your company provide tools on how to implement procurement strategies?
○ Some (standard specifications, risk assessment, product/services fact sheets)
○Tools covering key stages are in place (supplier selection, bid evaluation)
○ Systematic set of tools covering all stages of procurement are in place
○ Systematic set of tools are in place and regularly reviewed and updated
8. Would government incentives increase amount of sustainable procurement?

○ No ○ Maybe ○ Yes ○ Definitely
9. What forms would you like to see these incentives?
○ Tax exemptions ○ Rebates ○ Funding
○ Other: ________________________
10. Will government’s proactive decision to implement government procurement encourage

your company to fully integrate sustainable procurement?
○ No ○ Maybe ○ Yes ○ Definitely
11. Government policies and control will deter company from procurement
○ No ○ Yes ○ Yes only if they are very strict
12. Which of the following best describes your company’s procurement budget management?
○ Annual (fixed amount but cannot be carried over into the next year)
○ Annual (fixed amount and can be carried over into the next year)
○ Multi-year budgets (fixed amount over more than one year)
○ Project/Task budgets (fixed amount for specific project)
○ Operating Costs are included in these budgets
○ Other: _______________________________
13. Has your company identified products/services that have the highest economic,
environment, and social impacts?
Impacts of Impacts of key There is Impact
some are purchases are evidence of reduction
known (paper, known and targets how impacts through
stationary, have been set to have been purchases are
energy) reduce them reduced measured and
scrutinized
Economic ○ ○ ○ ○
Environment ○ ○ ○ ○
Social ○ ○ ○ ○
○ No
14. To what extent does your company provide staff with procurement training?
Training on Training includes Training includes Regular
how to buy sustainability sustainability training
has been given issues (LCA, risk issues and is delivered to key
to key assessment) given to all staff procurement
procurement involved staff
178
staff
○ None
15. To what extent does your company undertake sustainability risk assessments in
procurement?
Few Key Few key Main Sustainability
sustainability sustainability sustainability criteria applied
impacts are impacts are impacts for all to all contracts.
identified and identified and products are Detailed risk
used to priority list and assessed and and impact
estimate risk action is taken actions to reduce assessment
is undertaken
○No sustainability risk assessments are done
16. To what extent does your company evaluate suppliers?

Potential Potential Supplier Suppliers
suppliers are suppliers are evaluation demonstrate
not evaluated evaluated to includes main independent
ensure they sustainability evidence, regularly
are fit to impacts accredited and
supply standardized
17. Does your company evaluate bids from suppliers other than price?
Evaluation Evaluation Evaluation Evaluation takes
based on includes includes complete
price and quality, sustainability, assessment
other durability and durability and including
operating operating operating costs sustainability,
costs costs carbon emissions,
quality, etc.
Other Considerations:
18. To what extent does your company undertake monitoring and reporting on
procurement?
Internal Internal auditing Independent Results of audits
auditing on and includes auditing and procurement
savings sustainability systems, activities are
aspects reported published
179
internally externally
○ No monitoring and reporting on procurement
19. Are suppliers involved with developing your procurement process?

○ Yes ○ No
20. Are you engaging suppliers to develop more sustainable products and services?
○ Yes ○ No
21. Are other stakeholders such as consumer organizations, general public involved with
developing your procurement process?
○ Yes ○ No
22. Are you informing stakeholders of your sustainable procurement efforts/goals?

○ Yes ○ No
23. Was it difficult to encourage staff to become involved in sustainable procurement?

○ Yes ○ No
If Yes, please state why: ________________________________________________
24. Which products/services are most difficult to sustainably procure?

○ IT Equipment ○ Cleaning Supplies
○ Paper ○ Electrical and Electronic Equipment
○ Furniture ○ Food and Hospitality
○ Construction ○ Others:_________________
25. What benefits through sustainable purchasing is your company hoping to gain?
○ Carbon Reduction ○ Innovative Alternatives
○ Waste Reduction ○ Sustainable Development
○ Energy Efficiency ○ Corporate Social Responsibility
○ Health Improvements ○ Others: ______________________________
180
Appendix B: 2006 Green Purchasing Population Survey
Introduction
The Government initiative on GP in Hong Kong started in 2000. The situation in the local
business sector is largely stagnant. Understanding the attitude of the general populations
on purchasing green products could help the business sector to construct their future
planning. The purpose of this attitude survey is to address these gaps in the knowledge so
as to inform policy development at the government and business sector.
Design
Cross-sectional street intercept questionnaire survey.
Setting
The interview took place in 3 major business districts and 7 major housing estates in Hong
Kong. Each region was allocated 100 questionnaires.
Results
A total of 735 interviews were conducted. Depending on the district, the average response
rate is 67% in the business districts and an average of 80% in the residential housing
estates. The interview completion rate is 97%. Most of the interviews were completed in
less than 5 minutes.
(i) 529 (72.0%) of 735respondents reported that they had purchased

