ISO 20400:2017 (Sustainable procurement – Guidance) is a vital international standard that offers a comprehensive methodology for organizations to integrate sustainability into all their procurement decisions and processes. The standard aims to transform the procurement function from a mere cost center to a driving force for responsible growth.
The ultimate goal is to help organizations adopt a procurement culture that considers the full life cycle of a product or service and its impact on the three dimensions of sustainability: Environmental, Social, and Economic.
ISO 20400‘s core principles and pivotal criteria
As a guiding standard (not a certification), ISO 20400 focuses on building a strong system of thought and methodology within an organization:
1. Principles of responsible procurement
The standard is based on the principles of social responsibility (ISO 26000), the most important of which are:
- Accountability and transparency: Achieve complete transparency in sustainable procurement decisions.
- Ethical behavior: Ensuring fair business practices with all parties in the supply chain.
- Respect for human rights: Ensure the supply chain is free of labor and social abuses.
2.Core Subjects
Integrating sustainability requires the consideration of seven core topics covering governance, human rights, labor practices, the environment, fair operating practices, and community engagement.
Development Experts’ role in ISO 20400implementation
We support your procurement team to practically integrate sustainability standards into all stages of the procurement cycle, ensuring the guidelines are transformed into tangible value:
- Context analysis and strategy development:
- We link the procurement strategy to the organization’s overarching sustainability goals.
- We prioritize environmental and social risks in your supply chain (e.g. deep supply chain risks or high-risk geographies).
- Procurement team training:
- We provide specialized training for your team on how to integrate environmental and social performance criteria into supplier evaluation and selection, and move away from total reliance on the lowest price.
- Document and Procedure Development:
- We assist in drafting contractual terms that ensure commitment to sustainability, as well as developingDue Diligence procedures in procurement.
- Sustainable Contract and Supplier Management Implementation:
- We design a system to periodically monitor supplier performance, not only economically, but also environmentally and socially, to ensure ongoing adherence to ethical and environmental standards.
Results and benefits for your organization
Implementing these guidelines with the help of our development experts delivers tangible sustainability results:
- Minimize risks: Manage financial, environmental and reputational risks caused by irresponsible supply chain practices.
- Enhance competitive advantage: Meet increasing customer and investor demands for environmental and social governance (ESG) standards.
- Increase efficiency: Sustainable procurement can lower operational costs in the long term by improving resource efficiency and reducing waste.
- Build resilient supply chains: Encourage collaboration and innovation with suppliers to improve overall sustainability performance, creating shared value.
