Sustainable Procurement Survey
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1 Sustainable Procurement Survey New Zealand business decision makers views on the - Role of Government in sustainable development, - Government procurement policy, - Promotion of sustainable or eco-labels for products and services Property of the New Zealand Business Council for Sustainable Development December 2006 Not for publication without prior approval
2 ShapeNZ Procurement Survey Members of the ShapeNZ online panel were surveyed between November 29 and December 5, The following are weighted results for 90 business decision maker respondents, weighted according to their party vote at the last General Election. Decision makers are managers, proprietors and self employed. This survey aimed to capture the views of business decision makers, including those with authority to purchase on behalf of their organisations, in relation to the Government s announcement that New Zealand should aim for sustainable development and a carbon neutral economy procurement policy options which should be followed by core Government agencies the value of eco-labels the degree to which the government should direct its agencies to procure on whole of life versus day-one cost basis whether or not there is support for Government involvement in leading the increased adoption and promotion of eco-labels on New Zealand goods and services. Summary. Strong agreement on move to economic sustainability There is strong agreement among business decision makers with the Government s view that sustainability is required across the whole economy in order to help manage climate change and protect New Zealand s trading position (90% agree, 56% of them strongly. Only 7% disagree, 3% of those strongly). 2. Short versus long term impacts on international competitiveness If New Zealand became the first truly sustainable country, decision makers see this as making the country more competitive internationally in the long term (78%). 40% say it will make the country more competitive in the short term. More see a risk of the country becoming less competitive in the short term (3%) than the long term (8%). 3. Procurement on whole-of-life v day-one price basis There is overwhelming support for Government procurement to be conducted on a whole-of-life cost basis (89%). There is strong support for whole-of-life cost to be specified in all Government agencies tender and contract documents (56%), while 43% said whole-of-life costs should be considered for some types of products and services or when Government agencies decide this is appropriate. 4. Eco-labeling and green procurement support There is majority agreement (56%) that government agencies should be directed to only procure goods and services which meet independently verified sustainable or green criteria. 5. Eco label promotion support Most are not aware of the eco or sustainability labels now in use. Only one (ISO 400) achieved an awareness rating of more than 50%. When asked do you think the Government should promote eco-labels in New Zealand to encourage sustainable development? 85% agree (0% oppose). Support falls slightly (7% for, 2% against) when asked if the Government should use taxes to fund a promotional campaign to encourage businesses to produce and supply sustainable goods and services and New Zealanders to purchase from those companies.
3 6. Growing importance of eco-labeling 88% of business decision makers believe sustainable or eco-labeling is going to be more important in the future. % believe it will be no more or less important in the future. 7. Eco-labeling influence on purchasing decisions A majority (54%) say they would be more likely to buy an eco-label on a product or service even if it cost a little more. 38% say an eco label would be more likely to buy if it cost about the same as other products. 8% say an eco label would not make them more or less likely to buy. % say it would make them less likely to buy. 8. Importance of green consumerism in New Zealand Business decision makers see green consumerism and eco-labeling being of high importance in the future, and it will also influence their own purchasing decisions. 88% say sustainable or eco-labeling is going to be more important in the future, % say it will be no more or less important and only % believe it will be less important in future. Currently 92% believe green consumerism exists in New Zealand but that it does not have a significant impact on the way New Zealanders shop. (5% believe it impacts now. None of the respondents believes it does not exist at all). Looking to the future, however, there is a major reversal: 63% believe it will have a significant impact on the way New Zealanders shop (32% no impact). 9. Business buying now and in the future Some 45% of respondents organisations do not have a sustainable purchasing policy and 6% don t know if they have one. 39% say they do. Only 2% consider environmental factors all the time when they are buying for their organisation, 49% some of the time, 3% not at all. 5% say buying sustainable goods and services now is a minor concern or of no concern to their organisations. However, 66% say, when thinking about the future and environmental and climate change issues, they are likely to more frequently buy from companies supplying sustainable goods and services, indicating a significant market opportunity. 0. Government procurement power impacts on business support and decisions If the Government moves to require all organisations tendering to sell goods and services to its agencies to have a sustainable or eco label, the policy will enjoy 70% support from business decision makers. 3% would neither support nor oppose and 6% would oppose (5% of them strongly). % don t know. If the Government were to require all organisations tendering to supply its agencies to have a sustainable or eco label, 52% say their organisation will be more likely to seek a label licence. 25% say they will be no more or less likely and only % less likely. 22% don t know.. Barriers to sustainable development through eco-labels The lack of specifications for eco-labels for their products is the greatest barrier to organisations acquiring one (45%), lack of knowledge (39%), irrelevance currently for their type of product or service (37%). Some 22% do not believe consumers currently value eco-labels, there are too many to chose from (9%) and they do not provide consumers with enough information (5%). Some % say the licence is too difficult or time consuming to maintain, it is too expensive (9%), and a label is not recognised in markets they export to (3%), or on imported products (%).
