Feb. 6, 2014

Ryoichi YamamotoThe International Green Purchasing NetworkEmeritus Professor of the University of TOKYO

Sapporo

Ethical Purchasing in the Age of Anthropocene

We are alone in the Universe ?

Conservation of Biosphere!

ANTHROPOCENE

NATURAL CAPITAL AT RISK:The top 100 externalities of business, by TRUCOST, April 2013

The estimated cost of land use, water consumption, GHG emissions, air pollution, land and water pollution and waste for the world’s primary sectors amounts to almost US$ 7.3 trillion.The environmental damage caused by the world’s primary industries is equivalent to 13% of global economic output.Consumer demand for food and goods indirectly drives the majority of environmental costs from natural resource use, pollution and waste across primary sectors.Ranking by ImpactLand Use US$ 1.8 trillion, Water Consumption US$ 1.9 trillion, Greenhouse Gases US$ 2.7 trillion, Air Pollution US$ 0.5 trillion, Land and Water Pollution US$ 0.3 trillion, Waste US$ 50 trillion

By Dave Griggs

5

(Climate Change, Biodiversity loss and Biogeo-chemical flow boundary)ref. Planetary Boundaries, Johan Rockstroem et al, Ecology and Society 2009

Earth System Process Planetary Boundary

1. Climate Change Atmospheric CO2 Concentration, 350ppm (350-550ppm)

2. Ocean AcidificationSustain more than 80% of the preindustrial aragonite saturation State of mean surface ocean

3. Stratospheric ozone depletion less than 5% reduction from pre-industrial level

4. Atmospheric aerosol loading to be determined

5. Biogeo-chemical flows:Interference with P and N cycles

P < 10 ×(10×-100×)N : Limit industrial and agricultural fixation of N2 to 35 MtNyr-1

6. Global freshwater use less than 4,000km3yr-1

7. Land system change less than 15% of global ice – free land surface converted to cropland

8. Biodiversity loss less than 10 E/MSy

9. Chemical Pollution to be determined 6

“Can we live within the Doughnut?”

Kate RaworthOxfam Discussion Paper

Retrieved from <http://www.oxfamblogs.org/fp2p/?p=8696>

How far below the social foundation is humanity ? An illustrative assessment, based on governments’ social priorities for Rio + 20

Socialfoundation

Extent of global deprivation(illustrative indicators)

Percentage Year

Food security Population undernourished 13% 2006‐8

Income Population living below $ 1.25 (PPP)per day 21% 2005

Water andsanitation

Population without access to an improved drinking water sourcePopulation without access to improved sanitation

13%

39%

2008

2008

Health care Population estimated to be without regular access to essential medicines

30% 2004

Education Children not enrolled in primary schoolIlliteracy among 15‐24‐year‐olds

10%11%

20092009

Energy Population lacking access to electricityPopulation lacking access to clean cooking facilities

19%39%

20092009

Socialfoundation

Extent of global deprivation(illustrative indicators)

Percentage Year

Genderequality

Employment gap between women and men in waged work (excluding agriculture)Representation gap between women and men in national parliaments

34%

77%

2009

2011

Social equity Population living on less than median income in countries with a Gini coefficient exceeding 0.35

33% 1995‐2009

Voice E.g. Population living in countries perceived (in surveys) not to permit political participation or freedom of expression

To be determined

Jobs E.g. Labour force not employed in decent work To be determined

Resilience E.g. Population facing multiple dimensions of poverty

To be determined

Sources: FAO, World Bank, UNStat, WHO, IEA, and Solt 2009

The WORLD BANK Report“Turn Down the Heat-

Why a 4ºC Warmer World Must be Avoided.”

Potsdam Institute for Climate Impact Research

It is likely that the poor will suffer most and the global community could become more fractured, and unequal than today. The projected 4ºC warming simply must not be allowed to occur – the heat must be turned down. Only early, cooperative, international actions can make that happen.

IPCC AR5 WG1 SPM (2013)

Climate Target 2ºC will be reached within 28 years

Increase of the surface temperature is proportional to the cumulative total anthropogenic CO2 emission from 1870.

Cumulative CO2 emission should be less than 800 GtC to keep the climate target with the probability 66 %.

We have emitted CO2 531 GtC by 2011.

The world emision of CO2 is 9.5 GtC in 2011.

If we continue to emitt CO2 9.5 GtC/yr, then we will reach 800 GTC within 28 years.

1990 2000 2010 2020 2030 2040 2050 2100 2150

120％

100％

80％

60％

40％

20％

0％

GHG Emissions1990＝100％

Emission Pathway needed to keep 2℃ target

Developed5％reductionIn 2008～12

WorldPeaking within10~15 years

Developed25～40％ reduction 

by 2020

World50%reduction

by 2050

Developed80～95％ reduction

by 2050

World80%reduction

by 2100

DevelopedZeroemission

by 2100

WorldZeroemission

in 22c

12

The projected timing of climate departure from recent variability Nature 2013 Oct. 10 502, 183

Camilo Mora et al

Stop! +2ºCGlobal Warming is approaching near to

the point of no return.

