v

Private Sector Pioneers

United States 

Environmental Protection 

Agency

EPA742-R-99-001

June 1999

www.epa.gov/opptintr/epp

Pollution Prevention 

and Toxics

(7409)

1EPA Environmentally Preferable Purchasing Program

2Printed on paper that contains at least 30 percent postconsumer fiber.

How Companies Are Incorporating

Environmentally Preferable Purchasing
Environmentally Preferable

Purchasing Program

Environmentally preferable purchasing ensures that

environmental considerations are included in purchasing

decisions, along with traditional factors, such as product

price and performance. The EPP program provides guidance for federal agencies to facilitate purchases of goods

and services that pose fewer burdens on the environment. 

For more information about environmentally preferable purchasing or EPA’s EPP Program,

please visit our Web site at <www.epa.gov/opptintr/epp>, or contact:

Pollution Prevention Information Clearinghouse (PPIC)

202 260-1023

e-mail: PPIC@EPA.GOV
Acknowledgements

T

he U.S. Environmental Protection Agency’s Environmentally Preferable Purchasing

Program would like to acknowledge the contributions of the following individuals

who shared information on their companies’ environmental purchasing initiatives:

Andrea Asch, Ben & Jerry’s

Christy Barone, Public Service Electric and Gas

Shelley Levin Billik, Warner Bros.

Eeva-Liisa Book, Volvo

Dobbin Callahan, Collins & Aikman Floorcoverings, Inc.

Jeannine Fallon, Volvo

Al Fralinger, Public Service Electric and Gas

Lena Gevert, Volvo

Jim Gillespie, Herman Miller

Rick Hall, IBM

Alistair Jackson, The Body Shop

Bob Kainz, DaimlerChrysler

Yoko Kano, Tokyo Gas

Bob Langert, McDonald’s Corporation

Diana Lyon, IBM

Tim Mann, IBM

Yuko Miike, Sony

Danielle Ouendag, Perrigo Company

Mark Petruzzi, Green Seal

Lynn Preston, Collins & Aikman Floorcoverings, Inc.

Bob Sanders, IBM

Hiroyuki Sato, Green Purchasing Network (Japan)

Lu Sctnicka, Patagonia

Hugh “Bert” Share, Anheuser-Busch Companies, Inc.

Kiyomi Shimizu, Tokyo Gas

Hiroyuki Tada, Sony

Noriko Takata, NEC

Hiroaki Wakamatsu, Canon

Susan Wegner, Sun Microsystems

Acknowledgements ◆ i
Disclaimer

T

his document provides an overview of recent private sector environmentally

preferable purchasing initiatives and includes references to specific products and

companies. These references are included to provide additional detail and do not

constitute endorsement or recommendation for use by the U.S. Environmental Protection Agency (EPA). This document is intended to show representative private sector

environmentally preferable purchasing activities. It does not attempt to include the

efforts of every company initiating such activities or every activity initiated by the companies that are referenced.

EPA’s Environmentally Preferable Purchasing (EPP) Program, however, is interested in learning about the environmentally preferable purchasing practices of other companies. Please share any information on corporate green purchasing activities with:

Eun-Sook Goidel

Environmentally Preferable Purchasing Program

U.S. Environmental Protection Agency

401 M Street, SW. (7409)

Washington, DC 20460

E-mail: goidel.eunsook@epa.gov

Fax: 202 260-0178

Disclaimer ◆ iii
Contents

Acknowledgments.......................................................................................................i

Disclaimer .................................................................................................................iii

Contents .....................................................................................................................v

Acronyms ...................................................................................................................vi

Introduction ...............................................................................................................1

Defining Environmentally Preferable Purchasing.............................................................2

Selecting Report Participants..............................................................................................3

Public Versus Private Sector Purchasing .................................................................5

Private Sector Reasons for Adopting Environmental Purchasing Practices..........7

Responding to Customer Interest in “Environmentally Friendly”

Products and Practices.........................................................................................................7

Distinguishing a Company and Its Products From Competitors.....................................8

Pursuing Cost Savings.......................................................................................................12

Joining an Industry Trend.................................................................................................13

An Overview of Private Sector Environmentally Preferable

Purchasing Activities ...............................................................................................15

Developing Lists of Chemicals to Avoid..........................................................................15

Creating Lists of Approved Products...............................................................................17

Establishing Single Environmental Attribute Purchasing Programs .............................20

Buy Recycled Programs .......................................................................................20

Energy- and Water-Efficiency Programs............................................................22

Considering Multiple Environmental Attributes When Making

Purchasing Decisions ........................................................................................................24

Resolving Competing Attributes.........................................................................28

Working Closely With Suppliers to Enhance Environmental Performance.................30

Conclusions..............................................................................................................35

Private Sector Companies Are Increasingly Adopting Environmentally

Preferable Purchasing Practices........................................................................................35

Environmental Purchasing Has Economic and Environmental Benefits ......................35

Companies Are Actively Promoting Environmental Purchasing ...................................35

Different Companies Can Reach Different Environmental Purchasing Decisions ......36

Environmental Purchasing Will Continue to Expand ....................................................36

Appendix: Description of Participating Companies ..............................................37

Contents ◆ v
CPG Comprehensive Procurement Guidelines Program (EPA)

ELU Environmental Load Unit

EPA U.S. Environmental Protection Agency

EPP Environmentally Preferable Purchasing Program (EPA)

EPS Environmental Priority Strategies

DOE U.S. Department of Energy

FEMP Federal Energy Management Program (DOE)

FR Federal Register

GPN Green Purchasing Network

MSDS Material Safety Data Sheet

PSE&G Public Service Electric and Gas Company

PVC Polyvinyl Chloride

rBGH Recombinant Bovine Growth Hormone

TCF Totally Chlorine Free

TEEM The Energy Efficient McDonald's Program

VOC Volatile Organic Compound

vi ◆ Acronyms

Acronyms
Introduction

During the past 20 years, U.S. federal agencies have operated under a series of

federal statutes and Presidential Executive Orders mandating the purchase of

products and services that pose fewer burdens on the environment. As a result,

federal agencies are increasingly selecting products based in part on environmental

attributes such as recycled-content percentages, energy- and water-efficiency ratings,

lower toxicity, and the use of renewable resources. Many state and local governments

are embarking upon similar initiatives. The U.S. Environmental Protection Agency’s

(EPA’s) Environmentally Preferable Purchasing (EPP) Program is assisting these efforts

and documenting federal, state, and local government attempts to implement environmentally preferable purchasing strategies.

The growing interest in environmentally preferable purchasing, however, is not limited to the public sector. Private sector companies also are investigating and purchasing

environmentally preferable products and services. Although environmental purchasing

is a new concept for many companies, others are beginning to solve some of the challenges encountered when incorporating environmental considerations into purchasing

decisions. Through a variety of environmental and cost-savings initiatives—design for

the environment, greening the supply chain, full cost accounting, zero waste initiatives,

ISO 14000 certification, environmental accounting, and others—private sector companies are identifying, manufacturing, and purchasing “green” products and services.

In an effort to provide federal purchasers and other interested parties with up-todate information on current environmental purchasing practices, this report highlights

some of the initial efforts of a few private sector companies to “buy green.” The EPP

Program hopes the ideas generated and lessons learned from these private sector environmentally preferable purchasing pioneers will provide additional incentives, goals,

and tools to further advance environmental purchasing efforts.

Introduction ◆ 1

For additional information on the EPP Program 

or to access existing resources that can help you identify and purchase environmentally preferable products, please visit the program's 

Web site at:

www.epa.gov/opptintr/epp

Through a variety

of environmental

and cost-savings 

initiatives, private

sector companies

are identifying,

manufacturing, and

purchasing “green”

products and

services.
Defining Environmentally Preferable Purchasing

According to Executive Order 13101, Greening the Government Through Waste

Prevention, Recycling, and Federal Acquisition (September 1998), environmentally

preferable purchasing means selecting “products or services that have a lesser or

reduced effect on human health and the environment when compared with competing

products or services that serve the same purpose.” An earlier Executive Order, Federal

Acquisition, Recycling, and Waste Prevention (October 20, 1993), initiated EPA’s work on

environmental preferability by mandating EPA to develop environmentally preferable

purchasing guidance for federal agencies. EPA proposed seven guiding principles and

provided further clarification to help federal agencies comply with the Executive 

Order mandates. 

EPA recommends that agencies select products to maximize beneficial environmental attributes and to minimize adverse environmental effects consistent with price and

performance considerations. EPA encourages agencies to evaluate the multiple environmental impacts of every product throughout the product’s life cycle—raw material

acquisition, manufacture, packaging and distribution, use, and disposal. Environmental

impacts can include:

• Energy-efficiency

• Recycled content

• Water-efficiency

• Resource conservation

• Waste prevention

• Renewable material percentages

• Adverse effects to workers, animals, plants, air,

water, and soil

• Toxic material content

• Packaging

• Transportation

While very few private sector companies have

formally defined environmentally preferable purchasing, several are incorporating environmental

purchasing principles consistent with EPA’s recommendations.

2 ◆ Introduction

Greening the Government

Executive Order 13101, Greening the Government

Through Waste Prevention, Recycling, and Federal

Acquisition, mandates federal agencies to identify

and purchase environmentally preferable products

and services. It defines them as:

“...products and services that have a lesser or

reduced effect on human health and the environment when compared with competing products or services that serve the same purpose.

This comparison may consider raw materials

acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance,

or disposal of the product or service.”

EPA encourages

federal agencies to 

evaluate multiple 

environmental

impacts when 

making purchasing

decisions. 
Selecting Report Participants

To select the companies represented in this report, numerous newspaper, magazine,

and journal articles were reviewed to identify companies potentially engaged in environmental purchasing efforts. EPA also was working closely with Japan’s Green Purchasing Network (GPN), which recommended several companies. In addition,

messages were posted to multiple Internet list servers describing the proposed report

and soliciting additional companies willing to participate. As a result of these efforts, a

list of almost 60 companies from 20 different industry sectors was developed. 

