 1996 GRIP Centre - Norwegian centre for sustainable production and consumption

Advisor responsible for GRIP Purchasing: Oeystein Saetrang

ISBN 82-91359-09-1

First edition 1996 (in Norwegian)

GRIP Purchasing is a direct (unadapted) translation of the Norwegian edition.

The GRIP Centre was founded by the Ministry of the Environment and is managed in
collaboration with the Confederation of Norwegian Business and Industry, the Norwegian
Federation of Trade Unions, the Federation of Norwegian Commercial and Service
Enterprises, the Association of Local Authorities, the Norwegian Society for the
Conservation of Nature and the Norwegian Pollution Control Authority. The GRIP
Centre has the following object clause: "The Foundation aims to contribute towards the
fulfilment of the objectives of a sustainable production and consumption, cf. Chapter 41
of Agenda 21. By combining environmental and market insight and organisational
measures the Foundation shall contribute towards a sustainable development in
Norwegian private and public enterprises. The Foundation shall ensure the
development and dissemination of methods which combine an increase in value added
with a reduction in the consumption of resources and environmental impact".

We would like to thank everyone who has made a contribution to the GRIP Purchasing
guide. A special thanks to the members of the reference group - Oddvar Lone of
HolteProsjekt Innkjoepspartner as, Roar Johannessen of Statskjoep, Trond Torud of
Statskonsult, Oeyvind Boee of the Municipality of Tromsoe, Gro Eva Skjaeveland of the
Municipality of Oslo, Inger Roll-Matthiesen of the Ministry of Industry and Energy, Bente
Naess of the Ministry of the Environment and Geir Hoelbye of the Confederation of
Norwegian Business and Industry - who have all laboured through several drafts of
manuscript. Thanks also to everyone else who has taken the time to comment on the
various draft versions along the way and to others who have put forward useful ideas
and supplied information.

GRIP Centre
Stroemsveien 96
P.O.B. 8100 Dep
0032 Oslo
Tel +47 22 57 36 00
Fax +47 22 68 87 53
E-mail: [email protected]
Home Page: www.grip.no
List of contents

0. Why GRIP Purchasing? 4

1. Organise and start work 9

2. Map out the situation and the possibilities 13

2.1 Verify the Need 15

2.2 Enquiry - Specify product requirements 23

2.3 Enquiry - specify supplier requirements 29

2.4 Evaluation of offers, delivery follow-up, warranty control etc 33

3. Plan, give priority to and implement 36

4. Measure and evaluate 39

Appendix 1 - Questions relating to products 40

Appendix 2 - Questions relating to suppliers and information about eco-management

schemes 45

Appendix 3 - An outline of different labelling schemes 51

Appendix 4 - List of product groups with official environmental criteria 58

Appendix 5 - A general list of environmentally hazardous substances 60

Appendix 6 - A detailed list of substances that are hazardous to the environment and to
health 62

Appendix 7 - Glossary of terms 66

Appendix 8 - Useful contacts 68

Appendix 9 - References, literature, reports 69

0. Why GRIP Purchasing?
GRIP Purchasing is a practical tool for professional purchasers who have decided
to make environmental considerations when purchasing. It is a question of
staying ahead of developments. Future-oriented action will give lower total costs,
a better covering of needs and make better suppliers through the fact that you
yourself are a demanding customer.

Because it aims to help you as a purchaser

This Guide is aimed at you who have been given the responsibility of planning and
implementing a more environmentally efficient purchasing procedure for your enterprise,
whether you are a purchaser yourself or take an active part in the purchasing process.
This Guide is meant as a practical tool in such efforts.

Because it gives lower total costs

For most enterprises environmental friendliness is a means to reach a goal and not a
goal in itself. Experience dictates that sensible purchasing which is good for the
economy of the enterprise is often good for the environment as well. The reason is
obvious. Resources saved is money saved.

The focus is often placed on how much a new acquisition costs but the fact is that when
you buy a product, you also buy future costs. These are costs associated with energy
consumption, commodity consumption, insurance, maintenance, disposal and various
charges levied, if any. Car purchasing is a good example of the fact that the acquisition
cost is only the first of many cost elements. The concept of life cycle costs is therefore
central in this Guide.

What is seen as sensible today may prove very lucrative tomorrow. Gradually, as we
gain a better insight into the connections between the impact of products on the
environment and their effects on health and the environment, the costs of the
community will most likely be shifted onto the manufacturers and consumers through
charges and regulations.

In order to meet this development you should have the leading edge. This Guide offers
practical help in this process.

Eco-efficiency - a central concept

In order to reduce the pressure on the environment and take into account the
environmental situation for future generations, we must get "more out of less" -
enhanced environmental efficiency means a higher value added causing less
environmental impact. The concept of "eco-efficiency" will therefore be central.
Enhanced eco-efficiency in the Norwegian business and public sectors means a
development in the direction of a sustainable society. An annual improvement in eco-
efficiency by 3 per cent is roughly the same as the annual improvement in labour
efficiency over the past 150 years - in other words a feasible task. The vision is for the
product's life cycle to close - the least possible of raw materials and energy going in and
the least possible of pollution and waste going out. National and international framework
 conditions from the authorities and the market will contribute towards enhanced eco-
efficiency. In its various phases an eco-efficient product has the following
characteristics:
• The design phase is all-important. The environmental aspect must be given a high
priority. The product must be designed to be of an optimal environmental standard
in manufacture, in use and as waste.
• In manufacture products should, as far possible, be made using only renewable raw
materials and renewable energy. If non-renewable resources are used, these
should be recyclable.
• In use products should have a long service life, be easy to repair, simple to use
correctly and have the minimum of external effects.
• As waste a product should be recyclable.

The following illustration shows the problems, the vision and the means:

N AT ION AL AN D IN T ERN AT ION AL FRAMEW ORK CON DIT ION S

Emissions
T HE MAN UFACT URIN G PH ASE
• low/no emissions T H E PRO DUCT IN USE
• no toxic substances • low/no emissions
• long service life
T HE PRO DUCT 'S • no toxic substances
Energy and LIFE CYCLE
raw materials
VISIO N :
CLOSE T H E CYCLE

T HE DESIGN PH ASE
• give priority to
T H E PRO DUCT AS W AST E
the environment
• the product is recyclable

N on-recyclable waste

FROM T H E AU T H O RIT IES AN D T H E MARKET

Because the environmental image of the enterprise has become a competitive factor
The demand for a high environmental standard both in the manufacturing process and
for the product itself is increasing. Export-oriented Norwegian enterprises today are
confronted with environmental requirements which are significantly more stringent
abroad than at home. The environment is about to become an increasingly competitive
factor. Large industrial concerns are introducing eco-management systems and
demand that all their suppliers do the same. Environmental requirements regarding
public sector procurement are about to be introduced in an increasing number of
countries. Consumers want environment-friendly products, and schemes for the eco-
labelling of products are taking off.

Your enterprise, be it private or public, will notice these changes to a smaller or larger
degree. Private enterprises come across them through direct contact with the market,
whereas public enterprises meet with them through political decisions, demands by
 employees and demands by the general public. A good environmental image is a
natural part of the ethical standard of your enterprise. A good environmental image
presumes that you have an awareness regarding your own purchasing and your own
consumption.

Because it helps to ensure supplier development

A customer relationship often extends over several years. It is therefore in your interest
as a purchaser to have a supplier who shows a steady improvement. Your responsibility
as a purchaser is to place future-oriented demands upon quality, upon the environment
and upon costs. In this way you will help to promote competitive and innovative
enterprises.

Because it helps to conserve the environment

The human race today has an overconsumption of the earth's resources thereby
accumulating pollution and waste. This is contrary to the target that future generations
too shall be able to have their needs covered, cf. the definition of a sustainable
development. Our economic activities must be adapted to the limits of nature. The
purchaser constitutes the most important participant in our market economy, and an
eco-efficient purchasing practice is therefore an important step in the right direction.

Because it is the political trend

Agenda 21 - An Action Framework for the Twenty-First Century which was adopted at
the UN Conference on Environment and Development in Rio de Janeiro in 1992,
establishes that the most important cause of the increasing deterioration of the global
environment is non-sustainable production and consumption patterns, specially in the
industrialised countries. In Agenda 21, Chapter 4, purchasing is emphasised as a
particularly important area of concentration. The Norwegian Government gives priority
to this work. Within the Government's three-year programme for public purchasing
(1994-1996) the Ministry of the Environment has been responsible for the project "Green
Public Purchasing Policy", in which the preparation of GRIP Purchasing is a subsidiary
project under phase 2 of the project. Other countries are implementing similar
measures.

The Guide reflects a professionally correct purchasing procedure

Although this is a guide for eco-efficient purchasing, the Guide also reflects a
professionally correct procedure for purchasing.

Conclusions from a market survey

The GRIP Centre has carried out a market survey among purchasing officers within
public enterprises.

The following results emerged: A majority of the persons asked claimed that the
purchasing function today does not have sufficient competence to establish a set of
environmental criteria to be used for relevant groups of products. It was also claimed
that purchasing officers lack the necessary skills to make environmental evaluations of
offers.
 In order to incorporate environmental considerations in the purchasing practice to good
effect, more than half of the same persons consider the following points as important:
• Management decisions concerning environmental considerations on purchasing
must be available and must be incorporated in the enterprise programme
• Criteria for the purchasing categories of an enterprise must have been established
• A purchasing cooperation must exist between different organisations for the
establishment of environmental criteria
• Environmental criteria must be incorporated in public purchasing regulations

These are approaches to problems that the GRIP Centre will get down to and help
resolve.

Questions that may be raised

Is there correspondence between an eco-efficient purchase and a professionally
correct purchase?
If one succeeds in one area to reduce the total consumption - e.g. by employing an
entirely new solution to cover a need - one may obtain so-called win-win situations, i.e. in
the form of both a reduced environmental impact and reduced costs.

When a decision has been made about what type of product is needed, environmental
considerations may conflict with the costs when you are weighing two products against
each other. But there is a big chance still that the most eco-efficient alternative will
prove the better one. This is due to the fact that the environment and quality are often
closely related (quality often involving a longer service life leading to a lower
consumption of resources), in addition to the fact that an eco-efficient product will
normally have a lower consumption of energy, for example, and represent fewer costs
as waste, either because it is integrated in a recycling system or because it does not
contain harmful substances. Thereby it is not defined as toxic waste.

Is it possible for several processes of change in the purchasing function of an

enterprise to be handled simultaneously?
Professional purchasing is in a process of development, and from many quarters
increasing demands are placed upon the purchasing function of an enterprise. In many
enterprises one is beginning to see the many possibilities inherent in savings if
purchasing routines are improved. This results in the implementation of different
processes of change. Due to the fact that eco-efficient purchasing is often equal to
professionally correct purchasing, one would be justified in running these two processes
of change simultaneously. Several parameters which are changed simultaneously
require, however, that this be reflected in project organisation, formulation of goals and
skills development.

Are services environmentally friendly?

A claim which is sometimes made is that if we increase our consumption of services,
this is environmentally sound. The performance of nearly all services, however, is
dependent on objects manufactured. The answer to the question is therefore that
whether the service is environmentally friendly or not depends on what physical product
is used to carry out the service. A transport service, for example, may be carried out by
plane or train or perhaps electronically - which takes us back to the choice of a superior
solution and properties relating to the individual physical product. A service, however,
may replace the purchase of a product. On acquisition of a building, for example, the
use of a construction consultant may help to ensure a better utilisation of space resulting
in a smaller and probably cheaper building.
1. Organise and start work
Good planning and organisation are central elements of success. These are the first things to
be aware of. It is a question of establishing targets, ensuring a sound management, finding
the right people to take part and setting time limits.

What is the nature of the work?

The work in question is an organisational development process in an enterprise which
wants to change its purchasing routines to become more eco-efficient. It is an
organisational development because it is a question of changing the organisation's skills
and working methods. In order to achieve such a process of change it is recommended
that the work be organised as a separate project - starting modestly, e.g. with one or two
product groups in order to minimise any negative consequences and to develop skills
gradually.

Organise the work as a project with specific targets

Using environmental criteria as a basis when making a purchase is not an isolated
matter, at least not if it is to take place in many or all product groups. It is a question of
the enterprise image internally and externally. It is true that savings can be made, but a
consistent image may also lead to increased costs for some groups of products. In
addition comes the complexity of the work, specially in an initial phase. This may
require that funds and time resources be allocated, and that people who do not normally
have much contact within the organisation sit down together. These aspects are the
reason why it is recommended to organise the work as a separate project. The creation
of a project is further an appropriate way to render the investment visible. It increases
the focus and gives the measure status internally.

Even if this is not meant as a manual in project work we list below some important
elements which should be sorted out prior to the starting up of the practical part of the
work:

Effect targets: Define effect targets which outline what your enterprise wants to achieve
by the project. In a pilot project for eco-efficient purchasing by the County Governor of
Vestfold the following effect targets were presented as a basis:

• Help to reduce the total environmental impact (use of resources, pollution, waste
generation) from goods and services delivered to, and consumed by, the
government sector in the county of Vestfold.
• Ensure that the suppliers' environmental image becomes a real competition
parameter in the allocation of contracts to the government sector in Vestfold, and
ensure that suppliers who do not satisfy certain environmental requirements are not
"rewarded" through the allocation of contracts.
• Ensure that the purchasing needs of the government sector in Vestfold are covered
in an eco-efficient manner (i.e. that goods and services purchased represent a high
added value compared with the impact on the environment)
• Help to ensure that the purchasing skills of purchasers, as well as
onstruction/tender/ project managers show a constant improvement
• Help to make conditions favourable to ensure that the local business sector in
Vestfold always develops in a positive direction as regards costs, environmental
impact and quality
• Help to ensure that the government sector in Vestfold is regarded by the business
sector as a demanding customer, thereby spurring on the business sector's
environmental efforts.
• Help to ensure that the government sector in Vestfold is regarded by the general
public as environmentally-aware services that show social responsibility.

Result targets: The result targets are set on the basis of the effect targets and they shall
describe how we hope to achieve the effect targets. The following result targets were
selected by the County Governor of Vestfold:
• Incorporate eco-efficiency requirements in general purchasing policy
• Formulate and adopt a procedure to describe and confirm needs between user and
purchaser which will result in performance specifications that can be used in
enquiries
• Systematically take life cycle costs as the basis for an evaluation of the "financially
most advantageous offer"
• Formulate and put to use environmental requirements for the groups of products
that will be purchased and formulate a procedure for how the suppliers' replies are
tobe evaluated and weighed in an overall evaluation
• Work out a simple system showing how eco-efficient purchases are made in the
enterprise and how far we have come
• Establish meetings with the business sector and trade organisations for the
reciprocal exchange of knowledge and experience.

