Eco-labelled cleaning services in Reykjavík

The aim of the Green Cleaning Program in the City of Reykjavík is to obtain environmentally sound cleaning services for the city's operations. It is enacted through the procurement process. One of the goals is that all cleaning service providers either have a certified ISO 14001 environmental management system, are certified as providers of Nordic Swan eco-label cleaning services, or meet comparable criteria. The program is underpinned by the city's stated environmental commitments, which were first included in the 2009 Environmental Action Plan. Now green procurement is endorsed in the City's Municipal plan. Prior to implementation, a market survey was undertaken by the Procurement Office to assess the availability of eco-labelled alternatives on the market. It was discovered that, at that time, there was just one eco-labelled cleaning service provider on the market. Therefore, the Procurement Office's implementation team committed to the goal of all cleaning service providers having either a certified ISO 14001 environmental management system, being providers of Nordic Swan eco-labeled cleaning services, or meeting comparable criteria. Two important pilot projects formed the beginning of eco-labelled cleaning service procurement process in Iceland. In March 2009, the cleaning contract for the new city office building (10,218m² floor area) became the first procurement process conducted under the auspices of the Green Cleaning Program. In September 2009, a tender process was established for the cleaning contracts of 63 kindergartens (30,353m² floor area) in the city. The criteria and processes included in the tender documents were thoroughly researched, and a cleaning expert from Iceland's National University Hospital was also employed to analyse Reykjavík's cleaning needs. The pre-tender analysis showed that the cleaning frequency could be considerably reduced, generating positive results for the environment and the City's budget. Furthermore, by cleaning the offices during office hours, staff reacted more positively to the quality of the cleaning service provided, despite the lower frequency. Procurement criteria: - Technical criteria: Cleaning products: Non-allergenic, readily biodegradable and free of high concentrations of volatile organic compounds. The contractor is required to inform the City about all cleaning products used, in order to ensure compatibility with the requirements. - Award criteria: 15 out of 100 points were allocated to an environmental management and 85 points to price. Bidders with a certified environmental management system, ISO 14001 or equivalent, or an eco-labelled cleaning service, such as the one certified by the Nordic Swan, or equivalent, were awarded 15 points. Bidders with a non-certified management system were awarded 7.5 points. The management system was required to have been in operation for at least six months. Success factors Including sustainability criteria in large public contracts can have a rapid and significant effect on the supply of products and services, particularly in small markets. The effect in Iceland was visible one year later when the tender for cleaning services for kindergartens in Reykjavik was published. The result was that a number of companies with certified environmental management systems or eco-labelled cleaning services participated in that competition. Overall, the cleaning frequency was lowered without it affecting the quality of the result. The change in service was also positively received by office staff when it was switched to take place during office hours. To operate the city in a sustainable way, including green procurement, is one of the objectives of the environmental policy of the City of Reykjavik, which is now a part of the Reykjavik Municipal Plan. Key Results and Achievements In the case of the new city office building, eleven bids were submitted but only one was awarded points for environmental management. That bid was ranked fifth relative to price but obtained the highest total score and was thus awarded the contract. The winning company provided cleaning services certified by the Nordic Swan. A cleaning service with a Nordic Swan eco-label also won the contract for the kindergartens. Subsequently, the tender process led to a considerable increase in the number of applications for the Nordic Swan eco-label in Iceland for cleaning services, as well as a number of companies setting up and implementing certified environmental management systems. The program has resulted in environmental improvements, considerable cost savings and satisfied employees. However, the most impressive result of the project is its effect on the cleaning service sector as a whole in Iceland. Novelty During the Green Cleaning Program, the market share for eco-labelled cleaning services has grown substantially. In two years, the market share for eco-labelled cleaning services in Iceland grew from less than 10 percent to over 50 percent. Now, in 2015, all the major cleaning companies in Iceland have either eco-label or certified environment management system. The program led also to increased availability of other eco-labelled products and services since eco-labelling in the cleaning service sector caught the attention of other service sectors (e.g. tourist services, printing). The number of Nordic Swan eco-label licenses has grown to be five times larger from 2009 to 2015. As a consequence, suppliers have also increased their selection of eco-labelled products. Sustainability Impacts Lowering the cleaning frequency resulted in a decrease in the use of cleaning products, water and less wastewater production. It is estimated that there has been a 65 percent decrease in chemical consumption in the cleaning of the new office building. This is a result of lower cleaning frequencies and an eco-labelled cleaning service. The decrease in the kindergartens is somewhat lower (33 percent) as the potential for less cleaning frequency was limited. Based on use of different cleaning methods, the amounts of water use and wastewater production have decreased from 2009. By signing a contract with a cleaning company awarded with an eco-label, the environmental impacts were lowered and quality of the service was assured. More than 95 percent of the chemicals used in both cleaning services are eco-labelled. Plastic bags used in cleaning the office building reduced by 200 kg/year saving 150,000 ISK (910 €). The number of complaints declined considerably in the office building. This is due to the increased quality of the cleaning performed during office hours and the quality requirement associated with the Nordic Swan eco-label. The proportion of eco-labelled cleaning services purchased by the city has increased in proportion, from almost nothing in 2009 to 74 percent of total value in 2011. Until the introduction of the Green Cleaning Program, eco-label or certified environmental management system compliance was not a criterion in tender documents, but now it is a key prerequisite in procurement. The Green Cleaning Program still continues in Reykjavík. After four years a new procurement round was organized in 2013. At that time there were significantly more companies with both the Nordic Swan eco-label and certified environmental management system at the market, hence the environmental criteria were included in technical criteria, leaving price the only award criterion. Cost-effectiveness The costs of this program included consultant fees for experts participating in the needs analyses and working hours for the interdepartmental teams that participated in the tender process. Both fell within normal operations and the program did not receive any external funding. The financial gains of the program were extensive and considerably exceeded the costs in financial terms. The cleaning costs were lowered by 50 percent in both tenders - a total annual saving of 539 700 €. Challenges and potential for further development Awarding points to environmental management had not been done before in Reykjavik's public procurement practice for cleaning services and some bidders complained that the notice given was too short. However, by setting environmental management as an award criterion, not as a technical specification, flexibility was given. Given the market expansion, it may be possible to include the more ambitious criteria as part of the technical specifications in future tenders. Reviewing the contractor's environmental performance should be included in contracts. Regular meetings with the contractor are not sufficient to review environmental performance. However, having a certified environmental management system or an eco-label ensures regular external control and a good environmental and quality performance. The Green Cleaning Program will continue as a part of the Municipal plan of the City of Reykjavík. Contact person for more information: Guðmundur B. Friðriksson, Environmental Department, Reykjavik City Council, gbf@rvk.is