After describing the purpose of the report, companies were asked if they were interested in participating. A third of the companies (18) agreed and each was contacted and

asked specific questions about their individual programs and efforts. EPA did not use

questions from within a fixed set of questions or a plan of inquiry. Instead, EPA created

tailored questions for each company.

For the 18 participating companies, EPA interviewed company representatives and

requested publicly available information pertaining to the company’s environmental

purchasing efforts. EPA used the information to prepare this report. Participating companies were then given an opportunity to review the report before publication.

The Appendix includes a brief description of the participating companies.

Introduction ◆ 3

EPA’s Environmentally Preferable Purchasing Guidance*

EPA identified seven guiding principles to help federal agencies incorporate environmental preferability into their procurement practices. These principles were

proposed in the Federal Register (FR) in EPA’s Guidance on Acquisition of Environmentally Preferable Products and Services (60 FR 50722):

1. Consideration of environmental preferability should begin early in the acquisition

process and be rooted in the ethic of pollution prevention, which strives to eliminate or reduce, up front, potential risks to human health and the environment.

2. A product or service’s environmental preferability is a function of multiple

attributes.

3. Environmental preferability should reflect the lifecycle considerations of products and services to the extent feasible.

4. Environmental preferability should consider the scale (global versus local) and

temporal reversibility aspects of a product or service’s impact.

5. Environmental preferability should be tailored to local conditions where

appropriate.

6. Environmental objectives of products or services should be a factor or subfactor

in competition among vendors, when appropriate.

7. Agencies need to examine product attribute claims carefully.

* Note: EPA is currently revising these principles. The revised principles will be available on the EPP Program Web site at <www.epa.gov/opptintr/epp>.
Public Versus Private Sector Purchasing

While public and private sector purchasing are similar in many ways, an

important distinction between them is the role each plays in the supply

and demand dynamic of the market. The government typically buys

finished products—products that were designed and manufactured by private

sector companies—and services.1 Private sector companies, however, are

both buyers and suppliers of products and services. As buyers, both the

government and private industry are concerned with product price, performance, and availability. As suppliers, however, companies’ purchasing

decisions also are determined by their ability to sell the products they

manufacture and the services they provide. Consequently, companies must

concern themselves with each purchase’s impact on their production costs

and schedules, product performance, customer reactions, sales, and profits—

concerns that are rarely part of the government’s purchasing equation.

In addition to obtaining needed products and services, one of the historical roles of

government purchasing in the United States is to promote specific social and economic

objectives. While price and performance are usually the primary determining factors in

government purchasing decisions, they are often examined within a broader context

that includes Congressional or Presidential policy objectives. Government purchasing

programs, for example, can be used to promote the purchase of products manufactured

in the United States, to support women- and minority-owned businesses, to protect

small business interests, to assist the less fortunate, to revitalize or stimulate growth in

selected industries, and to encourage research and development in areas deemed

important to national interests. As a result, incorporating environmental concerns into

government purchasing decisions is a natural extension of the government’s role in

protecting the nation’s environment. 

Public Versus Private Sector Purchasing ◆ 5

1. Some government agencies, such as the General Services Administration, Defense Logistics Agency, UNICOR,

NIB, and NISH, are, like their private sector counterparts, both buyers and suppliers of products and services.
Private Sector Reasons for Adopting

Environmental Purchasing Practices

T

raditionally, private sector purchasing decisions are not made to promote

social, economic, or political objectives. To prosper and earn a reasonable profit, private sector companies must sell quality goods at reasonable prices. As a result, before making a purchasing decision,

companies typically only examine a product’s cost, performance, availability, and any impact on future profits. An increasing number of private sector companies, however, are adopting purchasing policies to

promote specific social, economic, or environmental objectives. A

much larger number of companies, however, are adopting them when

they also promote the company’s financial objectives.

While many of the companies in this case study adopted environmentally preferable purchasing practices to help improve the environment, this

section examines several of the “traditional” business reasons, including:

• Responding to customer interest in “environmentally friendly” products

and practices.

• Distinguishing a company and its products from competitors.

• Pursuing cost savings.

• Joining an industry trend.

Responding to Customer Interest in

“Environmentally Friendly” Products and Practices

Almost every company interviewed for this report referenced anecdotal evidence of

increasing customer interest in the environmental performance of companies and their

products. As a result, companies are taking steps to ensure their purchasing and manufacturing practices reflect the environmental sensitivities of their customers and that

their products incorporate the environmental attributes customers are seeking.

Many companies reported receiving phone calls or surveys from existing and potential customers requesting specific environmental information about their products.

Collins & Aikman and Herman Miller both regularly respond to calls or surveys

concerning their products’ recycled-content percentages, indoor air quality impacts,

and other environmental attributes.

Several companies also mentioned recent consumer surveys that suggest customers

are increasingly interested in purchasing “environmentally friendly” products or products from environmentally conscious companies. A 1995 Roper/International

Research Associates press release cited by Anheuser Busch, Collins & Aikman, and

IBM, reported that almost two in three people (64 percent) around the world believe

“protecting the environment is the most important concern, even at the expense of

economic growth.” Companies also referenced similar studies indicating that 

Reasons for Adopting Environmental Purchasing ◆ 7

Companies are taking

steps to ensure their

purchasing and 

manufacturing 

practices reflect 

customers’ environmental sensitivities.
15 percent of the U.S. population routinely incorporates environmental considerations

into purchasing decisions and an additional 33 percent do so occasionally.

Ben & Jerry’s cited a 1994 study conducted by Cone and Roper that reported that:

• Seventy-eight percent of adults said they were more likely to buy a product

associated with a cause about which they care.

• Sixty-six percent of adults said they would be likely to switch brands to support a cause about which they care.

• Fifty-four percent of adults said they would pay more for a product that supports a cause about which they care.

• Thirty-three percent of adults ranked a company’s responsible business practices after price and quality as the most important factor in determining

whether or not to buy a brand.

Public Service Electric and Gas Company (PSE&G), a New Jersey utility company, adopted a “buy recycled” program in December 1997 because polls suggested its

customers strongly supported the emerging “green purchasing” trends. Public support

for such initiatives led the New Jersey governor to establish an Office of Sustainability,

which further encouraged PSE&G’s environmental purchasing efforts.

DaimlerChrysler referenced similar studies, but expressed some concern that it has

not yet seen any indication of a strong correlation between customers’ words and customers’ actions. The manufacturer mentioned recent surveys reporting that customers

claim environmental performance is important before purchasing an automobile, but

similar surveys conducted after an automobile purchase place environmental concerns

well below other deciding factors such as the vehicle’s comfort, size, color, and engine

performance. While customer demand is not a primary reason, the company is adopting environmentally preferable purchasing practices for other reasons such as to save

costs and increase profits.

Distinguishing a Company and Its Products

from Competitors 

While surveys have not conclusively established a link between customers’ words

and actions, anecdotal evidence suggests that environmental performance can increase

or prevent sales. As a result, companies are beginning to respond to the “green”

demands of their customers by adopting environmentally preferable purchasing and

manufacturing practices in an attempt to distinguish themselves from competitors.

• In 1994, Test, a Dutch consumer magazine, rated Sony televisions as a “reasonable” buy while rating televisions made by two other companies as “best

buys.” The primary difference between the ratings was environmental performance. Following publication of the results, Sony’s market share in the

Netherlands fell by 11.5 percent. Its competitors’ market shares increased by

57.1 and 100 percent, respectively. (See Figure 1 on page 9.)

That same year, in a separate effort to further demonstrate its commitment to

social responsibility and to provide quality products to its customers, Sony

launched an ambitious new program—the “Greenplus Project.” The project

focuses on increasing the environmental performance of Sony’s products by

8 ◆ Reasons for Adopting Environmental Purchasing

Environmental

performance can

affect sales.
setting strict environmental criteria that its products must meet. At publication,

Sony has more than 500 products registered as “Greenplus” products, which

means they meet Sony’s strict internal environmental performance criteria.

Although the “Greenplus” program was initiated for social and not economic

reasons, Sony is beginning to see some benefits from this effort. In 1998, Test

magazine rated the environmental performance of Sony’s television products

more favorably than its competitors, and its market share in the Netherlands

has increased steadily.

• Since the summer of 1996, Volvo has provided automobile customers in Japan

with information on the environmental impacts associated with the manufacture, use, and recyclability of each of its models. Following introduction of the

environmental specifications, Volvo’s automobile sales in Japan rose 17 percent, from 20,500 units to 24,000 per year. Although it is difficult to quantify

any correlation between the increased sales and environmental performance,

the company is assuming its products’ environmental performance has some

impact. As a result, Volvo is now providing information

on the environmental attributes of its automobiles in

Europe, Australia, and the United States. (For a sample

of the environmental specifications Volvo provides, see

Figure 2 on page 10.)

• Collins & Aikman Floorcoverings, Inc., the second

largest U.S. vinyl floor covering manufacturer, promotes

the environmental performance of its products in all of its

sales literature and developed a fact sheet specifically citing its product performance as measured against EPA’s

proposed environmentally preferable purchasing guidance. (See Figure 3 on page 11 for a sample.) To further

distinguish itself from its competitors, Collins & Aikman

provides customers with a “Sustainable Warranty” pledging to recycle its products at the end of their useful lives so that they never

require disposal. Sales have been increasing steadily since Collins & Aikman

Reasons for Adopting Environmental Purchasing ◆ 9

-20 0 20 40 60 80 100

Sony

Company B

Company A

After a 1994 European consumer magazine’s evaluation

of the environmental impacts

of major television brands,

Sony’s regional market share

decreased by more than 10 percent. Two of its competitors in

the market increased sales by

almost 60 and 100 percent,

respectively. In 1998, the

European magazine again

evaluated major television

brands. Sony’s products were

among the highest rated and

Sony’s market share has

increased steadily.

An example of how Collins & 

Aikman promotes the environmental

performance of its carpet.