The effect targets and result targets should be as specific and as measurable
(preferably with figures) as possible. They will form the basis for an evaluation of
whether the project work has been a success. However, the project manager cannot be
held responsible for the attainment of the effect targets. If these are not attained, then
the result targets have been incorrectly defined and the management must take the
responsibility for this.

It will often be sensible to break the result targets down into smaller practicable
activities. This is a task for the project manager and the project group (see below).

Time and cost limits: Planning is necessary to coordinate the activities and resources
over time, so that the set targets can be achieved with the smallest possible
consumption of resources. Make a list of activities and milestones with related cost
estimates.

Organisation: Arrange for a sound management, elect a project manager and set up a
project group.
 Together, these constitute a project plan with which the management should be
completely familiar before the project starts up.

A sound management - a must

A sound management is important. A sound management gives the project manager
the necessary strength and authority vis-à-vis the rest of the organisation in the
realisation of the project.

The Municipality of Bergen has formulated the following superior purchasing policy:

Extract from the purchasing policy of the Municipality of Bergen:

The Municipality of Bergen aims to be a prompter in efforts to improve the environment
in a wide perspective. In accordance with "Supplier requirements in the Municipality of
Bergen" the Municipality shall not use products which through their manufacturing
process, use or waste disposal cause harm to the environment, if alternatives are
available. Central elements in this context will include the choice of raw materials, the
manufacturing process and pollution through waste disposal/combustion. --- The offeror
must therefore enclose with the offer information concerning how the choice of him as a
supplier may help to fulfil the policy of the Municipality of Bergen in this area, in
accordance with the above elements."

Such a general declaration of intention is important as a signal effect both internally and
externally. In addition, the management must also process and approve a specific
proposal for a project plan.

Elect a project manager

The project manager must be elected on the basis of skills, environmental interest and
personal qualifications. From an organisational point of view the purchasing officer will
often be a natural choice but the project manager may also be someone else.

The project manager is responsible for the progress of the project. The project
manager's most important actions are to take the initiative to the formation of the project
group, to the formulation of a realistic project plan, to having this approved by the
management and to carrying it out in practice. The project manager must ensure the
participation of the project participants in the planning and implementation phases and a
clear division of responsibility for the individual project activities. This is important in
order to motivate the project participants and at the same time stimulate creativity.

Appoint a project group

A project group should be appointed by the management in consultation with the project
manager. The project group shall ensure the anchoring of the project in the
organisation, shall provide expert guidance and shall assist in the implementation of the
project. The project group should consist of persons who supplement each other with
regard to skills and who represent the most important areas that will be affected, such
as the user side, maintenance, finances, marketing etc. The group should not be too
large. The composition of the group need not be static. Project workers may be brought
in if and when needed as you go along. Agree on an agenda for meetings and progress
 for the work. It is important that the members of the project group be allocated the
necessary time for the project by their line managers.

In many enterprises so-called user committees or user groups are set up in connection
with the purchasing activity. These are groups which may come in useful in this context.

Organisation involvement
Motivated co-workers is a precondition for the success of any process of change, and
such motivation depends on skills, understanding and commitment. An important
criterium, therefore, for the success of a process of change is openness. The launching
of the environmental project should not come as a surprise to anyone within the
organisation. Make sure to incorporate information routines from the start. The
undertaking may start off by giving information to the effect that a plan for eco-efficient
purchasing will be developed, and not least why - i.e. what advantages the enterprise
feels it may achieve by it. Make sure, however, not to create expectations that cannot
be met. Be precise and unambiguous, do not go into detail in the early stages of the
project, invite ideas and suggestions. This will prevent conflicts and remove barriers
against the implementation of measures.

After the implementation of a good planning process it is important to start the

implementation of individual measures and to be able to refer to positive results.
Experience has shown that it may be sensible to start off with a product category that
affects many co-workers, e.g. a "green office" where costs as well as environmental
gains may be achieved quickly. This gives inspiration for further activity and creates
acceptance within the organisation.

Use of external expertise

It may be to the purpose to bring in external consultants. The enterprise's own
employees may be so bogged down in day-to-day tasks that external help is necessary.
The employees may further be too set in their traditional ways of working and solving
problems, a situation which may be relieved through external forces more readily able to
consider problems and possibilities with "fresh eyes". However, external consultants
should always collaborate with the project manager to transfer expertise to the
enterprise and function as a catalyst. The goal should be self-sufficiency. The expertise
transfer requirement should therefore be incorporated in the contract.
 2. Map out the situation and the possibilities
A purchase has many stages, but the basis of a successful purchase is laid during its first
stages. The verification of needs across departments and over time is of vital importance in
order to measure life cycle costs. The relevant product and supplier requirements shall be
stipulated in the enquiry.

A good purchase has many stages

This chapter deals with the entire purchasing process and evaluates the various options
you have during the different phases for obtaining an eco-efficient purchase.
Traditionally the role of the purchaser is linked to the process from the time the need
arises and up to the time of delivery. Focusing on life cycle costs, the purchaser must
raise himself onto a higher level and view the interests of the entire enterprise as a
whole. This means that the costs of the enterprise relating to the phasing in, operations
and scrapping of the product in question are also relevant to the purchasing decision.

A purchasing process is not a success unless the purchase satisfies 100 per cent the
needs relating to the phasing in, operations and scrapping of the product. The
precondition for this happening is that there be complete correspondence throughout the
entire process between verified needs, formulation of specification, market research,
enquiry, evaluation of offers, negotiations, if any, contract, delivery follow-up, warranty
control and phasing in/operations/scrapping. The diagram below illustrates the whole
process with which a purchaser must deal:

Phasing in/
Verified
operations/
need scrapping

W arranty
Specification
control

Market Delivery
research follow-up

Evaluating N egotiations,
Enquiry Contract
offers if any

Source: Interpro AS

The rest of this chapter is based on this diagram.

Terminology
The terminology of the elements above differs in the different environments and
regulations. For the purpose of this Guide the terminology used is the terminology of the
above diagram - see also the Glossary of terms in Appendix 7.
2.1 Verify the Need
A good verification of needs is vital in order to obtain a fitting purchase. The correct
questions must be put to all users. What needs to be verified is the product's desired
performance over time. The product with the lowest life cycle costs makes the best purchase.

A good verification of needs is vital

When a need arises with one or several persons in an organisation, these "users" will
initiate measures to have this need satisfied in one way or another.

It is extremely important that you succeed in making a good verification of a need. The
verification of a need represents an interactive process between yourself as a purchaser
and the users. If you fail in this respect, this will involve an extra consumption of time as
well as resources to change or improve the delivery, which is neither cost-effective nor
eco-efficient. Be aware that many offerors speculate in the fact that the customer
does not know what he is asking for. We will revert to this matter later.

As purchasing officer you have a mediating role in which several considerations are to
be weighed against each other. The process has two stages: first you must verify the
needs of the users, and then you must be able to take a holistic view focusing on the
total needs of the enterprise. This will first and foremost mean a control of all cost-
producing elements right up to and including scrapping and disposal. This means that
users may put forward wishes which will mean extra work and costs to another
department within the enterprise.

Questions which should be asked to verify a need

1. Who are the actual users? Who will be dealing with the product in some way or
other?
2. What is the actual need to be satisfied?
3. Can the need be covered by any means other than through purchasing - and if so,
how? Can, for instance, methods and routines be changed? Can a product be re-
used? Or can a superior new solution be opted for which will bring about a reduction
in the total level of consumption?
4. How long will this need exist? Is the need static or should one prepare for changes
in the future?

Be aware that you as a purchaser do not always ask such questions unpunished.
Strong professional or technical environments in particular do not accept as a matter of
course that doubts are raised as to whether product xyz is still the right one - this is after
all what they have "always" used.

Interaction with the user a precondition

The user is the person or persons who will be dealing with a product during its service
life, alternatively, a representative selection of these. In order to obtain the right kind of
purchase, you are totally dependent on the users themselves helping to define their
needs and being involved in product evaluations. Satisfied users will be the result only if
the delivery covers both the conscious and unconscious needs of the user.
What is the need and what performances are required?
A survey of the users' conscious and unconscious needs is an important success factor.
Using a few extra resources during this stage may therefore prove very lucrative. Survey
the user conditions carefully, ask revealing questions and define what performance is
being requested. Focusing on performance is important as you then avoid opting for a
given product before both you and the users have quite understood what it is that you
really need.

Example of a surveying of needs and performance requirements in respect of office

furnishings through in-house inter-departmental cooperation:
Position Involves the following requirements
Chief administrator: Mobility (simple and with the minimum risk of damage), quality, need of space
at warehouse, installation work, packaging, disposal, etc
Physiotherapist: Ergonomics of furnishing alternatives
Local purchasing Practical function, investment, number and nature of furnishing alternatives,
officer and user: existing office furnishings, flexibility i.r.t. other makes, aesthetics, delivery time

Purchasing and Economy (life cycle cost), mercantile conditions environmentally hazardous
Environmental substances in product/production, form of transport , choice of material re-
Officer: use, delivery time, flexibility i.r.t. other manufacture, supplier quality,
aesthetics etc
Source: The Agricultural University of Norway

The users' needs may possibly be satisfied by other types of products or solutions than
those used today. The users must therefore be able to define their actual needs without
committing themselves to specific product solutions or suppliers. The following example
shows three different solutions which can all satisfy the same need:

What is the actual need?

At a three-hour meeting between two delegates in Oslo and two in Gothenburg the
theme is the autumn campaigns, sales conditions and bonus schemes. The two
Norwegian salesmen have a choice between three types of communication solutions, viz
plane, train and the telenetwork. Private interests will here easily conflict with the
interests of the enterprise (and the community). The table below shows the different
costs and presents some approaches to the problem:
Product solution Telenetwork (ISDN) Train Plane
Consciousness surrounding: New ways of thinking meetings, new The timetable, discount schemes, Timetable coach/plane, book
organisation around IT network work and relax on train ticket 4 days in advance for
discount, EuroBonus, tax-free
shopping?, read on plane
Degrees of freedom and feeling Quick to organise, concentrated on Travel to Oslo S, prepare Travel to bus stop, coach to
in travelling and meeting business, a rather "colder" meeting, meeting, wait for corresp. train, airport, check-in queue, board 15
situations the possibility of "inviting" customers eat in dining car, taxi to customer, min. prior to departure, prepare
in Brussels and Frankfurt via links to get to meeting on time meeting, wait for coach, taxi to
the telenetwork customer, get to meeting on time
Corporate cost (- time cost for Rent Telenor Travelling 2 x 13 hours Travelling 2 x 6 hours (-2,5%
meeting) (NOK 400.-/h) NOK 1,200 (-50% work. hours) NOK 5,200 work.hours) NOK 3,600
Tel.message units Return ticket Return fare
180 x NOK 4.90 NOK 882 (NOK 1,150 single) NOK 2,300 (NOK 3,000 single) NOK 6,000
Daily allow./misc. NOK 3,000 Daily allow./misc. NOK 2,000
Total NOK 2,082
Total NOK Total NOK 11,600
10,500
Conveyance environmental By using telenetwork these are - for electric train estimated at - for commercial airline from main
costs minimal approx 15 oere/person/km; airport estimated at approx NOK
Total environm. cost NOK 210 1.35/person/km;
Total environm. cost NOK 2,700
Private interests in choice of None Make profit on daily allow. by Make profit on daily allow,.
technology eating cheaply credits in EuroBonus which may
be used privately (does not apply
in the State), tax-free shopping,
etc

We assume that the Swedes have installed a separate video conference system
whereas the Norwegians rent a system from Telenor at NOK 4,500 .-/month and cover
the telephonic message units (2 lines at NOK 2.45/min.). The internal cost of the system
is fixed at NOK 400.-/hour subject to the system being used 4 hours per week.

How to cover the need?

The best thing as regards both the environment and the costs, is to succeed in covering
the need without having to resort to new purchases, or to reduce the existing
consumption level. Many routines, for example, are still established on the basis of
documentation on paper. With a bit of creative thinking the information technology
provides many possibilities for rationalisation of work leading to reduced costs and a
reduced impact on the environment. The use of electronic mail, the gathering of the
information desired from Internet or allowing the boss to comment on your latest product
directly on the screen are examples of this.

How to cover a need is often a question of using a bit of imagination and to be willing to
try something new.
 Two-sided copying reduces the consumption of copying paper
Most of the larger copying machines bought are capable of copying on both sides but
this equipment is not widely used. By ensuring that the entire staff uses this function
where possible, the consumption of paper may be reduced by as much as 40 per cent.
With a consumption of 150-200,000 sheets per year the saving in paper consumption
may easily amount to around NOK 4-5,000 per year, at no extra cost.

In addition to the saving in costs this will also involve, for the same period, a reduced
need for virgin wood fibre corresponding to approx. 1 tonne of paper, and the energy
consumption relating to the production of paper for the manufacture of copying paper
used by your own enterprise will be reduced by around 50 per cent.

In connection with the evaluation of needs and the development of specifications it may
be of interest to enter into a development cooperation for the purpose of adapting the
performance of the product to the verified need of the user, or else cooperate about a
completely new product. This means that your enterprise must either be an important
buyer with the supplier in question, or if you are not so large, then you must be an
interesting and demanding customer. You could also make alliances with other
enterprises who have similar needs. However, you should avoid alliances with suppliers
- the transition between partner and the severance of a partnership may be short.

The need over time

Human beings tend to be satisfied if our immediate needs are covered. In consideration
of both the costs of the enterprise and the environmental impact you should also think
about next year's result.

The life of a new product bought and its life cycle costs are of vital importance. Here
quality and environmental considerations are often very closely linked. A product which
is not up to the desired standard will need to be repaired more frequently, and this will
affect the operation of the enterprise. To this are added the costs of repairs. The result
will probably be premature scrapping and a new and costly purchase.

Use the present value method!

When a longer time perspective is to be used as a basis, life cycle costs and optimum
replacement time are estimated by means of the present value method. The use of this
method is recommended. It is devised for the purpose of comparing different products
or investments. The present value method aims to discount the net cash flow of the
product or the investment for each year back to the year zero. In this way everything is
being converted to the present value of the NOK and comparisons can take place direct.
It is further recommended to make a few assessments of sensitivity regarding the
various cost and income parameters, if any. This will reveal what parameters are crucial
to the cost image of the product. There are several textbooks in business management
and project analysis describing the method and how to use it. The examples below
illustrate the possibilities of economising when life cycle costs are used as a basis. A
high original cost is, as we can see, not necessarily a handicap! Present value
calculations have been omitted as the time perspective is fairly short - just about one
year only:
 Low energy light bulb versus a normal bulb
Normal bulb Low energy bulb
Unit price: NOK 5 NOK 70
Service life: 2500 hours 10000 hours
Energy consumption: 60 W 11 W
Replacement cost: NOK 15 NOK 15
Price per KwH: NOK 0.45 NOK 0.45

Over a period of 10.000 hours (more than one year's continuous operation) this gives
roughly the following result:

TOTAL annual cost: NOK 350 NOK 135

The unit price of low energy bulbs varies considerably. NOK 70 is the most reasonable
price found aimed at the ordinary consumer.

