Purchasers Get Started with the Raw Materials and Product Passport

On June 17, about 100 buyers attended the “Circular Procurement: Best Practices” webinar organized by the Circular Procurement Acceleration Network. Iris Grobben, program manager at Circonnect, demonstrated how buyers can use the Raw Materials & Product Passport to issue more targeted requests for proposals, identify supply chain risks earlier, and focus on value throughout a product’s entire lifecycle. Circonnect is working on a version of the Raw Materials & Product Passport tailored for buyers.

The webinar offered two perspectives on the same challenge. Mirjam Kibbeling, professor of Public Procurement, shared the results of the practical research project “Not, Differently, and Less Procurement” (NAMI). Her presentation focused on the top rungs of the R-ladder: the question of whether something should be procured at all. Iris Grobben picked up where she left off, discussing what organizations do purchase. Her question to the participants: What product data do you need to improve your requests for proposals, comparisons, and contracting?

HVAC Systems as a Testing Ground

Grobben chose HVAC systems as a case study, and for good reason. Due to electrification, higher comfort standards, and increased focus on clean air since the pandemic, more and more complex systems are being purchased. According to Grobben, HVAC systems in new construction now account for an average of 45 percent of a building’s environmental impact—a share that is growing as building materials become more biobased. The equipment contains raw materials such as copper, aluminum, and lithium, as well as permanent magnets in the drives, with associated vulnerabilities in the supply chain.

The sector has set out its goals for this in the Roadmap for Circular Climate Control Systems. By 2030, the environmental cost indicator (MKI) must be reduced by 25% compared to 2016, the service life of systems must be extended by 50%, and 100% of components and equipment must be reused or recycled to a high standard. Procurement is one of the areas where these goals are put into practice.

From Technical Specifications to a Lifecycle Approach

An initial survey revealed what buyers currently prioritize most: purchase price and technical performance ranked highest, followed by maintenance, service life, and parts availability, as well as energy performance and operating costs. The Raw Materials & Product Passport builds on this. It consolidates supplier data into four categories: product information (materials, critical raw materials, origin, substances of very high concern), use and management, environmental impact, and value retention and end-of-life.

The starting point is identifying needs. Grobben gave three examples. A municipality preparing a renovation project with a school board is looking for a healthy and energy-efficient HVAC system that will last a long time and be easy to maintain. An asset manager working to make a real estate portfolio more sustainable wants predictable lifecycle costs and residual value. A glass manufacturer prioritizes reliability above all else, because downtime means an immediate halt to production. The question thus shifts from “What kind of system do we need?” to “What performance, risks, and data do we want to ensure over the entire lifecycle?”

Here's what a request might look like

To put this into practice, Circonnect developed sample criteria across six themes: product data, critical raw materials, lifespan and maintenance, environmental impact, end-of-life and take-back, and data quality. These criteria show what questions you, as a buyer, can ask and how to refine them step by step. When it comes to critical raw materials, for example, you start by asking what materials are used and what supply risks are associated with them.

Grobben illustrated this value using an ongoing project involving ventilation ducts: low-tech aluminum ducts that hang above the suspended ceiling in virtually every office and factory. With effective return logistics, they can easily be reused.

Guiding the market step by step

The core of her message: build up the request for proposals gradually and, above all, demand transparency regarding data, quality, and steps for improvement. Manufacturers often still have limited control over their bills of materials. A consistent request for proposals from the procurement department gives them the foundation to invest in this area. “Procurement and production run parallel here. If buyers issue requests for proposals in a consistent manner, manufacturers can build an innovation agenda around them.”

In the final poll, many participants chose to determine internally which data the organization needs as a first feasible step. The Q&A session revealed how much is still under development. For environmental impact during the production phase, a buyer can request an Environmental Product Declaration. Agreements on what will happen to a facility in fifteen years still require new forms of warranty and monitoring, which the sector is actively working on. Participants from the education sector pointed out that budgets for construction and maintenance are separate. The municipality of Leeuwarden was mentioned as a leader that no longer depreciates purchased products to zero and instead bases its decisions on residual value.

Translation for buyers coming soon

Circonnect is working on a translation of the Raw Materials & Product Passport for procurement professionals. It shows how to use the tool to make procurement more circular, with a dedicated workspace tailored to procurement. In addition to HVAC systems, guidelines are being developed for textiles, furniture, batteries, charging infrastructure, and machinery.

You can watch a recording of the webinar on Nevi. Learn more about the Raw Materials & Product Passport here.