Figure 1—1994 Market Share Changes Following Environmental Performance 

Rating of Televisions

(Percent Change)
10 ◆ Reasons for Adopting Environmental Purchasing

Figure 2—Sales Brochure Providing Environmental Attribute Information
Reasons for Adopting Environmental Purchasing ◆ 11

Figure 3—Sales Brochure Providing Environmental Attribute Information
began promoting the environmental benefits of its products, although the

company has not conducted the necessary research to demonstrate a direct

correlation.

• The search to improve the environmental attributes of its own products drives

Canon’s environmentally preferable purchasing program. It believes more

and more customers are demanding environmentally friendly products and

cites several recent examples of large sales finalized because of its products’

environmental attributes.

• Ben & Jerry’s fought a series of court battles to ensure the right to use product labels to inform customers that its products contain milk and cream from

suppliers that do not treat their cows with recombinant bovine growth hormone (rBGH), a synthetic hormone used to increase a cow’s milk production

by 10 to 15 percent. Ben & Jerry’s believes the use of synthetic hormones is an

important environmental issue about which its customers should be informed.

The company has not attempted to measure the impact, if any, its stand

against rBGH has had on sales, but believes its customers expect no less from

the company.

• Products containing recycled content or organic cotton are clearly identified

in Patagonia’s catalogs and stores. Patagonia believes these symbols help to

inform consumers about important environmental issues and to distinguish its

products from its competitors’.

Pursuing Cost Savings

Another important reason many companies are employing environmentally preferable purchasing principles is to pursue potential cost-saving opportunities. Environmentally preferable purchasing requires examining all purchases from a new

perspective and questioning previously unchallenged assumptions. Adopting an environmental perspective allows companies to discover and avoid previously hidden costs.

It requires looking beyond the initial cost of a product or of a procedural change and

examining the savings resulting from reduced material handling, reporting requirements, pollution abatement, or disposal costs that could accrue over the next 5, 10, or

20 years. 

Companies that have adopted this perspective are proving that “pollution prevention

pays.” They are profiting from the cost savings that result from eliminating unnecessary purchases, avoiding waste disposal costs, and investing in energy-efficient equipment.

• DaimlerChrysler saved almost $45 million and prevented 110,580 tons of

pollution in 1997. Most of these savings resulted from careful screening and

tracking of all chemical purchases to eliminate excess purchases; substituting

less hazardous chemicals when possible, which significantly decreased disposal

costs; reducing the number of plastic resins purchased, which reduced costs

and increased in-house recycling opportunities; and investing in energy-saving

measures.

• PSE&G saved more than $2 million by streamlining its purchasing process

and reducing the number of its chemical suppliers from more than 270 to 

only 9. The new system allows PSE&G to avoid excess inventory and drastically reduces disposal costs for outdated or unnecessary chemicals.

12 ◆ Reasons for Adopting Environmental Purchasing

Many companies

are employing

environmentally

preferable 

purchasing 

principles to 

increase cost 

savings.
• After adopting an aggressive energy-efficiency initiative in 1996, AnheuserBusch expects to keep its utility purchases in 2000 at or below its 1995 

utility costs. The company anticipates annual savings of $60 million by 2000.

Most of these savings will result from large capital investments to decrease

utility consumption and cost. At present, the company is on schedule to 

meet its goal.

• Collins & Aikman reduced the amount of yarn in some of its carpet lines by

more than 10 percent without adversely affecting performance. In addition to

lower material costs, this change also allows Collins & Aikman to manufacture

the same amount of carpet with significantly less energy.

• Several companies, including Anheuser-Busch, The Body Shop, Herman

Miller, IBM, and McDonald’s, are purchasing lighter weight or reduced

packaging to contain their products, which significantly reduces product

packaging volume, saves money, and reduces impacts on solid waste disposal

systems.

Joining an Industry Trend

Several companies suggested that supplying environmentally preferable products

will be an important industry objective in the next century. Supplying “environmentally

friendly” products requires companies to purchase and use environmentally preferable

components in manufactured products and to identify vendors to stock environmentally preferable products. In an attempt to identify such products, more than 1,800 Japanese companies and other organizations have joined the Japanese government’s Green

Purchasing Network (GPN) to learn more about environmentally preferable purchasing and to share product information. GPN has sold more than 10,000 copies of its

Environmental Data Books, which compare the environmental attributes of products.

(Please visit <www.wnn.or.jp/wnn-eco/gpne> for additional information on GPN.)

Similarly, more than 368,000 people refer to information published by Green Seal, a

nonprofit organization providing environmental product recommendations in 33 product categories. Green Seal developed a 110-page buying guide to share its environmental product and services research. It also helps its more than 450 Green Seal member

companies evaluate their current purchases and implement green buying programs.

The organization publishes a monthly Choose Green Report, which lists products Green

Seal has identified as environmentally preferable. (Please visit Green Seal’s Web site

<www.greenseal.org> for additional information.)

Reasons for Adopting Environmental Purchasing ◆ 13

Supplying 

environmentally

preferable 

products will be

an important

industry objective

in the next 

century.
Private Sector Purchasing ◆ 15

An Overview of Private Sector

Environmentally Preferable

Purchasing Activities

Many companies have incorporated environmentally preferable purchasing

principles into their routine operations, but very few have formal

environmentally preferable purchasing programs in place. Instead,

companies are developing and refining critical components of what could

become formal programs. This section provides an overview of these components and of company activities to implement them. The components

include the following:

• Developing lists of chemicals to avoid.

• Creating lists of approved products.

• Establishing single environmental attribute purchasing programs.

• Considering multiple environmental attributes when making purchasing decisions.

• Working closely with suppliers to enhance environmental performance. 

In addition, though not covered in detail in this report, companies are making

efforts to better track chemical and waste streams and to define the total cost and environmental impact of materials, processes, and products. These measures significantly

aid company efforts to buy and manufacture environmentally preferable products.

Developing Lists of Chemicals to Avoid

In the mid 1970s, the U.S. federal government began regulating the manufacture,

use, and disposal of numerous chemicals because of concern for potential adverse

human health or environmental effects. As a result, many companies in a wide variety

of industries began carefully tracking and modifying their chemical purchases. While

these early steps toward environmental purchasing were instituted to comply with

federal laws and regulations, several companies have expanded these efforts beyond

their original compliance concerns to save money or to incorporate a broader environmental ethic.

• DaimlerChrysler maintains several databases to screen more than 1,700

chemicals and chemical compound groups. This database tracks information

concerning the environmental health and safety impacts of more than 760

substances used or considered for use by the company. More than 100 of the

chemicals are identified as having potential adverse effects or excessive handling or disposal costs based on toxicity, volume used, associated emissions,

number of operations using the substance, potential worker risks, reporting

requirements, carcinogen potential, mutagen potential, adverse effects on 

the nearby Great Lakes, and potential for additional regulations. As a result,

purchases of these chemicals are either prohibited or are being reduced

significantly.

Several companies

have expanded their

efforts beyond 

regulatory 

compliance.
• Volvo has a similar program to track chemical usage. It employs a database

identifying the environmental impacts of more than 5,000 chemical products.

From this list, Volvo has developed two lists—a black and a grey list. The

black list includes chemicals that the company has banned from use in its

products. The grey list includes a similar list of chemicals for which Volvo is

attempting to locate more environmentally benign substitutes. Volvo shares

this list with all of its suppliers to ensure none of the components it purchases

contain any of the banned substances. (For a copy of Volvo’s black and grey

lists, please see Figure 4 on pages 18 and 19.)

• As part of its Green Procurement Standards, Canon includes two lists containing more than 300 chemicals. The lists include 270 chemicals used in

company facilities as part of routine plant operations (e.g., research and development, production, cleaning, and maintenance) and 49 chemical substances

remaining in its products. Chemicals on the lists are prohibited or are being

reduced by the company. 

• Sony uses a classification system to prohibit the use of certain chemicals. It

classifies production process chemicals into four groups based on the degree

of hazard posed to human health and the environment. It prohibits the use of

Class 1 chemicals, which the company classifies as the most hazardous. Sony

plans to eliminate the use of all Class 2 chemicals and reduce its use of Class 3

chemicals 50 percent by March 2001. Class 4 chemicals will continue to be

supervised and controlled carefully.

• In an attempt to increase the environmental preferability of its products,

Collins & Aikman prohibits the purchase of raw materials containing known

hazardous or high levels of volatile organic compounds (VOCs). As a result,

product VOC emission tests result in no detectable formaldehyde, styrene, 

4-PC, or known human carcinogens at product installation, and VOC emissions, including the products’ preapplied adhesives, are minimal.

• Other manufacturers focus efforts on avoiding or reducing smaller sets of

specific chemicals. The Body Shop, for example, avoids the use of polyvinyl

chloride (PVC), a common plastic resin, out of concern for the dioxins

produced as part of the manufacturing process and for the potential adverse

health effects from chemicals routinely added to the plastic to improve

performance. 

• As part of Ben & Jerry’s efforts to avoid products linked with dioxin releases,

the company avoids chlorine-bleached paper products whenever possible. As

mentioned previously, Ben & Jerry’s also avoids the purchase of milk from

dairy farmers who treat their cows with rBGH. The company is concerned

because rBGH has been linked to decreases in the nutritional value of the

milk, reduced shelf life, and adverse effects to the health of the cows. Additionally, Ben & Jerry’s purchases organic cotton t-shirts for use by “scoop

shop” employees and for retail sale because it believes organic cotton farming

techniques, which eliminate the use of chemical pesticides, are environmentally preferable to other cotton farming methods.

16 ◆ Private Sector Purchasing
Creating Lists of Approved Products

One of the many challenges companies face when implementing an environmentally

preferable purchasing program is determining which products on the market are environmentally preferable. While one approach is to eliminate the purchase of all products containing certain chemicals or possessing specific adverse environmental

attributes, another method is to develop a list of approved products. Some companies

have found that developing an approved products list simplifies the purchasing process

because employees simply consult the list before making a purchase, which eliminates

the need to screen products against a list of prohibited attributes.