World headed for irreversible climate change in five years, IEA warns. 2011

If fossil fuel infrastructure is not rapidly changed, the world will ‘loss for ever’ the chance to avoid dangerous climate change

by Fiona Harvey, environment correspondent, gurdian, UK

If the world is to stay below 2ºC of warming, which scientists regard as the limit of safety, then emissions must be held to no more than 450ppm of carbon dioxide in the atmosphere; the level is currently 390ppm. But the world’s existing infrastructure is already producing 80% of that “carbon budget”, according to the IEA’s analysis.This gives an ever-narrowing gap in which to reform the global economy on to a low-carbon footing.By 2017, there will be no room for manoeuvre at all.

IEA＝International Energy Agency16

Two Paths to a Sustainable World

Quality of Life or Well-Being

1

10

100Developed Countries

(Material Wealth)

Sustainable Path,Dematerialization, Decarbonization20c type

Economic Growth

Sustainable Level

Sustainable Path

Underdeveloped Countries Simple LifeVoluntary Poverty

Spiritual Conversion

Sustainable WorldService EconomyProsperity withoutMaterial Growth

Per capita annualresource consumption

Ecodesign Innovation

H. Brezet Factor X

First step Product Improvement 2

Second step Redesign 5

Third step Function Innovation 10

Fourth step System Innovation 20

Product Improvement

Redesign

Function Innovation

System Innovation

Ecodesign for increasing both Efficiency and SufficiencyProsperitywithoutMaterialConsumption

Inter-religiousEco-theologyAgape, Compassion,Sharing the Earth

Environmental Ethics,Eco-literacy

Economic Bubble,Poverty

Materialwealth

Biomimectic and Supernatural

Eco-effectiveness

Eco-efficiency

EOP

low

high

factor 1(1990)

factor 4

factor 10(2050)

factor 1000

factor 106

Efficiency Sufficiency

high

lowSustainability =

Efficiency × Sufficiency

From Green Economy to Ecological civilization

Function and System Innovation

【Innovation】

【Conservation of Biosphere】

Improvement andRedesign

Simple Life, Dematerialization,Energy SavingI only know what is enough.

Social Service based on the awareness that our lives are owed to the world and society

Green Economy

Ecological Civilization

＋

Green & Ethical Innovation

GHG Emission ZeroWastes ZeroPoverty Zero

・・・・・・・

THE ZERONAUTSJohn Elkington

Zero Impact Growth

エコプロダクツ２０１３日時 １２月１２日（木）‐１４日（土）場所 東京ビックサイト

（東展示場、６ホール）主催 産業環境管理協会、

日本経済新聞社

来場者数 １７万人

天皇・皇后両陛下の行幸啓

高野山真言宗総本山金剛峯寺管長 松長有慶座主の御視察

Hazel Henderson

50% consumers surveyed avoided a product based on company’s responsible reputation.Since the onset of the recession five years ago, the total value of ethical markets has gone from £35.5 bn to £47.2 bn.Sustainable fish up 323%

£69 m → £292 mFair trade up 176%

£458 m → £1,262mFree range eggs up 78%

£444 m → £792 m

“The report shows that intervention by enlightened businesses, together with regulatory intervention, is driving ethical sales growth.”

Study Workshops on Ethical & CSR Procurement

• IGPN started a series of workshops and seminars in Japan to study and analyse the trend, case studies, and supply-chain issues related to ethical & CSR procurement in various regions of the world.

• IGPN plans to develop guidelines and disseminate the information around the world.

• Web site: http://igpn.org/csr2012/index.html– 1st workshop: May 2012– 2nd workshop: July 2012– 3rd workshop: September 2012– 4th workshop: November 2012– Seminar: December 2012– 5th workshop: March 2013– 6th workshop: tbc

Participants: Green Purchasing Network (GPN) Japan, Daiwa Institute of Research Holdings Ltd, Amita Institute of Environmental Certification Co Ltd, Sustainability Forum Japan, Teijin Ltd, Asahi Group Holdings Ltd, Toyota Motor Corp, Saraya Co Ltd, KAO Corp, Panasonic Corp, Sony Corp, Democratic Party / House of Representatives member, Professor of Tokyo Keizai University, Institute for Global Environmental Strategies, NEC Display Solutions Ltd, International Green Purchasing Network (IGPN), Green Consumer Organisation, Ministry of the Environment Japan, Forestry Agency, Rikkyo University Graduate School of Social Design Studies, City of Yokohama Economic Affairs Bureau, Distribution, Distribution & Environment Management Research Institute, Nippon Association of Consumer Specialsits, Delphys Inc, Ethical Fashion Japan, UNJUCI, Ethical Keitai Campaign, Fairtrade Label Japan, Institute for International Trade & Investment, Japan Environment Association / Eco Mark, Integrex Inc, Fujitsu Ltd, Sekisui House Ltd, Iwate Prefecture Government, Association for the Promotion of Social Products (APSP), The Good Bankers Co Ltd, Dentsu Inc Social Solution, Fair Trade Student Network, K’s Holding Corp, Preserance Ltd, Tokyo City University, Sophia Bank,

A Survey Committee on the Ethical Procurement was established in IGPN May 2012 and the first outcome of this Committee was published in December 2012.

