Ensure the sustainability of your supply chain
With sustainability playing an increasingly important role on the corporate agenda, forward-thinking organisations are looking for new and alternative ways of ensuring more sustainable operations and promoting sustainability credentials to their customers.
Add to this the growing complexity of global supply chains as organisations seek to drive competitiveness through outsourcing, and it becomes clear how important it is to embed sustainability into procurement practices. It is no longer enough to manage your own sustainability performance, but also that of your suppliers.
Bureau Veritas is supporting organisations seeking to develop a more sustainable procurement strategy with ISO 20400.
As the world’s first major international standard on sustainable procurement, ISO 20400 provides a unique opportunity for organisations to affect positive change in their supply chains by providing guidance for implementing sustainability objectives through their procurement functions.
AN INTRODUCTION TO SUSTAINABLE PRACTICES
ISO 20400 enables companies to make more informed choices through a set of guidelines for establishing a sustainable procurement policy and implementing a strategy to assess the sustainability credentials of suppliers, products and services. Its primary aim is to guide organisations to affect positive change in their supply chains by harnessing the power of the procurement function to help achieve their sustainability objectives. The standard is designed to apply to any organisation, regardless of its sector, size and location, and to all stakeholders involved in or impacted by procurement decisions and processes.
HOW TO IMPLEMENT SUSTAINABLE PROCUREMENT PRACTICES USING ISO 20400
Implementing sustainable procurement practices can seem like a daunting task to organisations, especially those who have yet to embark on the journey. The following section contains key action items from ISO 20400 Clauses 4-7 that can help organisations get started with the implementation process.
- Fundamentals: Explore the drivers for implementing sustainable procurement
- Policy and strategy: Create a sustainable procurement policy and sustainable procurement strategy
- Enablers: Organise the procurement function towards sustainability
- Procurement process: Embed sustainability priorities into the day-to-day procurement process
BENEFITS OF ENHANCING SUSTAINABLE BUSINESS PRACTICES
The overarching benefit of aligning with ISO 20400 is bringing together the procurement and CSR functions to facilitate positive sustainability outcomes, both within the organisation and across the supply chain. Following the guidance can also help mitigate risks and unlock financial, environmental, social, and regulatory opportunities. In addition, sustainable procurement and supply chain management initiatives are recognised across sustainability indices and reporting frameworks; as such, companies stand to benefit from reputational gains by aligning with ISO 20400.
Financial: A natural cost reduction and unlocking financial advantages through attracting investment and improving brand image and reputation
Environmental: Demonstrate your commitment to reducing your environmental impacts. Benefits are reducing greenhouse gas emission and reduce reliance on virgin materials recycled or reusable materials.
Social: Sustainable procurement can give rise to and help spread social benefits across the supply chain.
Regulatory: Compliance with all updated or replaced regulations.