1. Scope

Environmentally Responsible Procurement (ERP) is a process whereby an organization adjusts its purchasing behaviour to favour products, services and activities that minimize adverse impacts on the environment. An ERP can improve an organization's image or reputation with customers, shareholders, nongovernmental organizations and other stakeholders. An organization gains competitive advantage by achieving a position of leadership in the environmental area through ERP and/or the provision of environmentally responsible products or services. Although this is a purchasing process, we recognize that the best alternative is a fundamental concept of reduction. Note: In the instance that this Information Product refers to environmentally responsible product evaluation, it is inferred that service and activity considerations are also considered.

1.1

ERP is driven by a variety of forces including (a) ethical environmental responsibility; (b) government regulation; (c) community and interest groups; (d) customer and consumer preferences; (e) stakeholder and investor pressure; (f) professional standards; (g) employee concerns; and (h) industry guiding principles and codes of practice.

1.2

These forces are persuasive, but they may be countered by several considerations including (a) cost; (b) competing priorities; (c) lack of education and awareness; (d) inaccurate perceptions; and (e) absence of/or incomplete data.

Global experience in business, industry and government indicates that most ERP programs pass through five developmental steps, as depicted in Figure 2.