The replacement cost is roughly the time cost involved in finding out that the bulb needs
changing, order/collect a new bulb, change the bulb, purchase a new bulb.

In addition to the costs mentioned above, come costs in an office building with air
conditioning in the summer. About 240 W is used to cool the heat generated from a
60W bulb, whilst on the other hand, normal bulbs may contribute to the heating in the
winter.

The sensitivity analysis below shows how the annual cost changes when one by one
cost parameters are changed by from -100% to +100%.

Sensitivity analysis for a normal bulb Sensitivity analysis for a low-energy bulb

700 700

600 600

500 500

400 400
Annual cost

Annual cost

300 300

200 200

100 100

0 0
-100 % -50 % 0% 50 % 100 % -100 % -50 % 0% 50 % 100 %

Change in percentages Change in percentages

Original cost Replacement cost Energy cost Original cost Replacement cost Energy cost
 Economy shower versus normal shower
There is now on the market an economy shower which is selling at around NOK 100 to
consumers. This is comfortable to use compared with earlier versions, reducing the
water consumption by two thirds. The heating of water often constitutes a large portion
of the overall energy costs. This is therefore a very lucrative investment for schools,
public baths, institutions etc.

For acquisitions aimed to last for several years, decisive parameters are quality,
operational safety, energy consumption, flexibility, repair possibilities and upgradability.
Flexibility and upgradability are important specially for the reason that it is often difficult
to assess the needs of the future. An example of this is the acquisition of a building. A
building is meant to last for many decades and may house various activities with
different needs during this period. This means, for example, that interior walls ought to
be capable of being changed easily giving room for new planning solutions. Such a
building will often be much easier to sell or let, and then often at a higher price.

Car subscription is a flexible way of keeping a car

Two car subscription schemes are now available in Oslo. Such a subscription scheme
provides access to a car when needed and one thereby avoids all problems associated
with maintenance etc.

Specification
The verification of needs is not concluded until you have checked that what you have
stated in the specification is correct - interaction with the users is necessary. We make
a distinction between five different methods of specification:
1. Detailed specification - the product is specified down to the tiniest detail. This
would be like drawing the car yourself.
2. Supplier specification - the product is known, it is a car, viz a Mercedes.
3. Standard specification - the product is specified according to standards found on
the market, e.g. DOS compatible, VHS, an ISO standard, etc. This is often fine, but
one misses out on innovations, if any. One is also personally responsible for the
choice of standard. Choosing a standard which is on the way out, may prove very
expensive.
4. Function specification - the function is known, it is a car but apart from that
everything is left open.
5. Performance specification - the need is known, transport is needed from A to B -
whether it should take place by car, pipeline or wheelbarrow has not been decided -
we are awaiting the solution of the market - at the lowest possible price.

A performance specification is to be recommended. With a performance specification

you are able to increase the number of offerors as you have not committed yourself to
only one solution. In this way you also contribute to supplier development, as creative
suppliers get an opportunity to solve a problem in a new way. A performance
specification also covers all the other types and will generally give the lowest overall
costs:
 Cost

U nderspecification Overspecification
(not normally (normally a detailed
governed by needs ) specification)

Performance based Increasing

speification detailed specification
Source: Interpro A/S

Market search
Following the implementation of the surveying of needs, the purchaser must search the
market for solutions which satisfy the needs verified in the best possible way or, to put it
in another way, which have the desired performance. During this phase it is vital that
you do not commit yourself to the following: "But we have always bought from the corner
shop."

The next phase is the enquiry.

Implementation of development contracts

If you have special needs which cannot be covered by products available on the market,
which in principle means the world market, you may establish contact with a firm
capable of developing this product, and together you may enter into a research and
development contract. There are today two such schemes under the auspices of the
Norwegian Industrial and Regional Development Fund:

The PRD Scheme: Public research and development contracts may be entered into
between a public service which has a need of a product which has not been previously
developed, and a firm capable of developing this product. The service and the firm
enter into a contract. The acquisition itself shall be made through normal purchasing
procedures. The PRD contract, therefore, does not guarantee the firm the order in
question. The property rights to the product lie with the firm whereas the service
acquires the right of use. The Norwegian Industrial and Regional Development Fund
may partially finance the product with up to one third of the costs. Both the service and
the firm must otherwise take part in the financing.
The IRD Scheme: Industrial research and development contracts are in principle
formulated in the same way as the PRD Scheme but apply to a cooperation between
two firms - a customer firm and a supplier firm.

For further information about the above schemes, please contact the Norwegian
Industrial and Regional Development Fund (SND) (tel.no. 22 00 25 00,
fax no. 22 42 96 11).
 2.2 Enquiry - Specify product requirements
The verified needs of the enterprise shall be reflected 100 per cent in the enquiry. A number
of parameters shall be covered by relevant questions - questions which provide both good
comparability and which also provide the best suppliers with an opportunity to feature their
products.

Rules of the game concerning enquiries must be followed

When formulating enquiries, you must be careful to follow the rules of the game that
apply.

For public purchasers (government, municipality and county municipality) the Act
relating to Public Procurements with pertaining Regulations (printed matter no. K-0600
and K0602 ) applies. Government purchasers must also relate to the Regulations
pertaining to the Government Procurement Activity (printed matter no. K-0502). Below
the threshold value the municipalities are free to adopt their own regulations, to adopt
and follow the Association of Local Authorities' normal instructions or not to have any
regulations - provided always that the principles of the EEC Agreement are observed
also below the threshold values.

The Regulations relating to the Government Procurement Activity are being revised and
will be available as from 1 January 1998 providing everything goes as planned.

It is important to stress that any form of national discrimination is a breach of the

principles of the EEC and WTO - national products and suppliers are not to be favoured.
The formulation of the requirements contained in the enquiry is very important to avoid
getting into conflict with the EEC rules, and then particularly the "non-discrimination
principle". You are not allowed to demand, for instance, that a product be marked with
the Swan Label, but if you wish to base your purchase on these criteria you may express
this as follows: " . The product shall contain the Swan Label or it must be documented
that it satisfies the environmental criteria given for the group of products in question
under the Swan Label or it must be marked under another official eco-labelling scheme".
If you wish to avoid the product containing a specific substance or material, such a
requirement should be incorporated in the general requirements regarding the quality of
the product, e.g. ".. the product shall not contain chrome combinations". However, as
regards public sector purchasers, it must be remembered that such requirements must
not seem to be discriminatory.

These regulations do not apply to private purchasing. Private purchasers are therefore
free to make the requirements of their own choice.

Competition challenges
It has been mentioned that many offerors speculate in the fact that the customer does
not know what he is asking for. This applies both within the area of eco-efficiency and
the area of purchasing efficiency. Environmental arguments are used today strategically
as a marketing means vis-à-vis purchasers. You must therefore possess skills within
 supplier handling and communication in order to be able to give a correct evaluation of
the seller's marketing strategies and measures - facts must be distinguished from tricks
and the seller's environmental claims must be capable of being verified. A healthy
scepticism to the seller's various claims is important. To the extent to which there are
objective monitorings which may verify the seller's claims these should be used, see the
example of the economy bulb (energy consumption). The solution, to a large extent, lies
in getting the edge on the seller. You should have evaluated in advance the
requirements that you want to make of the product and how the supplier should justify
his claims. This must be reflected in the enquiry. The criteria to be used as a basis in
the evaluation of the offer should be listed in the enquiry - preferably by order of priority
(for public purchasers this is a requirement contained in the Act relating to Public
Procurements). The problem is not to fall into any ditches but to succeed in making
balanced requirements which catch the essence of the environmental problems for each
individual product group. The criteria recommendations below are meant as a help in
this process. Suggestions for concrete questions based on the criteria
recommendations can be found in Appendix 1.

Criteria recommendations to be used in the purchasing activity

It is important to have a life cycle perspective from the cradle to the grave when
purchasing an eco-efficient product. A product often has an environmental impact in all
phases of its service life. At the same time you as a purchaser will not have the
resources to dig down to get to the bottom of the matter. This section, therefore,
attempts to provide some rules of thumb which may be used to obtain eco-efficient
purchases. This work is simplified where official eco-labelling criteria exist.

Traditionally the quality of a purchase is defined on the basis of three factors:

• the product shall satisfy fully the verified need of the user
• the product shall be available at the time stipulated
• the price shall be acceptable in relation to the function it is aimed to cover

These criteria must naturally be satisfied. In order to assess the quality of the product
both from a business and eco-efficiency point of view, the following parameters are
recommended to be used as a basis (depending on the product category):
• Raw materials • Disruption of production
• Manufacturing process • Repair possibilities and service
• Content of environmentally • Flexibility
hazardous substances • Multi-purpose fitness
• Content of substances • Upgradability
causing poor indoor climate • Content of re-used parts
• Noise • Follow-up of warranty
• Energy consumption • Recycling system for the product
• Water consumption • Recycling system for packaging
• Service life • Toxic waste
• Useful qualities • Genetic engineering

This list follows the phases in the life cycle of the product with main emphasis on the
service and waste phases.
 25

Raw materials: Raw materials can roughly be described as sustainable if they fall within
the following three categories:
• Consisting of recycled material
• Consisting of renewable resources (e.g. timber, fish, animals, cultivated plants)
which are managed in a sustainable manner (i.e. with a long-term view in mind).
• Consisting of non-renewable resources (e.g. aluminium) which enter the cycle and
are recycled after use. Interference on extraction should not lead to large and
irreversible damage and should not take place in specially vulnerable surroundings.

The manufacturing process: The manufacturing process should as far as possible not
lead to the emission of substances hazardous to the environment or to health, or in any
other way lead to a deterioration of the local or global environment. An increasing
number of enterprises are about to realise the vision of zero emissions. To some extent
related to environmental problems are other ethical aspects such as child labour or other
unworthy labour conditions. In order to achieve a good image for your own activity you
should also make requirements regarding such conditions. Be aware of the fact that in
relation to the WTO Agreement and the EEC Agreement, it may be problematic for
public purchasers to make requirements relating to the manufacturing process when this
leaves no trace in the product itself.

The content of environmentally hazardous substances: A number of substances should

be avoided as far as possible. These may be different types of environmental pollutants
or human-made substances hostile to the environment, see Appendix 6. Many
producers are working on finding alternatives and should be rewarded for this. See also
the section on toxic waste.

The content of substances causing a poor indoor climate and which may cause
allergies: The supplier must be able to document the effect of the product on the indoor
climate and any allergic reactions that may result from it. A poor indoor climate and
allergic reactions are caused among other things by emissions of dust and gases. A
poor indoor climate results in substantial and unnecessary productivity losses. In this
area some progress has been made so that often alternatives do exist. With regard to
allergies, it is specially products that come into direct contact with the body that one
should be aware of.

Noise: Noise is not harmful to the environment but it is bad for humans affected by it.
Noise affects a person's well-being and working environment and thereby his/her
productivity. Noise should therefore be reduced to the lowest level possible.

Energy consumption: Energy consumption, as shown by the examples with the

economy bulb and economy shower, is often decisive of the costs associated with the
use of a product. The purchase price may be considerably higher and yet a low-energy
product may compare favourably. The energy consumption is easy to measure and
easy to compare. It should therefore always be a requirement that this be stated (when
the product consumes energy). For some products, such as vehicles, you risk an
increase in the energy consumption during their service life. The supplier ought to be
 26

able to guarantee that this will not happen. Energy prices may also be expected to rise
in future due to more open markets and new charges.

Water consumption: Water consumption is not normally subject to a charge in Norway.

However, water must be purified prior to being released into the pipeline system and
also after it has been used. This costs the municipalities large sums of money every
year. Maybe this cost too will be passed directly onto the consumer some day. As an
example you should avoid cooling systems that require the continuous use of fresh
cooling water.

Service life: Service life is often difficult to measure. Many factors play a part, not least
how the product is being used (or misused). Objective standards for assessing service
life are so far not widespread. The large consumer organisations in Europe, however,
have started working on such tests, so a process of development has in fact been
initiated. The supplier may nonetheless, with advantage, be challenged to state
"normal" service life under further specified conditions. Some suppliers will be able to
provide good documentation for this, as service life is something they use actively in
their marketing. Often there will be statistics for service life for earlier product models.
This may be a good pointer. As far as possible a product's service life should be
reflected in the contract. This will guarantee that the supplier does not merely issue
empty words. Service life, however, is something more than just quality and strength.
Other important key words are flexibility and upgradability (see separate items) and not
least timelessness - fashion trends and a rapid rate of turnover are not eco-efficient!

The quality consideration and the environmental consideration may sometimes conflict
with each other - this may for instance be the case for different forms of surface
treatment. Many suppliers are taking these problems seriously and are developing
alternative methods - these suppliers should be rewarded for this. See also the items
regarding the content of environmentally hazardous substances and toxic waste.

Useful qualities: Products which are complicated to use will often be used incorrectly
and thereby break more easily. This applies specially to products which have many
users, a situation which makes instruction difficult. A good user interface should
therefore be capable of being documented. A good manual in Norwegian should also
be available.

Disruption of production: The supplier must be able to document the average time
between disruptions. A disruption need not be so bad if it can be sorted out quickly at a
reasonable cost. If this cannot be done, a disruption may become a very costly affair -
not least due to the loss of productivity for the enterprise.

Repair possibilities and service: Poor repair possibilities are due to a poor design. The
supplier should be able to document easy access to worn parts. Furthermore, the
supplier should be able to give an assurance that all necessary parts will be available in
stock during the entire service life of the product. A hint for the purpose of checking the
supplier's claim with regard to service life and repair prospects is to contact a workshop.
The boys there will often have very clear ideas as to what is good and what is bad.
 27

Another possibility is to ask the supplier to make reference to other customers who have
experience with the product. This hint may be used for several of the parameters on this
list.

Service agreements for many product groups ought to be an integral part of the contract.
Regular maintenance prolongs life and prevents disruptions. Maintenance instructions
should accompany the product.

Flexibility: Flexibility is specially important when the needs of the future are uncertain,
see the reference to buildings, or when there is uncertainty as to the standards of the
future. Good flexibility will make the product easier to dispose of in the second-hand
market and at a higher price.