environmentally preferable products, with paper products being the most commonly
identified product category;
(ii) 561 (76.7%) of 731 respondents stated that they would include environmental
considerations -- especially on durability, toxicity, composition of recycled materials, and
packaging -- during future purchasing activities;
(iii) 540 (74.6%) of 724 respondents agreed that cost differential is a prime factor in
green purchasing decision-making;
(iv) 565 (79.4%) of 712 respondents expressed a willingness to pay more for green
products, with a maximum payable upper limit at 22% greater than the average price for
products within a functional category;
(v) 433 (59.5%) of 728 respondents identified that they had encountered difficulties -
- e.g. identification of genuine 'green' products, small market coverage and narrow range of
choice of environmentally preferable products, etc. - in attempting to source
environmentally preferable products;
181
(vi) 644 (88.1%) of 731 respondents expressed interested in getting one-stop
assistance on green purchasing and receiving information on environmentally preferable
products;
(vii) 683 (93.7%) of 729 respondents stated that they would definitely consider
practicing green purchasing if there was a comprehensive database of environmentally
preferable products;
(viii) 702 (96.7%) of 726 respondents expressed the opinion that the Government should
lead green purchasing;
(ix) 699 (95.6%) of 731 respondents suggested that the Government should take a
stronger role in promoting green purchasing in Hong Kong through such means as:
enhanced promotion and awareness raising of ‘green’ products, provision of product-
specific tax exemptions and/or subsidies as incentives.
Discussion
The response rate is high in this study that indicates citizens in Hong Kong do
aware of the importance of environmental protection. Seventy-five percent of respondents
were willing to pay more for green products. However, a significant number (59%) of
respondents found it difficult to find their desired green products, which implies a vast
business opportunity. Almost 90% of respondents express their need for information on
environmental preferable products, which indicates a customer friendly database or
labeling system is in great need. Not unexpectedly, almost all respondents believed that the
government must take a stronger role to promote green purchasing.
Research limitations
This survey is a preliminary survey only; the result is not stratified into the
demographic characteristics of the street-intercept sample. The stratified data, which is
beyond the scope of this study, would be most valuable in marketing of green products.
182
Questionnaire of Green Purchasing Survey for (2006)
Question 問題 Response 回應
1. Does your organization/do you purchase any Yes 有
environmental preferable products? If so, what are these Items 產品種類
items? ______________________________________
請問貴機構閣下有否採購環保產品？如有，什麼產品？沒有

/
____________
No
2. 有
Does your organization/do you include environmental Yes
considerations during purchasing? If so, what are these Considerations 考慮的環保因素
considerations? (Examples: recycled contents, durability, ______________________________________
reduced packaging materials, toxicity etc.)
沒有
_____________________________________
請問貴機構閣下進行採購時有否加入環保考慮因素？
/
No
如有，什麼環保考慮因素？（如：再造成份、耐久性、
簡約包裝、毒性等）
3. Does your organization/do you consider cost is a prime Yes 會
factor in green purchasing? No 不會
請問貴機構/閣下是否認為產品價錢是執行環保採購的重
要因素之一?
4. Does your organization/do you willing to pay more for Yes 會
green products? No 不會
請問貴機構/閣下是否願意付出較高的價錢購買環保產品?
5. Does your organization/do you find it difficult to source Yes 有
environmentally preferable products? If so, what are the Difficulties 困難
difficulties? ______________________________________
請問貴機構閣下在採購環保產品時會否遇到困難？
/ 沒有
_____________________________________
如有，是什麼困難？
No
6. Will your organization/you be interested in receiving one- Yes 有興趣

