Sustainable Procurement - ISO

ISO 20400Sustainableprocurement

ISO 20400sustainable procurementWhat an organization buys, who it buys from, and how it uses thegoods and services once bought, can have a huge influence on every thing from performance and employee well-being to reputation andAn organization’s purchasingdecisions don’t only affect theorganization itself, they affectthe economy, environment andstakeholder relations. For this reason, the purchasing function ofan organization can play a key role in social responsibility and helpintegrate it at the governance level.Procurement generally makes up a substantial part of an organi zation’s budget. In the public sector alone, it accounts for around12 % of GDP and 29 % of government expenditure in the member countries of the Organisation for Economic Co-operationand Development (OECD).society. So wouldn’t the worldISO 20400, Sustainable procurement – Guidelines, provides guidancebe a better place if they werecurement processes. It is a sector-specific application of ISO 26000,made in a sustainable way ?specifically on the purchasing function.for organizations wanting to integrate sustainability into their pro Guidance on social responsibility, which it complements by focusingISO 20400, Sustainable procurement –1

What is sustainableprocurement ?Sustainable procurement is the process of making purchas What benefitswill it bring to myorganization ?ing decisions that meet an organization’s needs for goodsBy implementing ISO 20400, yourand services in a way that benefits not only the organizationorganization will contribute posi but society as a whole, while minimizing its impact on thetively to society and the economyenvironment. This is achieved by ensuring that the workingthrough making sustainable pur conditions of its suppliers’ employees are decent, the productschasing decisions and encouragingor services purchased are sustainable, where possible, andsuppliers and other stakeholders tothat socio-economic issues, such as inequality and poverty,do the same. The standard will helpare addressed.you reduce your impact on the envi ronment, tackle human rights issuesand manage supplier relations, whileharmonizing long-term global costsWhat is ISO 20400 ?ISO 20400 provides guidelines for integrating sustainabilityinto an organization’s procurement processes. Aimed at topmanagers and directors of the purchasing function, it coversthe political and strategic aspects of the purchasing process,namely how to align procurement with an organization’s goalsand objectives and create a culture of sustainability.The standard defines the principles of sustainable procure ment, including accountability, transparency, respect forhuman rights and ethical behaviour, and highlights key con siderations such as risk management and priority setting. Italso covers various stages of the procurement process, outlin ing the steps required to integrate social responsibility into thepurchasing function.2 – ISO 20400, Sustainable procurementand improving your purchasing per formance, hence giving your organi zation a competitive edge.Using the standard will help improvecommunication between contractorsand all stakeholders and promote mutu ally beneficial relationships. It will alsoharmonize the purchasing function byimproving relationships with suppliersand reducing risks in the supply chain,such as disruptions due to productrecall or supplier failure. What’s more,ISO 20400 is a useful tool for boostingproductivity, optimizing cost and stimu lating innovation in the market.ISO 20400, Sustainable procurement –3

Who is ISO 20400 for ?ISO 20400 is aimed at organizations of allsizes, in both the public and private sectors,as it applies to virtually every purchasing deci sion from office supplies and caterers to energyproviders, building materials and more.How does it relate toISO 26000 for socialresponsibility ?Sustainable procurement is a key aspect ofsocial responsibility. ISO 26000 formed thebasis of ISO 20400, drawing on the sameprinciples and core subjects of human rights,labour practices and fair business practices.As such, ISO 20400 will help individualsworking in procurement to integrate the prin ciples of social responsibility as described inISO 26000 within the purchasing process.What aboutcertification ?ISO 20400 provides guidelines, not require ments. It is therefore not intended for certifica tion purposes.4 – ISO 20400, Sustainable procurementTaking sustainableprocurement tothe next levelMany organizations are alreadyimplementing sustainableprocurement practices into theirprocesses. International chemicals and plastics manufacturerBraskem, for example, alreadyboasts a Code of Conduct forEthanol Suppliers, coupled witha continuous improvement programme, that allows suppliers tobenchmark themselves againstothers and track progress overtime.Itaipu Binacional, the world’slargest hydroelectric powerplant, which was involved in thedevelopment of ISO 20400,already has a sustainable purchasing policy and programmein place aimed at embeddinga culture of sustainability in theorganization and ensuring thatevery purchase takes sustainability into account.ISO 20400 will also help otherorganizations build sustainability into their procurementprocesses and refine existingprogrammes and systems,drawing on expertise and bestpractice from all over the world.How can I get startedwith ISO 20400 ?To get the most out of ISO 20400, it is worth considering the followingbefore getting started : Examine your “ buying culture ”How do you buy and who do you buy from ? How much control doyou have over your suppliers’ risks such as rupture of stock ? Areyour demands of your suppliers realistic ? Is your organization clearof its own requirements ? Know your supply chainEvaluate the cost of the supply chain in your organization. Whatproportion of your revenue goes towards paying suppliers ? Do youknow their societal and environmental impact ? Think strategicallyConsider the risks and opportunities of working more closely withyour main suppliers – across the whole life cycle. Get buy-in from top managementEnsure key decision makers and influencers are on board andaware of the benefits, opportunities and possible consequences ofimplementing sustainable procurement into your organization.More informationISO Website : www.iso.orgISOfocus magazine : www.iso.org/isofocusISO videos : www.iso.org/youtubeFollow us on Twitter : www.iso.org/twitterJoin us on Facebook : www.iso.org/facebookJoin us on GooglePlus : www.iso.org/gplusISO 20400, Sustainable procurement –5

About ISOISO (International Organization for Standardization) is an independ ent, non-governmental international organization with a member ship of 162* national standards bodies. Through its members, itbrings together experts to share knowledge and develop voluntary,consensus-based, market-relevant International Standards that sup port innovation and provide solutions to global challenges.ISO has published more than 21 500* International Standards andrelated documents covering almost every industry, from technologyto food safety, to agriculture and healthcare.For more information, please visit www.iso.org.*February 2017International Organizationfor StandardizationISO Central SecretariatCh. de Blandonnet 8Case Postale 401CH – 1214 Vernier, GenevaSwitzerlandiso.org ISO, 2017All rights reservedISBN 978-92-67-10731-8

ISO 20400 is a useful tool for boosting productivity, optimizing cost and stimu lating innovation in the market. What is ISO 20400 ? ISO 20400 provides guidelines for integrating sustainability into an organization’s procurement processes. Aimed at to