Regional Partnership for Ecologization of Economies of the EU Eastern Partnership States (EaP GREEN)

HANDBOOK ON SUSTAINABLE PUBLIC Integration Criteria into Public Procurement Procedures

Paints and Varnishes Cleaning Products Heat Insulation Materials

State Ecology Academy of Postgraduate Education and Management at the Ministry of Ecology and Natural Resources of Ukraine CONTENTS

Authors: SECTION I. SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION 6 1.1. Public Procurement as a Tool for the Sustainable Production and Consumption 6 Yuliya NIKITCHENKO 1.2. Key Aspects and Principles of the Sustainable Public Procurement 13 1.3. The Legal Framework on the Sustainable Procurement 23 Svetlana BERZINA 1.4. Implementation of the Sustainable Public Procurement in Ukraine 24 1.5. Educational institutions provide a good example of sustainable procurement in 27 Gala BUZAN Ukraine

SECTION II. PUBLIC PROCUREMENT PROCEDURE IN 34 Handbook on Sustainable Public Procurement: Integration Sustainability Criteria into Public Procurement THE CONTEXT OF SUSTAINABILITY Procedures. – K.:, 2016. – 125 p. 2.1. Public Procurement Procedure: the Essentials 34 2.2. Key Steps of the Sustainable Public Procurement Process 35 2.3. Inclusion of Environmental Criteria into a Tender Documentation 42 2.3.1. The Subject of the Contract 42 Public Procurement is closely interconnected with an implementation of the 2.3.2. Drawing Up Technical Specifications 44 goals on the practice. Given priority to environmentally friendly products and environmentally safety 2.4. Qualification (Selection) of the Suppliers 46 services, which comply with green standards and rules, is an efficient tool in solving of many economic, 2.5. Awarding a Contract 48 environmental and social challenges at different levels. In view of this, to implement procure of products 2.6. Specific Conditions: Contract Performance Clauses 49 and services with improved environmental features in the public sector a clear guidelines on its implemen- 2.7. Available Tools for Provision of Sustainable Procurement 49 tation are actually necessary. 2.7.1. Life Cycle Assessment 50 This handbook contains a basic information about benefits and advantages of the sustainable public 2.7.2. Life Cycle Costing 50 procurement for government and public authorities; a step–by–step explanations how to transform a 2.7.3. Product/Service 51 procurement process into sustainable one and to use it in practice. Moreover, it provides detailed informa- 2.7.4. Environment Product Declaration 52 tion about integration of sustainability criteria into procurement process including supplier qualification, 2.7.5. Environment Management Systems 52 technical specifications, award criteria and contract conditions with examples for the three priority product 2.7.6. Risk Assessment 53 groups. 2.7.7. Environmental Norms and Standards 54 2.7.8. Environmental Labeling 54 The handbook is prepared for government and public authorities, however many of the ideas and approaches 2.7.9. Social Labeling 57 are equally relevant for corporate purchasers and business representatives. It should also help suppliers and service providers to understand better the environmental requirements increasingly encountered in SECTION III. CRITERIA FOR SELECTED PRODUCT GROUPS 58 public tenders. 3.1. Assessing the Environmental Impacts for the Selected Product Groups 58 3.1.2. Environmental Impacts of Cleaning Products and Detergents 59 Handbook contains tables, pictures and annexes. 3.1.3. Environmental Impacts of Paints and Varnishes 62 3.1.4. Environmental Impacts of Heat Insulation Materials 63 It is intended for executives of public authorities, institutions, private companies, enterprises and organiza- 3.2. Defining of the Environmental Criteria for Tendering 64 tions, business leaders, environmentalists, teachers and university students, the media and a wide range 3.3. Criteria for Cleaning Products and Services 69 of readers interested in the issues and factors that influence the development of 3.4. Criteria for Paints and Varnishes 70 and production. 3.5. Criteria for Heat Insulation Materials 72 This project is funded by the European Union. SECTION IV. THE SUSTAINABILITY ISSUES FOR TENDERERS 74 The views expressed herein shall in no way be taken to reflect the official opinion of the European Union. 4.1. Sustainability Performance as a Competitive Advantage for Tenderers 74 4.2. How to respond the Sustainability Requirements: Tips for Tenderers 78

© State Ecology Academy of Postgraduate Education and Management at the Ministry of Ecology and ANNEX I – CRITERIA FOR THE SELECTED PRODUCT GROUPS: 88 Natural Resources of Ukraine, 2016 DETAILED DESCRIPTION

ANNEX II – CRITERIA FOR TECHNICAL SPECIFICATIONS FOR SUSTAIN- 130 ABLE PROCUREMENT 3 FOREWORD

A results in improved human (OECD), the Economic Commis- On the contrary, such a concept will enhance able choice of an economically feasible proposal well-being and social equity, with reduced envi- sion for Europe (UNECE), the United Nations the social standards of life quality, provided the with the best environmental, social, technical ronmental risks and ecological scarcities. A Environment Programme (UN Environment), and transition from quantitative to more qualitative and/or qualitative characteristics in comparison green economy aims to be resilient and provide the United Nations Industrial Development Orga- consumption. with products of similar functional purpose. The a better quality of life for all within the ecological nization (UNIDO). publication introduces the method of evaluating limits of the planet. The model of sustainable consumption and environmental and economic aspects of prod- After the 5th Pan-European Conference of Minis- production is based on a systemic approach to ucts based on international, regional, national Armenia, Azerbaijan, Belarus, Georgia, the ters of Environment "Environment for Europe" product lifecycle management and is aimed at and other standards to ensure efficient and Republic of Moldova (Moldova) and Ukraine - the held in 2003 in Kiev theme of sustainable immediately addressing several key problems: effective procurement. six European Union’s Eastern Partnership (EaP) consumption and production has gained political countries, committed to transition towards a relevance. ensuring the needs of everyone, improving the In Ukraine, since 2014, there has been imple- green economy in the 2011 and 2013 Declara- quality of society life, increasing resource effi- mentation of sustainable public procurement The impact of production and consumption on tions of the “Eastern Partnership” Summits and ciency, waste minimization, use of alternative in the framework of the implementation of the the environment increases. Therefore, the goal on other international fora. Translating these fuels and sources. EU regional program «Greening economies in of all countries is to eliminate the dependence commitments into actions requires continued the Eastern Neighbourhood» (hereinafter EaP between economic development and social First and foremost, the producers and consumers mobilisation across the government, with joint GREEN). Thanks to EaP GREEN, changes were sphere degradation and environment related themselves - those who offer goods, services or action from the Ministries of Economy and Envi- made in the legislation of Ukraine, criteria for to the consumption, use of energy and natural jobs and those who provide demand for them - ronment, across the economy and by different priority groups of goods were developed: heat resources and waste. influence the quality of production and consump- stakeholders. insulation materials, paint and varnish mate- tion models. However, government regulation and rials, washing and cleaning products, training In Ukraine and many countries of the world stimulation through a series of instruments has a The “Greening Economies in the Eastern Neigh- seminars, including regional for suppliers, consumption level has not reached such indica- significant role. bourhood” (EaP GREEN) project, launched in producers, associations of suppliers and tors as, for example, in European countries or the 2013, is a means to support the EaP countries producers of priority groups of goods, repre- USA. Therefore, the increase of consumption (and One of such instruments is the realization of to progress faster towards a green economy sentatives of the chambers of commerce and hence production) is inevitable. However, to avoid sustainable procurement. It ensures effective through better management of natural capital industry, as a result, the first pilot sustain- a global environmental crisis model of produc- and efficient purchasing based on the assess- in a context of higher economic productivity and able public have already been tion and consumption of goods and services need ment of full value of the procurement considering competitiveness. successfully conducted. to be changed on quality level. measures aimed at environmental protection, The EaP GREEN project is funded by the Euro- social protection. The concept of sustainable development does not pean Union and supported by several EU and envisage the renouncing consumption and indus- The proposed publication will help an organiza- OECD countries. It is jointly implemented by four trial production, since it is impossible to provide tion of any level and field of activity, the public or international organisations: the Organisation basic needs for a self-realization of each person. private sector, to make a conscious and reason- for Economic Co-operation and Development

With respect,

Authoring team SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

As a big consumer, public authorities may use their purchasing power to contribute into sustain- surveys, aero- and satellite photography and able development at different levels, for examples, other services that are included in the estimated 1.1. PUBLIC to support national manufacturers and provide cost of the works, if the cost of such services does them with additional competitive advantages, solve not exceed the cost of the relevant works (The Law

PROCUREMENT AS A TOOL social inequity challenges and many environmental of Ukraine “On Public Procurement”, 2016). issues. Transformation of the procurement practice FOR THE SUSTAINABLE Practical implementation of the procurement on SECTION I with changing of priorities on the sustainable basis the sustainable basis is a relatively new approach PRODUCTION AND (not only price as major one) may both affect the and new tool for environment protection and social economic development and manage addressing CONSUMPTION equity but its efficiency and effectiveness repeat- numerous environmental and social problems edly been confirmed in practice. It is one among associated with production and consumption of major drivers for eco–oriented , . For example, reductions in cost and Every year governments and public authorities providing industry with real incentives for devel- material use as a result of specifications for recy- spend billions euro from public budgets of different oping green products and services. Developed PUBLIC clable or reusable packaging, reductions in cost levels on acquisition of everything their use to drive countries for over 10 years use public procure- and energy consumption via procurement of energy and support functioning – goods, services and ment to ensure the current activities of the admin- PROCUREMENT: efficient equipment, increased skill development infrastructure. Typically, they buy a wide array of istration as well as practical implementation of as a result of local procurement of services, etc. products – from paper clips up to building of road sustainable development and implementation of INTRODUCTION bridges and administrative facilities. However any environmental policy. organisation should provide procure in a way that Public procurement is the procurement of goods, optimize public expenditures. works and services by the procuring entity in BUY GREEN PRODUCTS AND SERVICES accordance with the procedure prescribed by the In recent years there is traced a clear upward Law. Aware of responsibility for production and trend in these expenditures: today a part of public consumption of products and services public Key Challenges procurement contracts may represent up to 25% Goods are products, objects of any type and desig- authorities should buy environmentally sustain- nated purpose, including raw materials, manu- of Gross Domestic Product (GDP). able products, such as energy efficient products • What is a Sustainable Public factured goods, equipment, technologies, objects and recycled content products, to the maximum Procurement? in solid, liquid, or gas form, as well as services Expenditures on products, services and works to extent practicable. associated with the supply of goods, if the cost satisfy government and public needs, of course, • What are scope and potential bene- of such services does not exceed the cost of the may differ in different countries, however public Distinguish few types of environmentally friendly fits of the SPP? goods themselves. procurement can represent a large share of the and green products and services, namely: • How to achieve an acceptable market: Services are any object of procurement (other than Bio-based products are commercial or indus- balance between the three pillars of goods and works), in particular, transportation • in the European Union, the government trial goods (other than food or feed), composed sustainable development by means services, technological and scientific research, expenditure accounts around 16% of EU GDP, in whole or in significant part of biological prod- of the SPP? research and development activities, medical and corresponding for roughly EUR 1,8 trillion ucts, forestry materials, or renewable domestic public amenity services, rental (lease), as well as annually. In some countries, for example in agricultural materials, including plant, animal, or • Who is responsible for the SPP financial and consultancy services, and mainte- Netherlands and Czech Republic – ~26% of marine materials. implementation? What is a frame- nance. the country GDP; work for the SPP Policy? Energy Efficient Products are products which Works may include the design, the construction of • in USA – 19–20% of GDP; use less energy to provide the same service. For • What to do before starting to procure new (the expansion, rehabilitation, major repairs, instance, ENERGY STAR is a voluntary labeling and restoration of existing) objects and struc- goods, services and works on a • in Ukraine – 13–18% of GDP. For instance, program designed to promote energy-efficient tures used for manufacturing and non-manu- sustainable basis? in 2015 Ukrainian government and public products to reduce emissions. facturing purposes, the standard-setting activi- authorities spent 112,1 billion hrn, namely: ties for construction, the geological prospecting, on products – 44,5 billion hrn, on works – 6,8 Environmentally Preferable Products (EPP) and the technical refurbishment of existing enter- billion hrn, and on services – 28,4 billion hrn. services have a lesser or reduced negative effect prises, as well as the axillary services for works, on human health and the environment when including land surveying works, drilling, seismic compared with competing products or services

6 7 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

that serve the same purpose. This comparison as “price” and “quality”; and customers realize ECONOMIC ENVIRONMENTAL SOCIAL applies to raw materials, manufacturing, pack- their needs with respect to environment protection Achieving a sustainable Keep within reasonable Ensuring a strong and economy environmental limits healthy society aging, distribution, use, reuse, operation, mainte- by obtaining benefits not only for the organization nance, and disposal. Environmentally preferable but also for society as a whole. products possess more than one environmentally friendly attribute. Understanding and minimizing negative social, Promoting eco-responsible enterprise Reducing soil, water & air Protecting human health: economic, and environmental impacts in the and improving local skills: Enhancing pollution: Avoiding chemicals avoiding hazardous Non-Ozone Depleting Substances (ODS) do not social and environmental objectives of harmful to health and environ- chemicals; promoting public procurement process are specific objec- suppliers;enabling access to quality ment, decline GHG emissions. good diet and exercise; deplete the earth’s protective ozone layer. Prod- tives of the Sustainable Public Procurement. employment. raising household ucts that normally contain ozone depleting incomes. Reducing water consumption: substances should be replaced with functionally Reduced costs: application of more Avoiding water intensive similar products that contain non-ozone depleting efficient technologies, resource and Term “sustainable procurement” appeared first activities; improving water Promoting fair working energy saving substances. time at the United Nations Conference on Environ- efficiency; rainwater capture conditions: Improving pay, ment and Development (UNCED), Rio de Janeiro, and greywater . working hours and equali- Recycled Content Items are items produced with ty in supply chains. 3–14 June 1992. Informal name of the Conference Reduced risks: for the environment, recovered materials. social protection and improving the quality - The . of life and living environment Reducing materials, packaging Water Efficient Products are products which meet & waste: reducing, re-using and recycling. water efficiency and performance criteria. Reducing energy consumption & climate The main purpose of the Sustainable Public change: Avoiding energy intensive activi- Green or Environmental Services encompass one Procurement is searching of parity between envi- ties; improving energy efficiency; seeking Protecting habitats and biodi- of two things in mind: ronmental, social and economic aspects of produc- non-fossil, renewable energy sources. versity: sourcing sustainable timber, seafood, palm oil and tion and consumption as well as harmonization Skills developent: adaptation to specific soy; enhancing local habitats. • Services that directly address environmental of relations between market participants such situations, implementation and organiza- issues, such as or energy as manufacturers, suppliers, consumers and the tional consolidation through processes, metering services; or tools and personnel environment when purchasing goods and services. • Services which include construction and Local economic developent: use of local SPP also faces momentous opportunities both raw materials, local labor, reduction of service contracts where sustainable products carbon footprint, etc. are delivered. as a driver of sustainable growth, but also as an indicator that political risks are under control, Source: U.S. General Services Administration institutional capacities are on the rise and the Pic. 1.1. Main Objectives of the Sustainable Public Procurement overall domestic investment environment is Source: S. Williams, T. Chambers, S. Hills, F. Dowson, 2007. Sustainable Public Procurement (SPP) as identi- coming of age. Forum for the Future, “Buying a better world: sustainable public procurement” fied by the European Commission – is “a process whereby public authorities seek to procure goods, Variety of social, environmental and economic services and works with a reduced environmental objectives can be delivered through sustainable • Stimulate a greening of the national economy, including industry, what will impact and other benefits throughout their life– procurement, many of which are interlinked help to put into practice the strategic challenges of national environmental cycle when compared to goods, services and (Pic. 1.1). policy; works with the same primary function that would otherwise be procured.” The Sustainable Public Procurement is focused on • Encourage the development of national industry and market of goods and realization of few important strategic tasks: services with improved environmental characteristics; In other words the SPP is focused to meet consumers’ needs, delivering a long-term value • Provide a protection and restoration of the • Promote public–private dialogue on sustainable consumption and produc- for money, maximising social and economic bene- environment at the production and consump- tion at national and international levels. fits and minimising damage to the environment tion of goods, services and works; and human health. It is a new format of relations For Ukraine the introducing a new policy on public procurements is one of the • Support the implementation of sustainable between producers, suppliers and customers, key step towards implementation the principles of sustainable development balanced system of nature use and conserva- when the weight of social and environmental factors and the greening of the national economy according to The Law of Ukraine tion of natural ecosystems; become equivalent in importance with such criteria "On the Fundamentals (strategy) of the State Environmental Policy 2020".

8 9 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

Table 1.1 – Benefits and Advantages of the Sustainable Public Procurement THE SUSTAINABLE PUBLIC PROCURE- the biggest social external cost savings – around No Benefits of SPP Advantagesof SPP MENT: GOOD PRACTICES £115,000. Sustainable Procurement in Badalona’s Schools, I. Long–term investments • Improving energy and ; reducing of negative anthro- METRO Cash & Carry, Ukraine into rational nature use pogenic impacts during extraction of raw materials and consumption of SPAIN management and envi- natural resources; In Ukraine, the «METRO Cash & Carry» In Badalona (the third largest city in Catalonia, ronment protection strengthens partnership with local suppliers; • Elimination and/or reduction of toxic substances, released into the envi- Spain) the primary school IES La Pineda savings more than 1,200 Ukrainian producers, distribu- ronment, and, as a result, reducing the impact of hazardous substances on totaling 9,574 l of water and 2,048 kWh in energy human health and the environment; tors and importers supply 90% of food and non– have been made annually through their purchase food products. • Reducing Greenhouse Gases emissions to prevent and of 100% recycled paper (128,000 sheets of paper global warming; used per year). Source: “Green Public Procurement: a Collection • Diminution of waste accumulation in landfills by recycling and use of of Good Practices”, European Commission, 2012 waste–derived materials in the production process; Clean Streets in Barcelona, SPAIN

• Increasing the effectiveness of economic costs by reusing materials and Thanks to tightening of requirements for street products; cleaning and rubbish collection to enhance the • Encouraging the development of clean technologies and environmental quality and sustainability of the service, noise Key difference between procurement as usual innovations; and emissions from the vehicles used for waste and the sustainable procurement is the neces- • Preservation of natural flora and fauna, protection and restoration of biodi- collection have been dramatically reduced and sity to consider environmental and social factors versity. 35% of the fleet now runs on biodiesel, 35% on of goods and services production & consump- gas and 30% are electric or hybrid vehicles; II. Efficient use of public • Reducing of social and economic costs by increasing energy efficiency, tion at all stages of their life cycle. Moreover, more than 90% of the water used in the service resources environmental risk management, reducing landfill waste disposal; the SPP allows estimating both operating costs is ground water; the number of recycling points • Improving of productivity and reducing of working time loss because of and costs associated with disposal of used prod- available across the city increased by 37% and illness due to improved conditions in the workplace. ucts, to conduct impacts assessment on human organic waste collection extended to all areas. health and the environment, to forecast risks or III. Market development for • Price leveling on goods and services with improved environmental charac- Cleaning Products for Schools, FRANCE innovative and envi- teristics compared to less sustainable counterparts; consequences etc. SPP means looking at social ronmentally friendly and environmental risks in a more comprehen- • Increasing the availability of “green” products/services at the competitive Using of environmentally friendly cleaning products/services sive fashion to avoid extra costs (especially in the prices; services in schools protects cleaning personnel future) and to mitigate risks more effectively. For • Expansion of environmentally friendly products/services and products with from hazardous substances and dangerous prod- a reduced negative impact on the environment (for example, by using less ucts in their working environment and to reduce example, understanding supplier practices and packaging, bans the use of hazardous and toxic substances); risks to children in the preschools and elemen- working conditions can avoid a scandal related to • Improving the availability of information about contains and characteristics tary schools where the products are to be used. slave labour. Creating specifications that minimize of product/service for consumers to make a process of buying eco–prod- The lack of dangerous ingredients (such as packaging can save money and natural resources. ucts more accessible. solvents) and the high degree of biodegradability help to reduce the overall environmental impact. In practice the sustainable approach in procure- IV. Improved working • Providing comfortable working conditions; ment cycle is realized by introducing sustainability conditions and Ensuring the availability of refill packs reduces increased productivity • Minimizing exposure of hazardous and toxic substances on human health significantly waste accumulation. criteria into the procurement cycle. Customer through the use of environmentally friendly products/services (e.g., use of should decide what sustainability criteria are Food Procurement at Nottingham City Hospital safer products for washing and cleaning). most important for different product groups. (NCH), United Kingdom V. Achieving of local goals it may be a support of domestic producers, creating new jobs, improving working Analysis of social, environmental and economic It is very important, at the very beginning of the with high social priority conditions, elimination of isolation for certain groups. costs, including costs of damaged health and process to decide which sustainability criteria VI. Reaching of leading through imitation and demonstration of environmental and procurement of unsustainable food in the NCH, will be used. It is advisable at an early stage to positions for govern- of production and consumption. carried out by Forum for the Future, shows when coordinate with client departments the potential ment, industry and NCH switched to procurement, social environmental or social specifications that will be public (e.g., on the external costs were reduced by £30,000 per year. applied, as mandatory or desirable. world level in various For the cost reduction was around industries) £70,000. Sourcing local and organic food offered

10 11 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

Although sustainable procurement encompasses ECONOMIC ASPECTS OF THE SPP Table 1.2 – A Comparison of Public Procurement Approaches not only environmental considerations, neverthe- Public Procurement: traditional approach Public Procurement: sustainable approach less the main focus of the SPP is environmental Economic aspects of the Sustainable Public or green procurement. Currently there are a lot Procurement reflect the cost of procure goods, of information and tools available to assist in the services and works which are directly related to Basic Selection Criteria acquisition of green products and services than the procurement process and main stages of their 1. Price. 1. Price. any other socially responsible aspects. life cycle (e.g., operation, recycling/utilization). 2. Quality. 2. Quality. Management by these economic aspects allows 3. Other qualification criteria. 3. Protection of the environment. Besides the Sustainable Public Procurement, achieving maximum economy and efficiency, 4. Human health safety. some public authorities practice a Green Public optimal use of budget funds. 5. Other qualification criteria. Procurement. These two terms are quite similar Results and Effectiveness by the content, but difference is defined by factors A. Market Price on Goods, Services and Works that are taken into account when assessing tender with Improved Characteristics 1. Meet the needs in goods, services and works. 1. Meet the needs in goods, services and works. bids (see Table 1.3). 2. Protection and restoration of the environment. Price on products and services with improved 3. Increasing of human health safety. environmental characteristics may slightly 4. Greening of the national economy. differ in comparison with their less sustainable 5. Stipulation of market development for green and 1.2. KEY ASPECTS AND analogues. In these circumstances, spending environmental goods and services. more on “expensive greener alternatives” can be 6. Eco–innovations development and stimulation. PRINCIPLES OF THE perceived as unnecessary luxury. To avoid such SUSTAINABLE PUBLIC situations the procurer may use some strate- PROCUREMENT gies to optimize expenditures on goods, services and works with environmentally friendly features, Table 1.3 –Sustainable Procurement VS Green Procurement namely: Green Procurement Sustainable Procurement Procure of goods, services and works with account of Procure of goods, services and works with account 1. Procurement Optimization – decrease a their impact on the environment and human health of economic, environmental and social factors of procure volume due to minimize or optimize of Economic in comparison with traditional analogs (preference is production and consumption in their purchasing Social the consumption. For example, two–sided printing given to those who have less or no negative impact). decisions. Sustainable and electronic documents flow reduces up to procurement 50–90% of paper use. Reducing of negative anthropogenic impact and environmental risks on the Reducing of negative anthropogenic 2. Centralized Procurement – consolidation of impact and environmental risks on the environment. Environmenral state authorities and organization for the purpose environment. Reducing of negative anthropogenic of centralized procure of goods/service may impact and environmental risks on stimulate suppliers to make better offer due human health and living organisms. to increased volume of order. This approach is Using energy– and resource efficient particularly advisable for small organizations with Key Key technologies and approaches. Pic. 1.2. Pillars of the Sustainable Public limited resources. aspects Reducing of negative anthropogenic aspects Procurement Social responsibility of producers, e,g., 3. Stimulation of Producers – an introduction of impact and environmental risks on employees’ working conditions. human health and living organisms. The SUSTAINABLE Public Procurement strives to mandatory environmental and social criteria into achieve an acceptable balance between the three tender requirements encourages manufacturers/ Supporting of domestic producers and pillars of sustainable development: suppliers for looking of solution to meet criteria of manufacturers. price, quality and environmental protection. Economy → economic prosperity; Price, quality, functional specifications. Creation of new job places. 4. Buy services instead of goods - attempt to Price, quality, functional specifications. Environment → ecological balance; and reduce to total cost of ownership and hence seek to buy services rather than own goods. Society → social progress. 12 13 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

Mentioned above strategies do not describe all Traditionally, price is a main criterion for choosing YES NO The Sustainable Public Procure- Price on green products/services is available opportunities. Depending on different a supplier what may significantly complicate the ment is oriented on accounting of higher in comparison with non-green internal and external factors of the environment procurement process. Especially this problem is total life cycle costs of goods and commodities which may affect an organization it may use any typical for public institutions and authorities with services (as much as possible), other strategies and approaches to regulate limited insufficient funding. However, in many including “hidden” costs (e.g. YES market price. Chart below (Pic. 1.3) may be useful cases, specified price may not include "hidden" maintenance and operation costs, Are there any opportunities to minimize in choosing of best SPP optimal expenditures costs on goods and services during their life cycles costs for disposal/recycling). or optimize an order amount? strategy to leverage a market price on green prod- (e.g. cost of used product recycling, cost for over ucts/services. consumption of energy resources etc.). NO B. “Hidden” Costs Throughout Product/Service Thus in its most rudimentary form a whole life YES Life Cycle cycle cost of any product considers the four Are there any opportunities to order services instead buying of products? following elements: Purchase costs; Maintenance The purchase price of a product is a start of the and running costs to ensure effective perfor- cost of ownership. Maintenance and repairs may mance; Cost of in-service failure; Recycling costs. cost more the initial purchase price. An efficient NO - Create an inter-organisation maintenance process and low cost spare parts Depending on a product, their whole life cycle costs department for consolidated YES may help minimize cost. may vary in a great degree, as it shown below: purchases. Is it possible to consolidate with other - Develop an online platform for joint organizations to make centralized Product / Costs Pencil Passenger Car purchases. procure of goods/service? - Hire an outsourcing company. Purchase costs approx. 1 USD from 5 000,00 USD Maintenance and running buying of pencil sharpener, approx. vary between 3 000 and 8 000 USD NO YES costs 1 USD, which may be in use for many - Introduce mandatory environmen- pencils tal and social criteria. Are there any possibilities to ask a - Sign long-terms contracts. vendor for a better offer? Cost of in-service failure may equal to a cost of new pencil may equal to a hire of a replace- - Support local producers / manufac- buying ment vehicle turers. Recycling costs 0 USD depending on a legislation and YES (it is through away into a waste bin) price on a scrap metal Buy green products/services at best price Useful life of a product approx. 3 months 8-10 years Source: J.W. Bull “Life Cycle Costing for Construction” Pic. 1.3. Summary Chart in the Selection of the SPP Optimal Expenditures Strategy

C. Operational and Utility Costs packaging) can be an additional source of incomes Use of energy– and resource efficient technolo- (from 0.70 UAH per 1 kg of paper)). gies and services can significantly reduce oper- ating costs and utility bills. Also, the purchase of ENVIRONMENTAL ASPECTS OF THE SPP products with improved environmental perfor- mance reduces expenditures associated with their Environmental aspects reflect an impact of goods use and disposal (e.g., safe detergents improve and services production and consumption on the working conditions, preserve workers' health and environment (e.g., emissions to air, soil and water, reduce sick leave payments, packaging that is climate change, , natural resources suitable for recycling, reduce cost of its disposal; and reduction of water resources) and safety for centralized collection of used paper (paper waste, human health.