Multi-purpose fitness: A flexible product also includes products which can be used for
many purposes. This may be, for instance, a sofa that can also be used as a bed -
without it actually having to be a sofa bed - or a combined washing machine and drier (if
that is what is needed). This reduces the need for several material things resulting in a
lower consumption of resources.

Upgradability: This specially applies to all IT equipment. IT equipment has a strong

tendency to be outdated long before it is technically worn out. The supplier must be able
to document that the equipment can be upgraded at a reasonable price. NB! It is
normal to up the price for supplementary deliveries.

Even if the items regarding flexibility, multi-purpose fitness and upgradability aim to
encourage you to look into the future, it must be emphasised that it is the actual need
which must be used as a basis. This is not an encouragement to acquire expensive
Rolls Royce solutions but to have a realistic idea as to what will be a future need and to
act accordingly.

The content of re-used parts: Products are beginning to come onto the market that
contain re-used parts. Some copying machine suppliers now offer such products.
These copying machines are cheaper than completely new products and are subject to
the same warranties etc. This is a trend that should be encouraged as demands are
thus placed upon the producers to concentrate specially on the design so that the next
generation of products may put to use both the latest within technology and at the same
time re-use parts of old products.

Follow-up of warranty: For many products it is important that the performance or

function of the product not be diminished. One way of ensuring this is for the contract to
include a warranty period requirement. For roofing, for example, it is normal for the
supplier to provide a warranty of 15 years. Warranty requirements help to ensure that
the supplier concentrates specially on the quality of the product over time. See also the
item on service life.

Recycling system for the product: This is essential in order for the cycle to close. It may
also be of the essence for costs relating to the disposal of a product. We must assume
 28

that costs relating to disposal and waste management will rise in future as the demand
for society's costs to be fully covered gradually gains ground and charges are levied on
waste. A collection and recycling scheme should be available organised by either the
supplier, the trade or the municipality. Some producers have started to label each
individual part of their product with a code for the purpose of facilitating sorting and
recycling. It is not possible or sensible to recycle all products into new materials. The
alternatives are then composting or energy recycling (which means combustion and
normally utilisation of the energy content of a product). When a product is composted, it
reverts naturally to the eco-system. Disposal at a rubbish dump is the last resort and
should in future take place only exceptionally.

Recycling system for packaging: Packaging ought to be integrated in a recycling system,

organised either by the supplier, the trade or the municipality. Our society expends
considerable resources on packaging. Packaging ought to be standardised and
different types of material should not be mixed. Such a development renders possible
effective recycling systems and reduces the costs of the waste possessor.

Toxic waste: Products containing environmental poisons and which are not integrated in
a recycling system are either classified as toxic waste, or you risk them being classified
as toxic waste in the future with the extra costs that this will involve. If possible, such
products should be avoided. This is an area taken seriously by many producers. Those
who find good alternatives to today's practice deserve to be rewarded for this - and not
to be met with all too conservative attitudes.

Genetic engineering: This applies specially to foods and is a difficult subject. We today
do not know the long-term consequences of genetic engineering. It is therefore a choice
of values for you and your enterprise what you wish to invest in. The supplier should at
any rate be able to document whether the product has been subject to genetic
engineering or if any of the ingredients are genetically engineered. Then you as a
purchaser are informed and aware of the choice that you and your enterprise are
making.
 29

2.3 Enquiry - specify supplier requirements

Your own environmental image is to some degree a function of the environmental image of
your suppliers. Also, a long-term customer-supplier relationship requires that the supplier
show a constant development and improvement. An important prompter in this respect is a
demanding customer.

Manufacturing firm, supplier and purchaser

As a purchaser you relate to the supplier. The supplier may be identical to the
manufacturing firm, but often the supplier will be an importer or agent for a
manufacturing firm.

A supplier's poor environmental image will reflect on you. Normally a customer-supplier

relationship has a time horizon spanning several years. In order to secure your own
environmental image as well as possibly creating a customer-supplier relationship
providing long-term security for both parties, you should be a demanding customer and
make requirements which secure continuous growth both on the part of the supplier and
the manufacturing firm, as the case may be. Be aware that the supplier wants to have
close ties with you as a purchaser. It is customary to "bind" the customer by making it
expensive for him to change his supplier. One example is products which require follow-
up products which only this particular supplier can offer.

It will not be practically possible for you as a purchaser to familiarise yourself with all the
details concerning the environmental image of the supplier and the manufacturing firm.
The solution is to make some general requirements and to ask some revealing
questions. See Appendix 2 for suggestions on specific questions.

Criteria for choosing a supplier

How thorough you should be when asking questions concerning the environmental
conditions of the supplier/manufacturing firm depends very much on the size of the
purchase and on how long you reckon the customer relationship will last. The purpose
is to distinguish the good suppliers from the bad, as well as bringing about a positive
development among the suppliers. The extent to which you should attach importance to
these questions compared with other criteria depends on what environmental image you
wish your own enterprise to have - your own image is to some extent a function of your
suppliers' image. Generally speaking it is a fact that a supplier who is well-organised in
respect of his environmental situation is also well placed in other areas. What then are
the questions you should ask? The list below has a number of suggestions. The list
attempts to start at a superior level and then to concentrate specially on some key
areas:

• Environmental policy and environmental reporting

• Internal control and formal eco-management systems
• The relationship of foreign supplier/manufacturing firm to their authorities
• Raw materials and raw material extraction
• Energy
 30

• Designs for recycling and repossession schemes

• Transport system
• Other conditions

Environmental policy and environmental reporting: Regardless of size an enterprise

should have given some thought to its environmental situation. It is pointless having fine
formulations if these are not followed up by action. If the enterprise publishes an
environmental report at regular intervals, this will often be indicative of action.

Internal control and formal eco-management systems: In Norway all activities are
required to systematise their efforts relating to health, safety and the environment,
according to regulations for internal control. This may be a natural starting point vis-à-
vis Norwegian suppliers and manufacturers. Furthermore, Norwegian enterprises which
have a well-functioning internal control system will be well placed in respect of being
approved by EMAS and/or certified according to the ISO 14 000 standards (see
reference in this respect at the end of Appendix 2).

The relationship of foreign suppliers/manufacturing firms to their authorities: As regards

foreign suppliers/manufacturers a minimum requirement ought to be that they satisfy the
requirements made by their own country's authorities.

Raw materials and raw material extraction: Under the reference to products in section
2.2, raw materials are mentioned in connection with products. At enterprise level
general questions may be asked which reveal whether the enterprise has considered
this problem at all - and if so, they are given an opportunity to outline what they have
done.

Energy: The emission of climatic gases and other pollutants from fossil fuels is a major
challenge to humanity in the years ahead. Those enterprises which have consciously
made an effort to reduce their consumption of polluting energy including nuclear power,
should be rewarded for this.

Designs for recycling and return schemes: Reduced raw material consumption and
waste minimising may be achieved through a well-thought out product made for
recycling. Many firms make conscious efforts to try to find solutions to these problems
and they should be rewarded for such efforts. At the same time it will be in your interest
as a purchaser to have a product which in turn will be easy to dispose of.

Transport system: The supplier's distribution system should be as efficient as possible.

The railway makes less of an impact on the environment than air and road transport.
Those who use the rail system, therefore, ought to be rewarded for this. If road
transport is used this ought to be efficient ensuring for instance coordinated driving and
return cargoes. Due to the non-discrimination rule public purchasers cannot demand
local production in order to reduce the transport impact.

Other conditions: Suppliers who so wish ought to be given the chance to build a positive
image for themselves in the areas mentioned above.
 31

The enquiry is the final chance

As appears both from the EEC rules and from the instructions for national public
purchasing, requirements in respect of the product and the supplier must not be brought
up for discussion or negotiations after the offers have been submitted. This means that
for public purchasing the enquiry is the final opportunity for the purchaser to specify his
requirements.

In order to satisfy the EEC rules it is necessary that your product and supplier
requirements appear from the enquiry and that this shows how a balancing will be made
between all the criteria for the purpose of choosing the "economically most
advantageous offer". Such a balancing need not be more advanced than to mention,
preferably in order of priority, what parameters will be given weight. Formulations in
connection with environmental requirements/criteria are crucial and must be done in
accordance with the EEC rules (see section 2.2).

Concrete enquiries are important

Experience from the Gardemoen Project has shown that when requirements concerning
eco-efficient deliveries have been too general, this has resulted in a certain up-pricing of
the offer, as the suppliers at that time had too little experience as to what profitability
effects a satisfaction of the environmental requirements might have for them. This
suggests that environmental requirements and criteria which are included in the enquiry
ought to be as specific as possible. Experiences concerning the effect on prices of the
introduction of environmental requirements are not unambiguous, however. The
Municipality of Gothenburg refers to its own experiences to the effect that the
introduction of environmental requirements in contractual purchase agreements has not
resulted in additional costs.

The challenge, then, is to hit the mark. The enquiry must not be either overspecified or
underspecified - both of which will have a negative effect both on the investment cost
and on the total cost over the service life of the product. The solution is once more to
specify the performance of the product.

Formulation of the enquiry

An enquiry will often be quite extensive even if the use of a performance specification
will reduce the amount of work. The goal is to have the verified needs covered at the
lowest possible cost over time. There are different formats that may be used. The
choice of format is dependent on the situation. One main point is to make enquiries
which may reach as many as possible, including the best offerors.

It is important to be aware of the fact that through the use of open specifications, such
as performance and function specifications, you will encourage creative initiatives from
suppliers and thereby invite their best solutions. This is recommended by the EU and
from a professional purchasing point of view this is often a correct procedure.

In order to facilitate efforts to evaluate offers you should have a conscious view on how
offers should be formulated. The key word is comparability. In order to enable you to
 32

carry out a good and efficient evaluation of offers received, they must be easy to
compare. Experience dictates that even if the enquiry contains clear instructions as to
how the offer should be formulated, there is often a big difference between the
requirements contained in the enquiry and the contents of the offer. This fact does not
reduce the need for a conscious attitude regarding this question. The problem may be
reduced, however, by using readily prepared price matrixes in the enquiry which the
offeror is required to use in his offer.
 33

2.4 Evaluation of offers, delivery follow-up,

warranty control etc
In order to secure a good buy the best offer must be selected. A good buy, however, also
requires a good delivery follow-up and warranty control. In order to secure good suppliers in
the future offerors who are not selected should be given feedback.

The choice of offer

An offer is either a response to your enquiry or it comes uninvited. The aim of the
supplier who makes the offer is to obtain a contract. For the supplier the offer is legally
binding. The offer will therefore, as a rule, be limited in some way or other, e.g. time-
limited.

The choice of supplier will be made between offerors who submit an offer within the
time-limit given and on the basis of either of the following two criteria:
• The lowest price
• The economically most advantageous offer

The latter is a generous formulation allowing for the exercise of discretion and holistic
thinking, e.g. using life cycle costs as a basis.

In order to check whether the offer is in accordance with the requirements made, an
evaluation must be carried out and also negotiations, if desired.

The evaluation of the offer, negotiations and contract formulations must be in

accordance with what is stated in the enquiry. The chances of exerting influence and
bringing about changes through these activities are very limited. An IT-based decision
support tool may be a help in the evaluation of an offer.

Negotiations and clarifications

In negotiations, if any, the main target, apart from gaining acceptance of our
requirements, is for the requirements to be reflected in the contract. Additionally this will
be the phase for making necessary clarifications.

The signing of the contract

The contract is the final agreement which is to govern the relationship between the
customer and the supplier. And once more - the contract must be in accordance with
the verified need at the lowest possible cost. The contract, therefore, shall reflect the
enquiry and the offer with the stipulations made in the negotiations, if any. The contract
thereby becomes a précis of the exchange of information that has taken place.

Information to offerors who failed to be selected

The EEC rules provide that offerors who failed to make it to the top in the competition
have a right to be informed about why they failed. It is important to see this phase too
as an opportunity for the purchaser to create an understanding among the suppliers as
to what emphasis is placed on the choice of eco-efficient products and suppliers. At the
next enquiry these suppliers will then have a better basis for being considered as
 34

suppliers, something which will benefit you as a purchaser. In connection with small and
medium-sized firms this information should be seen as an aid to local small and
medium-sized firms to make them more competitive.

Delivery follow-up
A delivery follow-up has two sides:

The formal side: Have you ordered the product that is delivered? Does the invoice
received represent the goods actually delivered? Have you received the correct invoice
in relation to what has been ordered? Have things happened in the right order, or have
goods been delivered before the order has formally taken place? Such and equivalent
questions are important to ask in order to ensure that you at least are not directly
cheated - and secondly, this is an important quality assurance - suppliers are normally
more ready to listen to complaints before you have paid.

The quantitative and qualitative side: Have you received the correct number? Is the
commodity which has been delivered in accordance with the specification of
requirements? Do the return scheme for packaging, if any, and repossession scheme
for discarded goods function - and are they being followed up in-house? A tip: On
ordering many similar units, such as chairs, it may be a good idea to order one extra
chair to be sent for testing. The supplier should be informed that this will happen - so
that he may make a special effort.

Warranty control
There is not much help in having obtained warranties from the supplier if these are not
utilised. With a poor warranty control the enterprise risks paying for repairs which are
actually covered by the warranty. If there are certain conditions attached to the
warranty, it is important too to ensure that these be observed. The purchaser's task,
therefore, is to convey the warranties applicable and pertaining conditions to the
everyday user - to ensure that the warranties are utilised.

Phasing in/operations/scrapping - reversion of user experience to supplier

In use a product will reveal its strengths and weaknesses. It is important to note what
the users are happy with and what they are not happy with. This ensures your own
learning process and enables you to improve on your requirement specifications next
time. In order for the supplier who was picked to continue to develop even better
products it is important to ensure that such information regularly also reaches the
supplier. Most customer-supplier relationships last for several years, and it is therefore
in your own interest for your supplier to measure up at the next crossroads too.

To the extent possible follow-up systems should be prepared which give objective and
measurable reportings.

Informing your own organisation

Processes of change within an organisation require openness in order to succeed. It is
therefore of vital importance that your own organisation should be informed about what
is happening and why.
 35

In-house purchasing information:

In order to enhance environmental understanding among government purchasers, the
Government Administration Service, through its brochure "Government Purchasing -
Framework Agreements with a Green Profile", provides information to government
purchasers on relevant environmental aspects on the signing of framework agreements.

In the Municipality of Gothenburg environmental understanding and loyalty are ensured

through written information about the various framework agreements and environmental
aspects of these to all persons who have a decentralised purchasing function.

The County Municipality of Akershus has chosen to inform its employees about its
environmental efforts through small brochures entitled "Put your own house in order".
 36

3. Plan, give priority to and implement

When you have mapped out the situation and the possibilities you have for carrying out
improvements, the time has come to plan the work, give priority to groups of products and
implement activities.