stop assistance on green purchasing and information on No 沒有興趣
environmental preferable product?
請問貴機構/閣下有沒有興趣收到有關環保採購的協助及
環保產品的資訊？
7. Will your organization/you consider practicing green Yes 會
purchasing if there is a comprehensive database of No 不會
environmental preferable products?
如有一個比較完善資料庫，你認為會有利於貴機構//閣
下進行環保採購嗎？
8. Does your organization/you consider the Government Yes 應該
should take a stronger role on promoting green Ways of promotion 推動方法
purchasing in Hong Kong? If yes, in what way? ______________________________________
(Examples: offering tax concession)
請問貴機構/閣下認為政府應否更主動地推動香港的不應該
____________
No
環保採購？
如認為應該，政府又應該如何推動？（如：提供稅惠）
183
9. Does your organization/do you think the Government Yes 應該
政府需否率先執行環保採購？
should lead green purchasing?
不應該
No
可選擇多項：
10. (For Environmental Preferable Product Can select more than one item:
Retailer/Supplier/Wholesaler/Manufacturer Only)
What assistance does your organization consider useful in Green products database for
promoting environmental preferable products in Hong public access
Kong? 供公眾瀏覽的環保產品資料庫
(只適合環保產品零售供應批發製造商 / / / )
Opportunities to contact
貴機構認為哪些行動可推廣環保產品？
environmentally responsible
提供機會接觸有環保採購的公司
organizations
Government to commit
purchasing a certain percentage
of environmentally preferable
政府承諾購買環保產品
type
Others 其他
______________________________________
____________________________
Are you representing an organization or an individual? Individual 個人

□ 二十歲以下
請問閣下的身份是代表私營機構或個人？
<20 years old
□
二十至六十歲
20 – 60 year old
□≥ 60 years old 六十歲以上

Organization 機構
□External trade 對外貿易
□Industrial production
工業生產
□Commerce 商業
□ Information Technology 資訊
科技
□ Property & construction 物業
及建築
□ Transport, communication &
tourism 運輸、通訊、旅遊
□Education 教育
□Health 健康
□Social Welfare 社會福利
(For Organization Only) What is the number of staff employed < 50 staff 五十位員工以下
under your organization? 50 – 100 staff members 五十至
(只適私營機構)
一百位員工
≥ 100 staff 一百位員工以上
請問貴機構擁有多少員工？
184
Appendix C: 2009 Green Purchasing Questionnaire
Company Name:
Address:
Sector: ⃞ Accountancy ⃞ Architectural, surveying and planning

⃞ Agriculture and fisheries
⃞ Commercial ⃞ Education ⃞ Engineering
⃞ Finance ⃞ Financial services
⃞ Health services ⃞ Import and export ⃞ Industrial
⃞ Informational technology ⃞ Insurance ⃞ Labour
⃞ Legal ⃞ Medical ⃞ Real estate and construction
⃞ Social welfare ⃞ Sports, performing arts, culture and publication ⃞ Textiles and
garment
⃞ Tourism ⃞ Transport ⃞ Wholesale and retail
⃞ Other: ________________________
Number of Employees: Website Address:
Name of Respondent: Job

Title:
Tel: Fax: Email:
If selected, are you willing to participate in a follow-up interview? ⃞ Yes ⃞ No
Does your company have a Green Purchasing (GP) policy, procedures and/or activities in
place?
⃞ Yes (Complete this question and go to Q3) ⃞
No (Go to Q2)
Policy: ⃞
Stand-alone ⃞
Component of a broader policy ⃞
Drafted
Procedures: ⃞
In practice ⃞
Documented ⃞
Under review
Activities: ⃞
On-going ⃞
Recently Implemented ⃞
Planned
185
Under which of the following circumstance(s), your company will consider practicing GP?
⃞ Government requirement ⃞ Tendering requirements of
clients
⃞ Top management’s commitment
⃞ Others__________________________________________
Which of the following has lead / could lead to your company practicing GP?
⃞ efforts / initiatives taken by other progressive Hong Kong companies (within or outside
your sector)
⃞ efforts / initiatives taken by affiliated companies/divisions within your corporate
organization
⃞ efforts / initiatives taken / expected to be taken by direct competitor(s)
⃞ international trends and efforts in general
Which of the following role(s) should the Government play in promoting, guiding and
encouraging GP in the private sector (select as many as you wish):
⃞ “Lead by example”
⃞ Identification of ‘green’ commodities
⃞ Provision of training courses
⃞ Information dissemination
⃞ Recognition of achievements
⃞ Others
Which of the following(s) would you consider to be major deterrents to GP implementation?