• Canon, Sony, NEC, Tokyo Gas, and numerous other Japanese companies

have created lists of approved products that were developed based upon each

product’s environmental attributes. Before making a purchase, employees

must first consult the list of approved products to determine if the company

has established a preference for a particular product. 

Tokyo Gas, for example, lists 23 office products it determined to be environmentally superior. The company first focused on the most frequently used

office products such as copy paper, stationery, post-it notes, erasers, and pencils and pens, but is currently expanding its list. Like many of the Japanese

companies creating similar lists, Tokyo Gas based its environmental product

assessments on information provided by GPN. (See page 13 for additional

information on GPN.)

• Approved environmental product lists appear to be a less common solution in

the United States, although two companies—Perrigo and Ben & Jerry’s—

purchase cleaning products from lists that were developed based on the products’ environmental attributes. 

Perrigo wanted to improve indoor air quality, reduce the number of cleaning

products purchased, and minimize the environmental impacts of the cleaning

process used in its facility. After reviewing the material safety data sheets

(MSDSs) and interviewing the suppliers and manufacturers of numerous

cleaning products, the company developed a list of attributes including VOC

content, pH level, toxicity, flammability, chemical content, use of regulated

materials, reduced packaging, cleaning effectiveness, and price. Perrigo then

compared commercially available cleaning products and identified a range of

products meeting its environmental, price, and performance requirements.

As a result of its environmental purchasing effort, Perrigo is saving more than

$35,000 annually. The company, for example, significantly decreased the

number of cleaning products it needed to purchase. While it previously purchased seven different glass cleaners, Perrigo now purchases only two, which

are just as effective as the ones they replaced. Reducing the number of products saves the company money by allowing it to purchase the remaining products in bulk. 

The company saves additional money by consolidating its purchases with a

single supplier. The supplier only provides cleaning products meeting Perrigo’s environmental health and safety standards. Relying on a single supplier

decreases administrative oversight and paperwork by reducing hundreds of

monthly cleaning product invoices from multiple suppliers to a single monthly invoice from a single supplier.

Private Sector Purchasing ◆ 17

Several companies

have simplified the

purchasing process

by developing

approved product

lists.
18 ◆ Private Sector Purchasing

Environmental care

5.1 Volvo’s Black list of chemicals (Equal to Volvo STD 1009,1)

Substances or groups of substances which must not be used within Volvo

New products containing listed substances must not be put into use. Phase-out plans with final date

of use are required for substances which were not fully phased out when introduced on the list. Exceptions may be made for substances used in processes where legal or safety requirements limit

Volvo’s possibilities of prohibiting the use. In such situations, precautionary measures shall be taken

to prevent injurious effects on humans or the environment. (Valid through 1999).

Group Substance name CAS no.

1

Example of type or

area of use

Risk2

Amines Phenyl-β-naphthylamine 135-88-6 Antioxidant C

Methylene dianiline 101-77-9 Hardener, in paints C

CFC CFC 11 75-69-4 Cooling agent, ”freon” O

compounds CFC 113 76-13-1 Cooling agent, ”freon” O

CFC 114 76-14-2 Cooling agent, ”freon” O

CFC 115 76-15-3 Cooling agent, ”freon” O

CFC 12 75-71-8 Cooling agent, ”freon” O

Fibres Asbestos Several Insulating material C

Flame Polybromin. biphenyls (PBB) Several In plastics, electronics E, N, C

retardants Polybromin. diphenylethers Several PBDEs, plastics, textile E

Rubber- Aminobiphenyl (+ salts) 92-67-1 Dye C

chemicals Benzidine (+ salts) 92-87-5 Dye C

Thiocarbamide 62-56-6 In rubbers and plastics A, C

Halons Halon 1211 353-59-3 Fire retardant O

Halon 1301 75-63-8 Fire retardant O

Halon 2402 124-73-2 Fire retardant O

Chlorinated HCFC3

Several Blowing agent, solvents O

hydro- PCB 1336-36-3 Insulators, oils, etc E

carbons Hexachlorobutadiene 87-68-3 Solvent E, T

Carbon tetrachloride 56-23-5 Solvent O, C, T

Methylene chloride 75-09-2 Solvent, in fuel C

1,1,1-Trichloroethane 71-55-6 Solvent O

Tetrachloroethylene 127-18-4 Solvent C

Metals Lead chromate 7758-97-6 Pigment C, A, E, N

Cadmium + Cd-compounds4 Several Pigment C, E

Mercury + Hg-compounds Several In electric equipment N, E

Lubricants Chlorinated paraffins Several In oils, fire retardants E

Mineral oil with PAHs

5

Several Base oils, etc C

Surface 4-Nonyl and 4-Octyl phenol Several Used as ethoxylates E

active agents Nonyl- and Octylphenolethoxylates

Several Cleaning agent E

1) CAS no= Chemical Abstract Service number

2) A=Allergy, C=Cancer, T=Toxic, E=Environmentally hazardous, N=Neurotoxic, O=Ozone depletion,

R=Reproductive hazards

3) HCFC used as blowing agent in foams or as solvent is covered by the black list. HCFC as refrigerant on grey list

4) The use of cadmium in batteries is covered by the grey list and other applications by the black list.

5) Oil is considered to contain PAH if standard test (IP 346 method) produces the result “DMSOextract>3%”. Applicable to base oils used in lubricants and other chemical products.

Figure 4—Volvo’s List of Chemicals To Avoid
Private Sector Purchasing ◆ 19

Environmental care

5.2 Volvo’s Grey list of chemicals (Equal to Volvo STD 1009,11)

Substances or groups of substances the use of which should be limited within Volvo

Products containing listed substances shall be kept under surveillance and less hazardous alternatives be introduced when

technically and economically possible. Before new products containing one or more substances from the list are to be used,

an assessment should be made regarding the use of less hazardous products. Exceptions may be made for substances

used in processes where legal or safety requirements limit Volvo’s possibilities of prohibiting the use. In such situations,

precautionary measures shall be taken to prevent injurious effects on humans or the environment. (Valid through 1999)

Group Substance name CAS no.

1

Example of type or

area of use

Risk2

Biocides Chlorocresol (meta-) 59-50-7 In lubricants, paints E, A

Chlorocresol (ortho-) 1570-64-5 In lubricants, paints E (probably)

Chloromethyl isothiazolinone 26172-55-4 In aqueous solutions A

Methyl isothiazolinone 2682-20-4 In aqueous solutions A

Thiram (TMTD) 137-26-8 Also as biocide A, E

Organotin comp. (trialkyl) Several In cooling water E

Flame Brominated (not PBB+PBDE) Several In textiles, plastics E (possibly)

retardants Triphenyl phosphate 115-86-6 Also as antioxidant E

HCFC3 HCFC 141 b 1717-00-6 Cooling agent O

compounds HCFC 142 b 75-68-3 Cooling agent O

HCFC 22 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)

TGIC 2451-62-9 Powder paints T (mutagen)

Complex Colophony (rosin) (>1%) Several Adhesives, paints A

mixtures Creosote Several Distillation product, filler C, E

Coal tar Several Distillation product, filler C

Solvents Benzene 71-43-2 Petrol, solvent C

1,2-Dichloroethane 107-06-2 Additive for fuels C

2-Ethoxyethanol 110-80-5 Solvent R

2-Ethoxyethanol acetate 111-15-9 Solvent R

n-Hexane 110-54-3 Solvent N

Chloroform 67-66-3 Solvent C, R

Limonene (>1%) Several Solvent A, E

2-Methoxyethanol 109-86-4 Solvent R

2-Methoxyethanol acetate 110-49-6 Solvent R

Trichloroethylene 79-01-6 Solvent C

Metals Arsenic + compounds Several Wood preservative N, C, E

Lead + compounds Several Pigment in paints N, E

Cadmium in batteries4Several Accumulator C, E

Chromium (6+) compounds5Several Surface treatment A, C, E

Strontium chromate 7789-06-2 Pigment C

Zinc chromate 13530-65-9 Pigment 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

active

DHTDMAC 61789-80-8 Softener E

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

Sodium nitrite67632-00-0 Anti-rust agent C (+ amine)

1) CAS no. = Chemical Abstract Service number

2) A=Allergy, C=Cancer, T=Toxic, E=Environmentally hazardous, N=Neurotoxic, O=Ozone depletion, R=Reproductive

hazards

3) HCFC used as blowing agent in foams or as solvent is covered by the black list. HCFC as refrigerant on grey list

4) The use of cadmium in batteries is covered by the grey list and other applications by the black list

5) With surface treatment of fasteners (chromating), the limit found in Volvo STD 5713,102 applies

6) Nitrite can form carcinogenic nitrosamines if amines are present.

Figure 4 (cont.)—Volvo’s List of Chemicals To Avoid
• When Ben & Jerry’s decided it wanted to use environmentally friendly cleaning products in its more than 170 U.S. “scoop shops,” it contacted an outside

environmental consulting firm to recommend appropriate, natural, nonchlorinated products. The consulting firm examined many of the same attributes

identified by Perrigo and recommended a line of cleaning products currently

used in all of Ben & Jerry’s U.S. franchises.

While using an approved product list makes selecting products significantly easier

for many users, some company representatives suggested that lists can quickly become

outdated. New products are continually introduced that incorporate additional environmental attributes, enhance existing attributes, improve performance, or reduce

costs. In order for a list to be truly effective, it must be updated regularly.

Establishing Single Environmental Attribute

Purchasing Programs

When incorporating environmental concerns into purchasing policies, many companies begin with an emphasis on a single environmental attribute. The “buy recycled”

programs adopted by many companies are an example of a single attribute program.

They focus on purchasing products with the highest recycled-content levels.2

Recycled-content is one of the attributes identified in EPA’s EPP guidance. Other

single attribute programs focus on energy- and water-efficiency, which also are promoted by the EPP Program.

Buy Recycled Programs

Several companies have found “buy recycled” programs easy to introduce because

employees and customers recycle at home and have been exposed to “buy recycled”

messages since the early 1980s. Additionally, many manufacturers and suppliers promote and supply a wide variety of recycled-content products.