14 15 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

Catego- WHAT MAKES A PRODUCT Subcategories ries of “ENVIRONMENTALLY FRIENDLY”? Branch of sustainable Main environmental / social benefits goods and Requirements for green products directly related products This answer is rather complicated as it is neces- services to the climate, for example, relate to the use of sary to consider the multiple potential impacts to fossil fuels or energy consumption in the produc- Construc- 2.Heat 1. Organic Use as a basis for production of not less than 50% human health and the environment throughout tion process. Also, requirements may be less tion, building insulation heatinsulation of waste products of timber or agricultural waste the product's life cycle — from product raw mate- obvious, such as car tires where the require- materials materials materials (for example, cane, peat); without the content of rial extraction to manufacture through use and toxic substances; relatively good heat capacity and ment of low resistance during driving leads to and special disposal. For example, it is a product with less biological properties; fire safety a decrease in fuel consumption, which in turn equipment packaging or a product that is energy efficient or reduces the impact on the climate. 2. Mineral heat Improved safety performance relative to radioac- water efficient a product that can be disassem- insulation tivity and heavy metal content; without the content bled, a product without toxic materials etc. Impact on the environment and improved envi- materials of highly toxic substances; High heat capacity ronmental performance for each specific product The environmental features and benefits of green groups will be different. For example, for paints * Protective properties of paints and varnishes: resistance in various atmospheric conditions, heat products help to support environmental priori- and varnishes, cleaning products and heat insu- resistance, lightfastness, frost resistance. ties such as energy efficiency, , lation materials, there are specific environmental ** Chemical properties of paints and varnishes: stability under the influence of the atmosphere, habitat protection, reduction of greenhouse gas and social benefits for each sub-category (see aggressive gases, alkalis, acids, various chemical solutions, water, oils, oil, gasoline, emulsions, soap emissions, and so on. Table 1.4). solution. *** Physical and chemical properties of paints and varnishes: wear resistance, strength, hardness, Table 1.4 – Environmental and social benefits for paints and varnishes, elasticity, flexural strength, adhesion. cleaning products and heat insulation materials Catego- Subcategories ries of Branch of sustainable Main environmental / social benefits goods and products Life Cycle Assessment is used to analyses actual Of course, end–users do not necessary to analyze services and potential impacts at all stages of product/ all negative aspects of production and consump- Energy, 1. Paints 1. Paints and Good protective *, chemical ** and physical and chem- service life cycle (from “cradle” to “grave”) and tion of products. To know which one is better for Fuel and and varnishes based ical properties *** of a coating; the concentration of to assess environmental performance of goods, the environment and human health or possess Chemistry varnishes on polycon- toxic substances (by risk factors) is limited improved environmental properties consumers densation and services or works. may use eco–labels. polymerization resins For example, consider a life cycle of a graphite Eco–label identifies products or services proven pencil. Typically, cedar, graphite, water and pumice, 2. Paints and Reduction of emissions associated with the production of environmentally preferable overall, within a metal paint and wax are used to manufacture a varnishes based basic ingredients for organic solvents; good chemical ** and specific product or service category. More detailed pencil with an eraser on top. The metals are mined on natural resins physico-chemical properties *** of a coating. information on eco-labels and their types is given 3. Paints and Use of cellulose instead of organic solvents, which reduces from the ground as well as the graphite and pumice. in Sections 2.7.8. varnishes based the content and emissions of VOCs; renewable sources of The wood is harvested from a tree so to obtain this on cellulose raw materials for the production of cellulose and / or at least material deforestation must occur. The rubber is SOCIAL ASPECTS OF SPP ethers 50% of the content of recycled materials for the production harvested from trees which are typically found in of pulp; without the content of highly toxic substances Asian regions and take fourteen years to mature. Social aspects may include social justice and 4. Water-disper- Without VOCs and highly toxic substances; the use of water The metals are melted down and made into blocks, equality, safety and security, human rights and conditions of employment. Social component of sion paints instead of organic solvents provides the maximum reduction this process need an extreme heat. The paint is in emissions sustainable public procurement is a main differ- created from dyes and chemicals. Pencil manufac- ence in compare with green public procurement. 1. 1. Synthetic Use as a basis not less than 40% of substances of oleochem- turing is almost completely mechanized. Cleaning cleaning prod- ical (natural) origin; without anionic surfactants, which products ucts provides the ability for primary biodegradation of surfactants In addressing social issues the sustainable public The life cycle of the grey lead pencil includes procurement may be effective to: 2. Cleaning Use as a basis of not less than 80% of substances of following stages: raw materials extraction, manu- • Achieve high standards of working conditions; products on an oleochemical (natural) origin; Restriction of VOC content facturing, usage and disposal of used product oleochemical (boiling point of which is less than 150 0С), zeolites up to 15% (Pic. 1.4). • Develop innovations at the local level; (natural) basis

16 17 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

• Cut down trees • Mining of metals, • Energy pumice, clay powder, To assists countries and organisations THE MARRAKECH PROCESS aluminum and • Chemicals graphiteFuels Fuels FuelsFuels in gaining a common understanding of the Sustainable Public Procurement, The Marrakech Process is a global effort to promote prog- a set of Guiding Principles was devel- ress on the implementation of Sustainable Consumption RAW MATERIALS transport MANUFACTURING: transport USAGE transport DISPOSAL and Production (SCP) patterns. The process responds to ACQUISITION • Wood cutting oped by the Marrakech Task Force on the call of the Johannesburg Plan of Implementation from • Lead production Sustainable Public Procurement (MTF • Pencil assembly 2002 to develop a 10–Year Framework of Programmes on on SPP). These principles are based on SCP (10YFP), which will serve as a a global framework for the systematic step–by–step approach action on SCP. for introduction or further development of the SPP. These principles are for The Marrakech Task Forces are voluntary initiatives led by any stakeholder involved in the public governments, which – in co–operation with various part- procurement process with an interest in ners from the North and the South – commit themselves • Depletion of natural Emissions •Pollution of the air Emissions Emissions into Emissions • Waste sustainable public procurement and good to carrying out a set of concrete activities at a national or resources into the into the the air CO, into the • Wastewaters formation governance. regional level to promote a shift to SCP patterns. • Deforestation air CO, air CO, NOx, CHx air CO, • Landfills NOx, CHx • Soil pollution NOx, CHx NOx, CHx • Pollution of the environment Pic. 1.4. Life Cycle of a Graphite Pencils Source: adapted after “Life cycle of a pencil” Presentation by Raylene Reese. The Marrakech Task Force Principles on Sustainable Public Procurement

• Encourage environmentally innovative able Public Procurement is not only tightening of Principle 1: Good Combine and follow the essential elements of good public procurement (trans- public procurement is approaches and provide potential markets requirements and expanding of criteria for tender parent, fair, non–discriminatory, competitive, accountable, efficient use of public the sustainable public funds, and verifiable) and integrate with the three dimensions of sustainable devel- for environmental products; it may help local bids evaluation. procurement producers or service providers to gain compet- opment: social, environmental, and economic. Assess the full impacts of a purchase itive advantages at the national and interna- It is a new philosophy of the procurement organ- throughout the whole life cycle of a product/ service. tional levels; isation, where every participant understands and takes responsibility for the environmental and Principle 2: SPP imple- Promote the SPP best practices by using successful examples and cases. • Improve the image and confirm compliance social consequences of production and consump- mentation needs leader- with the principles of sustainable development tion (including manufacturers, suppliers and ship and corporate social responsibility in general. consumers). Principle 3: SPP contrib- Use the SPP to attain a wide range of government or organizational goals; to develop POSTULATES AND PRINCIPLES OF SUSTAIN- There are three basic axioms which are recom- utes to broad policy goals markets for sustainable innovative solutions and creation of green and decent jobs. ABLE PUBLIC PROCUREMENT mended to take into account during the integra- tion of sustainability principles into procurement Principle 4: SPP engages Provide an engagement of all stakeholders, including policy–makers, politicians, Practical experience shows that the Sustain- process, see below: all stakeholders customers, manufacturers, suppliers, contractors, procurers and civil society orga- nizations. The skills needed for SPP are communication and analysis, the ability to AXIOM 1 AXIS 2 AXIOM 3 influence, negotiation, and professionalism, an understanding of the market and of all the different sustainability impacts of the procurement process. The Sustainable Public The Sustainable Public Procure- The Sustainable Public Procurement Procurement is a tool for ment should be realized gradually requires reasonable implementation solution of environmental – step-by-step inclusion of mechanism that would allow, on the one Principle 5: SPP imple- SPP is based on a risk–based approach, continually reassessing and targeting and social problems. environmental and social criteria hand, to perceive incongruities between mentation is based on areas of highest impact or priority. The SPP as part of organizational management on products with the highest traditional and sustainable procurement sound organizational systems may help to make it a part of routine procurement practice. priority or most significant as a source of further development of management principles environmental performance. integration processes, on the other – to take a balanced regarding the interests Principle 6: SPP monitors Measure outcomes for tracking progress as well as identifying areas for improve- of various parties solutions and bring its outcomes and results ment. Outcomes may include both environmental and social performance. them to fulfillment.

18 19 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

GUIDING PRINCIPLES FOR SPP negative environmental impacts throughout the There are five steps, adhere of which may help IMPLEMENTATION life cycle of production and consumption of goods/ to develop the SPP Policy services, as well as evaluation of results. The Source: United States Environmental Protection SPP Policy determines a level of environmental Step 1. Investigate Sustainability Issues and Agency 1. Investigate responsibility and a scope of commitments to Needs: 1.1. Assess possible sustainability issues for the Sustainability The Environmental Protection Agency (EPA) in the protect the environment and human health. organization; USA has developed five guiding principles which Issues and Needs 1.2. Understand whether it is possible to fit provide a framework for making sustainable together environmental, social and economic purchasing. They are: Main tasks of the SPP Policy are to: processes; 1.3. Analyse benefits and risks of the SPP imple- • Environment + Price + Performance = Envi- 1. Provide a framework for long-term savings mentation. 2. Define ronmentally Preferable Purchasing (EPP) - through a whole life costing. includes environmental considerations as part Scope and Goals of the normal purchasing process. 2. Inform suppliers and vendors about “sustain- Step 2. Find Own Understanding of the Sustain- of Sustainability able vector” of organisation development. ability: • Pollution Prevention - emphasizes pollution 2.1. Define what the SPP mean for the organiza- prevention as part of the purchasing process. 3. Describe general requirements on sustain- tion; ability performance and provide a basement for 2.2. Define a vision and mission of the SPP; • Life Cycle Perspective/Multiple Attributes - inclusion of sustainability requirements in tech- 2.3. Set goals and objectives for the SPP decision- 3. Develop examines multiple environmental attributes nical specifications and selection/award criteria; making. throughout the service's life cycle. Guiding 4. Provide a basement for environmentally respon- Step 3. Develop Guiding Principles: Principles • Comparison of Environmental Impacts - sible consumption inside of the organization. 3.1. Identify good practice frameworks for compares environmental impacts when progressing sustainable procurement; selecting services. 3.2. Decide key questions which should be asked • Environmental Performance Information When develop the SPP Policy take into consider- during procurement processes in order to assist 4. Identify - collects accurate and meaningful environ- ation the following issues: strategic decision-making; tools and 3.3. Harmonise external and internal procure- mental information about environmental resources performance of products and services. 1. Support and Commitment – involve a senior ment drivers, including integrating environmental management to support the SPP integration. and social improvements.

HOW TO INTEGRATE SUSTAINABILITY INTO THE 2. Responsibility – identify individuals account- Step 4. Identify tools and resources: PROCUREMENT PROCESS able for embedding sustainability within the orga- Support staff by identifying the tools, tech- nization and the procurement process. To clearly define authority, responsibility and niques, monitoring arrangements, guidance, and resources that should be drawn upon. establish guidelines for the procurement proce- 3. Analysis – reflect an organization values, scope, Develop dures the Sustainable Public Procurement Policy and business ethics and include a commitment to Policy Step 5. Develop the SPP Policy: should be developed. continuous improvement. Develop an Action Plan to achieve defined goals The Sustainable Public Procurement Policy is a 4. Objectives and KPI’s – include Key Performance and objectives. governing set of intentions and principles, which Indicators and objectives to measure a progress. establish the general parameters for an organi- In order to ensure uniform regulation of rules zation to follow in carrying out its environmental 5. Communication and Review – communicate and procedures of tenders, definition of common responsibilities. with staff, key suppliers and other stakeholders in strategic goals and objectives for mobilizing of a consistent, concise and clear manner. financial resources, their rational distribution It aims to ensure the efficient use of budget and use to meet economic, social and ecologically resources together with reducing and preventing desirable objectives it is important to develop a Strategy of the Sustainable Public Procurement.

20 21 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

The Strategy of Sustainable Public Procure- 3. Communication and reporting – it is important ment is a plan of actions aimed to achieve specific to ensure a meaningful and consistent reports short– and long–term goals and objectives, with about achievements at different stages; an effec- 1. Identificate the purpose, priorities and objectives consideration of main vectors of the organizations’ tive cooperation between all departments and procurement process development including all employees within the organization, effective coop- aspects of its operations. eration between customers and suppliers as well as support from senior management. Development of the SPP Strategy requires: 5. Control and monitoring 2. Define priority product / A more detailed explanation of key steps of the service groups 1. Clear understanding of the nature and impor- sustainable public procurement process, inclu- tance of the SPP – any organization should well sion of environmental criteria into a tender docu- understand and realize short– and long–term mentation, drawing up technical specifications objectives in the context of environmental, social qualification (selection) of the suppliers, awarding and economic trends; a contract and specific conditions: contract performance clauses can be found in Section 2. 4. Develop an evaluation 3. Determination of sustain- 2. An Action Plan – a strategy must include specific methodology ability specifications actions and programs to achieve goals in practice;

Pic. 1.5. The SPP Strategy development process Source: The Green Business Booklet, International Labour Office 2015 Manisha Mishra, Sohina Singh and Arpita Goyal

1.3. THE LEGAL FRAME- The adoption of new Public Procurement Law facilitates the implementation of the EU-Ukraine WORK ON THE SUSTAIN- Association Agreement and the creation of an ABLE PROCUREMENT e-procurement system. It is a significant devel- opment in Ukraine’s fight against corruption by ensuring the transparency and accountability of The Law of Ukraine “On Public Procurement” the public procurement process. No. 1078–VIII, adopted in 2016, and the Law of Ukraine “On peculiarities of Procurement in Key regulations, which, together with the Laws of Certain Spheres of Economic Activity” No. 4851 Ukraine “On Public Procurement” and “On Pecu- from May 24, 2012 – are main legislative docu- liarities of Public Procurement in Certain Spheres ments which establish the legal and economic of Economic Activities”, form a legal framework foundations for the procurement of goods, works for regulation of the public procurement sector, and services to meet the needs of government include 3 resolutions of the Cabinet of Minis- and public authorities. ters of Ukraine and 8 orders of the Ministry of Economic Development and Trade of Ukraine. Main goal of these Laws is to create a competitive Apart from the specified documents, there are a environment in the field of public procurement to lot of resolutions of the Cabinet of Ministers of prevent corrupt practices in this field, to develop Ukraine and orders of other government authori- fair competition. Although these Laws do not ties concerning public procurement. require procurement to be sustainable, having environmental and social dimensions have been Although the Ukrainian legislation does not given further prominence. have a separate legal act that would support the

22 23 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

goods, services and infrastructure on the best II. Provide a sufficient support to the national and domestic businesses as they will not be able possible terms - it can also have broader social, local producers/suppliers. to meet the environmental and social criteria economic and environmental implications. incorporated in ‘sustainable tenders’. To avoid III. Development of an adequate sustainability any retards and to support national suppliers In Ukraine the public procurement has been used requirements with respect to current socio- the government should allow time for prepa- explicitly, without priority of social and environ- economic and environmental conditions of ration to new requirements as well as provide mental issues. Nevertheless this approach does country. consultations and lead time both when launching not allow introducing sustainability into decision SPP policies/programmes and when designing Study these challenges in details. making processes in practice and could not be pilot tenders. All these are essential to provide realized as a powerful tool for the greening of the I. Develop the SPP policies and programs which companies with the time to upgrade and seek out national economy. are correlated with the National Strategy on solutions to meet new sustainability demands in Sustainable Development and Greening of the a cost- effective manner. Sustainable public procurement practices National Economy. come differently in different national contexts. Preferential programmes for SMEs and busi- Depending on different factors the formalization The SPP policies and programs should be nesses owned by women, disabled persons and of the SPP is reached by using different tools, for aimed to explain public procurement cycles and minority communities are other important issues instance, by means of laws or policies to provide demonstrate how to apply sustainable procure- to start implementing the SPP. the legitimacy for implementation, clear direc- ment good practice throughout the purchasing tives and expectations to policy-makers and cycle. They have to demonstrate that sustain- In Ukraine, at the moment, draft normative legal procurers, successful subnational programs and able procurement can deliver local benefits such acts with the aim of implementing the basic provi- pilot projects which generate positive experience as cost efficiency and carbon reduction and are sions of Directive 2004/18/EC on coordination of and results to strengthen the SPP, etc. simply, good procurement. procedures for holding tenders for contracting for work, supply of goods and services have been Of course, the SPP may originate from other Moreover the SPP policies and programs should developed: instruments of policy-making entirely, such as contribute to resource efficiency and decoupling national sustainable development action plans, economic growth from environmental degra- • institutional reform in the field of public greenhouse gas mitigation efforts, initiatives to dation and resource use, while creating decent procurement has been carried out; increase the uptake of environmental technolo- job and economic opportunities, contributing to • the comprehensive roadmap for imple- gies and efforts to promote products/services poverty eradication and shared prosperity. implementation of sustainable public procure- from minority suppliers. Moreover there is no menting the provisions of the EU Directives ment, but the current legal framework has all the strict recommendation to completely change Ukraine is guided by the world trends of sustain- with time schedules and key step-by-step prerequisites for the implementation of the SPP legislative regime for implementing SPP. able development and defines an action plan results that include all the reforms related and provides many opportunities for customers Although the Ukrainian legislation does not for environmental protection that facilitates the to adaptation of legislation and the develop- to include environmental and social require- define directly to conduct the public procurement transition to a resource-efficient, low-carbon ment of institutional capacity has been devel- ments into tender documents. within sustainability scope, however it does not economy, the establishment of a competitive and oped. This is one of the first tasks to fulfill the limit such practices. market, the development of a requirements of the Association Agreement. sustainable consumption and production model, The road map is compiled in the form of a 1.4. IMPLEMENTATION OF Тhe three main challenges for representatives of enshrined in "On the Fundamentals (Strategy) of detailed obligation plan for the full transpo- government and business to provide successful the State Environmental Policy 2020". sition of the EU Directives on public procure- THE SUSTAINABLE PUBLIC implementation of the SPP in Ukraine there are ment with Ukrainian legislation and their PROCUREMENT IN UKRAINE three main challenges need to be managed in a effective implementation during the eight- proper way, namely, II. Provide a sufficient support to the national year period and coincides with the stages and and local producers/suppliers as well as to SME time-frames specified in Annex XXI of the I. Develop the SPP policies and programs which Practical experience of many public authorities and Minority Suppliers Association Agreement. In fact, the develop- are correlated with the National Strategy on who are widely implement public procurement ment of the road map means the development Sustainable Development and Greening of the Most of suppliers and producers typically express on the sustainable basis shown that in addition of a comprehensive strategy for reforming National Economy. their concern about that the SPP may hamper to the main function of the procurement - acquire the public procurement system, which is one

24 25 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

of the requirements of the updated in June suppliers and industry at whole to higher levels of 1.5. IMPLEMENTATION OF customers have expressed interest in approaches 2013 Agenda of the Ukraine-EU Association. correspondence of the sustainability goals. SPP, including the subject of the proposed project THE SUSTAINABLE PUBLIC procurement criteria (partially or completely). One of the obstacles to the implementation of SPP criteria for determining the sustainability of SPP is the low potential for modernization of products and services reflect the current criteria PROCUREMENT IN UKRAINE There were no purchases of the following production capacities, however, the government in Ukraine that is voluntary environmental certi- reasons: plans to provide state support to producers to fication and labeling (the sign "Green Crane") in On November 1st, 2017, Ukrainian Law «On protect the environment through credit programs accordance with ISO 14024. a) the absence of a supplier that meets the Public Procurements» established the require- that are implemented under Article 6 of the Law requirements of the criteria (no proposal is ment to include in competitive bidding documen- of Ukraine "On State Assistance to Business Individual environmental criteria based on the submitted that meets the criteria of constancy); tation the application of environmental protection Entities". At the moment, the Cabinet of Minis- results of the life cycle study and the best avail- measures (in public biddings and prequalifica- b) absence of competitors; ters of Ukraine is coordinating the draft Resolu- able technologies, approved by the relevant stan- tion). The Law also specified that competitive tion on the approval of criteria for assessing the dard are established for each product category. bidding documentation should contain refer- c) the proposal was given to the high price. admissibility of state aid to business entities in Environmental criteria for assessing the life cycle ences to standards defining the characteristics, the protection of the environment. This by-law set the requirements for raw materials, produc- requirements, symbols and terminology associ- establishes specific mechanisms to investment tion, finished products, packaging and packaging, ated with goods, works or services. According to state aid which gives the opportunity to apply transportation conditions, marking and informing this provision of the Law, purchasers can refer the business entities higher environmental stan- the consumer. Such requirements do not dupli- to standards that establish additional criteria for dards (criteria) or enhance the quality of envi- cate state norms, but reinforce and/or supplement the procurement of goods, works and services, ronmental protection in the absence of such them, which actually determines the advantage of including certain characteristics (for example, standards for the introduction of cleaner tech- environmentally certified products. At the moment energy efficiency, functional characteristics, nologies and resource efficiency, waste manage- in Ukraine, environmental criteria for assessing the biodegradation and other environmental char- ment, emissions, including greenhouse gases, life cycle for 54 categories of products are used, of acteristics), thereby ensuring environmental and discharges, improving the environmental which the standards of 3 categories for paints and protection in public procurement. performance of products at all stages of its life varnishes, cleaning products and heat insulation cycle, as well as other environmental aspects. materials are already used for SPP. Kyiv Palace of Children and Youth The first pilot tenders for sustainable public (Ukraine, Kyiv) In practice, enterprises that want to introduce procurement that included environmental III. Development of an adequate sustainability cleaner technologies and produce products with criteria in the technical specifications were The Kyiv Palace of Children and Youth is a unique requirements with respect to current socio- improved environmental characteristics are in launched under component 1.6 «Promotion of institution in Ukraine. It is a state-owned multi- economic and environmental conditions of the legal field and have no barriers to participate changing public consumption through the intro- disciplinary, out-of-school educational institu- country. in SPP. duction of sustainable public procurement» of tion, which unites almost 10,000 individuals ages the EU's regional support program for «Greening 5 to 21. Last year the Palace celebrated its 80th Balancing environmental and social performance As there are many questions and misunder- Economies in the Eastern Neighborhood» (EaP- anniversary of founding. across specification criteria, award criteria and standings concerning the SPP implementation, GREEN) in 2017. In total, there were 5 pilot contract conditions is no easy task, especially if appropriate training programmes are necessary. tenders for SPP in 2017. The Palace realizes out-of-school education in there is no real understanding and incentives on Training should be made accessible and commu- all areas defined by Ukrainian Law «On extracur- how market on environmentally preferable prod- nicated to all staff without regard of their educa- These pilots included the purchase of paint ricular education» such as: scientific and tech- ucts and services should be developed. tion and professional qualifications; staff should and expendable material for repair work by the nical, experimental, environmental-naturalistic, be aware of their training requirements. Trainings Kyiv Palace of Youth and the procurement of artistic-aesthetic, humanitarian, tourism and In this situation any sustainability requirements are aimed to study about sustainability perfor- various kinds of environmentally safe cleaners studies of local folklore, sports, military and should be correlated with such issues as current mance in the procurement process and demon- by the State Ecological Academy of Postgraduate patriotic, social rehabilitation, and health. The environmental legislation, social standards and strate how they might use the many tools and Education and Management. network of sections includes 60 branches of industry development level. And the SPP should guidance materials that are available are also far education and 250 academic subjects. Unfortunately, there were customers, whose provide a clearance for tightening of the sustain- from easy. ability requirements for pulling of domestic tenders for SPP have not taken place. These

26 27 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

Procurement Subject:

Floor cleaner, window cleaner, toilet cleanser, universal cleaning powder, liquid hand soap Code DK 021-2015: 39830000-9 - Products for cleaning Delivery date: November 01, 2017 - November 30, State institution "State Ecological 2017 Academy of Postgraduate Education and Motivation: "promoting sustainable procurement, Management" (Ukraine, Kyiv) starts with yourself", reducing the impact on the state of aquatic ecosystems and human health, The State Ecological Academy of Postgraduate reducing consumption waste. Education and Management is the leading orga- nization of the Ministry of Ecology and Natural Criteria for technical, qualitative and quantita- Resources of Ukraine in the field of educational, tive characteristics of the subject of procurement, scientific, practical and methodological work on including environmental sustainability criteria environmental protection, rational use of natural resources, environmental safety, environmental The cleaning products must meet the following Procurement Subject: Śnieżka Design Lux bucket 13.5 kg at a price of impact assessment, standardization, certifica- requirements: 750.00 UAH/a bucket tion and metrology. Paint and expendable materials for repair work. • Technical regulations for cleaning products; Śnieżka Eco bucket 20 kg (15 l) at a price of 492.00 Code DK 021-2015 (CPV) : 44810000-1 – Paints The Academy is the national coordinating orga- UAH/a bucket nization for the implementation of component • the hygienic standards; Date of the tendering: 24.07.2017 1.6 "Delivering sustainable development and These paints passed the ecological certification • the normative document, which establishes Delivery time: 26.07.2017 - 27.07.2017 enabling the transition to greener economies under the scheme according to DSTU ISO 140241 the technical conditions for production (DSTU, through sustainable public procurement" of the in the Ukrainian system of ecolabeling and were TU). The Place was selected to participate in the pilot EaP-GREEN programme. because it is very important for educational insti- labeled by the ecological label «Green Crane». tutions to create the most safe and quality envi- The ecological certificate UA.08.002.337 and the assessment protocol confirmed the compliance ronment for their students. Name of a good Technical specifications Quantity of the paint with the requirements of the environ- In the procurement of paints for routine repairs mental criteria of competitive bidding documen- Synthetic cleaning Universal washing powder for machine washing 80 kg of the Palace in 2017, the tender committee tation in full. product (concentration of hydrogen ions pH is 9.5-11.5, established the requirement of technical speci- washing capacity in relation to the standard fications, whereby the supplier must confirm the Cost of purchase: 44 532.00 UAH. is not less than 85%, ecological compatibility of the paint. bleaching power in relation to the standard More information about the purchase is on is not less than 95%, The Motivation was to take care of the quality of https://www.dzo.com.ua/tenders/1312380 the foam capacity is not more than 20) the environment of the institution's participants and compliance with the highest standards of Cleaning product Cleaning powder is packaged in consumer containers of 0.5 kg 25 kg safety. for hard surfaces

The contract was awarded to Beliy Maksim Toilet cleanser Cleaning fluid packed 24 l Yurievich, an entrepreneur, who proposed the in 1 liter of consumer packaging 1 DSTU ISO 14024: 2002 Eco-labeling and declarations. Eco- supply of ecologically certified paint TM Śnieżka labeling of I type. Principles and methods (ISO 14024: 1999, (Ukraine). Dish washing product Dishwashing product packed 5 l IDT) in 0.5 liter of consumer packaging

28 29 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

presence of eco products in the Ukrainian market at UKRAINE WILL CONTINUE TO BUILD a competitive price is the beginning of the destruc- THE POTENTIAL FOR SUSTAINABLE tion of the myth of its unattainable high price for PUBLIC PROCUREMENT purchasing by budget organizations.

TORTILLA ECO Universal agent for cleaning, 500 ml According to Article 152 of the Ukraine-EU Asso- at a price of 23.34 UAH/a bottle ciation Agreement, until 2019, Ukraine is obliged to introduce into the procurement system at the TORTILLA ECO A glass and mirrors cleaning agent, legislative level to 2019 requirements that will 450 ml at a price of 25.34 UAH/a bottle ensure greater integration of environmental and TORTILLA Toilet cleanser, 450ml at a price of 23.34 social criteria on the basis of relevant standards UAH/a bottle to executors of contracts or to goods purchased for state needs, services or works, including: TORTILLA ECO Powder for cleaning surfaces, 500g at a price of 18.66 UAH/a bottle • standards for product quality certification and international eco-labeling standards These cleaning products passed environmental (Articles 74 and 77 of Directive 2014/24/EU); certification according to DSTU ISO 140244 in the Ukrainian system of ecolabeling and were labeled • requirements and methods for determining by the ecological label «Green Crane». The envi- the cost of purchased goods, works and ronmental certificate UA.08.002.421 and the evalu- services in calculating their full life cycle and ation protocol confirmed their compliance with the additional costs for environmental, social requirements of the environmental criteria of the and technological consequences of their use Additionally, the ecological characteristics (toxicity, Packaging or consumer packaging had to be tender documentation in full. (exploitation) (Articles 31, 68, 78-82 of Direc- dosage, ingredients, biodegradability) had to meet marked with (a label? indicating) the origin of the tive 2014/24/ EU); the requirements of the criteria in accordance material from which it was made in accordance Cost of purchase: 953,28.00 UAH. with DSTU ISO 14024 (SOU OM 08.002.12.065:2016 with DSTU 4260 3. • special conditions for procuring goods and Washing and cleaning products, environmental More information about the purchase is on https:// services procured to support the employment life cycle assessment criteria)2. Materials for packing had tobe free of polyvinyl- prozorro.gov.ua/tender/UA-2017-10-18-000880-b of socially disadvantaged persons, persons chloride, polystyrene, polycarbonate or other with disabilities, as well as for the provision Compliance had to be confirmed through the chlorinated or halogenated materials. of specialized services by creative associa- 4 provision of appropriate documentation (decla- DSTU ISO 14024: 2002 Eco-labeling and declarations. Ecola- tions or non-profit organizations in the field rations of conformity, conclusions, certificates of Packaging or consumer packaging also had to bels of I type. Principles and methods (ISO 14024: 1999, IDT) conformity). be suitable for recycling and not be processed in such a way that it may interfere with their recy- Participants Original offer, Final offer, UAH Furthermore, the goods had to be delivered in cling. UAH with VAT with VAT a container (package), which corresponded to The winner of the competitive bid was LLC the conditions, nature and characteristics of the SIRENA PLUS LTD 953,28 953,28 «SIRENA PLUS LTD», the producer of environ- goods in accordance with the requirements of (TM TORTILLA) current legislation. mentally certified detergents TM TORTILLA (Ukraine). An individual entrepreneur, 2 973,00 2 100,00 2 This standard takes into account all the requirements of «Malinowski Alexander L.» European legislation for the production of chemical products The offer of ecologically certified products of the and the requirements of Commission Decision EU 10/02/201 domestic producer was almost two times lower BGM LTD 2 901,84 2 118,00 of 28 April 2011 on establishing the ecological criteria for the than other offers of non-certified products. The award of the Ecolabel EU Detergent Ingredient Database (DID -list) Part A in combination with the criteria of The Nordic 3 DSTU 4260: 2003 Packaging and packaging for consumer TRADE COMPANY CONSTRUCTION LTD 2 610,30 2 125,00 Swan Ecolabel's Requirements (Nordic Swan). labels. General requirements.

30 31 SECTION I SUSTAINABLE PUBLIC PROCUREMENT: INTRODUCTION

of culture, health care and social assistance 5. Successful implementation of the SPP depends to the (Articles 20 and 77 of the on many factors, however, the public procurement Directive 2014/24 / EU); MAIN IDEAS becomes a de facto investment incentive as it ensures investors that domestic demand for their • division of the total volume of purchases products and services will be remain scaled up in into lots (the principles of the customer's the longer term. substantiation of the inability of lots and the 1. The Sustainable Public Procurement is a cost– possibility of concluding a contract for more effective and environmentally sound procurement 6. Key procurement staff should receive basic than one lot with the same participant in the approach, which takes into account actual and training in Sustainable Procurement principles. procedure), in particular, in order to create potential risks of production and consumption in conditions for the participation of small and order to provide efficient spend of budget money, 7. Key findings show that potential increases in medium-sized businesses in procurement focusing on the needs of sustainable development purchasing costs can be mitigated by: procedures (Article 46 of the 2014 Direc- and protection of the environment. • well directed supplier consultations that will tive/24/EU). 2. The Sustainable Public Procurement is an effec- help procurers determine where to set the The above mentioned obligations are reflected in tive tool to protect and restore the environment, sustainability performance bar (not too low the Strategy for reforming the system of public promote energy and resource–efficient production so as to distort markets but not too high as to procurement ("Road Map" (approved by the order techniques, create and/or increase market share crowd out domestic suppliers); of the Cabinet of Ministers of Ukraine dated of environmentally friendly goods and services, • providing markets with adequate lead times(as February 24, 2016, No. 175-p). provide incentives for the development of environ- mental innovations and green investments. It is discussed earlier in this paper); important to note that government agencies and • bulk buying to stimulate economies of scale; other organizations may not only provide them- selves with safe and quality products, but also indi- • using and establishing central procurement rectly encourage suppliers and manufacturers to platforms (that can negotiate bulk discounts environmentally responsible business activities. with suppliers, warehouse large volumes and dispatch smaller quantities to individual enti- 3. The SPP stimulates to scaled-up and long-term ties on demand). demand for environmentally preferable goods, services and infrastructure and this serves as an incentive for sustainable industrial development.