Project implementation
The result of the project will always depend on whether employees have the time and
are motivated for the efforts, on them possessing the necessary skills, on them
participating in all the phases of the project and on them being allocated definite areas
of responsibility for partial results in the project activities. Interdisciplinary cooperation
within the project group will normally lead to new ideas on how to solve different
problems and will also contribute towards skills and job development for group
members.

It may be useful to bring representatives from the suppliers into a project group to
secure an even better adaptation between in-house needs and products that are
available on the market. This may be very dangerous, however, if the project group
lacks the necessary skills concerning supplier behaviour and communication. Such
contact should therefore primarily take place through a development contract. This is to
ensure that one keeps within the regulation framework, that discrimination does not
occur, and that other suppliers are not excluded from the competition.

Often it turns out that simple adaptations of a product can lead to a better function for
the users without an increase in the price. Dialogue is therefore a key word for eco-
efficient purchases; dialogue between the users and the purchasers, between the
various in-house specialist groups and between purchaser, users and suppliers, if
desirable.

Project participation will be something that most people will put in in addition to their
normal job within the organisation, and this often means that project activities are given
a low priority. All experience shows that it is necessary to have a systematic follow-up of
the progress made in the different activities by the project manager and project group
and that all the participants adapt themselves to the project plan they have themselves
been a party to formulating.

Go through the flow of information

Information is central in order for a process of change to succeed. The purpose of a
good information plan is to help to ensure that all you have planned is carried out
smoothly and painlessly. Poor information results in frustration, misunderstandings,
irritation and at worst chaos. Think carefully through the entire flow of information. Who
needs to know what, when and how?

What categories of purchase are of interest?

Every new project should start small, in order to allow you to gain experience and adjust
the course as you go along. When stating priorities between categories of purchase it
may be sensible to use all or some of the following criteria:
 37

• the purchasing officer has certain specialist resources and shows an interest in the
theme
• the category of products in question has many users who are able to feel that
"something is happening"
• the purchasing volume is sufficiently large to give a certain market weight
• the product area has a fairly large impact on resources/the environment
• different offerors/solutions in the market probably have a fairly dissimilar
environmental efficiency
• an eco-labelling scheme/professional environment may be used to establish criteria

The list below of purchasing categories (product groups purchased) is based on a

survey made by the GRIP Centre in November 1995 and comprises approx. 200
purchasing officers in public enterprises in Norway. The categories are listed in order of
priority in accordance with the answers obtained from the survey.

Category of purchase Purchases Environmental Criteria are

are made questions are planned
asked
1. Consumer material and office equipment 82% 31% 4%
2. Purchasing or rental of office machines, furnishings and IT equipment 79% 61% 4%
3. Printing/graphical services, adverts, publicity 63% 25% 19%
4. Textiles, cleaning and cleaning products and services 67% 51% 10%
5. Fuel, oil and petroleum products 60% 31% 18%
6. Travels, hotels and courses 60% 6% 3%
7. Purchasing and maintenance of means of transport 57% 26% 10%
8. Buildings and constructions (new buildings and maintenance) 57% 33% 17%
9. White goods, electrical items, lighting 57% 25% 13%
10.Food, housekeeping and canteen products and services 53% 25% 10%

The categories of 1, 2 and 4 are considered so important that more than half of the
enterprises are already asking questions concerning the environment and seeking
information about environmental criteria within these purchasing categories.

Most of these purchasing categories are of common interest to all enterprises, so this
list may be useful when you want to get an idea of the most important categories of
purchases for your enterprise.

Training takes time

A project for eco-efficient purchasing within an enterprise necessitates the provision of
good training for employees. What do they want to learn? What is important to
encourage motivation and commitment? Apart from the practical knowledge concerning
personal tasks, many have experienced that it is also important to convey a fundamental
understanding of how nature works - and how our actions influence the earth's course.
This is an area which interests people because in the end it is a question of our living
environment and quality of life. The GRIP Centre has developed a course - "EcoWise" -
which aims to provide fundamental understanding and motivation. Please contact us.
38
 39

4. Measure and evaluate

A good project has specific targets and time limits for its realisation. On completion of the
project, work tasks, guidelines and routines are transferred to day-to-day operations. An
important part of the project is checking to see whether the targets have been reached and
evaluating the results of the work.

When has the target been reached?

You can check the specific result targets you have defined (see Chap. 1) as you go
along. These are concrete targets and it is relatively easy to measure the results
against them. Before the project group completes the actual project work and the tasks
are followed up by the line managers, you must also make sure that the results of the
project are measured against the effect targets you have set. This is not quite so easy.
Effect targets are more complicated, more long-term targets.

What changes have taken place?

If you have a starting point in the form of a survey summing up status before the project
started, you can measure changes against this. This is important for several reasons:
• as a corrective for future work and plans
• as a basis on which to evaluate profitability and the environmental effect of the
measures
• as motivation for further efforts

Do you have to correct your course?

If the targets you have set have not been attained, you will have to change something.
Feedback from users, maintenance personnel, financial staff etc. is important. Seen as
a whole, environmentally efficient purchases must have a positive effect on finances,
profit, employees and suppliers. You will have to follow up complaints and different
reports carefully and use them as correctives as you go along.

What is the next step?

Once the project has been transferred to day-to-day operations, the measures should be
followed up automatically. The next step will depend, for example, on what you hope to
achieve and what you have achieved so far. If it is your ambition to achieve
environmentally efficient purchases in all product categories and continue the work
already done, then it will be sensible for one person to continue to have the overall
responsibility. There is always something new happening in the environmental field and
that is one of the fields where it really is important to keep an eye on developments.

Good luck!
 40

Appendix 1 - Questions relating to products

Here are some questions you can ask the supplier about his products. These are based
on what has been said in Section 2.2 «Enquiry - specify product requirements». Of
course, all of these questions are not relevant to every product, so this is where you
have to use your head. Nor will a set of questions like this cover all types of products. It
will often be necessary to ask more detailed questions than we have suggested here.
However, this list of questions will hopefully help to put you on the right track. The
questions have not been formulated as absolute requirements. This is important,
because you do not want to limit the number of potential offerors. The questions are
listed in the same order as the parameters given in Section 2.2.

Question 1 is about whether the product is eco-labelled.

1a. Does the product have a Swan label?
Yes No There are no Swan criteria

1b. Does the product have an eco-label granted under another official eco-labelling
system (the EU Flower, Blaue Engel, other)?
Yes No
If YES, which label?

1c. If the product is not eco-labelled, can the supplier provide documentation that the
product satisfies the criteria for an official eco-label?
Yes  No
If YES, enclose documentation

If the answer to one of the first three questions was YES, move on to Question 6.

Question 2 concerns the raw materials used in the product:

2a. Does the product consist only of recovered material?
Yes  No
If YES, move on to Question 3
If NO, what percentage of the product consists of recovered material?
Approx. %

2b. Have virgin, non-renewable resources been used in the product?

Yes  No
If YES, give a short account of which resources have been used and to which
extent.

2c. If virgin, non-renewable resources have been used, can the management of these
resources be described as sustainable?
Yes No Don’t know
If YES, give brief reasons for this claim.
 41

NB! This question will increase the demand for internationally accepted
certification systems or standards that can be used by the manufacturers. As of
today, no such systems or standards exist.

The questions concerning the production process are dealt with in Section 2.2, "Enquiry
- specify supplier requirements".

Question 3 concerns environmentally hazardous substances:

3a. Does the product have to be labelled according to regulations governing
environmental, health, fire and explosion hazards?
Yes No
If YES, with which label?

3b. Does the product comply with the current regulations governing the content of
environmentally hazardous substances?
Yes No Don't know

3c. Does the product contain any of the substances that are listed in Appendix 6 to
this enquiry? (Ref. Appendix 6 to this Guide)
Yes No
If YES, which substances and to what degree?

Question 4 concerns indoor climate:

4a. Does the product contain substances that affect the indoor climate?
Yes No
If NO, enclose documentation. If YES, in which way and to what extent is the
indoor climate affected?

4b. Does the product have any other qualities that affect the indoor climate?
Yes No
If NO, enclose documentation. If YES, in which way?

Question 5 concerns noise:

5. How much noise does the product make in normal use?
NB! You should give further specifications here regarding distance etc.

Question 6 concerns energy consumption:

6a. How much energy does the product consume when in use?
NB! Depending on the product, you should specify the desired format, e.g. kW/h
in use.

6b. What type of energy (electricity, oil, etc.) does the product use? Can the product
use different types of energy?
 42

6c. Can the supplier/manufacturer guarantee that energy consumption will not
increase during the life of the product?
Yes No

6d. Is the product labelled with the "Energy Star" label or the EU's energy label?
"Energy Star" EU's energy label Not labelled/no
label exists for the
product group.
If the product is labelled with the EU's label, please enclose the result.

Question 7 concerns water consumption:

7a. How much water does the product consume when in use?
NB! Depending on the product, you should specify the desired format, e.g. litre/h
in use.

7b. Can the product use the same water more than once?
Yes No

Question 8 concerns the life of the product:

8a. Based on objective tests, what is the life expectancy of the product before it is
technically scrapped (worn out)?

8b. If there are no objective tests, what normal life expectancy can the supplier
guarantee?

8c. From experience, how long have earlier models of the same product lasted?

Question 9 concerns the product's user qualities:

9a. Has special attention been given to the product's user friendliness?
Yes No
If YES, in which way?

9b. How long does it take to learn to use the product?

9c. Is there a learner's manual available in the Norwegian language?

Yes No

Question 10 concerns stoppages:

10a. What is the average time between unexpected stoppages?

10b. What are the average costs of such stoppages?

10c. How long does it usually take before the fault is repaired?
 43

Question 11 concerns repair possibilities and service:

11a. Can the supplier offer repairs and service?
Yes No
If YES, what time guarantees can he give - and what costs can be expected for
the most common repairs?

11b. Can the supplier guarantee that replaceable parts will be available throughout the
life of the product?
Yes No
If NO, how long can he guarantee replaceable parts will be available?

Question 12 concerns flexibility, multi-use and upgrading:

12a. In so far as tomorrow's standards are known, is the product adapted to these?
Yes No
If YES, enclose documentation.

12b. To what extent is the product adaptable to different user situations and needs?

Question 13 concerns the content of re-used parts:

13. Is the product made with parts from scrapped products?
Yes No
If YES, how large a part of the product consists of parts that have been used
before?

Question 14 concerns warranty follow-up:

14. For how long can the supplier/manufacturer guarantee that the product's
performance or function will not deteriorate?

Question 15 concerns recycling of the product:

15a. Is the product included in a collection and recycling system?
Yes No

If YES:
15b. Who organises this system?

15c. How does the system work for the user of the product, and what are the costs to
the user?

If NO:
15d. Has the product been designed and are the individual parts marked so that the
product is ready for a future collection and recycling system?
Yes No

Question 16 concerns the product's packing:

16a. Is the product's packing included in a collection and recycling system?
Yes No
 44

16b. How does the system work for the user of the product, and what are the costs to
the user?

Question 17 concerns hazardous waste:

17a. Does the product or any part of the product have to be disposed of as hazardous
waste when the product is scrapped?
Yes No
If YES, how does the product have to be disposed of?

17b. Is there any possibility that the product will be classified as hazardous waste in the
future?
Yes No
If NO, explain briefly why not?

Question 18 concerns genetic engineering:

18. Is the product or are any of its ingredients the result of genetic engineering?
Yes No
 45

Appendix 2 - Questions relating to suppliers and

information about eco-management schemes
From the answers to the following questions, you will get a good idea of how the supplier
and the manufacturer deal with questions relating to health, safety and the environment
(HSE). The purpose of the questions is to 'separate the grain from the chaff' among the
suppliers.

The questions must be asked in writing as part of the enquiry. These are tentative
questions and you, as purchaser, must decide which questions are relevant. It is also
important not to exclude small companies which do not have the resources (and
possibly not even the need) for comprehensive systems, but which nonetheless keep
their environmental house in order. The questions are not formulated as absolute
requirements. This is important, because you do not want to limit the number of
potential offerors. Some information about the different schemes (EMAS, internal
control, etc) is given at the end of this appendix. We have tried to list the questions in a
logical order and in order of priority.

Question 1 deals with environmental policy and environmental reports:

1a. Has the supplier/manufacturer formulated an environmental policy?
Yes No
If YES, what level is it placed at? How is it followed up?

1b. Does the supplier and/or manufacturer issue regular environmental reports?
Yes No
If YES, please enclose the latest issue.

Questions 2 and 3 deal with eco-management schemes:

2a. Is the manufacturer registered as an EMAS company?
Yes No
NB! This question is relevant for production companies in the EEA.

2b. Does the supplier and/or manufacturer have documented eco-management

systems that are certified according to:
• ISO 14 001
• BS 7750
• Other national standards
Yes No
If YES, which standard?
NB! The ISO standards will gradually embrace national standards. ISO 14 001
and EMAS overlap each other to a large degree.

Question 3 deals with internal control and is intended for Norwegian suppliers and for
Norwegian manufacturers where appropriate:
 46

3a. Does the supplier and/or manufacturer have a documented internal control
system?
Yes No

3b. Have the authorities carried out system audits at the production company?
Yes No Not relevant
NB! It is only the major permit-holding enterprises that are subject to external
audits by the authorities.

3c. If the authorities do not carry out system audits, or it is a long time since the
last time one was done: Has the supplier and/or the manufacturer carried out an
internal audit of its internal control system?
Yes No
NB! This question applies first and foremost to enterprises that do not have
discharge permits, but can also be asked of permit-holders, if it is a long time
since the last external audit.

3d. If YES to 3b or 3c, did the last external or internal reveal any deviations?
Yes No

3e. If YES to 3d, have these deviations been corrected?

Yes No
If YES, enclose a copy of the confirmation from the authorities if it was an external
audit.
NB! If the audit was carried out by the authorities, it is normal practice for the
company to confirm in a letter to the supervisory authorities that the deviations
have been corrected. Ask for a copy of this letter.

NB! It is not advisable for you as purchaser to attempt to assess the quality of internal
control systems on the basis of the suppliers' documentation.

Question 4 deals with the relationship of a foreign manufacturer with the authorities in
its own country:
4a. Has the company complied with the authorities' discharge permit?
Yes No Not relevant
NB! Most countries have a system of discharge permits which are supervised by
the authorities or other external auditors.

4b. Did the last external audit establish deviations in relation to the permit?
Yes No Not relevant

4c. Have these deviations been corrected?

Yes No Not relevant
 47

Questions 5 to 8 are more specifically linked with a number of key areas:

5. Have measures been taken to protect the environment in the choice of raw
materials and in the extraction of raw materials?
Yes No
If YES, what kind of measures?

