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.

ERP is driven by a variety of forces including

(a)ethical environmental responsibility;

(b)govern ment 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.

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.