‘Green’ firms losing out in state contracts

Date: 22/02/1996

By Fiona McHugh

PRESSURE is mounting on the European Commission to clean up national public procurement laws which penalise 'green' firms.

Rank Xerox, a consumer electronics company known for its photocopiers, embraced the environmental cause almost a decade ago when it began producing remanufactured machines from recovered or used parts.

By simultaneously reducing the number of photocopiers which had to be dumped in landfills and cutting back on the purchase of new materials such as glass and plastic, the firm hoped to score points for its green credentials.

But, in fact, this seemingly sound policy has put Rank Xerox in a frustrating position.

While most member states profess to champion green causes, and insist their policies reflect the urgent need for “sustainable development”, a number of them, including Italy, Portugal and Belgium, refuse to buy remanufactured goods for government offices - precisely because they are not new.

Given the fact that public contracts account for 12&percent; of the Union's GDP, such policies can result in substantial losses of business for green companies.

“It simply makes no sense,” says Richard Royall of Rank Xerox. “Our goods have to pass the same safety and quality standards as new products do, and yet they are not classified as new when they reach the market.”

While EU public procurement laws lay down common procedures to be followed by governments calling for tenders, they do not specify which environmental criteria may or may not be taken into consideration.

As a result, a patchwork of green rules exists in the Union, making it virtually impossible for electronics firms to manufacture one product for a single European market.

Instead, they must keep track of the many requirements set by regional and national administrations, and adjust their manufacturing processes accordingly.

“Standards, both within and between EU countries, vary enormously, and sometimes even conflict,” explains Lettemieke Mulder of Digital. “Of course we do not have to comply with these standards, but if we do not, we will not sell any equipment. It is as simple as that.”

Representatives from electronics firms, angered by this lack of policy coherence, travelled to Brussels last week to ask the Commission to intercede. While it was “very responsive and supportive”, the Commission was adamant that harmonisation of environmental criteria was, at least for now, not on the cards. It pledged, however, to use its skills to persuade EU governments to abandon non-green policies, and to merge standards voluntarily. “They will offer guidance to the member states; do some coaching,” says Royall.

In the meantime, however, Rank Xerox and many other electronics firms will have to dream of the single market while catering for a splintered one.

A study produced by the Texas-based microelectronics and computer technology research institute found that electronic waste accounted for between 1&percent; and 2&percent; of all waste produced in the US and Europe.