“Procurement that has the most positive environmental, social and economic impacts possible over the entire life cycle”.
(ISO 20400 Standard)
For most organisations in the built environment, approximately 80% of their spend is with the supply chain. Procurement is a key player in this process. Subsequently, sustainable procurement is a critical part of client and contractor policies and strategies, which is often reflected in tendering processes.
Many organisations now identify the procurement practices and actions required throughout the supply chain to allow for Value for Money through “smarter procurement”, focusing on issues such as:
- Accountability
- Transparency
- Ethical behaviour
- Innovation
- Integration
- Continual improvement
ISO 20400
In April 2017, ISO launched the first global sustainable procurement standard to build on and replace the British BS 8903 standard.
It took 3 ½ years to develop with input from 52 countries, including a US Mirror Committee, and international liaison organizations like the UN Global Compact and UN Environment Program.
The standard applies to any organisation, regardless of sector, size or location, providing:
- An understanding of sustainable procurement
- Sustainability impacts and considerations across various aspects of procurement activity
- Methods of implementing sustainable procurement
The Supply Chain Sustainability School’s delivery partner, Action Sustainability, led the UK delegation to develop the standard and has created a wealth of resources to help businesses align themselves to it.
The Importance of Sustainable Procurement
Sustainable procurement can be a key enabler for your organisation to achieve their sustainability goals and has a number of key benefits for those who adopt it:
- Decreased costs – Reducing your waste and energy by utilising more sustainable practices.
- Improve reputation – Enhance your organisation’s compliance with regulation and environmental laws.
- Reduce your risks – By protecting your organisation against shortage in supply and ensure a flexible supply chain.
- Increase revenue – Clients and customers alike are opting for organization’s who prioritise sustainability in their operations.
What is Sustainable Procurement?
Watch this short video to hear Jean-Louis Haie provide an overview of ISO 20400 and the principles of sustainable procurement.
Sustainable Procurement
Building the Business Case for Sustainable Procurement in Australia
Web link
15 minutesSustainable Procurement
Sustainable Procurement Resource Centre
Web link
Sustainable Procurement
Environmentally sustainable procurement guidelines
Tool
Sustainable Procurement
An introduction to Sustainable Procurement e-learning module
E-learning module