4. Balancing environmental and social perfor- mance across specification criteria, award criteria and contract conditions is not easy to do and requires in-depth specific approach in evaluation of these requirements together with economic performance.

It is well established that purchasing greener products can help users reduce water and energy consumption as well as lower waste management and maintenance costs. Incorporating design for environmental aspects into infrastructure will also provide for more user-friendly and more durable assets

32 33 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

Open tenders and competitive dialogues are priority services. Procurements above the threshold competitive procedures, while the negotiating the value must fulfill specific requirements in order to purchase procedure is a non-competitive one. use the negotiated tender procedure. Negotiated 2.1. PUBLIC tenders are characterized by the parties having the All public procurement tenders should be produced opportunity to negotiate all aspects of submitted PROCUREMENT through the e-procurement system. The e-procure- tenders as part of the tendering process. This also PROCEDURE: ment system is a key future of the government’s means dialogue and negotiations related to the SECTION II anti-corruption efforts and will bring much needed offered solutions and their characteristics, as seen THE ESSENTIALS transparency and fairness to the process of govern- in the context of the need the contracting authority ment tenders, thereby improving the overall busi- seeks to meet. ness and investment climate. PUBLIC PROCURE- The Open Bid Tender is a principal procurement The procedure of sustainable procures of goods, procedure. All interested parties have the right to 2.2. KEY STEPS OF THE works and services should comply with the general submit bids in the open procurement procedure. MENT PROCEDURE principles and rules defined by the relevant legis- SUSTAINABLE PUBLIC lation of Ukraine. The awarding of public procure- Environmental requirements for the object of PROCUREMENT PROCESS IN THE CONTEXT OF ment contracts is strictly regulated by laws that procurement should comply with the in force laws aim to protect both the procuring entity and the and procurement objectives. The customer may SUSTAINABILITY bidder. change a ratio “price – quality” with consideration Sustainability principles should be integrated into of the environmental aspects or any important the overall procurement process. They can be incor- A public tender is mandatory if the contemplated limitations of various environmental impacts at porated into the whole procurement process and procurement reaches over exceeded: the development of requirements for the technical the insertion of sustainability criteria may relate to specifications of procurement subject. all stages of the procurement process (including • 200 000,00 UAH - for procurement of goods or bidder selection procedure, technical specifica- services; Competitive Dialogue Tender is a new procedure tions definition, evaluation of bidders, awarding of for awarding public contracts, introduced by the • 1 500 000, 00 UAH - for procurement of works contracts, auditing of supplier performance, and new Law of Ukraine “On Public Procurement”. Key Challenges (e.g., civil works). finally on-going contract management). It is impor- tant to understand a portion of sustainability issues It is meant to allow a public entity which knows what • What are key steps of the Sustain- If the procuring entity has intention to announce which may contribute into the “value for money” outcome it wants to achieve in awarding a public able Public Procurement process? a tender, it is a vitally important to determine the proposition. contract but does not know how best to achieve it requirements of tender regarding the subject of • How to include the sustainability to discuss, in confidence, possible solutions in the procurement (goods, services, and works) consid- Environmental criteria can be included in tender criteria into tender documents? dialogue phase of the tender process with short ering subject’s functions, costs and available documents without contravening national legisla- listed bidders before calling for final bids. This need budget according to the current legislation. tion, as long as these principles are followed. • What tools are available for provi- to keep options open can stem from technical, legal sion of the SPP? Unlike the previous version of the Law on public or financial issues such as alternative design solu- Generally, a typical procurement procedure procurement, which sets out five various public tions, risk allocation arrangements and so on. includes few steps which may vary depending on procurement procedures, the Law of Ukraine “On various factors: Negotiable Procurement Procedure allows nego- Public Procurement” adopted in 2016 provides tiating directly with suppliers in order to award a form a procurement team → define needs and for only three (two-step bids and request of price contract. It is a procedure which should only be demands → develop tender & evaluation criteria offers were eliminated), namely: used in limited circumstances, for example in cases → issue of tender invitation → pre-qualification • Open Bids; of extreme urgency or when an open or restricted of bidders → evaluation of bids → selection / procedure has been discontinued. awarding of winner bidder → contract signing. • Competitive Dialogue; and Negotiated tenders can be freely used in procure- As mentioned sustainability aspects may be incor- • Negotiable Procurement Procedure. ments below the threshold value and for non- porated in one or more of the procurement stages

34 35 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

may include additional criteria, e.g., environmental Table 2.1 – Demand Analysis – Example of Questions criteria, or during the evaluation procedure bidders should demonstrate their correspondence to the Questions to Consider Yes / No desirable sustainability requirements defined by 1. Do you really need to purchase some good or service, or can the need be met in another customer. way? Consider each step of the procurement process • Is a suitable good/service already available within the organization? in details where the sustainability aspects may be • Can existing assets be refurbished, repaired or upgraded to meet the need? integrated (pic. 2.1). • Are there other options for meeting need (e.g. reuse, borrow, and swap)? • Can the need be met in partnership with another organization? STEP 1. Demand Management and • What will avoid the need for this good/service? Market Analysis 2. Can you reduce the quantity or scale of the goods or service whilst achieving the same service delivery? This stage is all about information gathering. • How do the goods or services contribute to service delivery? Are we automatically replacing Identify what are current needs of the organiza- based on past procurement patterns? tion (goods, services, and their amount) – in other • Are specifications based on actual requirements, ensuring that they are not over-specified? words, conduct a demand analysis; and re-think • Are improved technology options available? about opportunities for demand reduction and consuming less. During demand (needs) analysis, • Are there options for behavior change in relation to consumption of this goods or service? consideration should be given to the procurement 3. Can alternative goods or service be used to meet this need? where the “need” can be met by a more sustainable • Is there another more sustainable good or service available that can serve the same alternative. purpose? Have there been any technology improvements? • Could a service be used to meet the need instead of a good? depending on sustainability policy and goals of an By involving cross-functional stakeholders in this organization. For example, pre-qualification stage process and utilising their expertise organization 4. Can the goods/service be specified to have improved sustainability outcomes, including may foresee an invitation of only those suppliers who may find a way to optimize orders. The questions in being able to serve a useful purpose after its initial use? meet specific sustainability requirements; specifi- Table 2.1 may be used as a guide or a prompt when • Can the goods or its key components be reused, refurbished, repaired, recycled, composted? cations (mandatory and/or optional requirements) analysing the need for goods and/or services. • What specifications could be included to reduce the use of resources (such as energy, water or consumables) during the useful life of the goods? 1. Demand Management and 5. What information is available regarding sustainably-preferable options for this purchasing Market Research requirement? Where can more information be obtained about suitable alternatives? 6. Performance Monitoring 2. Sustainability Require- • Is there an environmental officer/sustainable procurement expert within the organization? ments Development • What information is provided by suppliers? • What external sources of information are available, (e.g. other government bodies, trade organisations, NGOs, research institutes)? 5. Evaluation of Bids and 3. Introducing of the Envi- Awarding Contracts ronmental Criteria into To research the options available in the market- • More informed contracting authority; Tender Documentation place and clarify requirements which are adequate 4. Evaluation and Selection to the suppliers’ capacity an in-depth market anal- • Allows for the identification of opportunities to of Suppliers ysis is required. advance Government priorities.

Pic. 2.1. Key Steps of the Sustainable Public Procurement Process There are a number of reasons for analysing The market analysis should be conducted with Source: adapted from The Procura+ Manual Third Edition supplier markets: respect of the following important factors as shown in the Table 2.2. Choose those factors or add another Further 6 steps for the integration of the joint venture into the procurement are described in detail in this section. • Better knowledge of supplier strategy; which have high impact on supply of environmen- Also, details are given regarding one of the most significant Step (3) according to the specifications/criteria. It is tally preferable products and services. aligned with the rest of the steps regarding the evaluation and conclusion of contracts. • Manage risk to the contracting authority;

36 37 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

Table 2.2 – Market Profile of the Suppliers Actions Guide of Environmentally Preferable Products and Services Customer Supplier Factors Key Issues 1. Make a list of goods, services or works for procurement. Actually, no actions. Market Sector What is the market in which the suppliers operate? 2. Demand analysis - clarify “needs” VS “wants”. Tips for Suppliers: What is the national and local supplying market structure on the environmentally 3. Evaluate opportunities for reducing demand. Avoid or 1. Think about opportunity for development in preferable products and services? reduce consumption, by finding other alternatives. terms of progressing sustainability and .

What are market drivers and barriers on supplying of the environmentally pref- 4. Undertake a market research. 2. Focus on driving sustainability objectives and erable products and services? influencing the market supply. 5. Dialogue with suppliers before and during the definition Suppliers in the Market How many suppliers of products and services with environmental features are of criteria. 3. If possible consider improvements for the supply there in the market? base.

Which suppliers are the market leaders and which are the market followers? STEP 2. Sustainability Requirements Development • The overall approach to market with regard to What are market opportunities for supplying of products and services with envi- sustainability for the goods or service. ronmental features? All contracts require specifications that describe the need to be fulfilled through the contract. A detailed This stage is a key to ensuring that the outcome What are market conditions for domestic suppliers? scope of requirements and specifications to prod- fully satisfies the needs, presents significant scope Product & Service Supply What environmentally preferable products and services can the market offer? ucts and services should be developed according to to drive the sustainability agenda with suppliers, the needs of organization. demonstrate leadership on SPP. The analysis of the What is a market share of the selected products/services? sustainability priorities and objectives may help to Sustainability specifications should usually reflect define sustainability specifications associated with What is the level of environmental product differentiation between firms? the following issues: the impacts, see Table 2.3.

What are the new technologies? What environmentally friendly technologies are • The sustainability priorities and objectives for Identification of specification is not a simple task, available in the market? Whether these technologies are available for national the procurement; but it is extremely important to ensure that orga- and local suppliers? nization gets what it needs at the optimum cost, • Potential sustainable procurement responses whilst maximizing sustainability. When developing Government’s Purchasing What does the government represent as a purchaser in relation to the supplying for addressing the prioritized sustainability Power specifications it is important to distinguish between market? objectives, including consideration of the stage product requirements and product preferences and of the procurement process at which the identi- What does the government may do to support national and local suppliers of envi- build in tolerances for suppliers to adhere to, not fied sustainability impacts will be addressed; ronmentally preferable products and services? restricting the supply and build cost into a product. Law and Regulations What are the laws and regulations governing the market on products and services Table 2.3 – Sustainability Specification Identification Template with environmental features? Sustain- Opportunity to Scope to improve Sustainability Source: adopted from Background Paper Procurement, The World Bank, 2015. ability influence markets (high, medium, Priority Specification impact (high/medium/low) low) Energy Use Medium High High Consumption of The purpose of conducting a market analysis in potential of the supply base to move towards, energy during use: regards to sustainable procurement is to: and advance, best practice; should tend to reduce • develop an understanding of the current level of • determine the degree of influence the agency Toxic Waste Medium High Low – Low content of identi- capability and performance in the market with has within the supply market to drive sustain- Medium fied toxic substances regard to sustainability, and the capacity and able procurement objectives. within product: should tend to decrease

38 39 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

STEP 4. Evaluate and Select Suppliers Actions Guide Prequalification of prospective bidders is used Customer Supplier to ascertain who meet specific criteria, and have 1. Define basic qualification criteria for bidders.* Actually, no actions. the necessary capabilities to completely meets customers’ needs. Evaluate a range of suppliers 2. Prepare information about the required technical, qualitative and quantita- Tips for Suppliers: to determine which have the highest likelihood of tive characteristics of the procurement object, including the relevant technical meeting specified needs and requirements. These specifications. Think about capacities to suppliers are then invited to bid for the contract. improve sustainability char- 3. Rethink and revise specifications in order to improve sustainability outcomes. acteristics for products and It is recommended to have a structured and logical 4. Define specific environmental or social criteria. Specify key quality or perfor- services to be ready for new supplier evaluation process. mance standards market challenges. *The procuring entities may establish the following qualification criteria: Actions Guide • Availability of equipment, resources and technology; Customer Supplier • Availability of relevant qualified staff with necessary knowledge and experience; • Availability of the documented experience in performance of similar contracts; 1. Describe an evaluation methodology. 1. Provide any additional or necessary information • Financial standing (the balance sheet, the profit and loss account, the cash flow statement, the statement about improved characteristics of products or environ- from the bank confirming non-existence (existence) of debts under loan agreements). 2. Select appropriate suppliers mental advantages of services/works.

STEP 3. Introducing of the Environmental Criteria • The subject matter of the contract; STEP 5. Evaluate Bids and Award Contracts into Tender Documentation The bid evaluation process is distinct and sepa- • The technical specifications for the product/ Once the tenders are submitted, bids must be eval- rate from the supplier selection process. The bid Tender documentation traditionally contains infor- work/service; uated and validated in order to select the preferred evaluation is usually always made on the basis of mation about volumes, service level agreement and supplier. Whether tendering contracts for the supply best Value for Money, this is defined differently by terms and conditions along with a detailed speci- • The selection criteria for candidates; of goods or services, tender evaluation should be different organisations. The bid evaluation process fication to ensure consistency on pricing, product • The contract award criteria; carried out in a structured, disciplined and trans- must provide a fair, transparent and accountable quality, operational functionality and that product parent manner. method for evaluating supplier bids on the basis are fit for purpose. • The contract performance clauses. of balancing sustainability and other non-financial SPP requests to explore price comparisons along- factors with cost. This is best applied and demon- Sections of a tender document where environ- These stages will be described in more detail in the side technical capability, capacity, quality of service strated by the use of a properly constructed bid mental criteria can be introduced are as follows: following chapter of this handbook. and sustainability performance. Whole life costs evaluation model. should also be considered including the decommis- Actions Guide sioning, removal or disposal costs.

Customer Supplier Actions Guide 1. Develop a Tender 1. Read all documentation carefully. Documentation. Customer Supplier 2. Check own capacity and capability to deliver the contract. 2. Introduce envi- 1. Describe an evaluation methodology. 1. Ensure timely comple- 3. Check whether it is possible to meet all the pre-conditions. ronmental require- tion of contract signing and ments and criteria 4. Answer all questions, appropriate to how they have been asked (explain, confirm, 2. Define performance measures and reporting requirements. administration. where it is possible outline) and take into account their weighting. / necessary 3. Reach agreement on terms via negotiation, if applicable. 5. Show how it is possible to add value. Is it possible to offer more than supplier is asking for? Explain competitive advantages, if available. 4. Ensure timely completion of contract signing and administration.

6. Submit offer on time. 5. Keep all participants informed.

40 41 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

STEP 6. Contract Performance Monitoring specific construction materials, and the installation Purchase of food (or a certain food product group) of energy efficient heating and lighting systems. At Where a contract includes sustainability, public coming at least partially from organic sources. the same time, they may demand to execute of the authorities must monitor contractor compliance works, taking into account environmental consid- Purchase/Purchase and installation of water-based with identified provisions. erations, for instance, requirements relating to heaters with low environmental impact. In order to measure the benefits associated with energy and water use or waste management and sustainable procurement, it is vital that related The construction of new office buildings to high disposal on and around the construction site. performance measures and reporting require- energy and environmental performance standards. Service contracts. Environmental considerations ments are specified in the tender document. or The carrying out of major renovations to existing office buildings to high energy and environmental may be taken into account in the mode of performing performance standards. service contracts. A specific method of cleaning build- Actions Guide ings, using only products that are the least harmful to the environment may be prescribed. Segregation Customer Supplier in the collection of household waste for re-cycling or It is important to understand that recalling on any efficient disposal may be prescribed. It can be required 1. Performance measures and reporting requirements. 1. Ensure timely completion of reports. sustainability and/or environmental aspects in the that, for instance, public transport services are to be subject of the contract should not include all exact carried out by energy efficient vehicles. environmental or other additional requirements 2.3. INCLUSION OF ENVIRON- 2.3.1. THE SUBJECT (advisable describe this information in the tech- TIPS nical specifications or award criteria). It should MENTAL CRITERIA INTO A OF THE CONTRACT clearly states to potential bidders the intention of How to define the subject of the contract based on TENDER DOCUMENTATION the contracting authority to buy goods and services the sustainability manner? with improved characteristics, e.g., environmentally friendly, environmentally safe, energy efficient etc. 1. Without fail mention about intention to buy goods/ services/works with specific features, but do not Unfortunately Ukrainian legislation on the public Subject of the contract reflects what exactly goods, There are few differences when include environ- indicate all details. procurement does not define clearly where and how services and works are going to be purchased by mental considerations at the definition stage for sustainability criteria can be introduced in tender the public authority. Procurement laws do not limit the different types of contracts: works, services and documents in contradistinction to EU legislation. organisations' needs in general, thus proving a free goods supply. choice to authorities to choose suppliers which For example, However there are no any restrictions which may meet their demands and requirements within the Goods supply contracts. The public procurement limit to apply sustainability criteria as long as Contract for environmentally safe cleaning services limits of the budget. laws do not prescribe in any way what contracting basic procurement principles are followed. Envi- including selective waste collection. authorities should buy and are consequently ronmental criteria can be included in tender docu- Subject of the contract as a key element in contract neutral as far as the subject matter of a contract is Contract for energy efficient computers and IT ments without contravening national legislation, formation should state all important sustainability concerned. Environmental awareness can influence equipment. and this fact allows practicing public procurement considerations, which are to be taken into account this choice. For example, rather than purchasing on the basis of sustainability principles. in a procurement process. And in this case a trans- new printers for every desk, a contracting authority parency of the procurement procedure will be might consider a contract for shared printing facili- Drawing on the experience of EU and the Procure- achieved. ment Directives there are few sections which may ties incorporating up-to date energy and paper 2. As all Procurement laws are less concerned with be modified for the purpose of the SPP: saving features. WHAT contracting authorities buy than HOW they buy it, it is recommended to strictly follow all the • The subject of the contract; Examples of correct definition of the contract Work contracts usually include the supply of goods guiding principles of the public procurement. subject for the SPP: as well as the design∕ execution of the works. That • The technical specifications for the product/ is why it is recommended to consider environmental Contracting entities shall treat economic opera- Purchase of environmentally friendly all-purpose work/service; aspects at all stages of this contract. For instance, tors equally and non-discriminatorily and shall act cleaning products. contracting authorities may demand to design a in a transparent way (Article 2 of the Procurement • The qualification and award criteria, specific Purchase of high efficiency lighting equipment low-energy consuming administrative building, Directive and Article 10 of the Utilities Procure- conditions of the contract performance. (lamps, ballasts, luminaires). taking account of insulation standards, the use of ment Directive).

42 43 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

3. Do not use unsubstantiated claims and environ- to translate intentions into measurable technical mental marks which have no formal recognition. specifications what the product/service must meet. Specific conditions (also called contract perfor- For example: General descriptions purporting to suggest envi- mance clauses) may be included in the contract to ronmental soundness, such as "environmentally The principal purpose of drawing up technical spec- specify how the contract is to be performed. Under It is discriminatory to demand “certified FCS friendly" and "comes from managed forests", are ifications is to ensure that the contracting authority current EU legislation, there is no expectation that paper”, or “certified Nordic Swan heat insulations”, meaningless if unexplained. purchases products/services/works that it sets out ability to comply with such clauses will be assessed however the contracting authority may indicate to procure. Including of specifications relating to before the tender is awarded, therefore ability to “eco-label certification”. The most relevant principles for the public procure- environmental and social considerations means comply cannot form the basis of advance exclusion. Plastic parts heavier than 25g shall have a perma- ment in the EU are the following: that tenderers who is not able to comply with them Source: Identifying Opportunities for Sustainable nent marking identifying the material, in conformity will be excluded from the tendering process. • The principle of goods movement freedom; Public Procurement Briefing No.5: Technical Speci- with ISO 11469: 2000 or equivalent standard. • The principle of freedom to provide services; If the contracting authority is seeking to procure a fications product that has a low impact on the environment, • The principle of non-discrimination; it might look at the impacts that occur during the b) Performance or Functional Requirements • The principle of equal treatment; production, use, and disposal phases of the prod- In this approach, the procurer defines only desir- • The principle of proportionality; uct’s life cycle and wish to make specifications able or demanded properties or characteristics of relating to each of those phases. For instance, the There are few approaches to define technical • The principle of transparency. products/services without detailing of the technical contracting authority is going to order a cleaning specifications including environmental and social specifications. An example of such a specification service with low impact on the environment and, considerations: could be the following: “Indoor air conditions in a that's why technical specifications may include building: inside temperature between 18-22° C For example: assessment of impacts that occur during different a) Environmental Standards and Eco-Label during winter and 26-28 °C during summer and a stages of the service’s life cycle and wish to make Criteria: relative humidity of 50%”. In this case, the bidder You can write that you want to purchase “Environ- specifications relating to each of stage. mentally safe cleaning products and detergents”, • Use current national or international stan- may choose any method for achieving the require- but you cannot state “Cleaning products and deter- dards (e.g., environmental standards) to define ment without having to follow very specific tech- gents supplied by national producers only” as the exact requirements that the product/service nical specification for the heating/cooling systems definition of national is discriminatory – it does not What’s the difference? must correspond. Also, each reference shall be that will be used. allow the free movement of goods. accompanied by the words ‘or equivalent’, as Technical specifications are used to define the c) Production and Process Methods the procurer cannot reject a tenderer who can You can write that you want to “Purchase of energy subject matter of the contract more specifi- prove that their product or service meets the efficient imaging equipment with reduced envi- cally. Ability to meet the technical specifications Procurer may develop criteria with respect to any ronmental impact”, but you cannot state that you is a prerequisite for being considered a candidate standards mentioned in an equivalent manner. specific materials as well as the process and produc- want to buy “Energy Star certified imaging equip- for the contract. Technical specifications can be tion method of the products. This approach is espe- • Use environmental criteria of the eco-labelling ment” as you are discriminating, not giving equal defined in relation to technical standards or perfor- cially useful if there are few available methods for schemes. These criteria should clearly define treatment to all proposals because you demand a mance/functional requirements. productions and consumption of products/services. specific certification. a distinction in environmental performance in Award criteria enable the contracting authority to comparison to average products in the same For example, you can demand that paper is produced compare the relative advantages of different combi- category. Of course, eco-labels can also be used without the use of chlorine (TCF); food is organically nations of criteria. The criteria are weighted and to prove compliance but you must always allow produced (without the use of chemical pesticides each tender is scored on the basis of its satisfac- other means of demonstration. and fertilizers) in compliance with EEC Regulation 2.3.2. DRAWING UP TECH- tion of each criterion. Ability to meet all the award 2092/91 of 24 June 1991 and 1804/99/EC.; elec- criteria is not a prerequisite for being considered tricity is generated from renewable sources. NICAL SPECIFICATIONS a candidate for the contract. Further, a contracting ATTENTION! authority may set up the criteria so that it can d) Use of Variants award extra points to those candidates that go It is forbidden to require suppliers to certify If the contracting authority is not sure that the After the subject of the contract is defined beyond minimum requirements to achieve addi- product or services according to specific eco- suppliers will be able to meet all the environ- (reminder: it should reflect only the general inten- tional advantages. labelling scheme. If a specific label is mentioned, mental specifications, but wish to include sustain- tion of the contracting authority to procure prod- it should be always accompanied by the words “or ability specifications in their tender documents, it ucts with sustainability features), the next step is equivalent”.

44 45 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

is possible to ask the supplier to offer alternative product shall not contain substances that have Thus, the qualification (selection) criteria describe proposals. This gives more flexibility to procurers been identified as substances of very high concern the qualifications, knowledge, skills, abilities and in case there are no offers that meet all the envi- and included in the list foreseen in Article 59 of experience of the supplier. They used in the pre- ronmental specifications. Suppliers should be Regulation (EC) No 1907/2006 (the REACH Regu- qualification procedure to submit documents certi- informed in the bidding documents that alternative lation) in a quantity that exceeds 0.01% by weight fying their compliance with the qualification criteria. proposal with better environmental performance of the final product” may require verification as a are accepted. relevant Type I Ecolabel or a declaration that none The procuring entities may establish the following of the substances are on the candidate list provided. qualification criteria: The contracting authorities can use variants by: • Availability of equipment, resources and tech- • Setting the minimum (non-environmental) nology; requirements of the product/service to be • Availability of relevant qualified staff with neces- bought. This represents Variant 1 - the “neutral” sary knowledge and experience; offer; 2.4. QUALIFICATION (SELECTION) OF THE • Availability of the documented experience in • Setting additional environmental specifications performance of similar contracts. (as well as the minimum requirements from SUPPLIERS Variant 1) for the product/service to be bought in. The qualification criteria established by the procuring entity and the list of documents This represents Variant 2 - the “green” offer. Identification of the winner of the procurement confirming the information of bidders or partici- procedure is carried out in two stages: pants in the pre-qualification procedure about their Only offers that fulfill at least the minimum require- compliance with such criteria shall be stated in the ment are taken into consideration. 1. Selection Stage – to assess a capacity and ability tender documents or qualification documents, and of tendered to perform and meet the requirements be demanded in the course of negotiations with a of the contract; Alternative proposal 1 is the basic one, which bidder (in case of the application of the negotiated includes the minimal technical specifications that 2. Award stage – to examine the offers in order to procurement procedure). all bidders must respect. choose the best one, i.e. the best price or the most All of the mentioned above criteria may include economically advantageous tender. environmental aspects. Alternative proposal 2 is Alternative proposal 1 + environmental criteria. In the EU there are defined three types of qualifica- If one or more offers are received for Alternative For example, if the subject of the contract is What’s the difference? tion criteria: exclusion criteria, technical capacity proposal 2, procurement practitioners can make to “design and construction of a bio-climatic criteria and financial capacity criteria. And only two building”, the technical capacity of the bidders with their choice on the base of best value for money Selection criteria relate to the contractor and first may include environmental aspects: a list of previous buildings they have constructed considering also the additional environmental include aspects such as economic and financial using bio-climatic principles may be assess. Or, criteria. standing as well as professional and technical a) Exclusion criteria may exclude companies in case of “construction of a bridge in a protected knowledge. They aim at ensuring that the tenderers for environmental reasons. For example, if the area” will require the establishment of a series of Otherwise they can proceed to a standard evalu- are reliable and responsible and that they have company has been condemned for environmental specific management measures aimed at ensuring ation of offers based on Alternative proposal 1, sufficient experience with the type of contract to be crimes, as long as this is considered by the national the effective protection of fauna and flora in the without having to repeat the tender exercise. able to deliver it properly. law as a reason for incapacity or prohibition to area whilst building the bridge, e.g. control of contract with public entities due to grave profes- Award criteria relate to the offer based on the noise levels, waste collection, etc. In this case, the sional misconduct; lowest price or the most economically advanta- possession of an EMS for construction sites (but Public authorities should note in the technical spe- not for other sites such as a factory) can be used as geous tender. So for example, the criteria such as b) Technical capacity criteria which focus on the cifications the types of evidence that can be provided a means of proof that the bidder has the technical tenderers’ experience, manpower and equipment ability of the tenderer to perform the contract. to demonstrate compliance with the sustainability capacity to perform the contract accordingly. or their ability to perform the contract by the antici- These usually include proof of the experience of the criteria specified. pated deadline are considered as selection criteria tenderer, a list of relevant projects implemented, a and not award criteria. For example, for cleaning products a technical description of technical facilities, etc. specification on substances requirements “The 46 47 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

• Related to the subject of the contract; 2.6. SPECIFIC CONDITIONS: 1. All environmental criteria are explicitly mentioned in the tender document; • Objectively quantifiable, CONTRACT PERFORMANCE 2. The wordings of the criteria respect the general • Weighted in relation to the other award criteria CLAUSES principles of transparency, nondiscrimination and (arranging them in decreasing order) and, equal treatment; clearly defined in the tender documents in order Finally, public authorities can also introduce envi- 3. The criteria relate to the subject-matter of the to guarantee transparency. ronmental criteria in the contract performance contract; clauses – i.e. the rules for how a contract must be Using the award phase to introduce environmental 4. Criteria have to be objectively quantifiable; criteria can be a good idea if you are unsure about carried out. These clauses do not have any influ- the availability or cost of the more environmentally ence on the awarding of the contract; however they 5. Any form of appropriate proof of compliance is accepted. friendly product/service. need to be set out explicitly in the call for tender and clearly related to the performance of the contract. A pre-done list of possible sustainability criteria Introducing environmental award criteria basically is used as an aid to this work (Table 3.3.). says that you prefer “greener” products; however The contract performance clauses can only relate 2.5. AWARDING A CONTRACT if they are much more expensive they will not be to the manner in which the contract is carried out. selected. The “weight” you give to the environ- This means that they cannot be “disguised” tech- mental criteria in the evaluation will determine how nical specifications, award criteria or selection The last stage of the procurement procedure is much extra you are willing to pay. criteria and all potential bidders should in principle 2.7. AVAILABLE TOOLS the contract award. In this stage, the contracting be capable of complying with them. No means of FOR PROVISION authorities evaluate the quality of the offers that It is possible to include environmental award proof can be requested during the tendering phase. complied with the technical specifications in order criteria even if you have also included environ- OF SUSTAINABLE to choose the most appropriate one. Award criteria mental minimum standards in the specifications – The contractor is obliged to follow these condi- PROCUREMENT enable the contracting authorities to value more this provides an opportunity to reward even better tions when carrying out the work or supplying sustainable tenders over less sustainable tenders, performance. the contracts. If they fail to do so, the contracting but not at any price. authority can either set a financial penalty or even In many cases persons who are responsible for For example, if you are contracting a computer seek the cancellation of the contract. procure of goods, services and works are not envi- There are 2 ways of awarding a contract, based on: leasing service, you could specify in the technical Some examples of contract performance clauses are: ronmental experts. However the Sustainable Public specifications a certain energy consumption level. a) Lowest price; Procurement requires consideration of different In the award criteria you might want to give prefer- Products shall be delivered in bulk instead as indi- sustainability issues including both environmental ence to equipment that consumes even less energy. vidual units; b) Most economically advantageous offer. and social aspects, that’s why different approaches Therefore you could set up the award criteria as The contractor must use reusable containers when should be used to study different shades of sustain- In the first case, the final decision is based solely follows: delivering products; able production and consumption. upon the price of the bids. Therefore, if no envi- The contractor must collect the packaging materials ronmental criteria have been defined in previous • for the economic offer: up to 80 points; and used products that they supply for recycling or To identify products with improved characteris- stages, you will not have the opportunity to include • for energy consumption even lower than that reuse; tics and rank them from most sustainable to less them in this stage. If you choose this option, you defined in the technical specifications: up to 20 sustainable there are available few common tools should make sure environmental criteria are intro- All products must indicate the dosage that should be points. and techniques which may increase the capacity duced in the technical specifications. used in order to avoid overuse; of public authorities to use procurement tools to When considering the economic offer itself, this The services will have to be carried out in compliance make sustainable their purchasing. These tools If the principle of the “most economically advan- does not need to be restricted to just the price – with the procedures and criteria fixed in the organisa- are applicable for study of production impacts and tageous offer” is applied, other award criteria can it is better to consider the “life-cycle costs” of the tion’s EMS. consumption consequences at different stages of be taken into account, along with the price. These product/service you are contracting. This includes the products and services life cycle. criteria may concern quality, delivery date, tech- not just the purchase price but also the usage costs In summary, it is possible to introduce environmental nical merit or environmental characteristics for (such as electricity or water consumption), mainte- criteria in tender documents provided the following All available tools and techniques can be subdivided example. In this case, it is very important that envi- nance costs, and final disposal costs. basic principles are taken into consideration: into two groups: ronmental award criteria are:

48 49 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

1. Tools to account the environment impacts of the product system throughout its life cycle. LCA is a all agreed projected significant and relevant cost products and services which are under procure, to structured, internationally standardised method flows over a period of analysis expressed in mone- evaluate an environmental consequences of any and management tool (ISO 14040 “Environmental tary value. The projected costs are those needed to activity connected with public procurement (e.g., management — Life cycle assessment — Prin- achieve defined levels of performance, including Life Cycle Assessment, Life Cycle Costs, Carbon ciples and framework”, ISO 14044:2006 “Environ- reliability, safety and availability. Footprint, Environment Product Declaration, Risks mental management — Life cycle assessment — Assessment etc.). Requirements and guidelines”) for quantifying the In the context of Sustainable Public Procurement, emissions, resources consumed and environmental the use of LCC is essential to demonstrate that 2. Tools for identification of technical specifica- and health impacts that are associated with goods procurement processes and decisions have to move tions and selection/awarding criteria (e.g., Envi- and services (products). LCAs take into account beyond considering the purchase price of a good or ronmental Norms and Standards, Eco-Labelling the product‘s full life cycle: from the extraction of service, for the purchase price does not reflect the Schemes etc.). resources, over production, use and recycling up to financial and non-financial gains that are offered by the disposal of the remaining waste. environmentally and socially preferable assets as It is also very important to conduct the post-imple- they accrue during the operations and use phases mentation monitoring of SPP, how to measure Generally, LCA has four analytical stages: goal and of the asset life cycle. progress made with which indicators, and how to scope definition, life cycle inventory, impact assess- collect results, this will help to show success later ment, and interpretation of the results. In many Typical LCC analyses are therefore are based on: on and communicate it to other admnistations. ways, the first stage is the most important. The goal • Purchasing costs and all associated costs such and scope define what is studied, what alternatives as delivery, installation, commissioning and

are compared and how. After the goal and scope are insurance; 2.7.1. LIFE CYCLE well defined, the comparison of different alterna- • Operating costs, including utility costs such as ASSESSMENT tives can be done on a common basis, often defined energy and water use and maintenance costs; as the functional unit. • End-of-life costs such as removal, recycling or refurbishment and decommissioning; In public procurement, LCA could help to learn Life cycle assessment (LCA) is a methodological about the environmental aspects of the product, • Longevity and warranty time frames of the asset. framework for estimating and assessing the inputs, fulfill customer requirements, define environ- outputs and potential environmental impacts of a mental criteria for SPP and choose between alter- that reflects the relative effect of GHGs in terms natives. More generally, life cycle assessment of climate change considering a pre-defined time provides possibilities to introduce innovations as 2.7.3. PRODUCT/SERVICE period. Typically, a time period of 100 years is well as methods and systems where the perfor- CARBON FOOTPRINT considered. mance requirements can also favor competition PCF can be calculated by multiplying amounts of for environmental development. LCA as a tool to GHG emissions by their respective GWP values. CF measure the environmental impacts of tenders Product/service carbon footprint (PCF) can be defined is expressed in carbon dioxide equivalents (CO e). may provide the best framework for assessing the 2 as GHG emissions of a product across its life cycle, This unit is used for comparing the radiative forcing potential environmental impacts of products, and from raw materials through production (or service of other GHGs to carbon dioxide. In other words, the thus is an important tool supporting SPP. provision), distribution, consumer use and disposal GWP value for CO2 is 1, whereas for CH4 it is 25, and or recycling. It includes the greenhouse gases, such for N2O it is 298, for instance. as carbon dioxide (CO2), methane (CH4) and nitrous Many different calculating schemes for PCF exist, 2.7.2. LIFE CYCLE oxide (N2O), together with families of gases including COSTING hydrofluorocarbons (HCFs) and perfluorocarbons including among others: GHG protocol, ISO 14067 (PFCs). Typically, the three gases mentioned first and PAS2050 (BSI 2008, GHG Protocol 2011). Typically, contribute most to the indicator of climate change, the level of detail given in the standards differs. Each Environmental cost calculation method is used the Global Warming Potential (GWP). standard has a slightly different focus on the links to calculate the monetary costs of environmental between product category rules. Other assumptions impacts of tenders. Life cycle costing (LCC) is As defined by the Intergovernmental Panel on and allocation procedures can also explain the differ- defined as an economic assessment considering Climate Change (IPCC), the GWP is an indicator ences between calculating schemes.

50 51 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

tional (International EPD 2011). A climate declara- system in place. As such, they can only be used in into account the environmental footprint of sub- tion is a further development of EPDs that focuses the suppliers’ selection phase. suppliers, meaning the roll of purchasers. on climate-related data and gives the impact in The list of environmental aspects that are to be CO2e. The method for producing climate decla- For procurement purposes, the fact that a company taken into consideration specifically includes the rations follows ISO standards 14040, 14044, and has an EMS is a proof of goodwill towards the suppliers’ environmental footprint and the iden- 14025. protection of the environment but it is not a direct tification of significant environmental aspects in Product category rules (PCR) provide guidance and proof of good environmental performance. An conjunction with the procurement process. This rules for the collection of data and other informa- EMS enables a company to be more efficient in type of approach can be effective for both customers tion, as well as how the calculations on climate detecting source of environmental problems than and suppliers. declarations or EPDs should be done to transfer the a non-certified one. ISO 14001 is an inter- data about the environmental impact. national environ- When selecting suppliers, service providers or mental management contractors, procurement practitioners can ask standard aimed at 2.7.5. ENVIRONMENT bidders to demonstrate their technical capacity to reducing a company’s environmental footprint. MANAGEMENT SYSTEMS carry out the contract and to take measures for the protection of the environment. These specific The basic level for the ISO 14001 requirements is cases are those when the execution of the contract to prevent negative environmental effects and to comply with national legislation. At the same time, Environment Management System (EMS) is a tool for can cause environmental damages; here the proof the standard stipulates continuous work on achieving At present, the various protocols have not been managing the impacts of production and consump- of environmental care is directly related to the objectives and relentlessly pursuing improvements harmonized. Thus, comparability between products tion on the environment. EMS monitors environ- subject matter of the contract. An example can be to the company’s environmental impact, as well as and their carbon footprints is limited. Additionally, mental performance, similar to the way a finan- a large construction project in a naturally sensitive ensuring that the organisation governs and controls for example, the results based on GHG protocol cial management system monitors expenditure area, where it is necessary to establish particular the environmental aspects that are deemed to have are not meant as a platform for comparing other and incomes. Accordingly, it is highly appropriate measures of environmental protection. a major environmental impact. products. Some comparisons in the results would to enquire about an environmental management It is important to note that procurers and requisi- be possible if sufficient information, i.e. a detailed system when procuring services and contracting tioners cannot require bidders to register with a report, is provided and considered. works. particular EMS scheme, in the same way as they 2.7.6. RISKS ASSESSMENT However, as the provided information would be very A good EMS should be integrated in the corporate cannot require them to carry an environmental technical, it could be difficult and time-consuming plan and policies, set clear targets for the improve- label. Procurement professionals have to accept for a non-expert to understand all the assumptions ment of management of environmental perfor- all internationally recognised certificates or other To maximize the efficiencies and sustainability and make justified comparisons between products. mance, comply with all existing environmental laws valid means of proof of bidders technical capacity. and minimize damage to the environment, human and be clearly communicated to stakeholders. Nonetheless, an ISO 14001 or EMAS certification health and local ecosystems, risk assessment is a can serve as (non-exclusive) proof of technical useful tool to study risks associated with air emis- 2.7.4. ENVIRONMENT Sometimes procurers may confuse Environmental capacity. sions, water pollution and waste accumulation of Management Systems (EMS) with environmental products production and consumption. PRODUCT DECLARATION labels. It is important to stress that EMS do not Eco-Management and Audit certify the environmental quality of a product or Scheme is a voluntary EU regula- Sustainability Risk Assessment is intended to service. An EMS certifies that a system is in place in tion for environmental control ensure that environmental, social and economic Environmental product declaration (EPD) presents the organisation to keep track of the environmental and environmental auditing in the (sustainability) issues are assessed, understood the environmental impact of a product or service performance. aim of reducing a company’s envi- and managed in all key procurement decisions that throughout its life cycle, i.e. the results of a LCA. ronmental footprint. EMAS is relate to the procurement of goods and services. Within each EPD system, the results should be The main difference with environmental labels is based on the ISO 14001 require- comparable, as they follow certain rules (product that EMS certification concerns a company, and ments, but also include require- The risk assessment assesses the sustainability category rules). The Swedish EPD system was not a product. More precisely, EMS certify that ments for a transparent and reviewed environ- risk of a particular contract and prioritises areas to launched in 1998, and later became truly interna- a company has an environmental management mental audit. EMAS also entails taking more clearly address within the tendering process:

52 53 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

Step 1: Consider questions on sustainability in rela- tary or legal – seek to regulate and reduce the (1) Translate the environmental criteria of the who may not know which scheme is more suitable tion to the upcoming tender. amounts of pollutants discharged into the envi- labels into technical specifications for their needs. The Table 2.4 provides general ronment with the ultimate objective of achieving (2) Verify compliance with technical specifications information on well-known labels, and gives Step 2: Make a list of the Sustainability Risks. at least some degree of sustainability. Norms and specific indications on useful labels for commonly (3) Benchmark offers at the award stage Step 3: Assess the sustainability risk and value. standards may specify a desirable state or limit procured items. The list is far from being exhaus- (4) Use single issues and performance labels for a alterations. tive, and it does not imply that the choice of one of progressive approach Step 4: Prioritise management of the sustainability the mentioned labels is preferred or recommended. risks and determine actions. However, in accordance with Ukrainian legisla- This tool designed to compare different types of tion, procurement practitioners can never require Types of Sustainability Risks 2.7.8. ENVIRONMENTAL labels, that can be selected by country or product suppliers to have their product or services regis- LABELLING can be found at the link: The impacts upon the environment, the community, tered under an ecolabelling scheme. the local economy and on issues such as equali- http://www.standardsmap.org/ There are a number of environmental labels avail- ties need to be investigated. Risks under this remit Eco-labels primarily deal with the environmental able worldwide, and this may confuse of procurers, include: performance of a product or service. Eco-labels • Risk of causing harm to the environment, can be helpful in managing the environmental Table 2.4 – Appropriate environmental labels for Sustainable Procurement through execution of the contract, e.g. utilising criteria associated with a product or service, and Quality label/ Main object of Issuer of Geographical a service or using an item of equipment; can be used to help define specifications or be used organisation certification certificate distribution directly as a requirement for products. • Risk of damaging the organisation’s reputation, BLUE ANGEL Over 100 products and services German Insti- Germany through execution of the contract. This could Types of Eco–Labels (incl. ICT, textiles, building mate- tute for Quality Products be attributable to any environmental damage rials, lighting). Assurance and availableworld- caused or likely to be caused through contract The International Organization for Standardisation Certification wide execution throughout the supply-chain, or to (ISO) has identified three broad types of voluntary (RAL)(Type I) the reputation of the supplier delivering the labels, with ecolabelling fitting under the strongest contract; Type 1 designation. EU ECOLABEL Over 30 products and services EU (Type I) EU and some • Risk of missing opportunities to aggregate TYPE I: a voluntary, multiple–criteria based, third (incl. ICT, textiles, building mate- other countries benefits across service delivery areas; party program that awards a license that autho- rials, lighting). rises the use of environmental labels on products • Risk of delivering poor value for money resulting indicating overall environmental preferability of a in remedial costs and greater maintenance product within a particular product category based requirements. on life cycle considerations. NORDIC ECOLABEL The Nordic Ecolabel is a voluntary Type I Nordic coun- TYPE II: informative environmental self–declara- ecolabelling scheme that evalu- tries and some 2.7.7. ENVIRONMENTAL tion claims. ates a product's impact on the others environment throughout the whole NORMS AND STANDARDS TYPE III: voluntary programs that provide quanti- life cycle. There are 63 product fied environmental data of a product, under pre–set groups within the Nordic Ecolabel. categories of parameters set by a qualified third Environmental norms and standards may be party and based on life cycle assessment, and veri- GREAN CRANE Over 30 products and services The body of Ukraine a useful tool for bridging the competency gap fied by that or another qualified third party. (incl. textiles, building materials, environmental between product specific features and environ- cleaning products, food) certification mental requirements. Environmental labels can bring a valuable contribu- tion to the implementation of sustainable procure- and labeling Environmental norms and standards are policy ment. Labels can be used in different ways by All Ukraine guidelines that regulate the effect of human activity procurement practitioners to include green criteria NGO "Living upon the environment. Seeking and enforcing envi- in their tenders, without having to be experts in Planet"(Type I) ronmental norms and standards – whether volun- environmental issues, namely: 54 55 SECTION II PUBLIC PROCUREMENT PROCEDURE IN THE CONTEXT OF SUSTAINABILITY

Many procurers and requisitioners will ensure that the coffee purchased has been produced ENERGY STAR Energy consumption of elec- US EPA Worldwide be familiar with this symbol, but not “fairly”, the best option is to give the right title to the tronic devices (incl. white goods, (Type I) everybody knows the exact meaning contract, e.g. “Purchase of coffee”. computers, multi-functional Voluntary of its variants. The basic version of devices) Sustainability the Mobius Loop, without any number, Standard (VSS) means that the product is recyclable, but not that it What are the main social labels? will actually be recycled at the end of its life.

FOREST Wood products FSC Worldwide If the Mobius Loop contains a percentage number, it indicates that the product is made with recycled Belgium has developed a national material in the indicated percentage. social label, which certifies the respect of ILO fundamental prin- Another symbol commonly found on ciples during all stages of the value products and packages is the Green chain. Dot. Many believe that the Green Dot indicates that the product is recy- The Fairtrade Labelling Organiza- Programme for the Wood products PEFC Worldwide cled or recyclable, but this is not the tions (FLO) International is a non- Endorsement of Forest case. The Green Dot is a trademark profit, multi-stakeholder association Certification (PEFC) for an industry-based recovery system of pack- involving 23 member organizations. aging. The symbol only indicates that the producer It contributes to sustainable develop- is included in the waste recovery programme ment by offering better trading condi- against the payment of a fee. tions to marginalized producers and workers in developing countries. The Fair Trade mark appears on a wide range of products like coffee, fruit, rice, Some of these labels address only single environ- mental criteria from labels, to make sure they are 2.7.9. SOCIAL LABELLING juices, chocolate, cotton, footballs, flowers. mental issues. This approach may be useful for a appropriate, accurate and relevant to your tender. It progressive implementation of sustainability in is also important to check if the market can provide Rainforest Alliance certification procurement, but procurement professionals must products that comply with the criteria developed Labels do not only certify environmental perfor- is a comprehensive process that be aware that ecolabels remain – in all product and if the price is affordable. mance. The technique of labelling products to help promotes and guarantees improve- categories - the best guarantee of a complete consumers make their purchase choice on the base ments in agriculture and forestry. To approach to environmental problems. Many of products which are in daily use may have of considerations that are not only economic is used earn the seal, foresters and farmers symbols that appear often on products and pack- also in relation to social issues. Social labels usually have to ensure that their production meets criteria aging, but should not be confused with environ- cover issues such as human rights, workers’ rights, of sustainability under the aspects of protection The most complete list of ecolabels for all sorts of mental labels. ban of child labour, payment of a fair price to devel- of the environment, decent working conditions, product categories worldwide can be found at The oping countries producers, etc. respect of local communities. Global Ecolabelling Network (GEN). These symbols give indications on how the prod- ucts can be recycled, but they do not mean that Social labels resent of the current uncertainty – The Rugmark certification guar- GEN is a non-profit association of third-party, envi- products have actually been recycled nor contain in comparison to the fast development of green antees that carpets and rugs are ronmental performance recognition, certification any recycled content! procurement - on how to include social issues in produced without employment of and labelling organizations founded in 1994 to public purchasing. child labour; verification of this improve, promote, and develop the "ecolabelling" A well-known, internationally recognised symbol is requirement is ensured through of products and services. the Mobius Loop. The symbol is not a trademark, When writing technical specifications, procurers independent certification and rigorous inspections. and this is why it appears in different variants (the have to make sure that the specifications are rele- http://www.globalecolabelling.net/ arrows can be green or black, filled with colour or vant to what is being procured. If some criteria from not, in different shapes). The three arrows repre- social labels are included in the technical specifi- Sources: A guide to environmental labels for sent the three moments of the recycling process: cations, it is important to do it while maintaining a procurement practitioners of the United Nations It is good practice to consult experts on environ- collection, transformation into a new product, and clear link to the subject matter of the contract. For system, UNOPS, 2009. mental procurement whenever using environ- finally re-use. example, if the procurement practitioner wants to 56 57 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

on the environmental acceptability of development environmental criteria and planning of the sustain- able procurement process. 3.1. ASSESSING THE ENVI- In this Handbook the environmental impacts are RONMENTAL IMPACTS FOR analysed for three product groups: cleaning prod- THE SELECTED PRODUCT ucts, paints and varnishes and heat insulation mate- SECTION III rials as these products were identified as priority to GROUPS meet the main goal of this guidance.

CRITERIA FOR 3.1.2. ENVIRONMENTAL Production and consumption of any product or IMPACTS OF CLEANING services are connected with impacts on the envi- SELECTED ronment and human health. Due to intensive PRODUCTS AND DETERGENTS consumption of natural and energy resources, PRODUCT GROUPS using danger and toxic substances as well as accu- mulation of waste, most of these anthropogenic A wide variety of cleaning products are in daily use an environmental aspects (interaction with the envi- factors have impact in a negative way on different in households and industrial sectors. Cleaning pro- ronment) and environmental impacts (any change ecosystems and living organisms. Any business ducts and processes affect the environment in many to the environment, whether adverse or beneficial, activity produces positive outputs (products and ways as the consequences of chemical compounds. resulting from a facility’s activities, products, or services) and negative (emissions, waste, waste- services) in the Table. 3.2. Environmental impacts of cleaning products are water etc.). These impacts can include all relevant associated with all stages of their life cycle: from raw Overall, the key impacts from the life cycle of aspects of the natural, social, economic and human materials extraction to waste treatment. The raw cleaning products relate to climate change, impacts Key Challenges environment. materials mostly consist of petroleum, a valuable, on human health, ecotoxicity, euthrophication, water • What are major environmental Negative impact leads to degradable changes in but limited and nonrenewable natural resource. consumption and waste generation. impacts of the selected product the environment and undesirable consequences Additionally, the environment is affected during These impacts can best be reduced by minimizing groups? for human being. For instance, impacts caused manufacturing as significant amounts of energy and the energy consumed in heating the water used by emissions lead to climate change (caused by water are consumed, and waste is produced. during the cleaning, excluding or limiting certain • How to define sustainability criteria Greenhouse gas (GHG) emissions), eutrophication Other environmental impacts include plastic pack- substances in the products, applying correct product for the selected product groups? (over-fertilization caused by pollution with nitrogen aging components used in bottles made from doses, optimizing the way a cleaning service is and phosphorus), human and eco-toxic effects • What are main environmental petroleum and ingredients such as phthalates performed, minimizing the packaging. caused by urban and regional air pollution, indoor criteria for three product groups? used to keep the bottles from becoming brittle air pollution and other toxic emissions. Impacts What should be evaluated? and breaking or leaking. Packaging also includes Green Cleaning Products are environmentally benign related to resource use may lead to depletion of cardboard shipping cartons made from tree fibers. alternatives which involve the use of products that non-renewable resources (fossil energy carriers • What is a verification of compliance Finally, chemical products are disposed down the biodegrade into compounds that are environmentally and metals) and biotic resources (most notably fish with the Sustainability Criteria? drain or evaporate into the air where they have friendly and do not pose detrimental environmental and wood), or habitat change and resource compe- further environmental impacts. concerns. Many of these products include natural tition due to water and land use. solvents such as citrus, seed and vegetable oils that At the same time most of detergents may be highly can be safely recycled back into the environment. To examine the environmental consequences or danger for human health and other living organisms impacts, both beneficial and adverse, the Environ- (e.g., water organisms) due to chemical composition Taking into account all above mentioned environ- mental Impact Assessment (EIA) is widely popular and improper use as shown in the Table 3.1. mental impacts, Sustainable Public Procurement for method supported by the ISO 14000 family of Inter- Cleaning Products is aimed to reflect the key envi- national Standards. EIA should provide public To summarized most of environmental impacts of ronmental risks. This approach is summarized in the authorities and other organizations with advice the cleaning products life cycles there is described Table 1.3. 58 59 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

Table 3.1 – Cleaning Products and Their Potential Health Effects Energy Consumption of Depletion of non-renewable resources Resources energy resources Product Type Harmful Ingredients Potential Health Hazards Water Wastewater • Water pollution Air fresheners & Formaldehyde Toxic in nature; carcinogen; irritates eyes, nose, discharges • Degradation of aquatic habitat and drinking water deodorizers throat and skin; nervous, digestive, respiratory system supply damage Chemicals Release of toxic ---- Bleach Sodium hypochlorite Corrosive; irritates and burns skin and eyes; nervous, Use: substances in the respiratory, digestive system damage environment Surfactants Relatively toxic to aquatic organisms Disinfectants Sodium hypochlorite Corrosive; irritates and burns skin and eyes; nervous, respiratory, digestive system damage Builders Remobilize heavy metals stored in river sediments, bringing the heavy metals back into the water system. Phenols Ignitable; very toxic in nature; respiratory and circula- tory system damage Phosphorous Eutrophication Ammonia Toxic in nature; vapor irritates skin, eyes and respira- Solvents / • Air pollution tory tract VOCs • Formation of ground level ozone Drain cleaner Sodium/potassium Corrosive; burns skin and eyes; toxic in nature; • Photochemical smog hydroxide (lye) nervous, digestive and urinary system damage • Impair human health (headaches, fatigue or irrita- tion to the eyes, nose, throat, lungs or skin) Floor cleaner/wax Diethylene glycol Toxic in nature; causes nervous, digestive and urinary system damage Bleaching Toxic to aquatic ecosystems, slowly degradable in the Agents aquatic environment Petroleum solvents Highly ignitable; carcinogenic; irritate skin, eyes, Manufacture throat, nose and lungs Biocides / Formulation • Very toxic for aquatic organisms Ammonia Toxic in nature; vapor irritates skin, eyes and respira- • May cause long-term adverse effects in the aquatic environment tory tract • Harmful by inhalation and if swallowed, Oven cleaner Sodium/potassium Corrosive; burns skin, eyes; toxic in nature; causes • May cause sensitisation by skin contact known to have endocrine disrupting, neurotoxic, develop- hydroxide (lye) nervous and digestive system damage mental and reproductive toxic effects Toilet bowl cleaner Sodium acid sulfate or Corrosive; toxic in nature; burns skin; causes digestive Preservatives • Very toxic for aquatic organisms oxalate or hypochloric acid and respiratory system damage • May cause long-term adverse effects in the aquatic Ignitable; very toxic in nature; cause respiratory and environment Chlorinated phenols circulatory system damage • Harmful by inhalation and if swallowed • May cause sensitisation by skin contact Window cleaners Diethylene glycol Toxic in nature; causes nervous, digestive and urinary system damage Enzymes • May help to reduce a contribution to global Ammonia Toxic in nature; vapor irritates skin, eyes and respira- warming, reduce contribution to acidification, eutrophication, photochemical ozone formation and tory tract energy use Source: аdapted from Li Ho “Pollution Issues: Household Pollutants” Fragrances • May be potentially hazard to health due to their Table 3.2 - Inputs and Outputs through the Cleaning Products Life Cycle bioaccumulative potential Energy Energy consumption • Air pollution Output Distribution Life Cycle Resources by transport (fuels) • Climate change and global warming Input Environmental Stages Environmental Impacts Aspects Energy Consumption of • Depletion of non-renewable resources Resources energy resources • Air pollution Natural Resources: Consumption of Depletion of non-renewable resources • Climate change and global warming • Crude Oil natural and energy Water Wastewater • Water pollution • Water resources Use discharges Air emissions • Air pollution Raw Materials • Climate change and global warming Release of toxic • Degradation of aquatic habitat and drinking water Extraction and substances in the supply Processing Process waste • Land pollution and ground water pollution environment Energy Resources generation • Release of toxic substances Package and Waste packaging • Waste accumulation Wastewater • Water pollution packaging Disposal • Land pollution and ground water pollution discharges • Degradation of aquatic habitat and drinking materials • Release of toxic substances water supply Source: adapted from the ISO 14040 60 61 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

Table 3.3 – The SPP Approaches against Key Environmental Impacts ment for Paints and Varnishes is aimed to reflect the Key Environmental key environmental risks. This approach is summa- SPP Approach Impacts rized in the Table 3.4. Climate change • Use cleaning products that are effective at lower temperatures. Human health • Avoid certain hazardous substances in the product. 3.1.4. ENVIRONMENTAL Ecotoxicity • Avoid phosphorus and limit biocides in the product. Eutrophication • Limit the overall "critical dilution volume” of the product. IMPACTS OF HEAT Water consumption • Provide information on recommended dosages. INSULATION MATERIALS Waste generation • Decrease the use of products through reviewing cleaning plans and tech- niques. During the life cycle of the thermal insulation, • Improve the training of cleaning staff. hazardous materials are a key environmental • Decrease the quantity of packaging used. impact, especially in the chemical makeup of blowing space heating, balancing out the embodied energy • Ensure the recyclability of the packaging used and the use of recycled agents. This can impact on air and water quality, as within the insulation materials. Once the desired packaging. well as human health, with many of the substances thermal resistance has been decided there is still • The buyer should study the possibility of concluding contracts for cleaning identified as carcinogenic or irritant to those with scope to consider the environmental impacts of the services instead of making purchases of cleaning products. Thus, you can breathing disorders. various insulation materials that satisfy that main reduce the number of products used, improve efficiency, get rid of the need requirement. to buy, and also maintain and rationally manage the product. The hazardous properties of these substances Source: EU GPP Criteria for Cleaning Products & Services. make many of them unsuitable for landfill in non– Potential impacts for human health, as well as inputs hazardous sites. Some can be recycled thus reducing and outputs during the life cycle for heat insulation paint production. Solvent based paints have a higher 3.1.3. ENVIRONMENTAL the impact on the environment. materials are similar to those given for cleaning overall environmental impact than water based products. IMPACTS OF PAINTS paints. Energy consumption is another key impact, especially AND VARNISHES during manufacture and transportation. However, Taking into account all above mentioned environ- Hazardous functional additives to the paint such as the reduction in energy use in buildings, by choosing mental impacts, Sustainable Public Procurement for The key environmental impacts of paints and preservatives, plasticisers, pigments and extenders highly efficient insulation, with good thermal resis- Heat Insulation Materials is aimed to reflect the key varnishes are associated with their production. can have a wide range of health and environmental tance is vitally important and must be the first environmental risks. This approach is summarized The quantity of paint used is therefore an impor- implications. consideration. This will reduce energy consumption in the Table 3.5. tant factor which in turn is influenced by how much Potential impacts for human health, as well as in the in–use phase by lessening the need for fuel for residual paint is left unused and how long the paint inputs and outputs during the life cycle for paints Table 3.5 – SPP Approaches against Key Environmental Impacts lasts for until a new paint layer needs to be applied. and varnishes are similar to those given for cleaning In terms of paint ingredients solvents, binders and products. Key Environmental Impacts SPP Approaches TiO2 (white pigment) manufacture have an impor- Taking into account all above mentioned environ- • Energy consumption, especially in manufac- • Purchase most energy efficient insulation. tant environmental impact during raw material and turing and transportation. mental impacts, the Sustainable Public Procure- • Purchase insulation appropriate for a situation to ensure • Energy consumption in the building as a maximum benefit. Table 3.4 – The SPP Approaches against Key Environmental Impacts result of less efficient insulation. • Purchase insulation that restricts the use of hazardous • Pollution of air, land and water due to the materials. Environmental Aspects SPP Approach use of hazardous materials e.g. blowing • Promote effective maintenance of insulation to extend its • Solvent, binder and TiO2 manufacture have an • Minimise the impact of production by addressing agents. useful life. important contribution to the environmental impact specific ingredients and dosage. • Use/extraction of raw materials. • Promote end of life management e.g. take back schemes in paint production. • Reduce the hazardous properties of the overall • Production of hazardous waste. / re–use / recycling. • Solvent based paints have a higher environmental formulation. • Generation of waste material, including • Purchase products designed to be easily dismantled and impact than water based paints. • Promote durable paints. hazardous wastes and packaging and its recycled. • Hazardous functional additives can have a wide • Incentivizes minimisation of product wastage, disposal. • Promote the use of environmentally sound materials. range of health and environmental implications. including re–use and recycling. • Unused product is a wasted resource and can cause • Promote use of recycled materials in insulation and environmental harm if not disposed of properly. packaging, either directly or in the case of packaging through participation in an accredited recycling scheme. Source: EU GPP Criteria for Paints and Varnishes. Source: EU GPP Criteria for Heat Insulation Materials. 62 63 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

3.2. DEFINING OF THE ENVI- • After–sales service; many cases stimulated by environmental and Some important feature and barriers for integra- other cause–oriented groups, for sustainable tion of sustainability criteria are described in the RONMENTAL CRITERIA FOR • Other benefits which may occur in connection production and consumption. Table 3.6. with the tender offer; TENDERING Effectiveness in achieving of the sustainable Source: adapted from Katriina Alhola Environmental • Other qualifying criteria (availability of equip- procurement goals and objectives is largely depen- criteria in public procurement. Focus on tender ment and material and technical base, avail- dent on the formation and development of adequate documents. Defining of sustainability criteria (additionally to ability of suitably qualified staff with appropriate applicable criteria for evaluation bids. price and quality criteria) is intended to evaluate knowledge and experience of the presence of and procure products or services which best fit to documented experience in similar agreement Table 3.6 - Sustainability Criteria for the SPP the requirements of sustainable production and etc.). Important Features Barriers / Obstacles consumption. Public authorities choose evaluation criteria taking Economic Viability relates to providing a range of goods and Lack of knowledge regarding environ- Traditionally main assessment criteria for tender into account specific(s) of the product/service or services in the long term with proceeds re–invested and local mental issues, not least as related to benefiting to the extent possible. bids are: any other requirements. harmful chemicals, and on the legal Key aspects are: scope to set environment criteria in public • Price (aimed to choose more economically The development of criteria for verifying sustain- • Sustainable production & consumption products and procurement. Traditional economic consi- advantageous offer); ability of the procurement has been driven by two services; derations dominate, particularly among separate, but related, influences: • Maintenance of non–market services and benefits (air, water, personnel with responsibility for procure- • Quality and functional characteristics; recreation etc.); ment. • The need for public authorities to demonstrate • Local processing and employment; • Operating costs associated with the use of prod- progress towards sustainable development and • Minimisation of waste; Communication barriers – in many cases ucts and/or systems; greening of their activities; • Economic and financial viability. the prevents from a legislation/govern- • Terms of delivery or terms of performance; ment sides for establishing good and long– • Environmental, social and market drivers, in Environmental Sustainability – environ–mental performance standing contacts with suppliers, which generally considers the following aspects: makes it more difficult to develop sustain- • Knowledge of environmental impacts, their prioritisation, able value chains. SUSTAINABLE PUBLIC PROCUREMENT and plans to address them; SUSTAINBILITY CRITERIA • Maintenance of biological diversity at the ecosystem, species Concern over legal disputes – lack of IN TENDER DOCUMENTS: and genetic levels; clarity in legislation and practice, combined to measure and track a • Protection of representative ecosystems from all types of with the risk of being brought before the progress in SPP exploitation; courts, causes many contracting authori- • Reduction/efficient use of energy (for electrical goods) ties to shy away from setting strict criteria • Reduction/efficient use of materials concerning environmental protection and • Soil and water protection; . Checking of qualifica- ECONOMY ENVIRONMENT SOCIETY • Protection of rare, threatened and ; tion criteria and assessment of tenders are Focus on the most Focus on the environment and Focus on the society needs • Avoidance (or reduction in use) of chemicals; seen as particularly difficult points to deal cost-beneficialtender human health impacts and challenges with. • Disposal of used material.