4 2. The role the Government should take Business decision makers strongly endorse the Government taking a multi-faceted role in sustainable/ green procurement. 8% will support Government involvement in promotional campaigns 7% support creating a green public procurement policy 59% support developing and maintaining specifications for sustainable products and services 54% support development of green and other sustainability labels aimed at both the business procurement and consumer markets 53% think the Government should help licensees to comply with sustainable label specifications. Only 3% believe the Government should play not role at all, 2% don t know. 4. Support for wider use of sustainable or eco labels Business decision makers believe the eco-labeling should go far beyond environmental considerations alone. While 93% say environmental should be used to decide who is eligible to use an eco label, 65% also agree criteria should be developed to issue labels based on fair trade principles (65%), consumer protection (48%), sustainable employment practices (46%), investing in research and development (34%), investing in equal opportunity and employment practices (30%) staff training (29%), philanthropic support (5%). 3% support none of these options because they disagree with eco-labels. Conclusions New Zealand business decision makers believe the country needs to strive for sustainable development to manage climate change and protect the country s overseas trade position. 3% worry this may make the country less competitive in the short term, but 78% believe it will make New Zealand more competitive internationally long term. They see o Green consumerism playing a major role in the future, in others and their own purchasing decisions. They back green procurement by Government agencies and support that becoming mandatory. That, in turn, will drive their own organisations to acquire licences for sustainable goods and services or eco-labels. o A major role for the Government in driving sustainable development by requiring its own agencies to stipulate in tender documents and contracts that suppliers should hold a sustainable products or services licence. o Government requiring its own agencies to stipulate whole-of-life cost, rather than dayone price, in their purchasing policies o o Sustainable products and services labeling applying to more than just products The Government playing a major role, including promotion using tax revenue, to develop and drive up the use of sustainable product and services or eco-label licences, and working to reduce barriers to their use.
5 ShapeNZ Procurement Survey responses 90 business decision maker respondents (managers, proprietors and self employed), weighted according to their party vote at the last General Election. Survey responses received between 29 November 5 December 2006 If New Zealand could become the first truly sustainable country, what do you believe the result would be in terms of the country s international competitiveness? In the short term 40% 24% 3% 5% In the long term 78% 0% 8% 4% More competitive internationally No difference Less competitive internationally Don't know
6 On what basis should Government agencies buy goods and services? % 89% 2% 9% Best 'day one' value for money (the price at the time of purchase) Best value for money over the whole of life (not neccessarily at the time of purchase) Don't know Another basis (please specify) To what extent should Government agencies specify the 'whole of life' cost to be considered in their tenders and contracts for goods and services? % 57% 43% 0% The whole of life costs should be considered for all tenders and contracts for goods and services The whole of life costs should be considered for certain kinds of goods and services or when Government agencies decide this is appropriate The whole of life costs should not be considered at all Don't know
7 One suggestion is that government agencies should be directed to only procure goods and services which meet independently verified sustainable or green criteria. Do you... 26% 30% 7% 2% 4% 2% Strongly agree Agree Neither agree nor disgaree Disagree Strongly disagree Don't know Are you aware of any of the following eco labels for products and services? ISO 400 Enviro-Mark Green Tick Environment Choice Envirosmart Forest Stewardship Council CarboNZero Environmental Choice (Australia) EU Eco-label (European Union) Green Seal (USA) Marine Stewardship Council Blue Angel (Germany) Farmsure R and D organisations Eco Mark (Japan) Nordic Swan Label (Denmark) Environmental Choice (Canada) Risk Radar KELA (Korea) None of these 2% 2% 28% 28% 25% 23% 8% 7% 6% 4% 0% 0% 0% 9% 8% 5% 34% 47% 45% 58% 0% 0% 20% 30% 40% 50% 60% 70%