• Since 1990, McDonald’s and its more than 24,000 franchise restaurants have

spent nearly $3 billion on the purchase of recycled-content products. At the

time its program was initiated, recycling markets were poorly developed, but

McDonald’s pledged to spend $100 million on recycled-content products to

help strengthen the demand for recovered materials. The company was particularly interested in increasing the demand for postconsumer materials,

which include the materials collected by local curbside recycling programs.

The company is currently spending $350 million a year for a wide variety of

recycled-content products including dining trays, construction materials,

chairs, tables, carpeting, insulation, play ground equipment, tiles, napkins and

other paper products, and packaging. (See Figure 5 on page 21.)

20 ◆ Private Sector Purchasing

2. Recycled content is the focus of EPA’s Comprehensive Procurement Guidelines (CPG) Program, which identifies products that can be made from recycled materials and recommends recycled-content percentages. For

additional information on the CPG program, please visit <www.epa.gov/cpg>.

Several companies have found

“buy recycled”

programs easy to

introduce.
When McDonald’s initiated its “buy-recycled” program, the company was

unsure how to locate recycled-content products. It placed ads in trade journals

and in the national press expressing its desire to purchase recycled-content

products. As manufacturers identified themselves and their products, McDonald’s entered them into a database. The database includes more than 700 companies, and McDonald’s has shared it with more than 250 other organizations

seeking to increase their purchases of recycled-content products. The database, however, is no longer maintained for external use.

• While very few companies have programs as large as McDonald’s, numerous

companies are increasing their purchases of recycled-content office supplies as

the prices for recycled-content products become more competitive with their

virgin material counterparts. Collins & Aikman, for example, has a preferential purchasing program for recycled-content office supplies when price and

performance are equal to competing products. The company estimates its current recycled-content purchases include approximately 20 percent of its general office products and 75 percent of its paper supplies.

Private Sector Purchasing ◆ 21

Representative Total Percent Average Percent

Recycled-Content Items Recycled Content Postconsumer Content

4-Hole Drink Carrier 100 51

Big MacTM Container 36 31

Carry-Out Bag 100 50

Corrugated Paperboard 40 25

Deluxe Line Sandwich Containers 36 31

Happy MealTM Bags 65 65

Happy MealTM Cartons 100 60

In-Store Trays 50 15

Jumbo Fries Container 36 31

Jumbo Roll Tissue 100 40

Napkins 100 30

Roll Towels 100 30

Sandwich Wraps 20 0

Small Generic Carton 50 30

Toilet Tissue 100 30

Tray Liners 100 75

(Source: McDonald's Waste Reduction Action Plan, May 12, 1998)

Figure 5—Examples of McDonald’s Recycled-Content Product Purchases
•Sun Microsystems is making it easier for employees

to purchase recycled-content office supplies by identifying products’ recycled-content percentages in its

internal electronic office supply catalog. Employees

order office supplies as needed from the catalog, and

the items are paid for out of the employees’ departmental office supply accounts. Although Sun’s current

office products supplier provides a wide variety of recycled-content office products (see sidebar), it stocks relatively low volumes of the products. The supplier’s low

purchasing volume prevents it from earning volume

discounts and makes the recycled-content products

more expensive to its customers. As a result of the price

difference, Sun’s recycled-content purchases account

for only 3 percent of its office supply purchases. For

future office supply contracts, however, Sun might factor the ability of the potential office supply vendor to

provide recycled-content products into its vendor

selection process.

• In 1997, Herman Miller provided each of its 7,000 employees with a recycledcontent leather toiletries bag as a holiday gift. The bags were manufactured

from the company’s own furniture manufacturing scraps. The gift helped the

company promote its own “buy recycled” program and demonstrate that

recycled-content products perform as well as virgin material products.

Energy- and Water-Efficiency Programs

Recycled-content is not the only single environmental attribute companies are

examining. Many companies also are considering energy- and water-efficiency and discovering significant cost savings in addition to the environmental benefits.3

• Anheuser-Busch is expecting to save 500 million gallons of water, 2 trillion

British thermal units of energy, and $60 million per year by 2000 as a result of

its emphasis to reduce utility usage and cost. Its purchase of energy-efficient

chillers for its SeaWorld of Florida theme park is saving more than 1.5 million

kilowatt-hours and about $100,000 in energy costs annually. The company is

expecting to save an additional $40 million a year as a result of its purchase

and installation of bio-energy recovery systems. (See Figure 6 on page 23 for

additional information.) In addition to the cost savings, decreased energy consumption reduces the pollution associated with electricity generation. 

• Through its extensive energy conservation program, IBM saved $27 million

in 1997. The savings resulted from a continued focus on and investments in

energy-efficient manufacturing technologies.

22 ◆ Private Sector Purchasing

3. EPA’s Energy Star Program and the U.S. Department of Energy’s Federal Energy Management Program

(FEMP) both promote the environmental and cost savings associated with energy- and water- efficiency. As with

recycled content, EPA’s EPP Program also promotes energy- and water-efficiency as important environmental

attributes. For additional information on Energy Star, please visit <www.epa.gov/energystar>. For information

on the FEMP program, visit <www.eren.doe.gov/femp>.

Recycled-Content Office Supplies

At Sun Microsystems, more than 50 recycledcontent office supplies can be ordered by anyone in the company, including:

Envelopes Plastic file dividers

Hanging file folders Post-it® notes

Message pads Rulers

Note books Scissors

Note pads Three ring binders

Paper clips Transparency film

Pencils

In addition to

achieving 

environmental

benefits, 

companies are

saving money.
• In 1993, McDonald’s joined EPA’s Green Lights program, which encourages

organizations to conserve energy by purchasing and installing energy-efficient

lighting wherever it is economically feasible. Since joining, McDonald’s has

converted 50 percent of its U.S. restaurants, including all of its companyowned and one-third of its franchised restaurants. The average converted

restaurant annually saves 30,500 kilowatts of energy, reduces its lighting electricity bill by 40 percent, and prevents carbon dioxide emissions equivalent to

taking seven cars off the road. The company’s efforts led EPA to recognize

McDonald’s as the 1998 Green Lights Retail Partner of the Year.

4

Through The Energy Efficient McDonald’s (TEEM) program, the company

is designing and building highly energy-efficient restaurants that use 15 to 20

percent less energy than a typical McDonald’s. Each TEEM restaurant

involves the purchase of an array of energy-saving technologies including skylights, computer-controlled heating and air conditioning systems, advanced

energy-efficiency equipment, and sensors to regulate energy use.

Private Sector Purchasing ◆ 23

In an attempt to simultaneously reduce energy consumption and the quantity of waste solids

that must be disposed of, Anheuser-Busch began developing a bio-energy recovery system

in 1983. The system converts wastewater into energy and reduces the quantity of waste solids

by 50 percent. It is expected to save more than $40 million a year by 2000.

How it Works

Brewery wastewater, which includes organic materials such as protein, sugar, and starch, is

pumped into tanks containing bacteria. The bacteria consume up to 90 percent of the organic material, producing methane gas that rises to the top of the tanks. The methane gas is collected and piped to the brewery’s boilers, providing about 15 percent of each brewery’s fuel

needs. After leaving the tanks, the brewery wastewater requires minimal final treatment. This

treatment process reduces the total energy required for wastewater treatment by approximately 75 percent. PUMPED INTO TANKS BREWERY WASTEWATER 

METHANE TO POWERHOUSE

FOR USE AS FUEL

WATER TO

TREATMENT PLANT

1. Brewery

wastewater

is pumped 

into enclosed tanks.

2. These tanks contain bacteria

which consume organic material—

such as protein, sugar, and starch—

contained in the wastewater.

3. As the bacteria consume the

organics, they also produce methane gas,

which rises to the tops of the tanks.

4. The methane is collected, then piped 

back to the brewery's powerhouse, where it

supplies about 15 percent of the boiler fuel.

5. The wastewater, with up to

90 percent of the organics consumed, 

is sent to a local treatment plant 

for final polishing.

Figure 6—Anheuser-Busch's Bio-Energy Recovery System

4. For additional information on EPA’s Green Lights Program, visit <www.epa.gov/greenlights>.
Considering Multiple Environmental Attributes

When Making Purchasing Decisions

While many successful environmental purchasing programs emphasize single environmental attributes, such as recycled content or energy efficiency, companies are

increasingly examining multiple environmental attributes before making purchasing

decisions. Examining multiple attributes allows companies to further define the economic and environmental differences between products and services when making purchasing decisions. Some companies only examine environmental attributes of

importance to the company, while others rely on detailed lifecycle assessments to compare products. A lifecycle assessment attempts to measure all of a product’s environmental impacts throughout the product’s life cycle including raw material acquisition,

manufacture, transportation, use, and disposal.

• To encourage employees to examine the environmental impacts of their purchasing decisions, Warner Bros. established a companywide purchasing policy emphasizing multiple environmental considerations. As a result of this

policy, the company’s purchase of environmentally preferable products is

increasing. Several departments within the studio are purchasing “environmentally friendly” products including paper, janitorial supplies, construction

materials, transportation products, computers, copiers, and printers. The policy asks employees to maximize one or more of the following attributes:

• Postconsumer recycled-content

• Recyclability

• Durability and reusability

• Reduced packaging

• Decreased use of toxic chemicals in manufacturing

(For a copy of Warner Bros.’ purchasing policy, see Figure 7 on page 25) 

• After examining its parts washing operations from a multiple environmental

attribute perspective, Anheuser-Busch, over a 3-year period, reduced the

associated costs by 30 percent and the associated hazardous waste generation

and air emissions by 80 percent. When examining alternative cleaning products, the company developed a spreadsheet comparing product attributes such

as pH, flash point, price, and whether the product was solvent- or waterbased. It selected products it might not have considered otherwise that benefitted both the company’s bottom line and the environment.