Limited opportunities to set criteria – in SPP criteria to track economically Social Acceptability – acceptance of public procurement the study, several respondents felt that advantageous tender SPP criteria to measure SPP criteria that management by society is determined partly by national and criteria could only be set for chemicals in environmental performance of promote socially equali- local laws and regulations, and partly by what local people the procured finished products, while some The total cost of ownership - which the production of product/ser- ties issue, training issues and the international community expect. were of the opposite opinion. Others state entails that the cost of a product is vice and to promote eco-re- and labor standards Principles relate to: not only the cost of purchase that sponsible business activity and that criteria must not be disproportionately product but also the cost of maintain consumption • national sustainability policies; and dispose of it. high, which in itself creates a lack of clarity • impacts on local communities (including indigenous people); and problems with setting limits. Fig. 3.1.–Sustainability Criteria for the SPP • impacts on and treatment of employees. Source: adapted from Katriina Alhola Environmental criteria in public procurement. Focus on tender documents 64 65 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

Despite the equivalent importance of three compo- ecosystems, contain a limited amount of hazardous • Limit the most significant impacts of production nents: Economic, Environmental and Social, in substances and their level of exposure to various on the environment and human health and to order to prevent negative effects on the environ- environmental components. be accessible for at least 20% for selected pro- ment and human health the environmental require- ducts represented in Ukraine; ments (in a form of environmental criteria) should Environmental criteria should meet the following be introduced into the tender documents as a part requirements: • Consider state environmental policy and deve- of qualifying criteria. lopment of the area to which the selected • To be harmonized with the legal framework product category. Environmental criteria are measurable provable regarding the selected product categories in environmental requirements intended to assess the setting the terms, definitions, test methods and Regardless of procurement strategies, introducing environmental performance of product/service in technical documentation; of the SPP criteria is permitted by current legisla- order to identify the presence or level of the factor/ tion. Environmental criteria should be developed • To be established in the realistically achievable characteristic impacting the environment and according to the requirements of legislation in the level within the given possibilities and the accu- human health as well as safety level. Compliance field of environmental protection, hygiene stan- racy of their estimates; with environmental criteria confirms the environ- dards, classifications and lists the most common hazardous pollutants and waste. When developing mental benefits of products. • Be based on reasonable scientific and tech- the environmental criteria it is recommended to nical principles and clear these environmental Main purpose of the environmental criteria is to guide by the following: impacts throughout the life cycle to determine promote production and consumption of products the environmental advantages of the chosen and services aimed at reducing the consumption • Resolution No. 529 of the Cabinet of Ministers category; of energy and other natural resource, impact on of Ukraine “On Approval of Technical Regulation on Environmental Labeling” as of May 18, 2011; the criteria. These documents may originate from ANALYSIS OF AVAILABLE ENVIRONMENTAL CRITERIA – studying and drawing up a list of environmental • ISO 14024 “Environmental Labels and Decla- the applicant and/or his supplier(s) and/or their criteria taking into account the state regulations, national and international standards required for the rations. Type I Environmental Labelling. Prin- supplier(s), as appropriate. selected product categories. ciples and Procedures”; If appropriate, test methods other than those indi- • ISO 14040: 2004 “Environmental management. cated for each criterion may be used if the compe- SELECTION OF THE MOST IMPORTANT ENVIRONMENTAL CRITERIA – environmental criteria that are most Life Cycle Assessment. Principles and Frame- tent body assessing the application accepts their important (significant) for public authority with regard of product functions and application, taking into work”. equivalence. account what the market is able to provide Environmental criteria should support the imple- Where possible, the testing shall be performed by mentation of best practices and increase the envi- laboratories. ronmental awareness of consumers and end–users. EVALUATION – evaluate and compare the different tender bids to choose a preferred bidder. Where appropriate, competent bodies may require There are five main stages according to which the supporting documentation and may carry out inde- selection and evaluation of products/services on pendent verifications. the basis of environmental criteria is performed VERIFICATION – assessment of compliance with certain criteria. (Pic. 3.2).

WHAT SHOULD BE EVALUATED?

SELECTION OF SUITABLE/OPTIMAL PROPOSALS – choose a preferred bidder. Verification of Compliance with Sustainability Evaluation of tender bids is not just about the Criteria conformity and verification of compliance with sustainability criteria, it should be performed with a The specific assessment and verification require- full understanding and responsibility for the conse- Pic. Pic.3.2 –2.2 Flow – Fl owDiagram Diagram for for Selection Selection and and EvaluationEvaluation of of Pr Products/Servicesoducts/Services ments should be indicated for each criterion in a quences of production and consumption. Main on onthe the Basis Basis of of Environmental Environmental Criteria form of declarations, documentation, analyses, test criteria groups and assessment aspects are shown Source: adapted from The Resolution No. 529 of the Cabinet of Ministers of Ukraine reports or other evidence to show compliance with on the pic. 3.3. “On Approval of Technical Regulation on Environmental Labeling” as of May 18, 2011 66 67 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

cleaners mean products intended for indoor use in Item Criteria Assessment / Evaluation 3.3. ENVIRONMENTAL buildings which include domestic, commercial and CRITERIA FOR CLEANING industrial facilities.

Ingredients Require- • Control of prohibited / dangerous / toxic / carcinogenic PRODUCTS AND SERVICES (b) Detergents and rinse aids for dishwashers compounds contents; ments intended for the routine cleaning of kitchen devices • Limited constituents of dyes / fragrances / biocides / Сriteria for Cleaning Products and equipment by means of dishwashers. Human Health Safety sensitizing substances / VOCs and other substances; Requirements • Impact on human health (e.g., impact of ingredients on In this handbook the environmental requirements (c) Hand dishwashing detergents intended for the the skin and mucous membranes). both for cleaning products and cleaning services removing of food material residues, from kitchen- are described. ware surfaces, including dishes, pots, pans, utensils and a wide range of other items by means of hands. In terms of cleaning products, these cover the • Ingredients safety monitoring for the environment; following groups of cleaning products: (d) Laundry detergents and pre–treatment stain • Toxicity to aquatic organisms, the ability to cause removers for washing machines. Environment Protec- (a) All–purpose cleaners, sanitary cleaners and tion Requirements long-term adverse changes in the aquatic environment; window cleaners intended for the routine cleaning General structure of the environmental criteria and • Ability of ingredients to biodegradation. of floors, walls, ceilings, windows and other fixed sub-criteria for each criteria group are described surfaces, and which are either diluted in water on the pic. 3.4. Detailed information about criteria prior to use or used without dilution. All–purpose with a specific data is presented in the Annex I.

• Control of hazardous substances in packaging material; PRODUCT • Optimal size of packaging according to the weight of ENVIRONMENTAL CRITERIA FOR CLEANING PRODUCTS Packaging GROUP product;

• Opportunities to recycle packaging; 1. CONSTITUENT 2. TOXICITY 3. BIO- 4. PACKING 5. CONSUMP- 6. PRODUCTION SUBSTANCES DEGRADATION TION • Use of packaging made of recycled materials. AND MIXTURES

Prohibited CDV * aNBO*** General Contents Energy and • Availability of information about components and toxi substances Require- Information Resources ingredients with chemical names; doses and uses; trade ments Saving name and labels;

• Availability of information on safety measures during Limited CDVchronic** anNBO**** Primary Eco-labeling Emissions / Consumption Stage storage and use of the product; recycling of used packag- Sub- Packing Waste ing and packaging materials. stances

• Instructions on dosage. Secondary Doses / Uses Environmen- Biocides Packing safety tal Manage- • Instructions on dosage and/or correct use of the information ment product. Pigments Phosphor / Phosphate Content of * CDVtoxi – critical dilution volume that Danger characterizes toxicity to aquatic organisms Flavors Substances • Implementation of energy and resources saving mea- ** CDVchronic – critical dilution volume, that sures and technologies; Surfactants characterizes chronic toxicity Recycling / Treatment *** aNBO - Aerobic biodegradation of Production Stage • Control of emissions into the air, the formation of waste Ferments water and waste; pollutants Others **** anNBO - Anaerobic biodegradation of • The introduction of environmental management, EMAS, pollutants waste management etc. Рic. 3.4. General Structure of the Environmental Criteria on the Cleaning Products Pic. 3.3. Flow Diagram for Criteria Groups and Assessment Aspects Source: adapted from the EU GPP Criteria for Cleaning Products & Services Pic. 2.3. Flow DiagramSource: adapted for Criteria from Gr theoups ISO and 14044:2006 Assessment Aspects 68 69 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

3.4. ENVIRONMENTAL CRITERIA FOR PAINTS AND ENVIRONMENTAL CRITERIA FOR PAINTS AND VARNISHES VARNISHES 1. PRODUCT 2. EFFICIENCY 3. EMISSION OF 4. CONSUMER INFORMA- 6. PRODUCTION The product group of paints and varnishes FORMULATION OF APPLICATION POLLURANTS TION, PACKAGING AND comprises indoor decorative paints and varnishes, AND DURABILITY TAKE-BACK SYSTEMS wood stains and related products intended for use by consumers and professional users. White Spreading Semi-volatile Information on Energy and Paint and varnish products include: Pigment Rate organic Packaging Resources Saving Content compounds (SVOCs) • Floor paints; Volatile Weathering Packaging Emissions / Organic Resistance Waste • Products which are tinted by distributors at the Compounds Indoor Air request of professional decorators; (VOCs) Quality Fungal Take-Bake Environmental • Tinting systems; Product &Algae Systems Management Hazard Resistance • Decorative paints in liquid or paste formulas Labeling which may have been pre- conditioned, tinted Abrasion or prepared by the manufacturer to meet Hazardous Resistance consumer’s needs, including wood paints, Ingredients wood and decking stains, masonry coatings and metal finishes primers and undercoats of such Рic. 3.5. General Structural Scheme of the Environmental Criteria for the Paints and Varnishes product systems. Source: adapted from the EU GPP Criteria for Paints and Varnishes

Criteria for Cleaning Services The product group does not comprise:

Many authorities have their cleaning services • Anti-fouling coatings; carried out by private contractors. The tendering procedure for selecting the contractor offers oppor- • Wood preservation products; tunities for improving the environmental and health • Coatings for particular industrial and profes- performance of these services. sional uses, including heavy-duty coatings;

The reduction in the use of cleaning chemicals • Powder coatings; through using appropriate dosages or new cleaning • UV curable paint systems; techniques is a particularly efficient way to reduce the environmental impacts of cleaning. • Paints primarily intended for vehicles;

The tenderer must demonstrate its capacity to • Products that do not form film over the substrate, carry out the service in an environmentally sound with the exemption of road markings; manner. This must include evidence of the regular • Transparent chemical floor coatings using reac- training of staff on health, safety and environ- tive resins as binders for thick layer coverings mental aspects of cleaning activities and evidence for industrial floors. of compliance with environmental and health and safety obligations. General structure of the environmental criteria and sub-criteria for each criteria group are described Detailed information about criteria with a specific on the pic. 3.5. Detailed information about criteria data is presented in the Annex I. with a specific data is presented in the Annex I.

70 71 SECTION III CRITERIA FOR SELECTED PRODUCT GROUPS

3.5. ENVIRONMENTAL • Mineral wool panels (where the main function is ENVIRONMENTAL CRITERIA FOR HEAT INSULATION MATERIALS not thermal insulation); CRITERIA FOR HEAT • Cement-based panels for example fibre cement 1. PRODUCT Info about the INSULATION MATERIALS INFORMATION and cement panels. In addition, magnesium product(s) oxide panels for indoor use only. 2. MINERAL RAW Panels for both indoor and outdoor use are included. The product group does not cover the following MATERIALS Heavy metals Dust Radioactive The product group includes panels in which the product types: panels with total more than 15% by Emissions Substances main function is one or more of the following: weight of materials other than the above are not internal or outdoor cladding of buildings, construc- 3. WOOD RAW included in the product group; panels or cladding Wood fibre and waste Solid wood, veneer, Certified solid wood, MATERIALS, PAPER, tion panels, sound absorbent panels, panels for in which the main function is to insulate against wood in paper, bamboo and cork- origin veneer and bamboo subfloors, facade panels, panels for subroofs and heat or cold loss. Panels which are marketed as CARDBOARD AND cardboard and pulp and traceability PAPER PULP panels for production of furniture, outdoor furni- insulation panels or insulation products are thus ture, internal fittings, etc. not included; wet room panels; magnesium oxide Use of biocides in Specific requirements for tree felling paper and cardboard panels for outdoor use; roofing panels (outer roof); The following material types are included in the whole prefabricated wall elements are not included product group: 4. RESOURCES in the product group; floor coverings; facade panels Resource requirements for plaster- Resource requirements for cement boards based and mineral wool panels • Wood-based panels with or without laminated in solid wood. surface; Fibre-based panels with more than 15 % cement 5. ENERGY will be included in the functional unit “Cement- Energy requirements Energy requirements for Energy requirements for • Solid wood (surface-treated) for assembly into a for paper and pulp HPL panel production wood-based panels panel for indoor use, e.g. by the consumer; based panels”. Panels based on renewable raw production materials other than wood must fulfill the energy • Panels based on renewable raw materials other requirement for wood-based panels. Energy requirements Energy requirements for than wood; for plasterboards mineral wool panels General structure of the environmental criteria and • High pressure laminate panels; sub-criteria for each criteria group are described 6. CHEMICAL on the pic. 3.6. Detailed information about criteria PRODUCTS Classification of CMR classification of CMR classification of chemical products constituent substances constituent substances • Plasterboards; with a specific data is presented in the Annex I.

Biocides Nanopartciles Environmentally harmful VOCs / Free substances Formaldehyde

7. EMISSIONS Emissions to water in Emissions from HPL Dust emissions from panel wet processes production production

Emissions of formal- Emission requirements for dehyde the construction panel

8. USING AND Information on Take-Back PACKAGING Packaging System

9. PRODUCTION Energy and Emissions / Waste Environmental Resources Saving Management

Рic. 3.6. General Structural Scheme of the Environmental Criteria for the Heat Insulation Materials Source: adapted from the EU GPP Criteria for Heat Insulation Materials 72 73 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

SUSTAINABLE ENTREPRENEURSHIP (or GREEN HOW COMPANIES MANAGE SUSTAINABILITY: 4.1. SUSTAINABILITY ENTREPRENEURSHIP) is a way of economically THE MOST COMMON WAYS viable and socially empowering business develop- PERFORMANCE AS A ment with respect to environmental challenges. COMPETITIVE ADVANTAGE Businessmen try to find business opportunities SECTION IV that arise in the context of global and local environ- FOR TENDERERS mental challenges. Reducing Buying energy– Buying recyc- Consideration of environmental, economic and waste efficient products led products social axes in the business core is an innova- tive solution to the way of goods and services are produced and consumed, and proposes a business THE SUSTAIN- Today government and public authorities often model which contributes to the greening of the include the sustainability issues and requirements ABILITY ISSUES economy. when procure goods, services and works due to Seeking non– Reducing FOR TENDERERS increased awareness on environmental and social PLANET toxic products water use challenges around the World. Public organizations Environment demand for goods and services that achieve value Quality for money and generate benefits not only to the organisation, but also to society and the economy, To be sustainable, business should adopt princi- while minimising damage to the environment. In GREEN ples, policies, and practices that help to protect the view of this fact, suppliers and vendors, including BUSINESS environment, prevent degradation of the ecosys- a business at whole, need to take active actions to tems and improve the quality of life for customers, be able to meet these demands and requirements PEOPLE PROFITS employees, the communities. By changing of Key Challenges in the sustainability context. Social Economic production patterns, the may Quality Efficiency change a consumption pattern into sustainable one • What are competitive advantages (see examples in the Table 4.1); and in such way of the sustainable production and consumers, including public authorities, have wide consumption for suppliers and opportunities to buy green and environmentally vendors? Pic. 4.1. The Triple–Bottom Line of the Sustainability for Business friendly products and services. • How do companies manage their Source: The Green Business Booklet, Inter- sustainability? national Labour Office, 2015 Manisha Mishra, Sohina Singh and Arpita Goyal, • What are available methods for busi- ness to respond the sustainability The Sustainable Public Procurement is a requirements? powerful way to stimulate more sustainable production and consumption patterns in the society. Although going to the sustainable busi- ness practice is rather novel trend in the modern business world, many companies are active in this movement, as it is a trend with a variety of benefits for business owners. Taking into account that the sustainable business aid to reduce, miti- gate, prevent and enhance capacities to cope with environment pollution and degradation risks, today all need environmentally oriented business more than business as usual. 74 75 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

Table 4.1 – Comparison of Business Doing Approaches: Business as Usual VS Sustainable Business Table 4.2 – Advantages and Benefits of Sustainable Business Specific Features Specific Features For Business For Consumers Business Sectors for Business as usual for Sustainable Business Lower Costs and Expenditures Building and construction • Huge energy use and emissions • Decrease of energy and materials • Reduction of production expenses due to environ- • Decreasing of market price on the environmen- Housing • Extensive natural materials use use; use of secondary raw materials mentally friendly technologies and equipment tally safe and environmentally friendly products & Industrial and infrastruc- • Waste Formation and accumulation • Use of less energy intensive tech- services • Increasing of operation efficiency due to better use ture construction nologies • Intensive water consumption and conservation of resources • Market extension of products availability with • Develop of renewable technologies • Decrease of health and labor safety improved characteristics at all scales • Better prices for products (e.g. organic products) • Protection of the environment, decreasing of the • Reduced leading to financial • Increase resource efficiency of nature degradation process processes during production savings • Waste to resource, reuse, recycling • Reduced waste generation, lower costs of waste and energy recovery from waste management Food and Beverage • • Re–building overfished and depleted Meeting Demands And Expectations Agricultural production • Increasing meat consumption fish stocks • New opportunities to offer novel products and • Wide opportunities to buy products better for the services which are demanded by customers environment and human health • Total environmental degradation • Adoption of resource–conserving practices • Higher demand for environmentally friendly prod- • Intensive resource and energy use • Focus on health and wellbeing ucts and improved market access • Waste Formation and accumulation • Improving supply chain conditions • Increasing of business competitiveness by means of • Water consumption increase customer loyalty and market share, what • Waste to resource, reuse, recycling • Worker rights finally may produce a higher return on investment and energy recovery from waste • Meet procurement requirements for government Transport • Environmental degradation and • Collectively manage resources authorities land use between private and public partners New sources for revenue through innovations • Use of non–renewable and non– • Improved valuation of heritage and biodegradable fuels culture • New business opportunities due to environmental • Better quality of the environment innovations • Road safety • Waste to resource, reuse, recycling • New innovative products and services with and energy recovery from waste • Emissions • Decreasing of the nature pollution improved characteristics Source: The Green Business Booklet, International Labour Office, 2015 Manisha Mishra, Sohina Singh and Arpita • Business reputation and increased brand value Goyal, 2015. Risks Management • Prevent potential negative consequences that result • Forestall negative impacts on the environment Going sustainability does not simply mean spending reducing costs by switching off equipment when from impacts (or perceived impacts) on the natural and human health money in order to reduce environmental and social it is not needed. Also sustainability is a “two–way environment (i.e. air, water, soil) or communities of • Improvement of quality of the environment impacts; it also involves benefiting from opportuni- traffic” with wide–ranging opportunities both for people (e.g. employees, customers, local residents) ties to reduce costs and risks associated with any business and customers (see Table 4.2). company or business. Sustainable businesses must • A long term outlook may ensure longevity and make business successful in the future follow a sustainable approach and green standards Thus, sustainability may provide business with in their operational management and in the output the opportunity to implement and adopt environ- Staff Retention and Attraction mentally sustainable practices to create a more of products as well as to comply with labor stan- • Embedding sustainability into business allows Creation of new job positions and workplaces responsible and modern approach towards the dards and decent work principles. attracting and retaining talent workers products and services production. There are many Adopting a sustainable approach can therefore offer successful examples of how these opportunities • Creating Decent Work and Employment through a wide range of benefits as simple as, for instance, can be turned into a sound business in which all Green Jobs stakeholders benefit. Source: The Green Business Booklet, International Labour Office, 2015 Manisha Mishra, Sohina Singh and Arpita Goyal, 2015. 76 77 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

A product/service may be considered as environ- 7. Optimisation of product life. mentally friendly if: 8. Optimisation of product end–of–life system – • It is produced in a manner which causes less offer new approaches for waste management or environmental harm than a comparable/like find best treatment/recycling waste technologies. product/service;

• Its use or consumption has an environmentally beneficial end–effect; B. ECO-TECHNOLOGIES. CLEAN TECHNOLOGIES

• It contributes to cleaning up or reducing damage Environmentally friendly technology utilizes many to the environment. methods for reducing the impact that various activ- ities have upon the earth. To be considered envi- To produce environmental goods and services there ronmentally friendly, a product or action should be are 8 STRATEGIES which are widely used to find sustainable, produce as little waste and pollution opportunities in product design: as possible, and utilize the recycling and reuse of materials whenever possible. 1. New concept development – develop solutions Energy is one well-known area of green technology. that meet user needs, create business opportuni- Sustainable sources of energy include wind power, ties and minimising damage to the environment hydroelectric power, , and solar energy. (e.g. roll–up bottles, new type of rechargeable These environmentally friendly technologies can batteries). now be used to power homes, businesses, and even small electronic devices. Solar-powered garden 2. Selection of low–impact materials – choose lights, remote controls, and electric shavers are all those raw materials which pose less harmful impact available for eco-conscious consumers. on the nature (e.g. raw materials from waste).

3. Reduction of material usage – use new tech- B. Providing of goods or services through an envi- 4.2. HOW TO RESPOND nologies and methods to decrease amount of raw Eco-technology often involves some of the following: ronmentally friendly process or by means of clean materials at the production stage (e.g., trim the THE SUSTAINABILITY technologies. • Recycled, recyclable and/or biodegradable weight of a plastic bottle or aluminum can, use less content REQUIREMENTS: TIPS FOR Also these two approaches are appropriate both packaging). TENDERERS for new and existing businesses. Sustainable busi- • Plant-based materials nesses can either be started afresh as a start–up, 4. Optimisation in production operations – make or can be created by transitioning existing busi- changes or adjustments to prevent negative • Reduction of polluting substances There are a lot of approaches to transform business nesses by greening them. impacts, increase an efficiency of materials and • Reduction of greenhouse gas emissions model as usual into sustainable one. Tradition- energy use etc. A. MANUFACTURING OF GREEN AND/OR ENVI- ally it is distinguish two basic ways for business to • Renewable energy become sustainable: RONMENTALLY FRIENDLY PRODUCTS/SERVICES 5. Optimisation of distribution system – think whether it is possible to make more rational a The environmental goods and services industry • Energy-efficiency A. Produce green and/or environmentally friendly distribution/logistics of products between different is widely seen as a new growth sector, generating products/services, products and services that are stages of life cycle. • Multi-functionality resource efficient and benefit the environment (e.g. wealth and creating jobs as well as playing a major recycled paper, renewable energy, energy–saving role in the transition of economies towards sustain- • Low-impact manufacturing able development. 6. Reduction of impact during use – think about equipment, organic food etc.); possibilities to avoid harmful impact and accumu- lation of used products as waste.

78 79 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

WAYS TO TRANSFORM BUSINESS INTO SUSTAINABLE ACTIVITY Table 4.3 - Sustainability Assessment Framework There are plenty of examples of entrepreneurs that have demonstrated that a look through the lens of Assessment Task Delineation Description sustainability reveals opportunities to improve , people’s quality of life, while at the Phases same time creating economic value. Sustainability Value Creation Identify issues and set priorities Of course, business is a complex system which interacts with the nature in a different ways, that’s why there are distinguish 6 main directions for sustainability transformations: Environmental Impact Assessment (EIA) Set goals

Understand the impact of products, services and supply chain the business has Impact Significance Determination Evaluate significance of environ- ENVIRONMENT → on the environment Plan mental impacts. RESOURCES OPTIMAL AND Assess and evaluate the natural resources consumption. Investigate ways to ↓ Decision makers typically consider RATIONAL USE → reduce resources consumption. only the significant impacts in deciding among alternatives. Assess and evaluate the energy resources consumption. Investigate ways to ENERGY → Significant impacts will be the reduce energy resources consumption. focus of mitigation measures and GREEN HOUSE GAS Assess and manage Greenhouse Gas (GHG) Emissions as a result of business possible adjustment of project EMISSIONS → activities, product manufacturing. features.

Demonstrate social responsibility through activities that have a positive impact SOCIETY AND ETHICS → Develop a Sustainable Business Strategy Prepare a matrix of proposed on society. actions.

BIODIVERSITY → Measure the health, maintenance and improvement of an ecosystem. Develop ideas for proceeding and Do the business case for them; and Source: The Green Business Booklet, International Labour Office, 2015 Manisha Mishra, Sohina Singh and Arpita Goyal, 2015. ↓ Decide on direction, approach, boundaries and focus areas. There is no “one–size–fits–all” Implement Best Available Solutions Conduct a market research find method for pursuing an environmen- best available solution for busi- tally responsible business, as each company has unique characteristics ness. and circumstances that will affect how Assure and Report on Progress Measure and assure performance. it views its operational context and its Check defining sustainability. Engage stakeholders. ↓ Report on performance, internally The framework below (Tab. 4.3) is and externally. intended to assess a firm’s effects on society and the challenges and Evaluate and Improve Evaluate performance. opportunities associated with taking Improve these impacts into account in decision Identify opportunities for improve- making and business activities. ↓ ment. Engage stakeholders.

One cycle completed Return to plan and start the next ← Cross–check cycle.

Source: The Green Business Booklet, International Labour Office, 2015 Manisha Mishra, Sohina Singh and Arpita Goyal, 2015.

