“Procurement that has the most positive environmental, social and economic impacts possible over the entire life cycle”.
(ISO 20400 Standard)
What is Sustainable Procurement?
Sustainable procurement is the integration of sustainability and ESG principles into your organisation’s procurement activities and decisions.
For most organisations in the built environment, food and beverage, FMCG, aviation and other industries, 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
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 organisation’s who prioritise sustainability in their operations.
ISO 20400
In April 2017, ISO launched the first global sustainable procurement standard to build on, and replace, BS 8903.
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.
Connecting procurement with strategic sustainability
Procurement being the first and last point of call dealing with suppliers and subcontractors have the influence and leverage throughout their process to communicate the sustainability strategy to suppliers so that suppliers can contribute to meeting these goals.
Sustainable Procurement
What is sustainable procurement?
Web link
10 minutesSustainable Procurement
ISO 20400 assessment tool
Tool
Sustainable Procurement
Embedding Sustainable Procurement
E-learning module
Sustainable Procurement
Heat Mapping: How to prioritise your impacts
E-learning module
“A robust supply chain is vital to the successful and efficient delivery of any construction and infrastructure project. By engaging with our supply chain partners on the challenges and opportunities related to sustainability, we can ensure that sustainable methods of construction are embedded across every aspect of projects resulting in long-lasting, beneficial projects for all.”Aaron Reid, Director of Sustainability, Morgan Sindall
Sustainability Assessment
Sustainability case studies