PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 1 INTEGRATING ENVIRONMENTAL AWARENESS IN THE PROCUREMENT PROCESS DANILO RIVA

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 2 The Environmental Charter of Telecommunications Network Operator In European PNOs signed The Environmental Charter of Telecommunications Network Operators Vision Vision : Sustainable development is a strategic global environmental goal. Approach Approach: The universal presence of telecommunications in today’s society places on us a social obligation to be good corporate citizens. A responsible attitude to environmental issues is an important part of meeting that obligation.

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 3 Signing the Charter we committed ourselves to continuous improvement in: Awareness Awareness Regulatory Compliance Regulatory Compliance Research & Development Research & Development Providing Information Providing Information Environmental Management System Environmental Management System Procurement Procurement: We shall build environmental considerations into our procurement process. Special attention will be paid to: - energy consumption - waste management - process and product requirements - the use of hazardous materials

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 4 Today we’re buying tomorrow’s waste!

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 5 Both the economical and environmental impact of each product/service procured must be considered over its entire life cycle. SPECIFICATION SPECIFICATION - ECO-DESIGN RULES - ENERGY CONSUMPTION - PACKAGING - USE OF HAZARDOUS MATERIALS MANUFACTURING MANUFACTURING - PRODUCTION PROCESSES - REUSE OF RESOURCES OPERATION OPERATION - EFFECTS ON HUMAN HEALTH - EFFECTS ON THE ENVIRONMENT DISPOSAL DISPOSAL - REDUCE - REUSE - RECYCLE

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 6 Impending EC Directive “The initiative should lay down measures which aim, as a first priority, at the prevention of waste from end-of-life electrical and electronic equipment and, in addition, at the re-use, recycling and other forms of recovery... so as to reduce the quantity of waste destined for final disposal, as well as at the improvement in the environmental performance of the treatment operators.”

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 7 “For all Telecommunication equipment, the collection shall be increased to a minimum of 80% of the waste generated” “It will be necessary to ensure that: - for all IT equipment the re-use and/or recycling shall be increased to a minimum of 85% by weight per equipment”; - for all Telecommunication equipment the re-use and/or recycling shall be increased to a minimum of 60% by weight per equipment”; - for all cables the re-use and/or recycling shall be increased to a minimum of 85% by weight per equipment.” Goals

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 8 Possible solutions introducing eco-requirements in product/service specification introducing eco-design rules in product/service production and delivery incorporate suitable end-of-life options in the product/service from the design phase phase out hazardous substances assess supplier environmental performance assess the capability of suppliers of dismantling/disposal services to carry out proper treatment/processing/management of end of life items.

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 9 Eco-Labels

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 10 Conclusions Environmental legislation and standardization is in a rapid evolutionary phase: it will set out stricter requirements and higher penalties. PNOs must be prepared. The Procurement Process is there to assure that these new scenario is viewed more as an opportunity than a restriction, because: - it will help reduce product/service life-cycle costs - it will help reduce/eliminate future liabilities - it will help improve corporate image

PNOs-Suppliers Technical Interfaces Heidelberg, 3 March 1998 DR 11 But... Integrating Environmental Awareness in the Procurement Process requires strong interaction/cooperation with suppliers. Integrating Environmental Awareness in the Procurement Process requires strong interaction/cooperation with suppliers.