⃞ Increases in expenditure without significant improvement in environmental
performance
⃞ Difficulty in integrating GP policy into the company’s existing policy
⃞ Insufficient in-house knowledge for identification of ‘green’ products / services
⃞ Inadequate market supply of ‘green’ products / services for comparison and selection
⃞ Inadequate guidance and / or training on GP implementation
⃞ Insufficient internal corporate incentive (in terms of financial allocation and formal and
sustained commitment from top management)
⃞ Difficult socio-economic conditions at a local, regional, national or international level
186

Regional Public and Private Sector Green Purchasing/Procurement: Investigation, Analysis and Guidance

Uploaded by

Copyright:

Available Formats

Regional Public and Private Sector Green Purchasing/Procurement: Investigation, Analysis and Guidance

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Regional Public and Private Sector Green Purchasing/Procurement: Investigation, Analysis and Guidance

Uploaded by

Copyright:

Available Formats

Regional Public and Private Sector Green

A thesis submitted in partial fulfilment of the

ultimate aim is to promote environmentally preferable products and services by greening

foreign-based multi-national overseas corporations. It has yet to be a mainstream practice

in the general business sector.

the collection of data via a number of surveys.

experiences of GP among practitioners in the business sector. The process involved an

initial questionnaire survey, followed by statistical scrutiny. In order to obtain more

practical information, a follow-up descriptive survey with open-ended questions was

guidance, the synergistic relationship between Government Green Purchasing (GGP),

ecolabelling is a time-proven instrument to provide such guidance and the government

Keywords: Government green purchasing; government green procurement; sustainable

consumption and production; Ecolabel; green labelling

for their advice on technical matters.

must be given to Ms Debra Williams for her professionalism in proof reading.

I am profoundly grateful to my colleagues at Green Council for helping with my

contributing to the interviews.

APCC Australian Procurement and Construction Council

acknowledgement that green purchasing has become established in Government and

summary of the entire thesis is outlined.

1.2 Government Green Purchasing in Hong Kong

The Government of Hong Kong Special Administration Region (HKSAR) introduced

green purchasing as a major component of public procurement in 1999.1 By 2000, the

Stores and Procurement Regulations (SPR) were amended to require Government

departments to give consideration, as far as possible and where economically rational,

to purchasing products with improved recyclability, higher recycled content, greater

Department (GLD) has developed green specifications for a range of commonly

procured products including recycled papers, environmentally preferable cleaning

materials, clean fuels, etc.

The regulations were solidified in ‘A Policy Framework for the Management of

1 Source: HKSAR Sustainable Development Homepage --

2014). Retrieved on November 25, 2009 from http://www.epd.gov.hk/epd/msw/htm_en/content.htm.

emphasized the importance of research and development (R&D) endeavours, and

promoting industrial environmental performance advancement and leadership along

with green purchasing.

1.3 Green Purchasing in mega size local and overseas corporations

integrated environmental initiatives into their procurement process. The author

performed a face-to-face task force procurement survey with 12 high calibre

Logistic Department. Standard proactive environmental programmes in place include

producing “green” (environmentally-sound) products, developing reusable packages,

conserving energy, reducing waste, recycling, creating an environmentally sensitive

firm's planning processes. Evidenced based evaluations of the supplier’s engagement to

develop sustainable products are an essential part of their programmes.

not been studied.

In 20064, the author organized a cross-sectional street intercept questionnaire survey

for green products. However, a significant number (59%) of respondents found it

government to take a stronger role in promoting green purchasing.

purchasing practices in the local business sector in greater depth.

1.5 Research question and objectives

activities, is grossly under investigated. What facilitates or inhibits these companies to

conceptual and empirical knowledge of the challenges encountered.

This thesis seeks to answer the following research questions:

2. How to provide guidance to the business sector to engage green purchasing?

The steps taken to answer these questions include:

programmes that are used internationally; the relationship between green

• To develop a generic model to determine green purchasing uptake.

domestic setting of Hong Kong.

contribute to facilitate the take-off of green purchasing in the business sector.