6. What is the manufacturer's main source of energy? What is the manufacturing

company's energy consumption in relation to its turnover?
NB! The use of fossil fuels contributes to the greenhouse effect and to some
extent to regional environmental problems. Gas is a cleaner source of energy
than oil, which in turn is better than coal. Nuclear energy entails problems relating
to safety and storage of waste. From an environmental point of view,
hydroelectricity, wind power, solar power and various forms of biofuels are the
best forms of energy.

Question 7 concerns a "design for recycling" and measures to minimise waste:

7a. Are the supplier's products made for recycling or has a process been initiated with
this aim?
Yes No
If YES, give a brief status report for this work.

7b. Does the supplier have a repossession scheme for scrapped products.
Yes No
If YES, give a brief account of how this arrangement works and what costs this
entails for the customer.

8. What kind of transport system is used for the transport of the products?
NB! Transport is one of our most serious causes of pollution. Preference should
therefore be given to the most eco-efficient transport solutions. This may mean
changing from road transport to rail where this is possible, or improving the
efficiency of road transport - for example through coordination and return loads.

9. Are there any other environmental measures the supplier or production company
wishes to provide information about?

The manufacturing process for a product may affect the environment in ways that are
not revealed by these questions. If you know that a manufacturing process has
particularly negative effects, there is nothing to stop you asking further questions. It is,
however, beyond the bounds of this Guide to go into each individual manufacturing
process in detail. You should be aware that, under the WTO Agreement and the EEA
Agreement, it may be difficult for public purchasers to specify requirements for a
manufacturing process which leaves no trace in the product itself.

Brief presentation of the different systems

EMAS: On 10 April 1995, the EU countries introduced a voluntary system for
environmental registration of industrial companies called EMAS (Eco-Management and
 48

Audit Scheme). This was followed up in Norway in the form of a special regulation6 (T-
1102), which is available from the Norwegian Pollution Control Authority (tel. +47 22 57
34 00, fax +47 22 67 67 06).

EMAS gives industrial enterprises, i.e. individual production sites and not entire
companies, the opportunity to be registered in accordance with specific criteria for
environmental management in enterprises. The company must also commit itself to
continuous improvement of its own environmental situation.
EMAS-registered companies undertake to:
• adopt an environmental policy
• carry out an environmental review of all their activities
• set environmental targets
• introduce a eco-management system which includes an internal environmental
audit
• adopt an environmental programme
• draw up regular environmental reports

Registered companies must inform the general public about their environmental efforts
in the form of regular reports. These environmental reports are intended for public
perusal and they shall cover all substantial discharges and emissions and consumption
and provide information about the company's environmental policy, targets and control
system. These reports must be verified by an independent, approved environmental
inspector.

The companies will be registered in an EU register and in the Broennoeysund Registers.

Purchasers will be able to check suppliers in these registers.

EMAS will become a mark of quality which will be regarded by many people as a
condition of doing business. EMAS-registered companies will be entitled to use a
special logo on their letterheads, envelopes etc. The same logo will be used throughout
Europe.

NB! Companies seeking registration must fulfil all the relevant standards required by the
environmental legislation in their own country. If these standards are low, an EMAS-
registered company in one country can have a lower environmental standard than a
non-registered company in another country where environmental requirements are
generally stricter.

Norwegian companies should, by virtue of their internal control systems for health,
safety and the environment, already have all the required organisational elements. The
differences lie in the fact that the Norwegian internal control regulation covers the whole
area of health, safety and the environment (HSE), while EMAS only covers the
company's impact on the external environment. EMAS also entails a commitment on
the part of the company regarding continuous improvement of its environmental
situation, public information about this situation, as well as external approval.
 49

ISO 14000: Most companies know the significance and importance of quality assurance
and the ISO 9000 standards. The International Standardisation Organisation (ISO) is
now in the process of drawing up international environmental standards (the ISO 14000
series). There is every reason to believe that in a few years' time these standards will
have the same significance as ISO 9000.

Environmental management and audit standards will appear first and are expected to be
finally approved in summer 1996. These standards will be based on the same
principles as the standards for quality management and quality audits.

Two of these standards will be of vital importance: ISO 14001 and ISO 14004. ISO
14001 is a document specifying how the system has to be built up in practice. ISO
14004 is a guide for companies and organisations wishing to introduce an eco-
management system.

Also under preparation are standards for eco-labelling, environmental terminology, life
cycle assessment and environmental indicators, i.e. rules for judging how
environmentally acceptable a company's manufacturing process is. They are concerned
with the use of non-renewable input factors and sources of energy. These standards
are expected to be ready by 1998.

The EU needs an internationally accepted standard as a reference for its Eco-

Management and Audit Scheme. Provided that ISO 14001 satisfies the requirements
set by the European Commission, the EU will want to use that standard. It is still not
quite clear whether the present draft of ISO 14001 satisfies all the requirements in
EMAS to a sufficient degree.

National standards: There are also a number of national standards for environmental
control that you can enquire about. This applies particularly to the British standard
BS7750. The Irish and Spanish standards are also relevant. EMAS will however
encompass these standards.

More information about the various standards is available from the Norwegian General
Standardizing Body (Norsk Allmennstandardisering - NAS) tel. 22 04 92 00, fax 22 04 92
15.

NB! The fact that a company complies with different standards or is EMAS-registered
does not necessarily guarantee that the company's products are more environmentally
friendly. As a purchaser, however, you have reassured yourself as far as is practically
possible that the company takes its environmental responsibilities seriously.

The internal control regulations: In order to encourage efforts to improve health,

safety and the environment in Norwegian companies, the Norwegian authorities have
passed laws and regulations with which all companies now have to comply.

On 1 January 1992, regulations came into effect regarding the internal control of health,
safety and the environment (HSE). All Norwegian enterprises are obliged to comply with
 50

these. The regulations introduce no new provisions in these areas, but require individual
companies to put the current requirements regarding internal control into a system they
can use themselves. Internal control (IC) is a management system for the company's
HSE activities and the regulations require companies to set their own targets for their
HSE activities, clarify responsibilities and tasks, and work systematically to achieve
these targets. They stipulate that the person who is responsible for the company is
obliged to ensure a systematic follow-up of the relevant requirements laid down in the
Working Environment Act, fire and explosion legislation, Product Control Act, Civil
Defence Act and the Act relating to the Supervision of Electrical Installations and
Electrical Equipment. The purpose of the regulations is to promote health, safety and
the environment, i.e.:

• the working environment

• protection from damage to health and the environment by products
• protection of the external environment from pollution and better disposal of waste.

The regulations do not specify how an IC system should be established. They do,
however, instruct companies to describe the routines and procedures in their IC system
and how it works. They are also required to be able at any time to prove to the
authorities that the system works as described. The regulations require this system to
cover all the activities of the company. The companies are inspected at regular
intervals. However, it is only the large, permit-holding companies that are audited
externally by the authorities. It is therefore not possible to obtain confirmation of the
quality of internal control systems at importers and agents, or any of the non-permit
holding production companies. As regards audit reports and deviations, it is normal
practice for the company to confirm in a letter to the supervisory authorities that the
deviations have been corrected.
 51

Appendix 3 - An outline of different labelling

schemes
Svanemerket (the Swan label) - the official eco-label of the Nordic countries
The official eco-labelling schemes for positive eco-labelling are a good basis on which to
set standards for products that are both environmentally efficient and cost-efficient. You
are advised to use the formulations that are given under "Rules of the games
concerning enquiries must be followed" on page 17.

The Swan is the label of a multinational eco-labelling scheme. It

is the result of Nordic cooperation between Norway, Sweden,
Finland and Iceland. Denmark will join the scheme in the course
of 1996. The purpose of the scheme is to guide consumers to
choose the least polluting products on the market. This will
stimulate the development of products that take the environment
and health into consideration in addition to the financial and
quality-related aspects. The environmental standards are the
same in all the participating countries. Criteria have been drawn up for a number of
product groups, based on the impact of the products on the environment from 'cradle to
grave'. The first criteria specification was drawn up in 1991. An official eco-label is
proof that satisfactory documentation has been submitted and accepted. The
environmental standards for the individual project groups are tightened up after 2-3
years. The product groups for which Swan labels are available are given in Appendix 4.

You are recommended to enquire for products that bear the Swan label.

It can be said of all the official schemes for positive eco-labelling that they started with
moderate environmental requirements, which were later tightened up and became more
detailed with the growth of environmental knowledge and awareness in society. The
various schemes in different parts of the world work together, and the Swan label and
the EU eco-label schemes are closely coordinated. See Appendix 4, which shows the
groups of products for which criteria have been prepared for the Swan and EU eco-
labelling schemes.

Further information is available from Ecolabelling Norway (Stiftelsen Miljoemerking i

Norge, tel. 22 36 07 10, fax 22 36 07 29).

Oe-merket (the Oe label)

"Oe" stands for oekologisk or ecological. The Oe label is used
in Norway for organically farmed products - for both Norwegian
and imported produce.

Debio is the organisation in Norway which is responsible for

the approval of organically farmed products. Debio's Oe label
is the consumers' guarantee that the product has been organically produced. In
 52

Norway, organic farming is laid down in the Regulations relating the production and
labelling of organically farmed products. These Regulations are the result of the EEA
Agreement. The Norwegian Agricultural Inspection Service is the highest supervisory
authority for primary production of organic agricultural products and the Norwegian Food
Control Authority is the equivalent authority as regards packing, processing and importof
organic products.

Debio has been approved by the Norwegian Agricultural Inspection Service as the
executive supervisory body. Supervision is carried out on the basis of Debio's operating
rules for organic farming. These rules are drawn up by the "Committee for Debio
Rules", but are evaluated by the Norwegian Agricultural Inspection Service and the
Ministry of Agriculture. The rules are based on international norms. Debio carries out
an annual control of all farmers who wish to sell goods with a label guarantee.

The members of the Debio organisation include the Norwegian Cooperative Union and
Wholesale Society, 4H, the Norwegian Society for the Conservation of Nature, the
Norwegian Milk Producers' Association and the Norwegian Housewives' Association.
Debio was founded to build confidence among farmers, marketers and consumers in
organic products. Debio receives government aid under the Agricultural Agreement
between the Government and the farmers' unions.

You are recommended to ask for products that have the Oe label.

Further information about the scheme is available from Debio (tel. 63 85 63 05,
fax. 63 85 69 85).

The EU eco-label
The EU introduced its eco-labelling scheme in 1992. The
purpose of the scheme is to promote the design, production,
marketing and use of products that cause less pollution of the
environment throughout their life cycle and to give consumers
better information about how products affect the environment.
The criteria for the certified product groups are stipulated by the
European Commission following consultations with
representatives for industry, the business sector, conservationist
organisations and consumer organisations. These must be
precise, unambiguous and objective and be based on "cradle to
grave" evaluations for the individual product systems. In Norway this scheme is
managed by Ecolabelling Norway (Stiftelsen Miljoemerking i Norge - tel. 22 36 07 10, fax
22 36 07 29), which can be contacted for further information.
 53

Other official labelling schemes

Der Blaue Engel is the German eco-labelling scheme. It was
introduced as far back as 1977 and over the years a
comprehensive set of environmental criteria has been drawn up
for a number of product groups. The criteria can be found in a
handbook entitled "Umweltfreundlich Beschaffung" issued by
Umweltbundesamt (the German equivalent of the Norwegian
Pollution Control Authority).

Other official labels for positive eco-labelling include the following (for USA, Canada and
the Netherlands respectively:)

Official energy labels

The "Energy Star" label tells consumers that the product
satisfies the standards set by the Environment
Protection Agency (USA's pollution control authority) for
energy consumption.

This label is recommended.

The EU's energy label: EU Directive 92/75/EEC instructs all manufacturers of household
appliances to label their products with their energy and resource consumption. The
manufacturers are obliged to carry out the necessary tests and to supply standard labels
to the retailers, who are then responsible for affixing the
correct labels to the products on display. The EU Directive
K PS 100
applies to the following types of appliances:

• Refrigerators, freezers and combinations of these B

• Washing machines, tumble dryers and combinations of
these
• Dishwashers
• Water heaters and hot water tanks
• Lighting
350kW h
• Air-conditioning systems

120 l
This list can be expanded. 95 l
10 dB(A )

In the first instance, the Directive applies to refrigerators,

freezers and combinations of these. Other types of
products are expected to be added as time goes on.
 54

• The label states the following:

• Trade name and type of model
• Relative energy consumption compared with other brands of the same category.
• Annual energy consumption
• Net volume
• Sound level
This label also applies in Norway. Use of this label is recommended.

Warning labels
Labels for environmental, health, fire and explosion hazards: Regulations have been
issued governing the labelling of products that entail a particular hazard as regards the
environment, health, fire and explosion. These labels look like this:

MEGET GIFTIG GIFTIG ETSENDE HELSESKADELIG IRRITERENDE MILJØ-

SKADELIG

BRANNFARLIG

EKSPLOSIVT OKSYDERENDE EKSTREMT MEGET

BRANNFARLIG BRANNFARLIG

In English: VERY TOXIC, TOXIC, CORROSIVE, HARMFUL TO HEALTH, IRRITANT,

ENVIRONMENTALLY HAZARDOUS, EXPLOSIVE, OXIDISING SUBSTANCES,
EXTREMELY FLAMMABLE, VERY FLAMMABLE, FLAMMABLE

Products with these labels should be avoided if possible. The 'Environmentally

hazardous' label can be found on pure chemical substances. It is worth noting that the
regulations do not require the manufacturer or importer to label mixtures of substances.

Falken (the Falcon)

The Falcon is the eco-label of Naturskyddsföreningen (the
Swedish society for the conservation of nature). This label is in
widespread use in the Swedish grocery trade. The criteria for
this label are tightened up when a large number of
manufacturers manage to satisfy them. The label can be used
with a time-limited licence. The label is printed on the article
and can be found on some imported products. This label should
be given positive attention.
 55

Oeko-Tex Standard 100

Oeko-Tex is an eco-label for textile products in Europe and its purpose is to protect the
consumer. Oeko-Tex Standard 100 was formulated by the International Association of
Research and Textiles in the Field of Textile Ecology. This association comprises
thirteen institutes in thirteen European countries. Oeko-Tex Standard 100 sets
standards for, amongst other things, the maximum content of substances that are
hazardous to the environment and to health, such as formaldehyde, PCB, heavy metals
and other chemical residues in textile products. The limits are updated in step with new
knowledge. In Norway, the certifying body is the Norwegian Clothing and Textile
Institute and the object of this foundation is to promote the Norwegian textile industry by
providing and arranging services in this field.
This label should be given positive attention.
For more information about the Oeko-Tex
Standard 100, contact the Norwegian Textile
and Clothing Institute (tel. 55 54 38 00, fax 55 Testet for helseska delige stoffer
e tter Øko -Te x Sta nd a rd 100
31 06 09).