Green, Ethical, Sustainable Products

Fairtrade Products

FSC ProductsGreen Products

Ethical Jewellery

Ethical Fashion

General View of Ethical Procurement• Most of the code of practice deal with human rights issues and

the welfare of workers recognised under:– Core conventions of the International Labour Organization (ILO)– UN Convention on the Rights of the Child– Universal Declaration of Human Rights

• Areas usually covered by the code of practice are:– Freedom of employment– Freedom of association– Safe and hygienic working conditions– Child labour– Living wages– Working hours– Non-discrimination– Humane treatment

Ethical Public Procurement Trends

North America• Addressing social / ethical agenda by central and local

governments in their procurement practice was slightly slow, but many have now adopted relevant policies and their numbers continue to increase.– Canada: Calgary, Toronto, Ottawa, Vancouver (2007)– USA: 6 states, 38 cities and 12 towns (2007)

European Union• In July 2006, the European Parliament unanimously adopted a

resolution on fair trade (EP resolution “Fair Trade and development”, 6 July 2006):– Recognised the benefits achieved by the Fair Trade movement– Suggested the development of an EU-wide policy on Fair Trade– Defined criteria that need to be fulfilled under Fair Trade to

protect it from abuse and calling for greater support to Fair Trade.

Ethical Public Procurement Trends

North America• Addressing social / ethical agenda by central and local

governments in their procurement practice was slightly slow, but many have now adopted relevant policies and their numbers continue to increase.– Canada: Calgary, Toronto, Ottawa, Vancouver (2007)– USA: 6 states, 38 cities and 12 towns (2007)

European Union• In July 2006, the European Parliament unanimously adopted a

resolution on fair trade (EP resolution “Fair Trade and development”, 6 July 2006):– Recognised the benefits achieved by the Fair Trade movement– Suggested the development of an EU-wide policy on Fair Trade– Defined criteria that need to be fulfilled under Fair Trade to

protect it from abuse and calling for greater support to Fair Trade.

Example: Ethical Procurement Policy Statement ofDepartment for Environment, Food and Rural Affairs (Defra),

UK

Government policy: Value for money must be assessed over the lifetime of a project including:• Disposal (either sale proceeds or

decommissioning costs)• Estimating the costs and benefits to society

as a whole• Not simply those directly relevant to the

purchaser.Purpose : Defra works within the legal framework governing public procurement to purchase goods, services and works that support government policies to achieve:• Value for money• Improve efficiency• Increase sustainability• Support the big societyThis includes promoting good governance, social cohesion and a fairer world by encouraging participation, inclusion and equal opportunities and engaging people’s creativity, energy and diversity.

The statement is based on the following principles:• Working conditions are safe• Good health is promoted• Employment is freely chosen• Working hours are not excessive• Wages meet at least national legal

standards• Training is provided• No discrimination is practised• Diversity and good workforce practices are

encouraged• Child labour is eliminated• No inhumane treatment is allowed

Source: http://www.defra.gov.uk/publications/files/ethical-procurement-policy-statement.pdf

International Sustainable Public Procurement Initiative (SPPI)

Building on the work of the MTF on SPP, UNEP in cooperation with a number of governments and international organisations, launched the International Sustainable Public Procurement initiative (SPPI) at the Rio+20 Summit in June 2012.

MTF on SPP ended its mandate in May 2011.

• Goal: To promote worldwide implementation of SPP through increasedcooperation between key stakeholders and a better understanding of itspotential benefits and impacts.

• Objectives: Aims at bringing together representatives from governments, localauthorities, business sector and civil society interested in collectively promotingthe supply and demand of sustainable products through SPP:1. Build the case for SPP: improve the knowledge on SPP and its effectiveness

as a tool to promote sustainable consumption and production, supportgreener economies and sustainable development

2. Support the implementation of SPP on the ground through increasedcollaboration.

Good Lifestyle Design Awardby Ministry of the Environment, Japan

Purpose• To promote various lifestyles to realise a sustainable

society.• First award ceremony to be held in February 2014.Examples of Criteria for Evaluation• Contributions to environmental conservation• Solutions to social issues, such as poverty and inequality• Creation of cultural diversity• Contribution to construct resilient local communities• Promote sustainable (green and ethical) purchasing• For future generations• Promote eco and social innovations

Conclusion

Ethical Purchasing will be crucially important

for sustainable development.