8 Do you think the Government should promote eco-labels in New Zealand to encourage sustainable development? No, 0% Don't know, 5% Yes, 85% Would you support the Government using taxes to fund a promotional campaign to encourage businesses to produce and supply sustainable goods and services and New Zealanders to purchase from those companies? Don't know, 3% No, 26% Yes, 7%
9 Do you believe sustainable or eco-labelling is going to be more or less important in the future? 88% % % % 80% 82% 84% 86% 88% 90% 92% 94% 96% 98% 00% More important No more or less important than now Less important Don't know If a product or service had an eco-label, would this have any impact on your likelihood to buy it? 54% 38% 8% % 0% I would be more likely to buy it, even if it cost a little more than other products I would be more likely to buy it as long as it cost around the same as other products I would be no more or less likely to buy it than other products I would be less likely to buy it assuming it cost around the same as other products I would be less likely to buy it, even if it cost a little less than other products Don't know
10 Thinking about green consumerism in New Zealand, do you believe it... Currently % 92% 5% 2% In the future0% 32% 63% 5% Does not exist Exists but does not have a significant impact on the way New Zealanders shop Exists and has a significant impact on the way New Zealanders shop Don't know Does the organisation you work for have a sustainable purchasing policy? Don't know, 6% Yes, 39% No, 45%
11 Do you personally consider environmental factors when purchasing goods or services for your organisation? 2% 49% 3% 7% Yes, all of the time Yes, some of the time No N/A, I do not purchase for my organisation Thinking about the future and environmental and climate change issues, will your organisation s purchases from companies which supply sustainable goods and services become... 66% 9% 0% 5% More frequent No more or less frequent Less frequent Don't know
12 Do you think that providing environmentally sustainable products or services is... 44% 37% 4% 5% A major concern for your organisation A minor concern for your organisation Not a concern for your organisation Don't know If the Government were to require all organisations tendering to sell goods and services to its agencies to have a sustainable or eco label, would you support or oppose this policy? 30% 40% 3% % 5% % Strongly support Support Neither support or oppose Oppose Strongly oppose Don't know
13 If the Government were to require all organisations tendering to sell goods and services to Government agencies to have a sustainable or eco label, would your organisation be more or less likely to seek a label licence? 52% 25% % 22% More likely No more or less likely Less likely Don't know Does your business or organisation currently hold a licence for a sustainable business or eco label? Don't know, 2% Yes, 9% No, 69%
14 In your opinion what are the key barriers to your organisation acquiring an ecolabel? Licence specification is not available for the types of products or services we supply 45% A lack of knowledge about eco-labels Licence specification is not considered relevant for the types of products or services we supply 37% 39% Do not believe that customers value eco-labels There are too many labels to choose from 9% 22% Do not believe that eco-labels provide customers with sufficient information 5% Licence is too difficult/time consuming to apply for and maintain Licence is too expensive 9% % Do not believe the specifications set are appropriate We export our products and the label is not recognised in the markets we sell to We import our products and the label is not recognised in New Zealand Don t know 5% 3% % 6% Other (please specify) 6% 0% 5% 0% 5% 20% 25% 30% 35% 40% 45% 50% When considering sustainable or green procurement, which of the following roles should the Government take? Promotion and information campaigns 8% Creating a green public procurement policy 7% Developing and maintaining specifications for sustainable products and services 59% Development of green and other sustainability labels aimed at business, procurement and consumer markets 54% Helping licensees to comply with sustainable label specifications 53% No role at all 3% Don't know 2% Other (please specify) 3% 0% 0% 20% 30% 40% 50% 60% 70% 80% 90%
15 What criteria should be used to decide whether a product, service or organisation is eligible for an eco-label? Environmental standards 93% Fair Trade principles 65% Consumer protection 48% Employment practices 46% Investing in research and development 34% Investing in equal opportunity employment practices 30% Staff training 29% Philanthropic support 5% None of these, I disagree with eco-labels 3% Other (please specify) 9%
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