• In 1991, Patagonia commissioned a lifecycle analysis of its four major fabrics

(i.e., polyester, nylon, cotton, and wool) that showed cotton to be more environmentally harmful when compared with the other fabrics. The most environmentally damaging stages in a cotton garment’s life cycle, according to the

study, are home laundering, farming, dyeing, and finishing. As a result of the

lifecycle analysis, Patagonia began purchasing organically grown cotton for

use in its cotton products, which significantly reduced the adverse environmental impact of an important segment of its product line. Organic cotton

eliminates the use of pesticides or herbicides and requires significantly less

water to produce. Although it is more expensive than other commercial cotton, Patagonia believes its customers equate organic cotton with improved

quality and are willing to pay a little extra for it. Patagonia also is using the

results of additional lifecycle analyses to reduce the environmental impacts of

24 ◆ Private Sector Purchasing

There are 

multiple 

environmental

concerns 

with every 

purchasing

decision.
Private Sector Purchasing ◆ 25

Figure 7—Sales Brochure Providing Environmental Attribute Information
its dyes and the metal and plastic components in its products. It shares the

environmental impacts of its products and the company’s attempts to minimize them with customers in its catalogs and on its Web site.

• Using its Environmental Priority Strategies (EPS) tool, Volvo compares environmental lifecycle impacts of different materials before purchasing them for

use in its automobiles. EPS allows the company to measure each component’s

energy and resource consumption and air, land, and water emissions throughout the component’s production, use, and ultimate disposal. Based on the

information contained in EPS, Volvo assigns each component an environmental impact index. When designing a new automobile, Volvo computes an

Environmental Load Unit (ELU) for each new product design based on the

environmental impact indices for each component included in the design. The

ELUs enable the company to compare different materials’ environmental

effects and make its design and purchasing decisions accordingly.

• Herman Miller conducts an abbreviated lifecycle analysis on all of its new

products to quantify the environmental and economic impacts of its designs.

The results of the lifecycle analyses help the company determine what materials to incorporate into its products. As a result of one analysis, the company

redesigned a chair to eliminate the use of foam rubber. Instead, Herman

Miller designed the chair with a plastic and fiberglass mesh frame, which it

determined reduced the product’s environmental impact and improved comfort. Lifecycle analyses also have encouraged the company to switch to waterbased and powder-based coating systems instead of more traditional painting

or staining processes; to increase its use of recycled wood; and to continue its

policy of using wood from sustainably managed forests.

• With databases containing information on more than 800,000 products and

components, DaimlerChrysler examines multiple environmental attributes

when making purchasing decisions. The databases include information on

toxicity, chemical exposure and release, and recyclability and provide the manufacturer with an opportunity to compare products based on potential environmental hazards and costs. Evaluating environmental information is part of

the company’s lifecycle cost analysis. The analysis looks at environmental and

occupational health and safety impacts as well as recycling considerations balanced against traditional business decision drivers, such as cost and performance, to improve the decision-making process. Once a product has been

identified as preferable based on the lifecycle analysis, the database ensures

that the preferred product is purchased.

26 ◆ Private Sector Purchasing
• Canon formally announced its multiple attribute green purchasing program

in 1997 with the publication of the Green Procurement Standards and the Green

Procurement Standards Guidebook. These books include an index for evaluating

purchases based on the potential environmental impacts of both the product

and the product’s manufacturer. The index rates potential suppliers’ corporate

environmental structure along 35 parameters in 7 categories and examines 28

product-specific parameters in 11 categories. A product’s environmental

preferability is based on the overall combined score. Canon established a preference for products with scores above a predetermined threshold. (See box

below for additional information.)

Private Sector Purchasing ◆ 27

When making environmentally preferable purchasing decisions, Canon examines

the environmental performance of both the product and the product’s manufacturer

and assigns an overall environmental score. The product-specific portion of the

score is based on 28 attributes in the following 11 categories:

The product manufacturer’s score is calculated from 35 parameters in the following

seven categories:

A product’s overall environmental preferability score is computed by combining the

product-specific and product manufacturer scores.

• Legal and voluntary environmental

regulations.

• Resource conserving features.

• Energy saving features.

• Environmental impacts during use.

• Hazardous chemical substances contained in products.

• Recyclability.

• Proper treatment of used product. 

• Minimal packaging.

• Lifecycle assessment.

• Eco-labels.

• Product information disclosure.

• Corporate environmental philosophy.

• Environmental planning.

• Corporate organization with respect

to environmental issues.

• Environmental management systems.

• Environmental evaluations.

• Corporate environmental reporting.

• Employee environmental education

programs.

A Multilayered,

Multiattribute

Approach
Resolving Competing Attributes

Once companies begin examining multiple environmental attributes for the products they manufacture and begin looking for ways to maximize those attributes, they

sometimes discover that improving one environmental aspect harms other environmental aspects or adversely affects other important product attributes like price or performance. Consequently, companies must determine which attributes are most

important to their customers and to the company. As described below, companies have

made these determinations in a variety of ways.

• Following its lifecycle analysis on the environmental impacts of modern cotton production, Patagonia debated whether to switch to organic cotton in

all of its product lines. While making the switch would significantly

reduce the company’s environmental “footprint” without reducing

(and perhaps even increasing) product quality, organic cotton was

significantly more expensive. Some of the extra costs would have

to be passed onto the customer or Patagonia would have to

wait until organic cotton was less expensive. 

After a great deal of internal debate, Patagonia decided that as

an outdoor company committed to making the outdoors an enjoyable experience, it had to make the switch. Enabling its customers

to enjoy the outdoors means ensuring there will always be an

outdoors to enjoy. It also was convinced that its customers

would understand the environmental benefits of using

organic cotton and would be willing to pay a little more to

do so. In its catalogs, Patagonia presents its use of organic

cotton as part of its overall commitment to quality, which

includes helping to preserve a quality outdoor environment. Customers have responded positively to the new product lines.

Patagonia recognized, however, that determining the “environmentally correct” course of action is not always easy. While

water-based garment coatings are available to protect color and

enhance durability, Patagonia continues to use solvent-based coatings

for these purposes. Less VOCs are released and fewer toxins are used with

water-based coatings, but they are not yet durable enough to meet Patagonia’s

performance standards. From an environmental perspective, Patagonia

believes the solvent-based coating is more environmentally friendly because of

the increased durability it provides. While water-based coatings would

improve the environmental performance of the product, the reduction in

quality would cause the garment to wear out far sooner than it would have

otherwise. Patagonia believes its environmental and performance requirements are interrelated and, therefore, the company has determined it is

unnecessary to reduce its performance requirements to meet its environmental objectives.

• IBM also balances competing environmental, cost, and performance issues. In

the mid-1990s, the packaging department significantly reduced the packaging

required to safely ship IBM products, which generated enormous cost savings

and environmental benefits by reducing material consumption. IBM published this information in its Environmental Packaging Guidelines, which it

shares with its suppliers. 

28 ◆ Private Sector Purchasing

Patagonia believed its customers

would appreciate the benefits of

organic cotton clothing.
To further improve the environmental performance of its products, IBM is

increasingly designing its products to be easily disassembled so that equipment can be easily upgraded or recycled if it becomes outdated. As a result,

products are less sturdy and require additional packaging during shipping.

Although IBM might use additional packaging materials for some new

designs, it believes the overall environmental performance of its products has

improved. IBM had to balance the positive environmental attributes associated with products that could be easily disassembled and recycled with the

potentially negative environmental impacts of increasing its packaging.

In another example of environmental tradeoffs, IBM considered requiring its

suppliers to eliminate polyurethane foam from the packaging used to ship

components to the company in favor of a biodegradable material IBM

thought might be more environmentally preferable. Upon further investigation, IBM determined that the environmental improvement resulting from

the switch to the biodegradable packaging material was only marginal. While

such an action would have slightly reduced the environmental impacts associated with polyurethane foam, it also would have eliminated the revenue IBM

earns from recycling polyurethane. After examining the environmental and

cost benefits, IBM decided against the new requirement.

• When Ben & Jerry’s was evaluating paper for its corporate letterhead, it

wanted to use the most environmentally preferable paper available. Many people encouraged the company to use a 100 percent recycled-content paper with

high postconsumer content or a tree-free paper made from hemp or kenaf.

Others promoted the use of totally chlorine free (TCF) paper, which eliminates the use of chlorine compounds to bleach the paper. Ben & Jerry’s determined that eliminating chlorine, which has been linked with dioxin

contamination, was the most important environmental issue associated with

paper production. At the time of the decision, TCF paper was not available

containing recycled-content and was not yet used by tree-free paper manufacturers. As a result, Ben & Jerry’s selected a TCF paper over the other “environmentally friendly” alternatives.

• In the past at Sun Microsystems, each corporate headquarters employee

could order personalized corporate stationary that included the employee’s

name, title, address, and phone number. It was traditionally available only in

quantities of 500 sheets or more. Sun recently modified this process and now

uses a standard letterhead for each Sun location. Employees are no longer able

to purchase customized stationary and can order smaller amounts of stationary

at one time. This significantly reduces the waste and costs previously generated when an employee moved or changed positions. When the company

reevaluated its corporate letterhead, it decided not to purchase recycled-content paper for purely aesthetic reasons. Although various recycled-content

options are available, Sun decided to continue using a specific high-grade

paper that does not contain recycled content.

• During PSE&G’s investigation of environmentally benign cleaning solvents, it

examined several nonhalogenated, or less toxic, solvents. Among the products

it compared, the nonhalogenated solvents were all more flammable. In the

environment in which the solvents were to be used, flammability was a greater

concern than toxicity. PSE&G, therefore, selected a less-flammable solvent

over competing products with other favorable environmental attributes.

Private Sector Purchasing ◆ 29
• As part of its social and environmental objectives, The Body Shop attempts

to avoid the use of animal-derived ingredients and petroleum-based and synthetic chemicals whenever possible. Every product, however, must meet stringent performance requirements, which sometimes requires the use of

chemicals it would otherwise avoid. For example, The Body Shop uses synthetic musk and whale oils because it believes the synthetic alternatives are

more environmentally preferable than the natural alternatives, which would

involve destroying the animals from which the oils would be collected.