80 81 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

Eco-labeling aims to inform the consumer in a Eco-labeling of type I is a guide for the end user, concise and accessible form about the verified and customer, supplier or retailer, a retailer focused on confirmed environmental characteristics or advan- safer products with improved functional character- tages of the labeling products. istics. The principles and methods of its application are set out in the international standard ISO 14024. Eco-labeling has a wide scope of application - from food, industrial products, construction materials According to ISO 14024, environmental claims about to real estate and services. General principles and product benefits can be presented in the form: methods of their application are set out in the inter- national standards of ISO 14020 "Eco-labeling and • a sign of eco-labeling, belonging to the legal declarations". This series of standards was intro- rights of conformity assessment bodies (under duced into the Ukrainian national standardization the sign of eco-labeling must be indicated the system in 2002-2003 (direct application). environmental certificate number);

In accordance with the standards of the ISO 14020 • phrases that indicate a certain environmental series, eco-labeling is divided into three main types advantage of the certification object validated for: by the certification body.

a) voluntary, multiple-criteria based, third party Since 2003, the system of environmental certifica- tion and labeling has started to develop in accor- AVAILABLE TOOLS AND METHODS WHICH MAY 1.2. Sustainable Events Management – ISO 20121 program that awards a license that authorises dance with the requirements of DSTU ISO 14024 as HELP TO MAKE BUSINESS MORE SUSTAINABLE the use of environmental labels on products It is a specific standard helps organizations in indicating overall environmental preferability of an independent and voluntary system in Ukraine. Its events management, sporting, training businesses, a product within a particular product category development was focused at promoting the forma- convention centers to: based on life cycle considerations (type I). tion of a market for products with improved envi- I. ENVIRONMENTAL MANAGEMENT ronmental characteristics according to established • Minimize negative impacts on the environment, b) informative environmental self-declaration evaluation criteria. 1.1. Environmental Management System – ISO communities and local economy; claims (type II); 14001 As a rule, the requirements of environmental • Cut costs through better energy and waste c) voluntary programs that provide quantified criteria cover (but are not limited to follows): ISO 14001 is the most established international management; environmental data of a product, under pre-set standard for environmental management. Imple- categories of parameters set by a qualified • the effectiveness of environmental policy and menting an environmental management system • Protect against any negative publicity; third party and based on life cycle assessment, the effectiveness of managing the environ- will help to: and verified by that or another qualified third mental aspects of a life cycle of product; • Create a positive image for event participants party (type III). • Comply with environmental rules and regula- and organizers; • indicators of energy efficiency, physical and tions; technical characteristics, durability, restric- Be in a position to demonstrate your green busi- tion or prohibition of the application of parts on • Analyze activities and establish actual and ness model and credentials. Type I determines the competitive advantage of the environmental and human health risk factors in potential environmental impacts; object of environmental certification regarding its accordance with Regulation No. 1907/2006 of

impact on the state of the environment and human the European Parliament and of the EU Council • Measure, control and reduce waste; ІІ. ENVIRONMENTAL LABELING health at all stages of his/her life cycle. An object of of December 18, 2006 on registration, assess- • Meet supply chain requirements; certification may be a finished product, service or ment, authorization and restriction of chemi- The tool that helps business to become more facility construction. This type of labeling provides cals (REACH) (for industrial products); • Reduce operating costs by discovering and sustainable and competitive in national and inter- for the establishment of environmental criteria for implementing more sustainable practices. national markets. The tool helps private and public each product category to assess its benefits and is • level of contamination of natural raw mate- procurers to select/choose more sustainable prod- more reliable, since the right to its application is rials with toxic elements containing GMOs ucts. provided by a third party (conformity assessment and hazardous impurities (for food, fabrics, body) based on the results of the evaluation. cosmetics);

82 83 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

• indicators of specific activity of radionuclides; • reduced water consumption; cannot precisely determine the audience. However, III. ENERGY it is important to consider the information needs • indicators of energy intensity of the technolog- • is fit for reuse; of different purchaser or user groups, for instance Energy Management – ISO 50001 ical process of production; large businesses, small and medium sized enter- • is fit for refilling; The latest best practice framework for energy prises (SMEs), public procurement agencies and • indicators of consumption of water and other management helps organizations better manage consumers. Those responsible for developing Type resources in the production process; • low-waste and maintain their energy consumption enabling III environmental declarations and programmes them to: • indicators of environmental impacts of produc- is recommended to indicate certain environmental based on this International Standard will need to tion activities and volumes creating wastes of characteristics of product. pay due attention to the level of awareness of the • Increase energy efficiency; production and consumption. target audience. These phrases are classified as "ecological self- • Manage risks surrounding future energy declarations", or type II of environmental labeling, In programmes based on this International Stan- supplies; and should be used together with an explanatory dard, the organization making the declaration will Type II labeling gives an idea of a certain charac- supplement to prevent misleading interpretations be required to ensure that data are independently • Cut energy bills with positive impact on the teristic, which is associated with environmental as to their meaning. Recommendations for explan- verified either internally or externally. This could, bottom line; impacts, which may be useful for operation, main- atory additions are defined in the ISO 14021 stan- but does not necessarily, mean third-party verifi- • Build and support corporate reputation with tenance, repair or disposal. Labeling of II type refers dard. cation except in the case of business-to-consumer good environmental credentials. to self-declarations, that is, statements that do not declarations. ISO provides a general definition for require additional independent third-party assess- “certification” (procedure by which a third party ment (certification). Phrases of such statements, Type III environmental declarations present quanti- gives written assurance that a product or process their interpretation, methods of justifying their fied environmental information on the life cycle of a conforms to specified requirements). Nevertheless, IV. GREEN HOUSE GAS EMISSIONS application and warnings regarding misleading product to enable comparisons between products “certification” is understood and conducted differ- consumers are set out in the international standard 4.1. Carbon Management – ISO 14064 fulfilling the same function. Such declarations ently in different regions. To avoid confusion, this ISO 14021. International Standard uses the term “third-party An organizational level standard which enables • are provided by one or more organizations, verification” instead of “certification”. However, at According to the standard ISO 14021 application of participation in schemes such as the moment there is no body that does the third- phrases: European Union Emissions Trading Scheme (EU ETS). • are based on independently verified life cycle party verification in Ukraine. assessment (LCA) data, life cycle inventory • is fit for compost; analysis (LCI) data or information modules in Harmonization of general programme instructions accordance with the ISO 14040 series of stan- • is capable to decompost; and particularly product category rules (PCR) are 4.2. Product Carbon Footprint/Carbon Neutrality – dards and, where relevant, additional environ- encouraged between programmes to meet the PAS 2050/PAS 2060 • a demountable construction; mental information, principle of comparability. This includes mutual These standards help to quantify, monitor, report recognition of rules with respect to PCR develop- • a product with extended shelf life; • are developed using predetermined param- and verify the carbon footprint or neutrality of a ment, PCR review and verification procedures, eters, and specific product or service. • recovered energy; administrative procedures and declaration format. • are subject to the administration of a programme To ensure comparability, programme operators • is fit suitable for recycling; operator, such as a company or a group of are encouraged to work cooperatively to achieve companies, industrial sector or trade associa- harmonization of the programmes and to develop V. RESOURCES OPTIMIZATION • a content of recycled materials; tion, public authorities or agencies, or an inde- mutual recognition agreements. 5.1. Water Footprinting – ISO 14046 • a recycled material; pendent scientific body or other organization. In the practice of developing Type III environmental A new standard which demonstrates an organiza- • a recovered material; Type III environmental declarations as described in declarations, programmes or their declarations tion’s leadership in environmental protection and this International Standard are primarily intended are referred to by various names such as Eco-Leaf, helps manage and reduce water consumption. • reduced power consumption; for use in business-to-business communication, eco-profile, environmental declaration of product, but their use in business-to-consumer commu- environmental product declaration (EPD) and envi- • reduced the use of resources; nication is not precluded. It is recognized that a ronmental profile. developer of a Type III environmental declaration 84 85 SECTION IV THE SUSTAINABILITY ISSUES FOR TENDERERS

5.2. Material Flow Cost Accounting (MFCA) – ISO • Improve relations with workers, trade unions, 14051 NGOs and customers.

A management process tool standard which helps trace all materials through production and measures the output in finished products or waste 6.2. Sustainability Report Assurance material. It provides a framework which helps SRA processes are conducted in accordance with develop an integrated approach to optimizing the the globally recognized Global Reporting Initiative use of materials. Guidelines (GRI), and Accountability AA 1000 Assur- 5.3. Forest Stewardship Council Chain of Custody ance Standard.

FSC certification gives confidence to consumers that products purchased originate from well– managed forests and controlled sources. All these standards can help organizations to:

• Identify opportunities to reduce resource usage and operational costs;

• Improve green credentials;

• Reduce business costs associated with inef- ficient use of materials, energy, systems and waste management.

VІ. SOCIAL AND ETHICAL

6.1. Business Social Compliance Initiative

BSCI is a leading business–driven initiative for companies committed to improving working condi- tions in the global supply chain worldwide. These standards can help organizations:

• Protect against any negative publicity;

• Prove transparency, visibility, trust and confi- dence in reporting through a trusted 3rd party;

• Achieve best practice in ethical employment, trading and operation;

• Maintain existing business and attract new customers and investors;

86 87 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

1.1. ENVIRONMENTAL CRITERIA ON ALL–PURPOSE, SANITARY AND WINDOW CLEANERS

ENVIRONMENTAL REQUIREMENTS VERIFICATION CRITERIA ANNEX I 1. CONSTITUENT SUBSTANCES AND MIXTURES

PROHIBITED OR 1.1. Prohibited using substances and mixtures that • Products with a relevant LIMITED CONSTIT- have been identified as substances of very high con- Type I Ecolabel; UENT SUBSTANCES cern and have been included in the REACH Regula- • Provision of the ingredients CRITERIA FOR THE AND MIXTURES tion. listed on the product label, SELECTED PRODUCT This application contains detailed explanations the safety data sheet (SDS), regarding the requirements of environmental the manufacturer’s website GROUPS: DETAILED criteria for selected product groups. It is the and any other relevant group of cleaning materials, which provides: technical data sheets, all-purpose, sanitary and window cleaners, along with their CAS–Num- DESCRIPTION ber (where available) and a and cleaning services; the group of paints and declaration that none of the varnishes and heat insulating materials group. listed ingredients are on To form requirements, the standards imple- the candidate list. mented in the system of environmental certi- 1.2. Prohibited using ingredients that are classified • Products with a relevant fication and marking in Ukraine according to with any of the Hazard Statements or Risk–phrases, Type I Ecolabel; ISO 14024 are applied. The standards establish or combinations thereof. environmental criteria for products advantages, • For each product offered, concerning the potential impacts on the environ- These criteria do not apply tobiocides, which are dealt all substances contained ment and human health at all stages of the life with separately below: above 0.01% by weight of the final product must be cycle. These standards harmonized with Euro- • EUH029, EUH031, EUH032 (contact with water or listed, together with their pean legislation and adopted in the edition of acids liberatestoxic gases); 2016. CAS Number (where avail- • R29, R31, R32 (contact with water or acids liber- able) and any Hazard State- The standards define environmental criteria, ates toxic gases); ments or Risk–phrases with which they are classi- requirements and verification. Verification estab- • H300, H301, H304, H310, H311, H330, H331, H370, fied. lishes a list of documents which a tenderer can H371, H372, H373 (toxic, fatal or may cause organ provide in the tender documentation to verify damage); compliance with the requirements. The relevance • R23, R24, R25, R26, R27, R28, R65, R39/23, of these environmental criteria for the imple- R39/24, R39/25, R39/26, R39/27, R39/28, R48/20, mentation of the process of strategies, plans and R48/21, R48/22, R48/23, R48/24, R48/25, R68/20, programs developing can be checked according R68/21, R68/22 (toxic, very toxic or irreversibleef- to the current editions of the standards of the fects); environmental certification and labeling system. They are reviewed once every five years. The • H317, H334 (sensitising), except for enzymes; recommended period for the subsequent revi- • R42, R43 (sensitising), except for enzymes; sion of the standards for certain product groups • H340, H341 (mutagenic); is envisaged in 2021.

88 89 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

• R46, R68 (mutagenic); 1.7. Biocides must not be included in the product, un- • Products with a relevant • H350, H350i, H351 (carcinogenic); less used as preservatives. Type I Ecolabel;

• R40, R45, R49 (carcinogenic); • The name and function of 1.8. Biocides must not be included in the product all biocides must be listed. • H360D, H360F, H360FD, H360Fd, H360Df, H361f, which are classified as H410 or R50/53 or H411 or For all biocides classified H361d, H361fd, H362 (toxic for reproduction); R51/53 in accordance with Directive 67/548/EC, Di- as H410 or R50/53 or H411 rective 1999/45/EC or Regulation (EC) No 1272/2008, • R60, R61, R62, R63, R64 (toxic for reproduction); or R51/53 the log Pow or unless they are not potentially bio–accumulative. BCF must be given. • EUH070 (toxic by eye contact); In this context, a biocide is considered to be poten- • R39–41 (toxic by eye contact); tially bioaccu–mulative if the log Pow (log octanol/wa- ter partition coefficient is > or = to 3.0 (unless the ex- • H400, H410, H411, H412 (except for fragrances), perimentally determined BCF < or = to 100). H413 (harmful toaquatic organisms);

• R50, R50/53, R51/53, R52/53 (except for fra- 2. TOXICITY Limits for the critical dilution volume (CDVchronic) of • Products with a relevant grances), R53 (harmfulto aquatic organisms); the product: Type I Ecolabel;

• EUH059 (hazardous to the ozone layer); 2.1. For products which are diluted with water prior • Other proofs as a technical to use, the CDVchronic of the recommended dose ex- dossier of the manufac- • R59 (dangerous for the ozone layer); pressed for 1 litre of washing water shall not exceed turer or a test report from 18,000 litres. a recognised body. 1.3. Surfactants classified as H400 or R50 are allowa- • Products with a relevant 2.2. For products which are used without dilution, the ble provided the concentration in the product is Type I Ecolabel; CDVchronic for 100 g of the product shall not exceed <25%/M where M is the M–factor. 52,000 litres.

1.4. Phosphorus. • Products with a relevant 2.3. For sanitary cleaners –the CDVchronic for 100 g Type I Ecolabel; of the product shall not exceed 80,000 litres. Limits for use: • The total quantity of ele- 2.4. For window cleaners – the CDVchronic for 100 g All–purpose cleaners: 0.02 g of the dosage of the mentary phosphorus must of the product shall not exceed 4,800 litres. product recommended by the manufacturer for 1 l of be given (per functional washing water for cleaners that are diluted before 2.5. For hand dishwashing detergents – the unit). use or 0.2 g per 100 g of product for all purpose CDVchronic of the recommended dose for preparing 1 cleaners for products that are used without dilution. litre of dishwashing water for cleaning of normally soiled dishes shall not exceed 3,800 litres. For sanitary cleaners–1g per 100g of product 2.6. For heavy–duty laundry detergents and colour– For window cleaners – prohibited in use. safe detergents (alltypes) the CDVchronic shall not exceed 35,000 litres per kg wash. 1.5. Phosphates must not be included in the product. The total quantity of phos- phates must be given. 2.7. For low–duty laundry detergents (all forms) the CDVchronic shall not exceed 20,000 litres per kg 1.6. Fragrances in hand dishwashing detergents for For hand dishwashing deter- wash. professional use must not be included in the product. gents for professional use, all 2.8. For pre–treatment stain removers the fragrances contained above CDVchronic shall not exceed3,500 litres per kg wash. 0.01% by weight of the final product must be listed. 2.9. For dishwasher detergents – the CDVchronic shall not exceed 25,000 litres per wash.

90 91 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

2.10. For multi–functional dishwasher detergents the prior to use – WUR 1.20 g packaging per litre use type of packaging compo- CDVchronic shall notexceed 30,000 litres per wash. solution (washing water). nents (e.g. lid, spray nozzle, bottle and label). 2.11. For rinse aids the CDVchronic shall not exceed • For ready–to–use products i.e. products used 10,000 litres per wash. without further dilution – WUR 150 g packaging • Calculation of the weight– per litre use solution (washing water). to–utility ratio (WUR) and documentation regarding • For laundry detergents: reuse of the packaging, if 3.1. The product’s total content of aerobic (aNBO) 3. AEROBIC • Calculation of aNBO and • The weight utility ratio (WUR) for the primary applicable. non–biodegradable organic materials must not ex- AND/OR ANAERO- anNBO for the product; packaging must not exceed the following ceed the limits stated below per litre of in–use solu- • Declaration from the pack- BIC NON–BIODEG– values: powders – WUR 1.2 g/kg wash and tion. The product’s total content of anaerobic (anNBO) • Reference to the DID–list, aging manufacture regard- RADABLE ORGANIC others (e.g. liquids, gels, tablets, capsules) – non–biodegradable organic materials must not ex- dated 2007 or later. If the ing the content of recycled MATERIAL WUR 1.5 g/kg wash. ceed the limits stated below per litre of in–use solu- substance is not con– materials (if recycled mate- tion. tained in the DID– list, the rials are used). parameters must be calcu- aNBO and anNBO values are calculated for all organic lated using the guide–lines • If t > 1: documentation substances in the detergent. contained in part B of the demonstrating how many Threshold values for aNBO and anNBO DID–list and the associated times the packaging is re- documentation must be en- used for the same function Market /category aNBO anNBO closed. (sales statistics or equal (g/litre (g/literin documentation). in–use –use so- solution) lution) 4.2. The cardboard packaging shall consist of ≥50– • Products with a relevant 80% recycled material. Type I Ecolabel;

Concentrated, consumer 0.100 0.100 • Other appropriate proofs: technical dossier of the RTU WC, consumer* 2.10 6.00 manufacturer or a test re- port from a recognised RTU other, consumer 2.00 2.00 body.

RTU window, consumer 2.00 2.00 4.3. Sprays containing propellants must not be used. Written declaration confirming and professional that no propellants are used.

Concentrated professional 0.045 0.250 4.4. Products packaged as trigger sprays must be Written declaration confirming sold as part of a refillable system. the trigger sprays are refillable, RTU WC, professional* 2.25 30.0 together with details of how to obtain refills and their prices. RTU, professional 0.70 0.70 4.5. Plastic packaging (including caps, lids and Data sheet or declaration spec- pumps) and labels containing PVC or plastic based on ifying the plastics that are used other types of chlorinated materials must not be (including labels and caps). used. 4. PACKAGING 4.1. The weight utility ratio (WUR) for the primary • Declaration/documentation packaging must not exceed the following values: from the packaging manu- 4.6. DIN labelling Documentation of primary facturer regarding material packaging demonstrating that • For concentrated products, including liquid con- To facilitate identification for recycling, plastic bottles centrates and solids, that are diluted in water marking complies with DIN

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that are used as packaging must be marked in ac- 6120 or equivalent marking • Colour–safe detergent – 17.0 g/kg wash (pow- cordance with DIN 6120, section 2, ISO 11469:2000 or regulations. Images of the ders/tablets) or 17.0 ml/kg wash (liquids); equivalent standard. Caps, lids and pumps are ex- product marking or data sheet • Low–duty laundry detergent – 17.0 g/kg wash empt from this requirement specifying the marking. Mark- (powders/tablets) or 17.0 ml/kg wash (liquids). ing may also be specified on the submitted label. • If recommendations for both prewash and subse- quent wash apply, the total recommended dosage 5. CONSUMPTION 5.1. All products must be delivered with clear dosing Label, draft of the label or copy (prewash and subsequent wash) shall comply instructions. of the information (information with the maximum dosage. text and user instructions) on The information text on the packaging must comply the primary packaging and/or with the regulation 648/2004/EC and 907/2006/EC on 6. PRODUCTION 6.1. and resources use – energy Appropriate means of proofs: technical product data sheet (if detergents. and resources saving measures and the rational use written declarations, certifica- there is one). The information of primary/secondary resources may be implemented tions and labeling. Clear user instruction as to use of the product. on the label and/or product into production process. data sheet shall be provided in An environmental management Clear instruction regarding area of application. system (such as EMAS, or ISO the local language. 6.2. Emissions/discharges of pollutants into the envi- 14001) if covering and attesting If the product requires dilution before use, the recom- ronment – Indicators of environment pollution and environmental management mended dose at a normal level of soiling/normal use waste accumulation (including wastewater) should be capacities as laid down in the must be stated clearly on the packaging. at least – within the limits; desirable – at least above selection criteria, shall be rec- the limits. In the case of consumer products, for example, the ognised as evidence of compli- dose may be shown as x number of ml equivalent to y ance, as will other evidence of capsful per z number litres of water. 6.3. Environmental management system; sustainable equivalent environmental production and consumption. In the case of products intended for use by profes- management measures. sional users, the dose may be specified as, for exam- ple, x number of ml equivalent to y strokes of the Source: adapted from the СОУ ОЕМ 08.002.12.065:2016 pump or number of lines on the dosing equipment per z litres of water. The information sheet or technical datasheet must state the recommended dispensing device (e.g. pump, graduated cylinder, pipette or simi- lar).

Information on the recommended wash temperatures should be Provided for laundry detergents.

5.2. Dosage requirements The recommended dosage for medium water hardness must The recommended dosage for a laundry detergents be provided for normally soiled for a water hardness of 2.5 mmol CaCO3/l shall not textiles and lightly soiled tex- exceed the following amounts for normally soiled tex- tiles. Where the recommended tiles (heavy duty detergents, colour–safe detergents) dosage is per load, this should and lightly soiled textiles (low–duty detergents) re- relate to a 4.5 kg (dry textile) spectively. load for heavy–duty detergents • Heavy–duty laundry detergent – 17.0 g/kg wash and colour–safe detergents and (powders/tablets) or 17.0 ml/kg wash (liquids); a 2.5 kg (dry textile) load for low–duty detergents.

94 95 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

1.2. ENVIRONMENTAL CRITERIA FOR CLEANING SERVICES 1.3. ENVIRONMENTAL CRITERIA FOR PAINTS AND VARNISHES

ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

1. CONSTITUENT 1.1. Products used by the cleaning company must The tenderer must supply a list 1. PRODUCT FOR- 1.1. White pigment content • Documentation for the meet the relevant criteria as mentioned above. SUBSTANCES of the products that will be used, MULATION White pigment content (white inorganic pigments with a paint formulation, sup- AND MIXTURES together with proof of compli- refractive index higher than 1,8) per m2 of dry film: ported by testing re- ance with the specifications for sults. 2 criteria mentioned above. • for indoor products - equal to or lower than 36 g/m and

2. CONTRACT 2.1. After the first six months of the contract, and Reports listing the products • for outdoor products - 38 g/m2, thereafter at the end of every year of the contract, a PERFORMANCE used. The contractor should also • with the exception of indoor wall paints claiming Class balance must be submitted by the contractor indicat- CLAUSES be able to justify the cleaning 1 wet scrub resistance (WSR) - for which 40 g/m2. ing the name and quantity of the cleaning products frequency and range of products used. For any products not mentioned in the initial bid used. • Undercoats and primers - equal to or lower than the contractor shall provide the required proof of 25g/m2. compliance with the technical specifications. This requirement does not apply to transparent and semi- transparent coatings. 2.2. Staff and organisation A record of these training All cleaning staff employed in carrying out the service measures (introductory/voca- 1.2. Content of Volatile Organic Compounds (VOCs) • Test report carried out must be regularly trained for their various tasks. This tional training) should be kept at according to ISO training should cover cleaning agents, methods, the disposal of the contracting Limits for VOCs are given in table 1. equipment and machines used; waste management authority. 11890-2 or equivalent, and aspects of health, safety and the environment. The content of VOCs shall be determined for the ready to or for products with a use product and shall include any recommended additions VOC content of less than 1.0g/l, ISO 17895 2.3. In agreement with the contracting authority, pre- Displayed instructions to be prior to application such as colourants and/or thinners. or equivalent; cise work instructions on environmental protection made available for inspection by Table 1 - VOC content limits and on health and safety standards in carrying out the contracting authority. • In principle the calcu- the service shall be produced and displayed in the VOCs limits (g/l lation will also be ac- buildings in a way that they can be consulted by Product Description cleaning staff at any time. including water) cepted as a proof of compliance, however the contracting author- 2.4.A facility manager, foreman/forewoman or co–or- The contractor shall supply the 1. Interior matt walls and ceilings 10 ity reserves the right to dinator should be nominated to organise and super- name of the responsible member (Gloss <25@60°) request test results. vise the cleaning. The appointed person should stay in of staff, details of their qualifica- contact with the contracting authority and be reacha- tions and training, and contact 2. Interior glossy walls and ceilings 40 ble during working hours. The facility manager, fore- details. (Gloss>25@60°) man/forewoman or coordinator has to be sufficiently trained in the fields of occupational health and safety 3. Exterior walls of mineral sub- 25 standards, application techniques and environmental strate issues.

4. Interior/Exterior trim and clad- 80 2.5. Environmentally friendly cleaning techniques The Within 6 months of the beginning ding paints for wood and metal contractor should use reusable microfibre cloths of the contract, the contractor where appropriate. will provide a report to the con- tracting authority on the practice 5. Interior trim varnishes and 65 of using microfiber cloths. woodstains, including opaque woodstains Source: adapted from the СОУ ОЕМ 08.002.12.065:2016

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6. Exterior trim varnishes and 75 Carcinogenicity Carc. 1A woodstains, including opaque Carc. 1B woodstains Carc. 2 7. Interior and Exterior minimal 50 build woodstains Germ cell mutagenicity Muta. 1A

Muta. 1B 8. Primers 15 Muta. 2 9. Binding primers 15 Reproductive toxicity Repr. 1A 10. One-pack performance coating 80 Repr. 1B

Two-pack reactive performance 80 Repr. 2 coatings for specific end use such as floors Hazardous to the aquatic en- Aquatic Acute 1 vironment Aquatic Chronic 1 or 2 Decorative effects coating 90 Aquatic Chronic toxicity Anti-rush paints 80 3

Respiratory Sensitization Resp. Sens. 1, 1A or 1B

1.3. Product hazard labeling • Appropriate documen- Skin sensitization Skin Sens. 1 , 1A or 1B tation confirming that the products to be sup- The final product shall not be classified and labelled as plied are not classified being acutely toxic, a specific target organ toxicant, a res- and/or do not require 1.4. Hazardous ingredients • Appropriate documen- piratory or skin sensitizer, or carcinogenic, mutagenic or labelling with the tation confirming com- toxic for reproduction hazardous to the environment, in listed hazards. accordance with Regulation (EC) No 1272/2008 (CLP Regu- The paint shall not contain the following substances at or pliance with this crite- lation), as indicated in Table 2 or shall not carry a precau- The documentation greater than the concentration limits and in accordance rion. Compliance with tionary statements required for products with these clas- can include calcula- with the restrictions in Table 3. maximum concentra- sifications. tions of mixture classi- tion limits established fication carried out in Table 3 - Paint hazardous ingredient requirements in the criteria can be Table 2 - Final product classification accordance with the verified using Safety Concentration Data Sheets obtained rules provided in the Ingredient Acute Tox. 1 CLP Regulation and/or Limit from raw material Acute toxicity Acute Tox. 2 Safety Data Sheets. suppliers and Safety Preservatives: Data Sheets for mix- Acute Tox. 3 ture. • Preservatives shall be non-bio- Log Kow ≤ 3.2 or Specific target organ toxicity STOT RE 1 or 2 accumulative and any associated Bioconcentra- Additionally: risk mitigation measures shall tion Factor – repeated exposure • for formaldehyde: a STOT SE 1, 2 or 3 be implemented. (BCF) Specific target organ toxicity test report shall be – single exposure provided based on the

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• Dry film preservatives shall not ≤ 100 use of the 2. EFFICIENCY OF 2.1. Spreading rate • Test report using the be used with the exception of ar- Merckoquant method APPLICATION AND following methods, or eas of: or high-performance The paint shall achieve an efficient spreading rate accord- DURABILITY their equivalent: liquid chromatography ing to the applicable performance requirement in Table 4. • high humidity 0.10% (HPLC) method (See • ISO 6504/1 (Paints and Table 4 - Spreading rates for specific paint products • outdoor paints. 0.30% Annex 3), varnishes — determi- nation of hiding power • for metals: for which a Type of Paint Spreading rate (m2/l) Alkylphenolethoxylates: Not permitted — Part 1: Kubelka- test report shall be Munk method for white Alkylphenolethoxylates (APEOs) and provided based on the White paints and light-col- Indoors – 8 and light-coloured their derivatives shall not be used in use of ISO 3856 series oured paints (including fin- Outdoor – 6 paints) any paint or varnish preparations or or equivalent, ishes and intermediates formulation. • ISO 6504/3 (Part 3: de- • for preservatives: if re- Indoor & outdoor - 8 termination of contrast quested by the con- ratio (opacity) of light- Formaldehyde: tracting authority, a Tinting systems 8 coloured paints at a Free formaldehydein the white base, 0.0010% test report shall be fixed spreading rate), tinting base and worst case colour provided confirming Primers and undercoats: that the preservatives tint, with the exception of where for- a. opaque 8 • NF T 30 073 for paints maldehyde donors are required or used are non-bioaccu- specially designed to are present in polymer dispersions, mulative. b. with blocking/sealing, 6 give a three-dimen- in which case the following value penetrating/binding prop- sional decorative effect shall apply: 0.010% erties or which are charac- 6 c. with special adhesion terised by a very thick Phthalates: 0.010% properties coat. The following phthalates shall not be per phthalate 2 intentionally added as plasticisers: Thick decorative coatings 1 m per kg of product

• DEHP (Bis-(2-ethylhexyl)- Elastomeric outdoor paints 4 phthalate) • BBP (Butylbenzylphthalate) • DBP (Dibutylphthalate) 2.2. Weathering resistance (only outdoor paints) • Test results demon- • DMEP (Bis2-methoxyethyl) strating performance Resistance to the possible forms of weathering-induced phthalate DIBP (Diisobu- of the paint according deterioration for masonry, wood and metal paints accor- tylphthalate) to the requirements ding to the Table 5. • DIHP (Di-C6-8-branchedalky- listed in Table 5. Paints shall be exposed to artificial test conditions for 1000 phthalates) • With the exception of hours. • DHNUP (Di-C7-11- corrosion for metal branchedalkylphthalates) Corrosion resistance for metal paints shall also include paints the artificial blistering. weathering conditions • DHP (Di-n-hexylphthalate) shall reflect the condi- Tests should be performed on the tinting base. tions described in ISO Metals: 0.010% 11507 or (for outdoor Cadmium, lead, chromium VI, mer- per metal wood finishes) QUV ac- cury, arsenic, selenium celerated weathering apparatus with cyclic 100 101 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

Table 5 - Weathering resistance tests exposure with UV(A) 2.4. Abrasion resistance of floor paints • Test results carried radiation and spraying out according to EN Weather- according to EN 927-6 Floor coatings and floor paints shall demonstrate an abra- ISO 7784-2 or equiva- ing in- Performance require- Recom- or their equivalent. sion resistance not exceeding 70 mg weight loss after 1000 lent. duced de- ment mended Test test cycles with a 1000 g load and a CS10 wheel according • For corrosion the rele- terioration to EN ISO 7784-2. vant atmospheric cor- rosivity categories in Decrease of Less than or equal to ISO 2813 EN ISO 12944-2 and 3. EMISSION OF 3.1. Content of Semi Volatile Organic Compounds • Test report according gloss 30% of its initial value the accompanying pro- POLLUTANTS (SVOCs) to ISO 11890-2 or equivalent. In principle cedures specified in Limits of Semi Volatile Organic Compounds (SVOCs) con- Chalking 1.5 or better (0.5 or 1.0) EN ISO 4628- the calculation will EN ISO 12944-6, or tent equal to less than the limits given in Table 7. 6 equivalent, shall be also be accepted as a used. Anti-rust paints Table 7 - SVOCs content limits proof of compliance, Flaking Flake density 2 or less, ISO 4628-5 for steel substrates however the contract- flake size 2 or less VOCs limits (g/l ing authority reserves shall be tested after Product Description 240h salt spray follow- including water) the right to request Cracking Crack quantity 2 or less, ISO 4628-4 ing ISO 9227 or equiva- test results. crack size 3 or les lent. 1. Interior matt walls and ceilings 301 / 402 (Gloss <25@60°) Blistering Blister density 3 or less, ISO 4628-2 1 2 blister size 3 or less 2. Interior glossy walls and ceilings 30 / 40 (Gloss>25@60°)

Corrosion Rusting equal to or bet- ISO 4628-3 3. Exterior walls of mineral sub- 40 ter than Ri2 strate

4. Interior/Exterior trim and clad- 501 / 602 2.3. Fungal and algal resistance of the film (only out- • Test results demon- ding paints for wood and metal door paints) strating compliance according to the test Exterior masonry and wood paints for which fungal and/or 5. Interior trim varnishes and wood- 30 methods EN 15457 algal resistant properties are requested in the tender shall stains, including opaque woodstains and/or EN 15458, or meet the requirements in Table 6. Only base paints shall their equivalent. For be required to meet the criterion. 6. Exterior trim varnishes and 60 coatings containing woodstains, including opaque encapsulated dry-film woodstains biocides altered condi- Table 6 - Fungal and algal resistance requirements tioning protocols shall 7. Interior and Exterior minimal 301 / 402 also be accepted. Applica- build woodstains Fungal Resistance Algae Resistance tion • Manufacturers shall provide information 8. Primers 301 / 402 Masonry Class 1 or lower Score of 0 about any variation in conditioning along with 9. Binding primers 301 / 402 Wood Class 1 or lower Score of 0 test results of the EN 15457 and/or 15458 10. One-pack performance coating 501 / 602 standards.