TCO '95 Environmental certification

TCO '95 is an international eco-label for PCs, designed by TCO
- Tjänstemännens Centralorganisation (a Swedish trade union) -
in collaboration with Naturskyddsföreningen (the Swedish nature
conservation society), SEMKO (Swedish board for the testing
and approval of electrical equipment) and NUTEK - Närings-
och Utvecklingsverket (a directorate whose task it is to reduce
energy consumption). The criteria that have to be met for this
eco-label are low radiation, automatic electricity saving, ergonomy and environment-
friendliness for the whole PC, or for the system unit, VDU and keyboard individually.
The products have to satisfy a large number of important standards and requirements.
Among other things, they must comply with the Labour Inspectorate's regulations
regarding working in front of a computer screen. The ergonomic requirements
emphasise the users' need for a less stressful working environment and cover flicker-
free screens, brightness, contrast, angle and thickness of keyboards, etc. On the
environmental side, the products are also required to be designed in such a way that the
different materials can easily be separated and recycled and they must contain non-
hazardous fire-retardant agents which are necessary to achieve good recycling results.

When buying computers, it is advisable to ask for products with the Swan label or the
TCO '95 label. This equipment ensures a high level of environmental efficiency and
probably a high level of productivity owing to fewer stress injuries and improved well-
being.

For more information about TCO '95, contact TCO (tel. +46 8 782 92 68, fax +46 8 782
92 07).
 56

The WWF Panda

The World Wildlife Fund's panda can be found on a few products in
Norway. These products come from companies which have signed
a collaboration agreement with the WWF by which a certain
percentage of the turnover of panda-labelled products goes to the
WWF. The WWF has checked that these products meet its
environmental standards. However, this label cannot be regarded
as an eco-label.

Godt Norsk (Norwegian Quality)

The primary objective of Stiftelsen Godt Norsk (the Godt
Norsk Foundation) is to create competitive strength for
Norwegian foodstuff production. The quality of Norwegian
farm-based foodstuffs shall be guaranteed all the way from
the primary producer through to the consumer. To achieve
this, the producers must meet three criteria before they can
use the Godt Norsk label on their products:
· the product must be based on Norwegian raw materials
· the product must have a quality that has been accepted by the consumer
· the enterprise must have a quality-improvement system which ensures that the
products have an even quality and that work is done to improve the quality.

The Godt Norsk label is not an eco-label, though the criteria do entail some
environmental advantages. Norwegian-produced food products mean less pollution
from transport.

The Godt Norsk Foundation (Stiftelsen Godt Norsk) is funded primarily by the Ministry of
Agriculture. For more information, contact the Godt Norsk Foundation (tel. 22 41 04 70,
fax 22 41 05 60).

The Good Design label

It is the object of the Norwegian Design Council (Stiftelsen Norsk Designraad ) to
promote the use of good design in product development and market communication in
order to achieve greater competitiveness and greater profitability in Norwegian industry
and commerce. In the criteria for the awarding of the label on the basis of an annual
competition, emphasis is given to the following:
• the product should give the user something new or improved and maintain a high
functional and aesthetic standard
• the product should emphasise the properties and qualities the market is looking for
• the product should be adapted for rational production
• the product should be adapted to an environment-friendly way
of thinking.
This label should not be regarded as an eco-label. However, the
jury attaches importance to certain aspects which can also help to
improve environmental efficiency. For more information, contact the
Norwegian Design Council (tel. 22 55 80 40, fax 22 55 93 02
 57

Der Grüne Punkt

Der Grüne Punkt is the label of the German dual system. It
shows that the packaging is included in a recovery system in
Germany. This label has therefore no significance in Norway.

Manufacturers' own labels

You should be aware that manufacturers and suppliers have their own labelling
schemes. They are not official and they are of mixed quality. Some examples are:

These are some examples of how suppliers use the environment in their marketing
activities. As already mentioned, purchasers must maintain a healthy scepticism about
these. Do not fall for a possible bluff. Make the supplier substantiate his claims and ask
critical questions. This applies to all marketing activities and not just to the field of
environment.

Arrow in a triangle
1 2
The symbol of an arrow in a triangle used on plastic shows that
the plastic can be recycled. The number designates the PET HDPE
category it belongs to. The label does not mean that the plastic
will actually be recycled. The label gives no other information 3 4
about the product.
V LDPE

Eco-information labels
'Eco-information labels' containing information about the individual products'
environmental standards are still in limited use. The purpose of these labels is to give
information in a simplified and easily accessible form about a product's impact on the
environment throughout its life cycle and how the product is to be disposed of as waste.
It is the manufacturer who provides this type of 'eco-information label'. The work on
eco-information labels has been spurred on by the Economic Commission for Europe
(ECE). Eco-information labels can be a useful aid for purchasers in the future.

Life cycle assessment

A life cycle assessment (LCA) can be used to get an idea of the total environmental
impact of a product from the cradle to the grave, i.e. from the selection of raw materials,
manufacture, transport and use and finally as waste. Life cycle assessments are often
not adapted to the needs of the purchaser because they are based on different
principles and prerequisites. The results of life cycle assessments must therefore be
used with caution.
 58

Appendix 4 - List of product groups with official

environmental criteria
As of July 1996, environment criteria have been drawn up under the Swan and EU eco-
labelling systems for the following product groups (figures in parenthesis give
the number of licences that have been issued in each
product group):

As of July 1996, environment criteria have been drawn up under the Swan Swan EU-flower
and EU eco-labelling systems for the following product groups
Disposable batteries Yes (2)
Fine paper for printing, copying and writing purposes Yes (66) Yes (0)
Converted products of Swan-labelled paper Yes (32)
Saw-chain oil Yes (1)
Toner cassettes for laser printers and copying machines Yes (8)
Detergents for textiles Yes (41) Yes (0)
Toilet and household paper Yes (1) Yes (4)
Dishwashers Yes (0) Yes (0)
Oil burner/boiler combination Yes (4)
Oil burners Yes (1)
Wallboard Yes (6)
Boat engines Yes (1)
Fluorescent tubes and light bulbs Yes (0) Yes (0)
Vehicle care products Yes (45)
Envelopes Yes (12)
Copying machines Yes (3)
Dishwasher powder Yes (7)
Chargeable batteries Yes (4)
Compost containers Yes (8)
Washing machines Yes (1) Yes (1)
Newsprint Yes (0)
Wooden furniture and furnishings Yes (3)
Lawnmowers Yes (7)
Adhesives Yes (2)
Sanitary cleaning products Yes (6)
Babies nappies, washable Yes (0)
Babies nappies, disposable Yes (5)
Floor covering Yes (5)
Refrigerators and freezers Yes (0)
Textiles Yes (3)
Cleaning materials Yes (15)
Greaseproof paper (sandwich paper) Yes (0)
Drainage-free toilet systems Yes (0)
 59

As of 1 July 1996, criteria have been drawn up for the following product Swan EU-flower
groups (cont'd)
Correcting fluid Yes (0)
PCs Yes (1)
Washing-up liquid/powder Yes (1)
Towels for public use Yes (0)
Printed matter Yes (2)
Wallpaper Yes (0)
Shampoo, solid and liquid soap Yes (0)
Printing paper Yes (1)
Coffee filters Yes (0)
Soil improvement products Yes (0)
Indoor paint and varnish Yes (7)
Bed linen and T-shirts Yes (0)

Suggested criteria under consideration:

Writing utensils Yes
Fax machines and printers Yes
Floor care products Yes
Refrigerators and freezers Yes
Cat sand Yes
Batteries Yes
Floor cleaning products Yes
Sanitary cleaning products Yes
Dishwasher powder Yes
Shampoo Yes
Rubbish bags Yes
Converted paper products (e.g. writing pads, etc.) Yes

An up-to-date list and more information are available on request from

Ecolabelling Norway (Stiftelsen Miljoemerking i Norge - tel. 22 36 07 10, fax
22 36 07 29)
 60

Appendix 5 - A general list of environmentally

hazardous substances
Endeavours should be made to reduce emissions of the substances listed below:

Substance Problem Source

• Carbon dioxide (CO2) Contribute to the greenhouse effect • Transport (CO2)
• Methane (CH4) and thus to the alteration of global • Oil and gas production (CO2)
• Nitrous oxide (N2O) climatic conditions • Heating (CO2, CH4)
• Gases containing fluorine • Industrial processes (CO2, N2O, CFC,
(CFCs, HFCs, etc.) HFC)
• Agriculture (CH4, N2O)
• Landfills (CH4)
• CFCs, HCFCs, HBFCs Deplete the ozone layer which • Cooling plants (CFCs)
• Halons protects the earth from harmful ultra- • Textile cleaning (CFCs)
• Tetrachloromethane violet radiation from the sun • Fire extinguishing systems (halons)
• 1,1,1-trichloroethane
• Methyl bromide
• Sulphur dioxides (SO2) Acidify rivers and harm fish stocks • Road traffic (SO2, NOx)
• Nitrogen oxides (NOx) and plant life. Acidic water can release • Ships (SO2, NOx)
• Ammonium (NH3) metals from the soil and water pipes • Other mobile sources (SO2, NOx)
and give a poorer quality of drinking • Stationary combustion (SO2, NOx)
water and health problems. Acid • Oil production (NOx)
precipitation corrodes wood, stone • Metal production (SO2)
and metal in buildings and • Other indust. processes (SO2, NOx)
monuments. • Agriculture (NH3)
• Volatile organic Contribute to the formation of ozone • Oil loading, production (NMVOC,
compounds(NMVOCs) in the lower atmosphere. Ozone in NOx)
• Methane (CH4) the lower atmosphere is harmful to • Transport (NMVOC, NOx)
• Nitrogen oxides (NOx) health and to the environment, even in • Solvents (NMVOC)
low concentrations. • Other industry (NMVOC, NOx)
• Heating (NMVOC, CH4)
• Agriculture (CH4)
• Landfills (CH4)
• Nitrogen dioxide (NO2) Cause the greatest and most • Vehicle traffic (NO2, PM10)
• Particles (PM10) widespread local air pollution • Use of studded tyres
• Noise problems (especially in urban areas). • Heating (PM10)
• Industry (NO2, PM10)
• Nutritive salts Lead to nutrient enrichment of • Municipal waste water (phosphorus,
(phosphorus and nitrogen) rivers, lakes and sea areas. Nutrient nitrogen)
to water enrichment reduces water quality, • Fish farming (phosphorus)
gives a high content of planktonic • Agriculture (nitrogen, phosphorus)
algae and reduces light penetration. • Industry (phosphorus, nitrogen)
 61

Substance Problem Source

Substances that are harmful There are about 10,000 chemical • Petroleum distillates
to health and to the substances on the market in Norway. • Paint and varnish
environment A chemical substance can be harmful • Organic solvents
both to health and to the • Soap, washing and cleaning
environment. Chemical substances compounds
can cause acute poisoning and • Various other chemicals
chronic damage to health, e.g.
damage to the nervous system. They NB!
can be the cause of cancer, foetal Check the warning labels
damage, impaired fertility, allergy and
hypersensitivity.
Various products and processes
Environmentally hazardous
substances can trigger off harmful
effects on the natural environment
even in low concentrations. They are
persistent and bioaccumulative
(become concentrated in food
chains). The most serious effects are
injury to reproductive systems and
foetal damage. Environmentally
hazardous substances can also
weaken the immune system, damage
the nervous system or affect muscle
function in humans and animals.

The relationship between chemicals that are harmful to the environment, chemicals that
are harmful to health and environmentally hazardous substances can be illustrated as
follows:

T oxic
substances
Chem icals that
Chem icals are harm ful to
that are the health
harm ful to the
environm ent

The above information was obtained from "Forurensning i Norge 1995" (Pollution in
Norway 1995) and "Forurensning i Norge 1996" (Pollution in Norway 1996). These
reports can be ordered from the Norwegian Pollution Control Authority (tel. 22 57 34 00,
fax 22 67 67 06).
 62

Appendix 6 - A detailed list of substances that are

hazardous to the environment and to health
There is no list available in Norway today which ranks harmful substances according to
how dangerous they are to health and the environment. We have therefore had to go
abroad. As part of Volvo's efforts in the field of health and the environment, a group of
chemists at the car factory in Sweden are working on the subject of harmful substances
in products. The lists compiled by them can therefore also be used with advantage by
Norwegian purchasers.

However, the lists below are by no means exhaustive. They are recommended for use
in the absence of anything better. However, the problem is that the substitutes for the
hazardous substances may prove to be as harmful as the substances they are
replacing. It is also important to note that the authorities are keen to create recovery
schemes for products containing substances that are harmful to the environment and to
health. If a product is included in a functioning recovery scheme, the way car batteries
are, then this must be regarded as an acceptable solution.

The following lists focus on hazardous substances in products. Industrial effluents, long-
range air pollution and fjord sediments are other major sources which can be linked to
the manufacture of the products.

The following three lists have been made for direct copying and for use in enquiries.

Volvo's Black List

Volvo says about this list: "New products containing substances on the Black List must
not be used. Phasing-out plans with final dates must be used for the substances that
were not phased out when they were first included in this list. Exceptions may be made
where Volvo is restricted in forbidding their use by legal or safety requirements. In such
situations, precautions must be taken to avoid detrimental effects on humans and the
environment." (February 1996).

Volvo's Grey List

Volvo says about this list: "Products containing substances on the Grey List should be
monitored and less hazardous alternatives should be introduced when it is technically
and financially possible. Before new products containing one or more of the substances
on this list are used, an evaluation must be carried out to see whether less hazardous
products can be used instead. Exceptions may be made where Volvo is restricted in its
possibility of forbidding their use by legal or safety requirements. In such situations,
precautions must be taken to avoid detrimental effects on humans and the
environment." (February 1996).

A third list of substances that should be avoided

Volvo's lists have been drawn up for Volvo's needs. Even if Volvo is a major purchaser,
there are areas which are not covered properly by these lists. The third list contains
some other substances which should be avoided. This list is based among other things
 63

on a report published by the Norwegian Pollution Control Authority entitled "Miljoegifter i

Norge" (Environmentally Hazardous Substances in Norway).