The Body Shop also compared the environmental impacts associated with

biodegradable and recyclable product packaging. While biodegradable packaging sounded environmentally preferable, the company determined that

most biodegradable products will only degrade in very specific conditions and

that those conditions are not likely to occur in modern landfills. Other

biodegradable products degrade into potentially hazardous constituents. After

examining the available biodegradable packaging alternatives, the company

decided not to use biodegradable packaging but to continue providing its

products in refillable and recyclable containers.

Working Closely with Suppliers to Enhance

Environmental Performance

In order for many companies to implement environmentally preferable purchasing

activities, they must work closely with suppliers to ensure they adequately understand

the company’s performance, price, and environmental requirements. Numerous companies now survey suppliers to assess their ability to help the company achieve its environmental objectives.

• The Body Shop’s Ethical Audit and Environmental Departments developed

a ratings system to evaluate existing and potential suppliers. Suppliers are evaluated on a number of environmental and social justice criteria and rated on a

scale from one to five stars. Vendors with higher ratings receive a larger percentage of The Body Shop’s business. Anheuser-Busch, Ben & Jerry’s,

Canon, Collins & Aikman, Herman Miller, and Sony have similar evaluations in place although each uses slightly different performance measures.

• Volvo has a set of supplier requirements for its more than 500 worldwide suppliers. (See Figure 8 on page 31 for additional information.) In addition, Volvo

requires each supplier to complete a detailed environmental self assessment to

ensure they are familiar with and are in compliance with Volvo’s environmental policies.

30 ◆ Private Sector Purchasing

“We expect an environmental commitment from absolutely

everyone who is interested in selling their products to us.”

—Lena Gevert, Volvo Cars purchasing department

Suppliers 

provide additional

opportunities 

to improve a 

company’s 

environmental 

performance.
Figure 8—Environmental Requirements for Volvo Group Suppliers and Contractors

Private Sector Purchasing ◆ 31

The Volvo Group Environmental Policy presents the commitment to environmental work

within the Volvo Group. Environment together with Quality and Safety is a core value for

Volvo.

Suppliers of production materials, equipment, services and consumption goods play a vital

part in the development and production of Volvo products. A true holistic approach means

that Volvo commitment on environmental care must be reflected in the supplier network.

All suppliers and contractors must have knowledge of the Volvo Group Environmental Policy

coupled with internal working procedures including the following aspects:

• an environmental management system. Suppliers of production materials and major contractors must be certified—or have a time plan for certification—according to ISO 14001

or EMAS. All other suppliers and contractors must be able to report on their environmental work, including organization, fulfillment of legal demands, and environmental results.

• objectives and action plans for the reduction of environmental impact. Best industry standard should be the ultimate objective.

• follow-up of development activities regarding environmental care within its industry and

maintain an open dialogue with Volvo concerning achievements and trends.

• environmentally related data from production and products must be available for Volvo to

enable environmental assessments.

• chemicals or materials involved in products or services delivered to a Volvo company must

fulfill the requirements stated in the Volvo “black” and “grey” lists. Any presence of listed

chemicals must be accounted, and have phase-out plans.

• planning and choice of packing materials, and handling of excess and rejected materials in

such a way that the total environmental impact is minimized for the delivered products and

services.

• consideration of recyclability and the use of recycled materials when selecting materials

and design solutions.

These requirements are part of the Volvo Group Purchase Agreement for production material. Any deviations must be documented. The application for other suppliers and contractors

are clarified in the attachment. Each Volvo company is responsible for the implementation

and follow-up.

Authorized 10 September 1998

AB Volvo

Arne Wittlöv

Executive Vice President, Chairman of Global Issue Board Strategic Sourcing
• DaimlerChrysler requires its suppliers to disclose their material content in

self-disclosure certifications. These statements and the data are reviewed by

the company. After comparing analyses, each vendor is assigned an environmental rating. The environmental rating is part of the total rating of the supplier. In this way, environmental issues are part of the total evaluation of the

supplier and become part of the normal business decision-making process. As

a general rule, the higher the rating, the more likely it is the supplier will continue to receive significant business.

Companies also are redefining their relationships with their vendors. Many companies do not perceive their vendors solely as product suppliers but as partners in the production process. As a result, companies and their vendors are working together to save

money and improve environmental performance.

• In an attempt to further promote environmentally conscious manufacturing

and purchasing practices, Herman Miller holds semiannual conferences for

its employees and invites all of its suppliers. The conferences include nationally recognized experts in waste minimization, pollution prevention, lifecycle

analysis, environmental design, and packaging.

• PSE&G and Perrigo both developed similar relationships with their chemical suppliers. The supplier for each company tracks the companies’ on-site

chemical inventories to maintain proper inventory levels. If an employee mistakenly orders a product that is already on site, the vendor will alert the

employee rather than delivering additional product.

Perrigo took an additional step by establishing financial incentives for its suppliers to reduce the quantities of chemicals purchased. The company shares

the cost savings resulting from decreased chemical purchases with the chemical suppliers. As a result, it is in the suppliers’ financial interest to minimize

sales. This, in turn, saves additional money for the company because it no

longer pays to acquire unneeded chemicals and it significantly reduces the

costs to dispose of outdated overstock.

• When Collins & Aikman was trying to reduce the volume of VOCs in its

carpet products, it worked closely with several suppliers. In an attempt to

meet the more stringent environmental requirements, a few suppliers completely reformulated existing products or modified manufacturing processes.

Working closely with its suppliers provided Collins & Aikman with opportunities to improve its products’ environmental attributes and the environmental

performance of the company and its suppliers in ways that it might not have

achieved otherwise.

• To increase its recycling rate and decrease its waste volume, Anheuser-Busch

worked closely with its suppliers to establish a standard for the plastic strapping used to bind shipments of incoming materials. Prior to this effort, the

company was unable to recycle the strapping material in any significant volume because of the wide variety of colors and plastic resins each supplier used.

Recognizing that it was buying not only the product, but also the strapping,

Anheuser-Busch worked with its suppliers to establish two, color-coded,

single-resin plastics for use in strapping materials. The color-codings indicate

resin type so that the resins can be easily separated for recycling. As a result of

its effort and the cooperation of its suppliers, Anheuser-Busch is currently

recycling more than 700 tons of plastic strapping a year. This program and

32 ◆ Private Sector Purchasing

Suppliers are 

partners in the 

production 

process.
others have significantly increased the company’s recycling rate and decreased

its waste disposal volume and costs.

• Ben & Jerry’s worked closely with one of its suppliers to reduce the packaging associated with its berry shipments. It encouraged the supplier to use containers that can be shipped back to the supplier, cleaned, and used again.

Taking this concept one step further, Ben & Jerry’s worked with one of its

paper suppliers to develop its ECO-pint ice cream containers. According to

the company, the unbleached paperboard containers eliminate the adverse

environmental impacts associated with chlorine bleaching and the resulting

dioxin emissions. (See below for more information.)

• Like Ben & Jerry’s, Anheuser-Busch encourages its suppliers to ship materials in reusable totes. The totes save both Anheuser-Busch and its supplier

money and eliminate the cost and potential liability associated with the disposal of empty drums and other single use containers.

Private Sector Purchasing ◆ 33

Ben & Jerry’s, the Vermont-based, all natural ice cream manufacturer, has joined

the ranks of companies offering its products in packaging the company considers

environmentally preferable. Beginning in February 1999, the company began distributing its top-selling World’s BestTM Vanilla in its new unbleached paperboard

ECO-Pint. 

For more than 2 years Ben & Jerry’s has been working to ensure its new ECOPints meet the company's environmental and commercial demands, as well as

Food and Drug Administration requirements. When the company first decided to

pursue this project, chlorine-free pulp could only be found in Europe and importing it was prohibitively expensive. The company, however, encouraged a U.S.

paperboard mill to manufacture the chlorine-free packaging material.

ECO-Pints are constructed from unbleached brown (kraft) paperboard with an

exterior clay coating on which the company logo is printed. Ben & Jerry’s plans to

convert a significant number of its containers to the ECO-Pint by the end of

1999.

According to the company, standard paper manufacturing uses chlorine compounds as a bleaching agent. The bleaching process can discharge millions of gallons of wastewater containing chemicals such as dioxins, which are carcinogenic

and highly toxic. Avoiding products that are produced using chlorine is part of

Ben & Jerry’s ongoing environmental purchasing program.

The company hopes the ECOPint will become the industry

standard for ice cream containers and is sharing its information

on unbleached packaging materials with any interested parties.

For more details, visit the 

Ben & Jerry’s Web site at

<www.benjerry.com>.

Ben & Jerry’s 

ECO-Pint 

Packaging
Conclusions

T

his report describes a wide variety of approaches private sector companies

are using to implement environmentally preferable purchasing. The

practices of companies described provide insights and lessons that

might be valuable for others interested in environmental purchasing.

The following conclusions can be made based on the information in

this report:

Private Sector Companies Are Increasingly

Adopting Environmentally Preferable

Purchasing Practices

This report includes numerous examples of companies voluntarily incorporating environmentally preferable purchasing principles into their purchasing

policies because it makes good business sense. More than 368,000 consumers refer

to Green Seal’s Choose Green Reports and more than 1,800 Japanese organizations have

joined GPN. Other business groups, including Business for Social Responsibility

(<www.bsr.org>) and the Alliance of Motion Picture and Television Producers, are

developing materials promoting environmental purchasing to their members. These

numbers and trends illustrate increasing interest in environmentally preferable purchasing initiatives. 

Environmental Purchasing Has Economic and

Environmental Benefits

Applying environmentally preferable purchasing principles has saved companies

money. Examining environmental impacts throughout a product’s entire life cycle can

help companies identify opportunities to reduce costs. It also can provide companies

with cost-neutral opportunities to improve environmental performance.

Additionally, companies employing environmentally preferable purchasing principles are significantly reducing their energy- and water-consumption, decreasing their

use of limited natural resources, reducing waste, and minimizing the use of potentially

hazardous substances. All of these actions benefit the environment and also might benefit a company’s bottom line.