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Two-pack reactive performance 501 / 602 4. CONSUMER IN- 4.1. Information on the packaging Label, product sheet or coatings for specific end use such FORMATION, PACK- equivalent and description The following information must be placed on the packag- as floors AGING AND TAKE- of how the information ac- ing or enclosed with each individual product: BACK SYSTEMS companies each product. Decorative effects coating 501 / 602 • The purpose, substrate and other conditions of appli- cation for which the product is intended. This shall in- Anti-rush paints 60 clude advice on preparation, e.g. correct preparation of the substrate or temperature. Notes: • Estimate of “normal” coverage (e.g. l/m2, g/m or equivalent). 1 Indoor white paints and varnishes • Recommended preventive safety measures for users, 2 Indoor tinted paints / outdoor paints and varnishes such as safety equipment and ventilation (particularly when working in enclosed spaces or similar). 3.2. Indoor Air Quality: Indoor paints The tenderer shall verify • Recommendations on cleaning used tools and how that one or more of the se- waste products from cleaning can best be disposed of Products with content or emissions lower than the limits lected technical improve- (to limit water pollution). These recommendations are indicated in Table 8. ments have been met to be adapted to the product types and areas of appli- cation. Pictograms shall also be used where appropri- Table 8 - Indoor paint hazardous content and emissions based on analytical testing to air limits according to EN 16402 or ate. equivalent for TVOCs and • Recommendations on how the product is to be stored after opening, including safety instructions where rel- Emissions to air limits formaldehyde. For verifica- Concentra- evant. (mg/m3) tion of isothiazolinones Product tion limit content Safety Data Sheets • Recommendations on the disposal of residual product (ppm) and packaging. 3 days 28 days shall be provided.

TVOCs1 10 000 1 500 4.2. Packaging Photo of the packaging Formalde- - 60 showing that the packaging Packaging must be resealable, unless documentation can hyde can be resealed. Or de- be provided that the entire product will always be used in scriptions of whether the one go. Isothiazoli- 500 entire product is always nones The type of plastic material must be documented by the used in one go. - sum total manufacturer. Product packaging and labels must not Description of the packag- contain halogenated plastic. ing type and size. MIT2 200 Any surface coating of the packaging must not contain Declaration from the pack- halogens. CIT/MIT3 15 aging manufacturer that Metal packaging must not be used for packs of less than 1 no halogenated plastics 1 Total Volatile Organic Compounds litre, unless this is justified by special health and environ- have been used or product mental arguments. data sheets clearly show- 2 Methylisothiazolinone ing that the requirement is 3 5-chloro-2-methyl-4-isothiazolin-3-one (CIT) / 2- me- met by all parts of the thyl-4-isothiazolin-3-one (MIT) in a ratio of 3:1 packaging, including lids, caps, etc.

104 105 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

ENVIRONMENTAL 1.4. ENVIRONMENTAL CRITERIA FOR HEAT INSULATION REQUIREMENTS VERIFICATION 1.5. ENVIRONMENTAL CRITERIA FOR HEAT INSULATION MA- CRITERIA TERIALSMATERIALS Declaration from the pack- aging manufacturer that ENVIRONMENTAL REQUIREMENTS VERIFICATION the packaging has not been CRITERIA surface coated, or that the surface coating does not 1. PRODUCT IN- 1.1. Information about the product(s) Any information requested by contain halogens. FORMATION the requirement. A product Tenderer should submit the following information about datasheet may be sent as part of Declaration from the label the product(s): producer that no halogen- the documentation. ated plastics have been • Brand name(s) and trade name(s); used. • Description of product(s) included in the tender bid. A product datasheet or similar for each product 4.3. Take-back systems Declaration from the appli- must be forwarded; cant regarding affiliation to Relevant national regulations, legislation and agreements • Description of manufacturing process of the prod- within the sector regarding take-back systems for pro- existing recycling/pro- cessing agreements. Ap- uct. Subcontractors must be described with com- ducts and packaging shall be complied with in all the pendices 1 can be used. If pany name, production location, contact person and countries where the Ecolabelled products are marketed. the production processes used. other system than the Relevant take-back systems are PYR (Fi), Grønt punkt mentioned is used, then (No) and FTi AB or TMR AB (Sw). Other relevant take- For each product: Attach a list of materials and chemical documentation showing back systems may also be approved, if it is documentated products used in producing the panel and any surface that the system is equiva- that the system is equivalent to the above mentioned treatment of the panel. The list must contain the weight lent must be submitted. systems. percentage of the constituent materials/chemical pro- ducts in the panel. Safety datasheets for each chemical 5. PRODUCTION 5.1. Energy conservation and resources use – energy Appropriate means of product must be included. and resources saving measures and the rational use of proofs: written declara- primary/secondary resources may be implemented into tions, certifications and la- 2. MINERAL RAW The requirements apply to mineral raw materials and The declaration from the raw production process. beling. MATERIALS mineral bi-products (e.g. fly ash) which make up more materials producer/refiner, than 10% by weight of the finished panel. containing measurement re- An environmental manage- 5.2. Emissions/discharges of pollutants into the envi- sults, measurement methods ment system (such as 2.1. Heavy metals ronment – Indicators of environment pollution and waste and measurement frequency. EMAS, or ISO 14001) if cov- accumulation (including wastewater) should be at least – Mineral raw materials or mineral bi-products must as a ering and attesting envi- within the limits; maximum contain the following quantities of heavy ronmental management desirable - at least above the limits. metals as indicated in table 1. capacities as laid down in the selection criteria, shall Table 1 - Requirement Level for heavy metal content 5.3. Environmental management system; sustainable be recognised as evidence by either partial opening or total opening of the test production and consumption. of compliance, as will sample other evidence of equiva- lent environmental man- Heavy Partial digestion Partial digestion agement measures. of the sample by of the sample by metal EN 259 EN 13656 Source: adapted from the СОУ ОЕМ 08.002.12.019:2016

MAX content in MAX content in mg/kg mg/kg

Arsenic 10 30

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ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

index in accordance with the following formula: Lead 25 25 CK/3000 + CRa/300 + CTh/200 < 0.5 Cadmium 1 10 In the above formula, CK, CRa and CTh are the concen- trations of potassium-40, radium-226 and thorium-232, Mercury 0,5 0,5 expressed as becquerel per kilogram (Bq/kg) of the ma- terial. 1% potassium is equivalent to 310 Bq/kg potas- Chrome 300 300 sium-40, 1 ppm uranium is equivalent to 12.3 Bq/kg of (total) radium-226 and 1 ppm thorium is equivalent to 4.0 Bq/kg of thorium-232.

2.2. Dust emissions The declaration from the raw 3. WOOD RAW 3.1. Wood fibres, cardboard and pulp The declaration and any calcula- materials producer/refiner, MATERIALS, PA- tions from the supplier of the The production and refining of mineral raw materials The requirement covers raw materials purchased as containing measurement re- PER, CARD- paper, cardboard or pulp that must not generate dust emissions to the atmosphere wood fibre in paper, cardboard and pulp. The require- sults, measurement methods BOARD AND PA- the requirement has been satis- (via a chimney) of more than 7 mg dry dust/m3 air and 21 ment does not apply to paper labels attached to the and measurement frequency. PER PULP fied. mg wet dust/m3 air. product. Where points 1 or 3 apply, the Annually, at least: 2.3. Radioactive substances Sampling programme, including paper, cardboard or pulp manu- measurement methods, meas- facturer must send a copy of the The requirement covers all constituent mineral materi- urement result and measure- relevant forestry certificate als described below (> 10% by weight in the panel). The 1. 30% of the fibre raw material in paper, cardboard or ment frequency. which complies with the guide- requirement applies for panels for internal uses such as pulp must come from forest areas in which operation has been certified under the forestry standard and certi- lines for forest certification and walls, ceilings, sub-floors, fittings and joists. Hence, organic cultivation. panels which are only marketed for outdoor use are not fication system or which is certified as organically culti- covered by the requirement. vated or where cultivation is in the process of being con- When using products controlled verted to organic production, by any Ecolabel paper basic For panel materials which contain: or module the producer, produc- 1. Natural materials such as alum shale or building ma- tion plant, name of mass or pa- terials or additives of natural volcanic origin, e.g.: gra- 2. 70% of the fibre raw material in paper, cardboard or per quality and grammage shall nitoids (such as granites, syenite and orthogneiss); pulp must be recycled fibre or bi-products such as shav- be described. porphyries; tufa; pozzolana; lava ings or sawdust,

or or

2. Materials containing residues from industries which 3. a combination of 1 and 2. If the fibre raw material in process naturally occurring radioactive material, e.g.: fly paper, cardboard or pulp consists of less than 70% recy- ash; phosphogypsum; phosphorus slag; tin slag; copper cled fibre, the proportion of fibre raw material from cer- slag; red mud (residue from aluminium production); tified areas must be calculated according to the follow- residues from steel production ing formula:

it must be documented that the gamma index (mγ) or ac- Requirement for proportion of fibre raw material from tivity index (l1) is less than 0.5. certified areas in paper, cardboard or pulp (Y):

The requirement applies to all constituent materials Y (%) ≥ 30 - 0.4x used in panels for internal uses such as walls, ceilings, where x = proportion of recycled fibre or bi-products sub-floors, fittings or joists. Radioactive substances in such as shavings and sawdust. the panel material are expressed as a gamma/activity

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ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

wood waste and untreated demolition wood and recycled Ecolabelling may require fur- 3.2. Solid wood, veneer, bamboo and cork Name (Ukrainian language or wood are exempt from this requirement. This requires, ther documentation to assess English) and geographical ori- Constituent raw materials of solid wood, veneer, bam- however, a statement from the supplier, that the raw whether the requirements for gin (country/state and region/ boo, cork and fibre products in the construction panel material is residues, waste or recycled. standards, certification system province/municipality) for the must comply with the following requirements. and certified proportion have wood raw materials used. 70% by weight of all wood for parts made of solid wood, been satisfied. E.g. a copy of the Secondary raw materials from trees, e.g. palm leaves, veneer, bamboo and cork must come from certified for- The traceability system must be certification body’s approval re- are exempted from the requirement. ests. Alternatively, the bamboo may be organically culti- described. The Chain of Custody port, a copy of the forestry vated or the cultivation may be in the process of conver- Residues and waste from other activities in the form of Certificate or certificate number standard including name, ad- sion to organic production. sawdust/wood chips/wood waste/untreated demolition on Traceability Certification may dress and telephone number of wood and recycled wood fibres are exempt from this re- be used as documentation for The requirement may be documented as purchased the organisation which drew up quirement. This requires, however, a statement from the point 2. wood and bamboo on an annual basis either for the the standard, and references to supplier, that the raw material is residues, waste or re- whole company or the Ecolabeled production alone persons who represent the par- Written routines for ensuring cycled. (minimum 70% certified wood must be credited to the ties and interest groups invited sustainable bamboo and wood Ecolabeled production. to participate in the develop- The licensee must: supply. A requirement for a ment of the forest standard. Chain of Custody Certificate Certification must be performed by an independent third • demonstrate traceability for all wood, veneer and from a supplier may be used as party. For residual, waste or recycled bamboo materials; part of the procedure. The pro- wood raw materials a statement Certification must be to a valid forestry standard which • state the name (Ukrainian language) and geographic cedure must ensure updated confirming this must be submit- fulfills the requirements for standards and certification origin (country and region/province) of the kinds of lists of all suppliers. ted. systems. wood and bamboo used; For residual, waste or recycled • to have a written procedure for sustainable wood wood raw materials a statement 3.4. Use of biocides in tree felling A statement from the wood sup- and bamboo supply. confirming this must be submit- pliers as to the pesticides used The requirement applies to solid wood, veneer and bam- ted. and a declaration for each pro- Wood, veneer and bamboo raw materials may not be boo as constituent raw materials. duct. sourced from: After felling, the wood must not be treated with pesti- • protected areas or areas in the process of being cides with WHO classifications 1A and 1B. awarded protected status; The requirement relates to the treatment of logs after • areas where ownership or usage rights are unclear; felling.

• genetically modified trees or plants. 3.5. Specific requirements for paper and cardboard Submit a description of the Furthermore, forestry operations must not damage: (incl. craft paper) sampling programme, including measurement methods, meas- standing natural timber, biodiversity, special ecosys- The requirement applies to paper or cardboard ( incl. urement results from previous tems or important ecological functions important social craft paper ) which constitute > 10 percent by weight of 12 months and measurement and/or cultural values. the finished panel. The requirement should therefore be frequency. documented for paper and paperboard commodities that 3.3. Certified solid wood, veneer and bamboo The proportion (%) of certified individually represent more than 10 percent by weight of wood or bamboo included in the the panel. applicant’s annual ecolabelled The requirement applies to solid wood, veneer, bamboo Emissions of COD from paper and cardboard produc- production. and cork included as raw material for building boards. tion Copy of forestry certificated Secondary raw materials from trees, e.g. palm leaves, The total emissions of acid-consuming organic material signed and approved by a certifi- are exempted from the requirement. (COD - chemical oxygen demand) to water must be less cation body. Residues and waste from other activities in the form of than the specified COD value in Table 2 for the paper or

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cardboard used (for unfiltered sample). This requirement may be documented as an annual av- erage for plasterboard production. Each type of pulp has its own level in the requirement. The COD emission from pulp production must be in- 4.2. Cement-based and mineral wool panels A declaration from the recycled cluded in the total COD calculation for the paper or materials supplier, showing the cardboard used. As a minimum there must be 30% by weight recycled or amount of recycled material re- renewable material in the panel. The requirement may COD emissions are thus calculated by adding the emis- ceived in accordance with the be documented annually for the panel production. sions COD mass kg/ADT (weighted mean of incoming requirement. pulps) + COD emission paper machine kg/t. For mineral wool panels an exemption is given from this Applicant’s calculation showing requirement if the panel instead can fulfil the reduced Ecolabelled paper products as well as pulp and paper that the requirement level has energy requirement of 10 MJ/kg in requirement O16. controlled under the existing Ecolabel basic module for been reached. paper, is automatically approved in this requirement. In this requirement recycled raw materials are defined in this requirement as post-consumer, cf. definition in Table 2 - COD requirement levels for different pulp ДСТУ ISO 14021:2002 and waste products such as fly ash and paper types and industrial slag.

Pulp type Total COD level 5. ENERGY RE- 5.1. Energy requirements for paper and pulp produc- When using products controlled kg/ADt for pulp QUIREMENTS tion by any Ecolabel paper basic and paper module the producer, produc- The requirement covers paper and pulp which indivi- tion plant, name of mass or pa- Bleached chemical pulp (sul- 22.0 dually are present at more than 30% by weight in the per quality and grammage shall phate and other chemical finished panel. be described. pulps except sulphite pulp) The following requirements must be satisfied for paper or pulp: Bleached chemical pulp (sul- 29.0 phite pulp) P electricity(total) < 1.25 P fuel(total) < 1.25

P stands for energy point for paper/pulp production. In P Unbleached chemical pulp 14.0 electricity(total) and P fuel(total), energy points are in- cluded from both paper production and the pulps used in CTMP pulp 19.0 the paper. The pulp and paper manufacturer must sub- mit a calculation which shows that the point limits are TMP/Groundwood pulp 7.0 being satisfied.

Recycled fibre pulp 4.0 5.2. Energy requirements for HPL panel production A calculation documenting compliance with the require- The requirement covers the applied energy for produc- 4. RESOURCE 4.1. Plasterboards A declaration from the recycled ment should be submitted. The tion of the panel and may be documented either for the REQUIREMENTS materials supplier, showing the calculation must contain infor- ecolabelled panel production or for the company’s total amount of recycled material re- mation about: quantity of pro- As a minimum, at least 20% by weight of recycled gyp- annual production of HPL panels. ceived in accordance with the duced panels, sub-divided into sum must be used in the plasterboard, in the form of requirement. HPL panels ≤ 2 mm thin: thick and thin, applied electricity waste gypsum from demolition and refurbishment of and fuel, and which fuel sources buildings. Applicant’s calculation showing No more than 18 MJ/kg panel may be used for producing are being used. that the requirement level has the panel. The remainder of the constituent gypsum raw material been reached. must be industrial gypsum (residual product from power HPL panels ≤ 2 mm thick: stations).

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No more than 14 MJ/kg panel may be used for producing 5.6. Energy requirements for cement-based panels A calculation documenting the panel. compliance with the require- The requirement covers the total energy impact from ment should be submitted. 5.3. Energy requirements for wood-based panels In relation to fuel energy, then the constituent materials in the panel. The requirement both energy from purchased covers all materials used in the panel which are Energy consumption is calculated as an annual average fuel, domestically produced fuel present at more than 1% by weight. To calculate this, for production or for the whole enterprise. Energy con- and energy from waste products table values are applied from Table 3 for each material, sumption calculated as MJ/kg panel must include the are included. The requirement weighting them in proportion to the amount of material primary panel production and the production of the con- does not include extraction of present in the finished panel. resources. Self-produced ener- stituent main raw materials. Main raw materials are the Requirement for building panels: No more than 8 MJ/kg raw materials which make up more than 2% by weight of gy and resold surplus energy panel may be applied. the finished panel (for example wood fibre and adhe- should be stated, but will not sive). count as applied energy in the Requirement for facade panels: No more than 10 MJ/kg calculation. panel may be applied Chipboards: A calculation documenting The table values express the energy impact of the mate- • No more than 7 MJ/kg panel may be applied for pro- compliance with the require- rial with the system limit cradle to gate, e.g. the calorific ducing panels (excluding any surface treatment) ment should be submitted. The value. It is not permitted to use privately obtained calculation must contain infor- Wood fibres/veneer and laminated panels: values. mation about: quantity of pro- • No more than 11 MJ/kg panel may be applied for duced panels, applied electricity Table 3 - Table value for energy for material produc- producing panels (excluding any surface treatment) and fuel and which fuel sources tion cradle to gate are being used. Material Primary energy MJ/kg (both re- 5.4. Energy requirements for plasterboards A calculation documenting newable and fos- compliance with the require- The requirement covers the applied energy for produc- sil-based) ment should be submitted. The tion of the panel and may be documented either just for calculation must contain infor- the evaluation of panel production or for the company’s Portland Cement 8 mation about: quantity of pro- total annual production. duced panels, applied electricity Kaolin 5.4 No more than 4 MJ/kg plasterboard may be applied for and fuel, and which fuel total applied electricity and fuel in panel production. sources are being used. Fly ash (hard coal ash from 0.4 furnace) 5.5. Energy requirements for mineral wool panels A calculation documenting compliance with the require- The requirement covers the applied energy for produc- Limestone flour 0.4 ment should be submitted. The tion of the panel incl. the production of mineral wool. calculation must contain infor- The requirement may be documented either just for the Silicate sand 0.6 mation about: quantity of pro- evaluation panel production or for the company’s total duced panels, applied electricity annual production. and fuel, and which fuel Aluminium hydroxide 10 In total, no more than 20 MJ/kg mineral panel may be sources are being used. applied for electricity and fuel. Magnesium oxide 2.7

For panels, that do not comply with the requirement for Magnesium chloride (value for 2.7 recycled material, applies a maximum level of 10 MJ/kg MgO) panel.

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Auxiliary chemicals such as lubricating oil for mechani- Pozzolanic Filler 83 cal equipment are not covered by the requirement.

Residual wood (hardwood 5 Several of the requirements are aimed at the ingoing u=80% moisture content dry substances in the chemical product. basis)* 6.2. Classification of the chemical product Declaration from the producer Residual wood (softwood 2 of the chemical product used in The chemical product used in the production of the u=140% moisture content dry the product that the require- panel must be classified in accordance with the current basis) ment has been satisfied. legislation (CLP Regulation 1272/2008 or the EU’s Dan- gerous Preparations Directive 1999/45/EEC 2008, or A safety data sheet for the Sawdust (chips u=70% mois- 2 later) and may not be classified in accordance with Ta- chemical product used in the ture content dry basis)* ble 4 below. product in accordance with Ap- pendix II of Reach (Regulation Exemptions: Wood chips (chips u=70% 1.5 1907/2006/EC with subsequent moisture content dry basis)* Resins in HPL sheets with up to max. 10 % phenol are amendments and additions). exempted from the prohibition of classification with PVA fibre (synthetic fibre) 202 H341 / R68 and H301, H331 / R23, R24, R25, R48.

Clay, expanded 4.8 Adhesives with methylene diphenyl diisocyanate (MDI) are exempted from the prohibition of classification with Glass Foam 25.2 H351/R40. From 04/01/2015 formaldehyde is up classified under Fibreglass 35.2 CLP ATP 6 (EU no. 605/2014) then an exemption for for- maldehyde with H350 (Carc.1B)/R45 and/or R49 and Polyacrylonitrile (PAN) fibre 82 H341 (Muta.2)/R68 are given in this requirement.

Methanol in concentrations up to 10% by weight in ad- Other plastic fibres 200 hesives and resins are exempted from the prohibition of classification according to the requirement. * 70% “moisture content dry basis” means 0.7 m3 water per 1 m3 dry wood. This is the same as a moisture con- Table 4 List of non-permitted classifications of tent of 41 % “moisture content wet basis”. In the case of chemical products in accordance with the CLP Reg- a different moisture content in the wood raw material, a ulation 1272/2008, or later conversion must be made by using an energy figure for dry wood, which would be 2.5 MJ/kg dry substance wood CLP Regulation 1272/2008 EU Dangerous Substance (water content of 0 %) for wood chips. A similar conver- Directive67/548/EC sion must be made for other wood raw materials. Signal Hazard Indication of Risk phrase 6. CHEMICAL 6.1. General words statement danger PRODUCTS The requirements cover the chemical products in- Carcino- cluded in the production of the panels. Either as addi- genic tives to the panel or in surface treatments. The require- ment relates to chemical products such as adhesive, Danger, H350 T R45 and/or additives and surface treatment. Carc. 1A or 1B

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Danger, H350i T R49 Danger, H370 Tx R39 Carc. 1A or STOT SE 1 1B Toxic Warning, H351 Xn R40 Carc. 2 Danger, H330 or T R23 Acute Tox. 2 H331 Mutagenic or 3

Danger, H340 T R46 Danger, H331 T R24 Muta. 1A or Acute Tox. 3 1B Danger, H301 T R25 Warning, H341 Xn R68 Acute Tox. 3 Muta. 2 Danger, H370 T R39 and/or Reprotoxic STOT SE 1

Danger, H360 T R60 Danger, H372 T R48 Repr. 1A or STOT RE 1 1B The classification applies in accordance with the EU’s Danger, H360 T R61 Dangerous Substances Directive 67/548/EC with subse- Repr. 1A or quent amendments and adjustments and/or CLP Regu- 1B lation 1272/2008 with subsequent amendments. During the transition period, i.e. up to 1 June 2015, classifica- Warning, H361 Xn R62 and/or tion in accordance with the EU’s Dangerous Substances Repr. 2 Directive or the CLP Regulation may be used. After the transition period, only classification in accordance with Warning, H361 Xn R63 the CLP Regulation is allowed. Repr. 2

- H362 - R33 6.3. CMR classification of constituent substances Declaration from the pro- ducer/supplier of the chemical The requirement covers all constituent substances in product that the requirement - H362 - R64 the chemical products used in panel production and for has been satisfied. surface treatment. Very toxic The constituent substances used in chemical products Danger, H330 Tx R26 in construction panel production (e.g. additives, adhe- Acute Tox. 1 sives and surface treatment) must not have any classi- or 2 fications listed in Table 5 below.

Exemptions: Danger, H310 Tx R27 Acute Tox. 1 From 04/01/2015 formaldehyde is up classified under CLP ATP 6 (EU no. 605/2014) then an exemption for for- Danger, H300 Tx R28 and/or maldehyde with H350 (Carc.1B )/R45 and/or R49 and Acute Tox. 2 H341 (Muta.2)/R68 are given in this requirement.

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Table 5 - List of non-permitted classifications of • Substances on the EU Candidate List; constituent substances in chemical products • Persistent, bioaccumulative and toxic (PBT) organic substances;

CLP Regulation EU Dangerous Substance Di- • Very persistent and very bioaccumulative (vPvB) or- 1272/2008: rective 67/548/EC: ganic substances; Signal Hazar Indication Risk phrase words d of danger • Substances regarded as potentially endocrine-dis- state rupting in category 1 or 2 on the EU Candidate List; ment • Priority List of substances for further investigation Carcinoge for endocrine disrupting effects; nic Danger, H350 T R45 and/or • Halogenated organic compounds, such as organic Carc. 1A or chloroparaffins, fluorine compounds and haloge- 1B nated flame inhibitors; Danger, H350i T R49 Carc. 1A or • Bisphenol A; 1B • Alkylphenols, alkylphenol ethoxylates and other al- Mutagenic Danger, H340 T R46 kylphenol derivates; Muta. 1A or • Phthalates; 1B Reprotoxic • Aziridine and polyaziridines; Danger, H360 T R60 • Pigments and additives based on lead, tin, cadmium, Repr. 1A or 1B chromium VI and mercury, and their compounds. Danger, H360 T R61 Repr. 1A or 6.5. Biocides (preservatives and antibacterial treat- Declaration from producer/sup- 1B ment)Antibacterial treatment (all panel types) plier of all constituent chemical products, showing that the re- • No biocides or biocide products may be applied to the The classification applies in accordance with the EU’s quirement has been met. Dangerous Substances Directive 67/548/EC with subse- surface of the finished panel, or to parts of it, for the quent amendments and adjustments and/or CLP Regula- purpose of providing a disinfectant or antibacterial tion 1272/2008 with subsequent amendments. During the effect. transition period, i.e. up to 1 June 2015, classification in Preservatives in chemical products (all panel types) accordance with the EU’s Dangerous Substances Di- rective or the CLP Regulation may be used. After the • The total content of Kathon mixture (CMIT/MIT) 5- transition period, only classification in accordance with chloro-2-methyl-2H-isothiazolin-3-one (CAS no.: the CLP Regulation is allowed. 26172-55-4) and 2-methyl-2H-isothiazolin-3-one (CAS no.: 2682-20-4) (3:1) in the chemical mixture 6.4. Specific excluded substances in chemical Declaration from the raw mate- may not exceed 15 ppm (0.0015% by weight, 15 products rials producer or supplier show- mg/kg). ing that the requirement has The requirement covers all constituent substances in All panel types excluding surface treatment of facade been complied with. the chemical products used. panels:

The following substances must not be present in the • The total content of isothiazolinone compounds in the chemical product: chemical product may not exceed 500 ppm (0.05% by weight, 500 mg/kg).