Volvo's Black List - substances or groups of substances that should not be used
6
Group Name of substance CAS No. Example of type or area of use Risk
1
group
Amines Phenyl-β-naphthylamine 135-88-6 Antioxidant C
Methylene dianiline 101-77-9 Hardener, in paints C
CFC CFC 114 75-69-4 Cooling agent, "freon" (+ foam plastic from the East)5 O
4 5
compounds CFC 113 76-13-1 Cooling agent, "freon" (+ cleaning) O
CFC 1144 76-14-2 Cooling agent, "freon" O
4
CFC 115 67-15-3 Cooling agent, "freon" O
CFC 124 75-71-8 Cooling agent, "freon" O
4
Fibres Asbestos Several Insulating material C
4
Flame Polybrominated biphenyls Several PBBs, in plastics, textiles E, N, C
retardants Polybromin. diphenylethers Several PBDEs, plastics, textiles E
Rubber Aminobiphenyl (+ salts) 92-67-1 Dye C
compounds Benzidine (+ salts) 92-87-5 Dye C
Thiocarbamide 62-56-6 In rubbers and plastics A, C
Thiram (TMTD) 137-26-8 Also as biocide A, E
4
Halons Halon 1211 353-59-3 Fire retardant O
4
Halon 1301 75-63-8 Fire retardant O
Halon 24024 124-73-2 Fire redardant O
4 5
Chlorinated PCB 1336-36-3 Insulators, oils etc.(+ oils in electric condensers, joint filler) E
hydro- Hexachlorobutadiene 87-68-3 Solvent E,T
4
carbons Carbon tetrachloride 56-23-5 Solvent (+ petrol production, laboratories, paint and varnish) O, C, T
Methylene chloride 75-09-2 Solvent, in fuel C
4
1,1,1-Trichloroethane (TCE) 71-55-6 Solvent, adhesives O
Tetrachloroethylene 127-18-4 Solvent (+ cleaning fluid for textile cleaning)5 C
4
Metals Lead chromate 7758-97-6 Pigment C,A,E,N
4,7 2
Cadmium + Cd-compounds Several Pigment (+batteries, plastic - stabiliser and pigment - C, E
sacrificial anodes, anti-corrosive agents, artificial fertilisers)5
Mercury4 + Hg-compounds Several In electrical equipment (batteries, amalgam, thermometers)5 N, E
Lubricants Chlorinated paraffins Several In oils, fire retardants (+ plastic and paint additive, cutting E
fluids for metal processing)5
3
Mineral oil with PAHs Several Base oils, lubricants (+ creosote oil, asphalt)5 C
5
Surface 4-Nonylphenol Several Used as ethoxylates (+ detergents) E
active agents Nonylphenolethoxylates Several Cleaning agent (+ detergents, binding agents in water-based E
paint, moisteners, emulsifiers, dispersants)5
 64

Volvo's Grey List - substances or groups of substances the use of which should be limited
6
Group Name of substance CAS No. Example of type or area of use Risk
1
group
Biocides Chlorocresol (meta-) 59-50-7 In lubricants, paints E, A
Chlorocresol (ortho-) 1570-64-5 In lubricants, paints E (possibly)
Chloromethyl isothiazolinone 26172-55-4 In aqueous solutions A
Methyl isothiazolinone 2682-20-4 In aqueous solutions A
4
Organotin compounds (trialkyl) Several In cooling water (+ anti-fouling paints, wood and net A (+E)5
preservative)
Flame Brominated (not PBB+PBDE, Several In textiles, plastics E (possibly)
retardants on black list)
Triphenyl phosphate 115-86-6 Also as antioxidant E
HCFC HCFC 141 b4 1717-00-6 Cooling agent O
compounds HCFC 142 b4 75-68-3 Cooling agent O
HCFC 224 75-45-6 Cooling agent O
Hardeners 2,4-Toluene diisocyanate 584-84-9 PUR-foams, adhesives A (asthma)
2,6-Toluene diisocyanate 91-08-7 PUR-foams, adhesives A (asthma)
Complex Colophony (rosin) Several Adhesives, paints A
mixtures Creosote Several Distillation products, filler C, E
Coal tar Several Distillation products, filler C
Solvents Benzene 71-43-2 Petrol, solvents C
1,2-Dichloroethane 107-06-2 Additive for fuels C
1,2-Ethoxyethanol 110-80-5 Solvent R
2-Ethoxyethanol acetate 111-15-9 Solvent R
n-Hexane 110-54-3 Solvent N
5
Chloroform 67-66-3 Solvent (laboratories, disinfection) C, R
Limonene Several Solvent A, E
2-Methoxyethanol 109-86-4 Solvent R
2-Methoxyethanol acetate 110-49-6 Solvent R
5
Trichloroethylene (TRI) 79-01-6 Solvent (+ solvents for degreasing, laboratory use) C
Metals Arsenic + compounds Several Wood preservative (+ in products such as brass, glass, lead N, C, E
shot, artificial fertiliser)
Lead + compounds Several Pigment in paints (+ lead accumulators, plastic - stabiliser, N, E
5
leaded petrol, paint, lead shot and other metal products)
Accumulators
Cadmium in batteries2,7 Several Surface treatment (+ wood preservative) C, E
Chromium (6+) compounds Several Pigment A, C, E
Strontium chromate 7789-06-2 Pigment (anti-corrosive agents, sacrificial anodes, paint, C
Zinc chromate 13530-65-0 plastic, batteries, car tyres)5 C
Plasticizers Butyl benzyl phthalate 85-68-7 Adhesives, paints E
Dibutyl phthalate 84-74-2 Adhesives, paints E
Dimethyl phthalate 131-11-3 In hardeners, paints T
Acids Hydrofluoric acid (HF) 7664-39-3 Pickling, etching T
Surface DHTDMAC 61789-80-8 Softener E
active agents DSDMAC 107-64-2 Rinsing agent E
DTDMAC 68783-78-8 Vehicle care products E
Additives Diphenylamine 122-39-4 In lubricants E, T
 65

Volvo's Grey List - substances or groups of substances the use of which should be limited
6
Group Name of substance CAS No. Example of type or area of use Risk
1
group
Sodium nitrite (+ amine) 7632-00-0 Anti-rust agent C

Other substances that should be avoided

Group Substance Example of type or area of use
Metals Copper Anti-fouling paint, timber preservation, artificial fertilizers
Nickel 7 Combustion of oil, asphalt, stainless steel, batteries, catalysers, and products with
skin contact
Insecticides Insecticides containing phosphorus and chlorine
and weed
killers
Biocides Pentachlorophenol (chlorophenol) Fungicides in chipboard adhesive, rough textiles and timber from other climatic
conditions

1) A = Allergy, C = Cancer, T = Toxic , E = Environmentally hazardous, N = Neurotoxic,

O = Ozone depletion, R = Reproductive hazards
2) The use of cadmium in batteries is covered by the Grey List, while other uses are
covered by the Black List
3) Assumed to contain PAH if standard test DMSO "Extract" £ 3% (IP 346 method). Is
used in base oils which are used in lubricants and other chemical products.
4) Forbidden or regulated in Norway
5) Information in parenthesis supplements Volvo's information
6) International identification system for substances. This is less ambiguous than the
name designation. There is also a special EU system.
7) Nickel-hybrid batteries should be preferred to nickel cadmium batteries, even if nickel
can also be an environmental problem.
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Appendix 7 - Glossary of terms

In the following you will find an explanation of some of the most important terms in this
Guide:

Agenda 21 - an action framework for the twenty-first century which was adopted at the
UN Conference on Environment and Development in Rio de Janeiro in 1992.

Contract - an agreement between two or more parties to do or to refrain from doing

something (or - an agreement that can be carried out with the help of legislation).

Delivery follow-up - a system for checking that the product has been delivered as
agreed.

Development contract - an agreement between a customer and a supplier to develop a

new article or service.

Discharge permit - a licence from the authorities to discharge pollutants.

Eco-efficiency - valued added in proportion to the environmental impact.

Eco-label - a label that is preferably affixed to a product in order to display the fact that
the product has a better environmental standard than other comparable products.

Eco-management system - a set of systems and routines that are intended to ensure a
high environmental standard in a production process.

Effect target - target which defines the intention (desired effect) of a measure.

Enquiry - a request for offers from a customer to one or more parties in a supplier
market.

Environmental criteria - standards that have to be met by products and suppliers in

order to safeguard the environment.

Environmental image - the environmental standard of an enterprise as perceived by

other operators.

Environmentally hazardous substances - substances which - even in low

concentrations - can have harmful effects on the natural environment. These
substances are not easily degradable and can accumulate in food chains.

Environmental policy - a declaration formulated in writing about how an enterprise will

tackle its environmental challenges.
 67

Environmental report - a written report that presents the results of an enterprise's

environmental work.

Genetic engineering - human interference in an organism's genes.

Hazardous waste - waste that cannot be disposed of along with ordinary waste.

Internal control - a system required by law for an enterprise's HSE work.

ISO 14 000 - a series of international standards for different environmental fields.

Life cycle assessment (LCA) - a method for evaluating a product's impact on the
environment from the cradle to the grave.

Life cycle costs - total costs related to purchasing, owning, managing and selling an
investment.

Market search - a process to find suppliers who can offer the desired product or
service.

Offer - a binding promise from a supplier, either solicited or unsolicited, to a

potential customer with a view to gaining a sale.

Present value method - a method for calculating the value today of a cash flow in the
future.

Result targets - the specific measures that are to be implemented to reach the effect
targets.

Specification - a written statement of the customer's requirements regarding a product,

service, supplier or other aspects of a delivery.

Sustainable development - "meeting the needs of the present without compromising

the ability of future generations to meet their own needs", as defined by the World
Commission for Environment and Development (1987).

Swan label - the official Nordic eco-label.

Threshold value - in the case of public purchasers, the value of the purchase
determines which set of rules applies and how widely enquiries have to be distributed.

Warranty control - a system by which a purchaser can follow up and benefit from the
warranties that accompany a product under the contract.

Verification of needs - confirmation that the delivery requirements given by the user
are consistent, satisfy his needs completely and comply with the performance
specification (are not over or under-specified).
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Appendix 8 - Useful contacts

The GRIP Centre Tel: 22 99 33 00

P.O. Box 8100 Dep Fax: 22 99 33 10
N-0032 Oslo
Tel: 22 57 36 00 NIMA
Fax: 22 68 87 53 P.O.Box 2602 St. Hanshaugen
N-0131 Oslo
Ecolabelling Norway Tel: 22 20 14 00
Kristian Augustsgt.5 Fax: 22 20 06 50
N-0164 Oslo
Tel: 22 36 07 10 The Godt Norsk Foundation
Fax: 22 36 07 29 Nedre Vollgt. 11
N-0158 Oslo
Norwegian General Standardizing Tel: 22 41 04 70
Body Fax: 22 41 05 60
P.O.Box 360 Skoeyen
N-0212 Oslo Norwegian Design Council
Tel: 22 04 92 00 Riddervoldsgt. 2
Fax: 22 04 92 15 N-0256 Oslo
Tel: 22 55 80 40
Norwegian Pollution Control Fax: 22 55 93 02
Authority
P.O.Box 8100 Dep Tjänstemännens Central-
N-0032 Oslo organisation (TCO)
Tel: 22 57 34 00 Linnégatan 14
Fax: 22 67 67 06 S-114 94 Stockholm, Sweden
Tel: +46 8 782 92 68
Debio Fax: +46 8 782 92 07
P.O.Box 50
N-1940 Bjoerkelangen Norwegian Clothing and Textile
Tel: 63 85 63 05 Institute
Fax: 63 85 69 85 Thormoehlensgate 55
N-5008 Bergen
Interpro AS Tel: 55 54 38 00
P.O.Box 85 Fax: 55 31 06 09
N-5061 Kokstad
Tel: 55 99 10 20 Norwegian Industrial and
Fax: 55 10 08 99 Regional Development Fund
P.O.Box 448 Sentrum
The Norwegian Society for N-0104 Oslo
the Conservation of Nature Tel: 22 00 25 00
P.O.Box 6891 St. Olavs Plass Fax: 22 42 96 11
N-0130 Oslo
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Appendix 9 - References, literature, reports

Harald Westhagen: "Prosjektarbeid" (Project Work), Universitetsforlaget AS, 1984

Oeyvind Boehren and Per Ivar Gjaerum: "Prosjektanalyse" (Project Analysis), NKS
Fjernundervisning, 1990

Naturvaardsverket: "Offentlig upphandling med miljöhänsyn", Report No. 4508,

Stockholm 1995

Amstraadsforeningen, Energistyrelsen, Indkoebservice A/S, Kommunernes

Landsforening og Miljoestyrelsen: "Bedre miljoe gennem indkoeb" (Better Environment
through Purchasing), Miljoestyrelsens forlag, 1995, ISBN 87-7810-347-9

Norwegian Pollution Control Authority: "Forurensning i Norge" (Pollution in Norway),

published annually

Norwegian Pollution Control Authority: "Miljoegifter i Norge" (Environmentally Hazardous

Substances in Norway), 1993

The GRIP Centre: GRIP Start Guide

The GRIP Centre: GRIP Office Guide

The GRIP Centre: GRIP Building Guide

The GRIP Centre: GRIP Building-FDVU Guide

 70

GRIP Purchasing - a Guide to an Environmentally Efficient Purchasing Practice

Based on a professionally correct purchasing procedure, GRIP Purchasing suggests

how the need for greater eco-efficiency - i.e. higher value added in proportion to
environmental impact - can be reflected in all stages of a purchasing process from the
verification of needs through the enquiry, offer and contract to phasing in, use and
scrapping. GRIP Purchasing focuses on the verification of needs, life cycle costs and
performance specification in order to achieve cost-efficient purchases - in the traditional
sense - and environmentally efficient purchases.

GRIP Purchasing is a tool and a reference book for purchasers who are positioned
between management, employees and customers who are concerned with the
environment and suppliers who exploit the confusion or lack of clarity that is prevalent in
this area.

GRIP Purchasing maintains that environmentally efficient purchases can to a large

extent be combined with better satisfaction of needs and lower overall costs. Moreover,
by insisting on environmentally efficient goods and services, your enterprise will help to
improve its own environmental image and to be perceived as a discriminate customer.
In this way, more stringent demands will be put on Norwegian suppliers and in turn this
will help to increase Norwegian competitive strength.

GRIP Purchasing is addressed to purchasing officers in government, municipal and

private enterprise.

A reference group of experts has contributed to the preparation of GRIP Purchasing.

Interpro AS is responsible for the quality assurance of the purchasing aspect of the
Guide.

When GRIP Purchasing was circulated for comment, the following reactions were
received:

"Congratulations on a very well-written, professional guide... This will be a useful tool!"

Gro Eva Skjaeveland, Corporate Purchasing, Municipality of Oslo

"I would like to commend the GRIP Centre for the considerable enhancement in the
quality of the Guide".
Helge Follestad, Interpro AS

"Very good!"
Tor Arne Bratteboe, Purchasing Officer, NLH

GRIP Purchasing is published by the GRIP Centre - a foundation for sustainable

production and consumption.