Companies Are Actively Promoting 

Environmental Purchasing

Companies are increasingly promoting the environmentally preferable attributes of

their products. They also are encouraging customers to consider environmental attributes when making purchasing decisions. McDonald’s encourages consumers to “buy

recycled” by providing information on tray liners and other paper products used in its

stores. Volvo, Collins & Aikman, and Patagonia all routinely provide environmental

information on the products they sell in their sales literature.

Conclusions ◆ 35
Different Companies Can Reach Different

Environmental Purchasing Decisions

Different companies can reach different purchasing decisions even when faced with

the same set of environmental information. Environmentally preferable purchasing is a

process; it is not an outcome. Consequently, the results might not be the same for

every company. All businesses face different price and product performance requirements and different local environmental concerns that can lead companies to make different determinations about the environmental preferability of their purchases.

Environmental Purchasing Will Continue To Expand

While many companies and individual consumers already recognize and enjoy the

benefits of environmentally preferable purchasing, many more are just now learning

about them. As additional companies and individuals learn the important advantages it

offers, environmentally preferable purchasing will continue to expand. Increasing numbers of purchasers will demand products that provide superior performance at a reasonable cost and with minimal adverse environmental impacts.

In addition, as more and more entities adopt environmentally preferable purchasing

practices, it becomes increasingly easier for others to do so. By promoting environmentally preferable purchasing throughout the federal government, EPA is making it

easier for nongovernment entities and individuals to identify and purchase environmentally preferable products. The process works both ways because the environmentally preferable purchasing interests and practices of private sector companies also are

making it easier for federal agencies to purchase environmental products. The U.S.

Department of Interior, for example, will begin pilot testing biodegradable plates and

soup bowls it deems environmentally preferable. This would have been less likely without the purchasing power and interests of private sector companies with similar concerns stimulating the demand for and availability of such products. As a result, the

economic and environmental advantages of environmentally preferable purchasing will

continue to expand.

36 ◆ Conclusions

“Our environmental purchasing efforts and the efforts of others are helping to

expand markets for environmental products and are making it easier for others to

purchase such products. Hopefully, as more and more companies adopt similar 

initiatives, the number of “environmentally friendly” products will continue to

increase and it will be even easier for everyone to find competitively priced 

environmental products.”

— Bob Langert, McDonald’s Corporation, Director of Environmental Affairs
Appendix: Description of

Participating Companies

Anheuser-Busch Companies, Inc., is the world’s largest beer brewing company with more than

100 production, entertainment, and service facilities, more than 24,000 employees, and yearly

gross sales of almost $13 billion. In operation since 1852, Anheuser-Busch has led the brewing

industry in sales since 1957. Worldwide, Budweiser is brewed in more than 10 countries and

distributed in more than 80. For additional information, please visit <www.anheuserbusch.com>.

Ben & Jerry’s is a leading maker and distributer of quality all-natural ice cream products. Ben &

Jerry’s was founded in 1978 by childhood friends Ben Cohen and Jerry Greenfield with an initial investment of $12,000. Today, Ben & Jerry’s employs more than 800 people with net annual

sales exceeding $200 million. Ben & Jerry’s ice cream products are distributed in all 50 states

with more than 120 “scoop shops” in 20 states and Washington, DC. Internationally, Ben &

Jerry’s scoop shops can be found in Canada, Israel, and the Netherlands. For additional information, please visit <www.benjerry.com>.

The Body Shop is a maker of high-quality skin and hair care products. It strives to use natural

ingredients in all of its products. The Body Shop originated in the United Kingdom and currently has more than 1,500 branches in 47 markets throughout the Americas, Europe, and Asia.

The Body Shop ranks second in specialty cosmetics retail sales. For additional information,

please visit <www.the-body-shop.com>. 

Canon is a worldwide leader and provider of home, office, and industrial technology products.

Canon’s dedication to chemistry, electronics, and optical and mechanical sciences research has

made them a leading technology supplier. Canon Group Companies employs more than

10,000 people at more than 20 companies throughout North, Central, and South America and

the Caribbean. It is a multibillion dollar corporation providing its customers with the industry’s

latest electronic products. For additional information, please visit <www.canon.com>.

Appendix ◆ 37

T

he companies that participated in this case study represent a broad spectrum of companies from

a variety of industries. This appendix provides a brief overview of each company and provides

Web site addresses to obtain additional information.
Collins & Aikman manufactures innovative, durable, and quality floor covering products engineered to perform well in high-traffic environments. The company was founded in 1964 and

has since become a well-known, well-respected leader in the floor covering industry. Collins &

Aikman is not only committed to producing quality products, it also is committed to providing

its employees with a safe and healthy working environment. For additional information, please

visit <www.powerbond.com>.

Herman Miller is the second largest manufacturer of office furniture in the United States and

has been nationally recognized for its environmental stewardship and its innovative designs. In

fact, some of its products have become permanent exhibits in major museums such as the New

York Museum of Modern Art and the Smithsonian Institute. In 1998, Herman Miller generated revenues totaling $1.72 billion and currently has 6,500 employees spanning 40 countries.

For additional information, please visit <www.hermanmiller.com>.

DaimlerChrysler, a maker of automobiles and transportation products and services, is the

resulting union between North America’s Chrysler Corporation and Western Europe’s Daimler-Benz. The merging of the two industry giants in 1998 produced the third most profitable

company in the world with total revenues of EUR 131.8 billion in the first year alone. The

company currently has 441,000 employees with manufacturing plants across 34 countries. For

additional information, visit <www.daimlerchrysler.com>.

IBM was founded in 1911 to manufacture clocks, scales, and punch card tabulators. Today,

IBM is a multinational information technology company providing high-quality advanced

computer products throughout the world. As the world leader in new patents, IBM is continually at the forefront of research and development. IBM currently employs more than 265,000

people in more than 150 nations with total revenues exceeding $78 billion. For additional

information, please visit <www.ibm.com>.

38 ◆ Appendix 
McDonald’s is the world’s leading food service retailer with more than 24,000 restaurants in more than 110 countries. In 1997, the 12,380 U.S. McDonald’s franchises and

company-owned restaurants earned more than $17 billion. Approximately 85 percent

of the McDonald’s restaurants in the United States are owner-operated franchises. For

additional information, please visit <www.mcdonalds.com>.

NEC is recognized as a worldwide leader in high technology and offers a wide range of

products and services in communications, computer peripherals, semiconductors, and

personal computers. In 1998, NEC generated more than $37 billion in revenues and

currently has 152,000 employees, 118 manufacturing plants in 20 countries, and more

than 15,000 products. For additional information, please visit <www.nec.com>.

A manufacturer of durable and high-quality outdoor apparel, Patagonia was named

one of Fortune 500 magazine’s “100 Best Companies to Work for in America” in 1998

and 1999. Patagonia has approximately 1,000 employees and 18 retail stores worldwide

with offices in North America, Europe, and Japan. In 1998, the company generated

more than $165 million in revenue. For additional information, please visit

<www.patagonia.com>.

Perrigo is the leading manufacturer of generic and “store brand” pharmaceuticals, personal care, and nutritional products in the United States. The company has more than

11 manufacturing facilities across the country occupying a total of 2 million square

feet. In 1998, the company generated revenues of more than $903 million. For additional information, please visit <www.perrigo.com>.

Public Service Electric and Gas Company (PSE&G), a subsidiary of the Public Service

Enterprise Group, is one of the top ten largest combined electric and gas companies in

the United States. PSE&G is New Jersey’s oldest and largest regulated utility. It is the

major supplier of electricity and gas in New Jersey, servicing 2.2 million customers in

more than 300 urban, suburban, and rural communities. For additional information,

please visit <www.pseg.com/pse-g>.

Appendix ◆ 39
Sony Corporation is a leading manufacturer of audio, video, communications, and

information technology products for the consumer and professional markets. It generated more than $52 billion in revenues worldwide in fiscal year 1998. It also is one of

the leading music, motion pictures, television production, and computer entertainment

companies in the United States, employing more than 25,000 employees. For additional information, please visit <www.sony.com>.

Sun Microsystems Inc., is a leading provider of high-quality hardware, software, and

services for establishing intranets. The company was founded in 1982 and has grown to

a Fortune 500 company with more than $9.5 billion in revenues, 26,000 employees,

and operations in 150 countries. For additional information, please visit

<www.sun.com>.

With more than 12,000 employees and more than 218,000 miles of gas lines, Tokyo

Gas is Japan’s largest distributor of processed, centrally supplied natural gas. The

company serves more than 8 million customers in Japan and generated more than 

$1 billion in revenues in 1998. For additional information, please visit 

<www.tokyo-gas.co.jp>.

Volvo maintains a strong share of the U.S. automobile market and is one of the world’s

leading manufacturers of heavy commercial vehicles such as trucks, buses, construction

equipment, and propulsion systems for marine and industrial applications. The company has more than 70,000 employees with assembly plants located in Europe, North and

South America, Asia, and Australia. Approximately 90 percent of sales are outside of

Sweden, where its’ corporate headquarters are located. For additional information,

please visit <www.volvo.com>.

Warner Bros., a subsidiary of Time Warner, is a media and entertainment company

with interests in filmed entertainment, television production and broadcasting, recorded music, and cable television programming. It also operates a chain of specialty retail

stores worldwide. For additional information, please visit <www.wb.com>.

40 ◆ Appendix 
We want to hear from you! Please tell us about your environmentally

preferable purchasing activities and efforts. We are collecting and sharing information, tools, and hints about what works and what doesn’t, as

environmentally preferable purchasing evolves and expands. Please contact the EPP program by e-mail, regular mail, or fax:

Environmentally Preferable Purchasing Program

U.S. Environmental Protection Agency

401 M Street, SW. (7409)

Washington, DC 20460

e-mail: epp.pilot@epa.gov

FAX: 202 260-0178
1EPA

United States

Environmental Protection Agency

(7409)

Washington, DC 20460

Official Business 

Penalty for Private Use

$300