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• The total content of 2-Methyl-3(2H)-isotiazolon in the as H412 (and the same for R50/53) as a percentage of the chemical product may not exceed 200 ppm. panel

Surface treatment of facade panels: The requirement relates to the chemical products used in the panel (e.g. adhesives) with the chemical composi- • For chemical products for surface treatment of fa- tion they have when mixed in the panel material. Ammo- cade panels, the total content of isothiazolinone nia in a concentration of over 24% is exempted and not compounds in the chemical mixture may not exceed counted here. 1500 ppm (0.15% by weight, 1500 mg/kg). Table 6 - Environmental hazard statements and risk 6.6. Nanoparticles Declaration from producer/sup- phrases covered by the requirement plier of chemical product (ex- The product may not contain nanoparticles (from nano- cept for polymer emulsion, pig- Hazard class Hazard code Indication of material*). Exemptions from the requirement are ment and synthetic amorphous and hazard danger and R- granted for the following: silicate) that the product does statement ac- phrase according • Pigment; not contain nanomaterial as de- cording to to EU Dangerous fined by the requirement. CLP Regula- Substances Di- • Synthetic amorphous silicate; tion 1272/2008 rective • Naturally occurring inorganic fillers; (67/548/EC)

• Polymer dispersions. Hazardous to Chronic 1 N; R50-53

6.7. Environmentally harmful substances in the con- Declaration from pro- aquatic life with H410 struction panel (not surface treatment) ducer/supplier of chemical product showing the content of Chronic 2 N; R51-53 The total quantity of added chemical substances in the environmental hazard classi- construction panel which are classified as environmen- with H411 fied substances covered by the tally harmful according to Table 6 has been restricted requirement, stated specifically and must comply with a required level of maximum 2% Chronic 3 R52-53 for each indication of danger/R by weight environmentally harmful substances by means phrase. with H412 of the following formula:

100*H410 + 10*H411 + H412 ≤ 2% by weight environ- 6.8. Environmentally harmful substances in For alternative a), a declara- mentally harmful substances Calculation from panel manu- surface treatment of construction panel tion is required from the pro- facturer showing the panel’s ducer/supplier of each chemi- or Chemical products used in the panel’s surface treat- content of environmentally haz- cal product that the product is ment system (e.g. coating, oil, paint and lacquer) 100*(R50/53) + 10*(R51/53) + (R52/53) ≤ 2% by weight ardous substances in relation to not classified as environmen- must satisfy one of the two following requirement al- environmentally harmful substances the requirement. tally hazardous under the ternatives. above table. where: • No chemical product in the surface treatment may For alternative b) Declaration H410 is the total concentration of substances classified be classified as environmentally harmful according from producer/supplier of che- as H410 (and the same for R50/53) as a percentage of the to Table 6 below. mical product showing the con- panel or tent of environmental hazard H411 is the total concentration of substances classified classified substances covered • The total amount of environmentally harmful sub- as H411 (and the same for R50/53) as a percentage of the by the requirement. The stances applied (indicated in Table 7) in the sur- panel concentration of substances face treatment system must not amount to more must be stated specifically for H412 is the total concentration of substances classified than 40 g/m2 calculated in wet condition. One of each indication of danger/R

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the following formulae must be used to calculate phrase. H412 the weight percentage of constituent environmen- The calculation from the manu- tally harmful substances in the surface treatment The amount of applied environmentally hazardous facturer of the finished panel system (to be done as a total for all each chemical substances (g/m2) is then calculated as: showing the number of coats of product in the surface treatment): surface treatment, the applica- Applied amount (mg2) x weighted % environmen- 100*H410 + 10*H411 + H412 = % by tion method and the applied tally hazardous substances in total surface treat- weight environmentally harmful sub- amount per coat indicated as ment stances g/m2 panel. And the weighted For tone systems, a worst case calculation is made calculation of environmentally or for the surface treatment with the most tone in the hazardous substances as shown basic colour containing the most environmentally 100*(R50/53) + 10*(R51/53) + (R52/53) = % by the requirement. hazardous substance under the weighted formula for by weight environmentally harmful substances the classifications. H410 is the concentration of substances classified as H410 (and the same for R50/53) as a percentage H411 is 6.9. Volatile organic compounds (VOC) in adhesives Declaration from the pro- the concentration of substances classified as H411 (and ducer/supplier of the chemical Volatile organic compounds* including volatile aromatic the same for R50/53) as a percentage H412 is the con- compound that the requirement hydrocarbons (VAH), must not be present in the adhesive centration of substances classified as H412 (and the has been fulfilled. same for R50/53) as a percentage by more than 3% by weight.

All environmentally hazardous substances in unhardened Of these, VAHs (volatile aromatic hydrocarbons) may not chemical products must be included in the calculation. amount to more than 0.1% by weight of the adhesive.

Table7 - Environmental hazard statements and indi- Resins/adhesives for HPL panel production are ex- cations of danger covered by the requirement empted from this requirement. Instead, the HPL panel shall fulfil emission requirements to formaldehyde and phenol and VOCs. Hazard Hazard code and Indication of class hazard statement danger and according to CLP R-phrase ac- 6.10. VOC in surface treatment Declaration from the pro- ducer/supplier of each chemical Regulation cording to The content of volatile organic substances (VOC) in the product in the surface treat- 1272/2008 EU Danger- chemical products in the surface treatment system ment. The declaration must ous Sub- must be either stances Di- state the content of VOC in the rective • below 5% by weight for each chemical product, or product. (67/548/EC) • a maximum of 10 g/m2 surface of panel for the total surface treatment system Hazardous Aquatic acute 1 with N; R50 When using alternative b), the for aquatic H400 The requirement relates to the chemical products used applicant must submit a calcu- life in surface treatment with the chemical composition they lation showing the total amount have in wet form. If the product is to be diluted, the cal- of VOC in the surface treatment Aquatic chronic 1 N; R50-53 culation must be based on the content of the ready-di- system in g/m2 panel. The cal- with H410 luted product. culation must be based on the declared VOC content of each Aquatic chronic 2 N; R51-53 chemical product and the with H411 amount present in the surface treatment system. Aquatic chronic with R52-53

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6.11. Content of free formaldehyde in chemical Declaration from the producer 7.3. Dust emissions from panel production Dust measurements according products of the chemical products used in to the requirement for the past The following limit values for emissions to indoor air the construction panel. 12 months, containing a de- The requirement does not apply to resin used for im- must not be exceeded during the manufacture of panels scription of the sampling pro- pregnation in HPL and laminate production. in relation to the working environment. The requirement gramme, including measure- relates to panels in which the content of mineral raw HPL and laminate production must instead comply with ment methods and measure- materials or wood raw materials individually accounts Requirement for Emissions from HPL production as well ment frequency. for more than 10% by weight of the panel: as requirement for Emissions from the panel. Description of mandatory na- • Mineral dust, inert: 10 mg/m3 The content of free formaldehyde in chemical products tional regulatory requirements, used for production of the panel may be up to 0.2% by • Mineral dust, inert, breathable: 5 mg/m3 showing that the requirement weight (2000 ppm), except for adhesive products mixed automatically is followed. with hardener. For adhesive products mixed with har- • Mineral wool: 1 fibre/cm3 dener, up to 0.2% by weight (2000 ppm) of free formalde- hyde is permitted in the ready-to-use mixture. • Wood dust, breathable: 2 mg/m3

The content of free formaldehyde in chemical products • Organic dust, total: 5 mg/m3 used for stone wool may be no more than 0.5% by weight (5000 ppm). 7.4. Formaldehyde emissions from woodbased con- Analysis report including meas- 7. EMISSIONS 7.1. Emissions to water in wet processes The sampling programme, in- struction panels urement methods, measure- cluding measurement method, ment results and measurement The requirement covers wet processes in panel produc- For panels, which contain formaldehyde-based additives measurement results for the frequency. It must be clearly tion where organic material is included. For panels or where the surface treatment includes formaldehyde, last 12 months, and measure- stated which method has been manufactured with wet processes, the COD emission to one of the two following requirements must be met: ment frequency. used, who carried out the ana- water may be no more than 20 g COD/kg product (unfil- 1. The average content of free formaldehyde must not be lyses and that the testing tered sample). more than 5 mg formaldehyde/100 g dry substance for institu-tion is an independent MDF panels or 4 mg/100 g dry substance for all other third party. Test methods other 7.2. Emissions from HPL production Air measurements for phenol panels as determined according to the current version of than those specified may be and formaldehyde for the past The requirement relates to panels in which the content EN-120 or similar methods. used if there is a correlation 12 months, containing a de- of HPL (High Pressure Laminate) accounts for more between test methods and this scription of the sampling pro- The requirement applies to panels in wood with a mois- than 10% by weight of the panel. can be confirmed by an inde- gramme, including measure- ture level of H = 6.5%. pendent competent third party. The following limit values for emissions to air at the ment methods and measure- If the panels have a different moisture level within the workplace may not be exceeded during production of ment frequency. range 3- 10%, the analysed perforator value must be HPL (High Pressure Laminate): Description of mandatory na- multiplied by a factor F, derived with the following for- The limit value is expressed in relation to a reference tional regulatory requirements, mula: period of 8 hours’ time-weighted average (TWA): showing that the requirement For chipboard: F=-0.133 H + 1.86 For MDF: F = -0.121 H automatically is followed. Limit value for formaldehyde cas. no. 50-00-0: 0.5 ppm + 1.78 or 0.6 mg/m3 Limit value for phenol cas. no. 108-95-2: 2 2. The average emission of formaldehyde must not ex- ppm or 8 mg/m3. ceed 0.08 mg/m3 air for MDF panels or 0.07 mg/m3 air The limit value is expressed in relation to a short-term for all other panels as determined according to the cur- value of max. 15 min.: Limit value for formaldehyde cas. rent version of EN 717-1 or similar methods. no. 50-00-0: 1.0 ppm or 1.2 mg/m3 limit value for phenol EN 717-1 shows correlation with test methods ASTM E cas. no. 108-95-2: 4 ppm or 16 mg/m3. 1333 and JIS A 1460. Alternative 2 of this requirement

126 127 ANNEX I CRITERIA FOR THE SELECTED PRODUCT GROUPS: DETAILED DESCRIPTION

ENVIRONMENTAL ENVIRONMENTAL REQUIREMENTS VERIFICATION REQUIREMENTS VERIFICATION CRITERIA CRITERIA

may be alternatively documented with these in relation SVOC (C16-C23): other panels 0,03 to emission values in table 9 than wood based Table 9 - Correlation between EN 717-1 and other test methods SVOC (C16-C23): wood based with 0,10 surface treatment Test EN 717-1 ASTM E ASTM E JIS A method: 1333 1333 1460 Formaldehyde: other panels than 0,004 wood based (23 grC (25grC/ 25grC/ /45%RH) 50%RH) 50%RH *Other analysis methods are acceptable if considered equivalent by an independent competent body. MDF 0,09 mg/m3 0,06 ppm 0,07 mg/m3 0,66 mg L-1 8. USING AND 8.1. Information on Packaging The bidder must provide appro- PACKAGING priate proof that this criterion is All products made of any materials of any nature to be Other 0,07 mg/m3 0,08 ppm 0,10 mg/m3 0,53 mg met. used for the containment, protection, handling, delivery panels L-1 and presentation of goods, from raw materials to pro- cessed goods, from the producer to the user or the con- 7.5. Emission requirements for the construction The test report showing that the sumer. 'Non-returnable` items used for the same pur- panel limit values in the table above poses shall also be considered to constitute packaging. have been satisfied. The formaldehyde requirement in the table does not ap- ply for wood- based panels, which instead must fulfil re- 8.2. Take-back system Declaration from the applicant quirement "O32 Formaldehyde emissions from wood regarding adherence to existing Relevant national regulations, legislation and/or agree- based construction panels". Only wood based panels recycling/take-back agree- ments within the sector regarding the recycling systems with surface treatment shall comply with the VOC re- ments. for products and packaging shall be met in the Ukraine quirements in the table 10 below. in which the Ecolabelled construction and facade panels Facade panels and other panel types, that are in or out- are marketed. side the building envelope is not a subject to the re- quirement. 9. PRODUCTION 9.1. Energy conservation and resources use – energy Appropriate means of proofs: and resources saving measures and the rational use of written declarations, certifica- All other types of panels must comply with the emission primary/secondary resources may be implemented into tions and labeling. levels for both TVOC, SVOC and formaldehyde. production process. An environmental management Table 10 - Emission levels system (such as EMAS, or ISO 9.2. Environmental management system; sustainable 14001) if covering and attesting Substance groups Limit value af- production and consumption. environmental management ca- ter 28 days in pacities as laid down in the se- mg/m3h* 9.3. Emissions/discharges of pollutants into the envi- lection criteria, shall be recog- ronment – Indicators of environment pollution and nised as evidence of compli- TVOC (C6-C16): other panels than 0,16 waste accumulation (including wastewater) should be at ance, as will other evidence of wood based least – within the limits; equivalent environmental man- desirable - at least above the limits. agement measures. TVOC (C6-C16): wood based with 0,30 surface treatment Source: adapted from the СОУ OEM 08.002.016.048:2016

128 129 ANNEX II CRITERIA FOR TECHNICAL SPECIFICATIONS FOR SUSTAINABLE PROCUREMENT

CLEANING PRODUCTS (in Washing and Cleaning Products) Code GC 021:2015 (39830000-9)

Purchased products (example):

ANNEX II Name of product Volume Number

Synthetic detergent Universal washing powder for washing machine packed in consumer 80 kg packaging of ___ kg

CRITERIA Cleaning agent for hard Cleaning agent packed in consumer packaging of ___ kg 25 kg FOR TECHNICAL surfaces Toilet cleaner Liquid cleaning agent packed in consumer packaging of ___ l 24 l

SPECIFICATIONS Dishwashing detergent Dishwashing detergent packed in consumer packaging of ___ l 5 l FOR SUSTAINABLE PROCUREMENT Products must meet the requirements: Regulatory or normative docu- Confirmation document of compliance The specified criteria can be applied as tech- ment nical specifications for suppliers of products and service providers (for example, cleaning) or Technical regulations for cleaning A set of technical documentation according to art. 20 of the Technical performers of repair and construction works. products approved by the Cabinet of Regulations: Ministers of Ukraine from 20.08.2008 Specifying certain trademarks or product names № 717 (hereinafter - the Technical • normative document, according to which cleaning product is of a certain manufacturer is a gross violation of Regulations) produced; the Law of Ukraine "On Public Procurement". • conclusion of the state sanitary-epidemiological examination for These criteria meet the requirements of the Law product; of Ukraine "On Public Procurement" and are • description and instructions for the use of cleaning product; additional to the general requirements of the technical specifications of bidding documents. • information on the composition of the cleaning product, indi- cating the list of ingredients that are used in the manufacture of such a product, such as (anionic, cationic, amphoteric, nonionic, disinfectant, etc.), molecular weight and amount of surfactants;

• protocols for testing the biological decomposition of surfactants that are part of the cleaning product and the conformity certifi- cate in the case of the F1 module (establishing conformity of products based on the results of the test);

• Declaration on the compliance of the cleaning product with the requirements of this Technical Regulation.

130 131 ANNEX II CRITERIA FOR TECHNICAL SPECIFICATIONS FOR SUSTAINABLE PROCUREMENT

Purchased products (example): Regulatory or normative document Confirmation document of compliance General requirements: DSTU, technical specifications for production • certificate of conformity or manufacturer's certifi- cate of quality • silky-matte, latex; Environmental criteria according to DSTU ISO 14024 • ecological certificate or • environmentally friendly *); (SOU OEM 08.002.12.065:2016 Washing and Cleaning • resistant to wet wiping; Products: Environmental criteria for life cycle • safety data sheet assessment or the equivalent of this standard) • water-soluble; • easily applied by a brush, roller or paint spray; The product should be free from ethylenediaminetetraacetic acid, chlorine compounds and phosphorus • possibility of bringing to light tones; (phosphates, phosphonates). • composition: dispersion of acrylic copolymer, pigment, mineral fillers, water, functional additives. Synthetic detergent should have the following physicochemical parameters and functional properties: *) which corresponds to the indicators of environmental criteria in accordance with the DSTU ISO 14024. 1. concentration of hydrogen ions рН - 10,5-11,5; Technical Specifications: 2. washing ability in relation to the standard (the ability to restore the purity of a dirty surface) ≥ 85%;

3. chemical bleaching ability (in relation to the standard) ≥ 90%; Value of the Compliance with the characteris- requirements of the Value of the characteristic Name tics of a good Customer (corre- 4. dust mass fraction ≤ 1%; required by a Customer offered by a sponds / does not 5. decrease in strength of fabric after washing ≤ 10%. Participant correspond)

The product should be convenient and economical in use with respect to packaging, dosage or applica- Outward appearance of the paint After drying, it creates a film tion to the surface. film with a flat mat surface without foreign impurities and additives Supplier must provide detailed instructions on the designation, dosage and application of the products. Mass fraction of non-volatile 54 - 56 substances,% DSTU 17537 The product must be delivered in a container (package), which corresponds to the conditions, nature Degree of grinding, mkm 30 – 50 and characteristics of the goods. DSTU 6589 Packaging or consumable containers should be suitable for processing and not be processed in such a Coverage of dried film, g/m² 110 – 130 way that it may interfere with their processing. DSTU 8784, method 1 Content of VOCs capable of 15-30 releasing, g / l, DSTU EN ISO 11890-1 Paint and varnish materials (water paints) Total content of cadmium, lead, 0,01 Code GC 021:2015 (44812220-3) chromium VI, mercury, arsenic, barium (with the exception of barium sulfate), selenium, Name of product Volume Number cobalt, antimony,% Water-dispersion paint for walls l/kg 100/144 Stability of the film to the static Not less than 24 action of water at a temperature of 20 ± 2 ° C, h. DSTU 9.403, method A

132 133 ANNEX II CRITERIA FOR TECHNICAL SPECIFICATIONS FOR SUSTAINABLE PROCUREMENT

The product must be delivered in a container (package), which corresponds to the conditions, nature Compliance with the Value of the and characteristics of the goods. requirements of the Value of the characteristic characteristics of Name Customer (corre- required by a Customer a good offered by Packaging or consumable containers should be suitable for processing and not be processed in such a sponds / does not a Participant way that it may interfere with their processing. correspond)

рН paints 8,5 – 8,7 Drying time to grade 3 at a 0,30 THERMAL INSULATING MATERIALS temperature of 20 ± 2 ° C, h. DSTU 19007 (BUILDING MATERIALS) Material consumption per 1 layer, About 150 CODE GC 021:2015 (44111000-1) ml/m² Air and surface temperature Not below + 5 ºС Products must meet the requirements: during application Packaging Polypropylene bucket Regulatory or normative document Confirmation document of compliance

Package size 1 l = 1,44 kg Sanitary legislation of Ukraine • conclusion of the state sanitary and epidemio- 2,5 l = 3,60 kg logical examination on the product 5 l = 7,20 kg 10 l = 14,4 kg а) DSTU B V.2.7-167 for mineral wool (stone and • certificate of conformity or manufacturer's Storage conditions Store in a dry, protected from slag wool); certificate of quality direct sunlight, at a tempera- ture of +5 °C to + 40 °C б) for mineral wool:

Guaranteed shelf life in original 24 months from production date 1) DSTU B V.2.7-169 for lamellae; sealed packaging 2) DSTU B V.2.7-56 of glass staple fiber;

Products must meet the requirements: 3) DSTU B V.2.7-168 of Phenophenoplast;

Regulatory or normative document Confirmation document of compliance 4) DSTU B EN 13163 of foamed polystyrene (ESP); Sanitary legislation of Ukraine • conclusion of the state sanitary and epidemio- logical examination on the product 5) DSTU B EN 13164 of extruded polystyrene foam (XPS); DSTU, technical specifications for production • certificate of conformity or manufacturer's certificate of quality c) DSTU B EN 312-1 for slabs of wood shavings;

Environmental criteria according to DSTU ISO • ecological certificate or g) DSTU B EN 622-1 for wood-fiber boards 14024 (SOU 08.002.12.019:2014 Paint and varnish or other normative documents that establish • safety data sheet materials. Environmental criteria for life cycle requirements for technical specifications. assessment or the equivalent of this standard) Environmental criteria according to DSTU ISO • ecological certificate or 14024 (SOU ОЕМ 08.002.16.048:2016 Thermal The product should be convenient and economical in use with respect to packaging, dosage or applica- insulating materials. Environmental criteria for • safety data sheet tion to the surface. life cycle assessment or the equivalent of this standard) Supplier must provide detailed instructions on the designation, dosage and application of the products.

134 135 ANNEX II CRITERIA FOR TECHNICAL SPECIFICATIONS FOR SUSTAINABLE PROCUREMENT

Components and finished products must meet the following requirements: 1. Product should be free from the following substances as flame retardants (flame retardants): OTHER BUILDING MATERIALS AND PRODUCTS • polybromobiphenyl ether (PBDE) FOR FINISHING (BUILDING MATERIALS)

• polybrominated biphenyls (PBB); CODE DK 021:2015 (44111000-1)

• brominated paraffin;

• short-chain (C <13) chlorinated paraffins with unbranched structure, with a chlorine content SAFETY AND ENVIRONMENTAL CRITERIA (chloralkanes) of more than 50%; The effective specific activity of natural radionuclides should not exceed 370 Bq/kg in all materials and • antimony oxides. products used for buildings or equipment of territories (physical culture and sports area and recre- ation area) that are built, reconstructed or repaired.

2. The product should be free from constituents containing cadmium, lead, selenium, chlorine, arsenic, Building materials and products for finishing must comply with the requirements of DBN B.1.2-8-2008 arsenic, thallium, mercury, tin (tributyltin (TBO), tributyltin oxide (TBOO)). "Basic requirements for buildings and structures. Safety of life and human health and protection of the environment", DSTU ISO 14024, DSTU ISO 14020, DSTU ISO 14021. Confirming documents: protocols of research on standardized methods. The floor in the premises must be of certified wear-resistant materials. For floors in toilets, swimming 3. Resistance to heat transfer of heat insulation according to DBN B2.6-31. pools and bath-shower rooms, ceramic tiles with a non-slip surface should be used.

To achieve this index of heat transfer resistance, no more than two layers of heat insulating material The floors in the gym and music room are allowed parquet, in the pool hall, showers and toilets - from should be used. ceramic tiles with a non-slip surface or mosaic concrete, in the rest - from a wear-resistant homoge- neous linoleum that can be repaired and restored. Confirming documents: a copy of the protocol of laboratory tests in accordance with DSTU B.2.7-105.

4. The value of the ratio of density to thermal conductivity in accordance with Table L.1 of Annex L of CRITERIA OF DURABILITY AND MAINTAINABILITY DBN B.2.6-31. The bearing structures of the house must retain their qualities in accordance with the requirements of Confirming documents: technical documentation. DBN B 1.1-7, DBN B.1.2-2, DBN B.1.2-6, DBN B.1.2-8, DBN B.1.2-9, DBN B.1.2 - 14 during the speci- fied service life (operation), which must be set in the design task. 5. The effective specific activity of natural radionuclides (226Ra, 232Th, 40K), should not be more than As a bearing structure of the building, which are determined by its strength and stability indicators, as 250 Bq/kg. well as the service life of the building (structure) as a whole, should be stored within the permissible Confirming documents: a copy of the laboratory research protocol according to the DGN 6.6.1.-6.5.061- limits, taking into account the requirements of DBN B.1.2-14, DBN В.2.6-98, DBN В.2.6 -162, DBN 2000 (NRBU-97/D-2000) B.2.6-163. Elements, parts, equipment with service life is less than the intended lifetime (operation) of the 6. For flammability, flammability, flame propagation and smoke-forming ability and toxicity of combus- building, must be replaced in accordance with the established between-repair period in the project and tion products, the products must correspond to low or moderate groups according to DBN B 1.1-7. taking into account the requirements of the design task.

Confirming documents: a copy of the test report of the State Service of Ukraine for Emergencies on Structures and parts should be made of materials that are resistant to possible effects of moisture, the bonfire, flammability, spread of flame, smoke-forming ability, toxicity of combustion products low temperatures, corrosion environment, biological and other unfavorable factors according to DBN according to DBN B 1.1-7. B.1.2-9, DSTU B V.2.6-145.

It shall be ensured that rain, thawed, groundwaters do not penetrate into the thickness of the bearing and enclosing structures of the building should be ensured, as well as the formation of an unaccept- able amount of condensation moisture in the outer enclosing structures by sufficiently sealing the

136 137 ANNEX II CRITERIA FOR TECHNICAL SPECIFICATIONS FOR SUSTAINABLE PROCUREMENT

structures or the ventilation device of enclosed spaces and air layers. Butt joints of prefabricated elements and layered structures should be designed for the perception of temperature-humidity deformations and forces arising from uneven sedimentation of bases and other operational impacts (actions). Homing and sealing materials used in joints must retain elastic and adhesive properties when exposed to minus (negative) temperatures and moisture, and also be resistant to ultraviolet rays. Sealing materials must be compatible with the materials of protective and protective-decorative coat- ings of structures in the places of their joints.

It should be possible to access the equipment, fixtures and devices of the building's engineering systems and their connections for inspection, maintenance, repair and replacement.

Equipment and pipelines should be fixed on the building structures of the building in such a way that their performance is not violated with possible displacements of structures.

TENDER PROPOSAL IS REJECTED BY A CUSTOMER IN THE EVENT THAT:

1) participant:

• does not meet the qualification criteria established by Article 16 of the Law;

• did not provide a tender offer if such a security was required by a customer.

2) winner:

• refused to sign a procurement contract in accordance with the requirements of the tender documentation or the conclusion of a procurement contract;

• did not provide documents confirming the absence of the grounds provided for in Article 17 of the Law;

3) there are grounds specified in Article 17 and Part 7 of Article 28 of the Law;

4) tender proposal does not comply with the terms of the tender documentation.

Information on the rejection of the tender proposal within one day from the date of the decision is made public in the electronic procurement system and automatically sent to the participant / winner whose tender proposal is rejected through the electronic procurement system.

138 139 BIBLIOGRAPHY BIBLIOGRAPHY

1. The Law of Ukraine “On Public Procurement”, 2016 NORMATIVE REFERENCES 2. Resolution No. 529 of the Cabinet of Ministers of Ukraine “On Approval of Technical Regulation on Environmental Labeling” as of May 18, 2011 • ISO 2813:2014 Paints and varnishes — Determination of gloss value at 20 degrees, 60 degrees 3. S. Williams, T. Chambers, S. Hills, F. Dowson, 2007. Forum for the Future, “Buying a better and 85 degrees world: sustainable public procurement” • ISO 3856 series— Paints and varnishes 4. U.S. General Services Administration • ISO 4628 series— Paints and varnishes 5. “Green Public Procurement: a Collection of Good Practices”, European Commission, 2012 • ISO 6504/1 Paints and varnishes — determination of hiding power — Part 1: Kubelka-Munk 6. J.W. Bull “Life Cycle Costing for Construction” method for white and light-coloured paints

7. “Life cycle of a pencil” Presentation by Raylene Reese • ISO 6504/3 Paints and varnishes — Part 3: determination of contrast ratio (opacity) of light- coloured paints at a fixed spreading rate 8. United States Environmental Protection Agency • ISO 7784-2:2016 Paints and varnishes – Determination of resistance to abrasion – Part 2: Method 9. Li Ho “Pollution Issues: Household Pollutants” with abrasive rubber wheels and rotating test specimen

10. EU GPP Criteria for Cleaning Products & Services • ISO 9000:2015 Quality management systems — Fundamentals and vocabulary

11. EU GPP Criteria for Paints and Varnishes • ISO 9227:2012 Corrosion tests in artificial atmospheres – Salt spray tests

12. EU GPP Criteria for Heat Insulation Materials • ISO 11507:2007 Paints and varnishes – Exposure of coatings to artificial weathering – Exposure to fluorescent UV lamps and water 13. Background Paper Procurement, The World Bank, 2015 • ISO 11469: 2000 (e). Plastics — Generic identification and marking of plastics products. 14. A guide to environmental labels for procurement practitioners of the United Nations system, UNOPS, 2009 • ISO 11890-2:2013 Paints and varnishes — Determination of volatile organic compound (VOC) content — Part 2: Gas-chromatographic method 15. The Green Business Booklet, International Labour Office 2015 Manisha Mishra, Sohina Singh and Arpita Goyal • ISO 12944-2:1998 Paints and varnishes – Corrosion protection of steel structures by protective paint systems – Part 2: Classification of environments 16. Katriina Alhola Environmental criteria in public procurement. Focus on tender documents / Monograph, 2012 • ISO 12944-6:1998 Paints and varnishes – Corrosion protection of steel structures by protective paint systems – Part 6: Laboratory performance test methods 17. The Procuraplus Manual Third Edition • ISO 14001, Environmental management systems — Requirements with guidance for use 18. Ellen MacArthur Foundation • ISO 14020:2000, Environmental labels and declarations — General principles 19. International Labour Organization Recommendations and Conventions • ISO 14021, Environmental labels and declarations — Self-declared environmental claims (Type 20. United Nations Guidelines for Consumer Protection. 2003 II environmental labelling)

21. United Nations Guiding Principles on Business and Human Rights. 2011 • ISO 14024, Environmental labels and declarations — Type I environmental labelling — Prin- ciples and procedures 22. United Nations. Transforming our world: The 2030 agenda for Sustainable Development • ISO 14025, Environmental labels and declarations — Type III environmental declarations — Principles and procedures

140 141 BIBLIOGRAPHY BIBLIOGRAPHY

• ISO 14031:2013, Environmental management — Environmental performance evaluation — • ISO/IEC Guide 2:2004, Standardization and related activities — General vocabulary Guidelines • ISO/IEC Guide 71:2014, Guide for addressing accessibility in standards • ISO 14040, Environmental management — Life cycle assessment — Principles and framework • ISO Guide 73:2009, Risk management — Vocabulary • ISO 14044:2006, Environmental management — Life cycle assessment — Requirements and guidelines • ISO Guide 82:2014, Guidelines for addressing sustainability in standards

• ISO 14046:2014 Environmental management — — Principles, requirements and • NFT 30 073:1989 Paints And Varnishes - Assessment Of The Natural Spreading Rate guidelines • СОУ OEM 08.002.016.048:2016 System for environmental certification and labelling according • ISO 14051:2011 Environmental management — Material flow cost accounting — General frame- to the State Standard of Ukraine ISO 14024:2002 (ISO 14024:1999, IDT). Insulation materials. work Tnvironmental criteria for the life cycle assessment

• ISO/TS 14067:2013 Greenhouse gases – Carbon footprint of products – Requirements and guide- • СОУ ОЕМ 08.002.12.065:2016 System for environmental certification and labelling according to lines for quantification and communication the State Standard of Ukraine ISO 14024:2002 (ISO 14024:1999, IDT). Cleaning products. Envi- ronmental criteria for the life cycle assessment • ISO/IEC 17020, Conformity assessment — Requirements for the operation of various types of bodies performing inspection • СОУ ОЕМ 08.002.12.019:2016 System for environmental certification and labelling according to the State Standard of Ukraine ISO 14024:2002 (ISO 14024:1999, IDT). Paints and varnishes. Envi- • ISO/IEC 17021-2, Conformity assessment — Requirements for bodies providing audit and certi- ronmental criteria for the life cycle assessment fication of management systems — Part 2: Competence requirements for auditing and certifica- tion of environmental management systems

• ISO/IEC 17021-3, Conformity assessment — Requirements for bodies providing audit and certi- fication of management systems — Part 3: Competence requirements for auditing and certifica- tion of quality management systems

• ISO/IEC 17024, Conformity assessment — General requirements for bodies operating certifica- tion of persons

• ISO/IEC 17025, General requirements for the competence of testing and calibration laboratories

• ISO/IEC 17065, Conformity assessment — Requirements for bodies certifying products, processes and services

• ISO 17895:2005 Paints and varnishes — Determination of the volatile organic compound content of low-VOC emulsion paints (in-can VOC)

• ISO 20400:2017(E) Sustainable procurement — Guidance.

• ISO 26000:2010, Guidance on social responsibility

• ISO 28001:2007, Security management systems for the supply chain — Best practices for imple- menting supply chain security, assessments and plans — Requirements and guidance

• ISO 31000, Risk management — Principles and guidelines

• ISO 50001:2011 «Energy management systems – Requirements with guidance for use

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