What Is Sustainable Procurement? ISO 20400 & Its Benefits
Sustainable procurement is a growing priority, with 82% of companies viewing it as strategic and 85% reporting benefits like risk mitigation and improved supplier relationships. As companies increasingly prioritize sustainability, frameworks like ISO 20400:2017—Sustainable Procurement – Guidance offer a valuable approach for businesses to integrate sustainability into their shopping and procurement processes by aligning policies, evaluating suppliers, and managing the full life cycle of goods and services.
What Is Sustainable Procurement?
As the world is increasingly becoming more focused on sustainability, consumers want to know where the products they purchase come from and what they are made of. Consequently, companies want to be seen as leaders in environmental stewardship and sustainable procurement is a key way for businesses to commit to sustainable practices and make a tangible impact—but what exactly does sustainable procurement entail?
According to ISO 20400:2017, procurement refers to the “activity of acquiring goods or services from suppliers.” The procurement also process considers the whole cycle from identification of needs through to the end of a services contract or the end of the life of goods, including disposal. Furthermore, the standard defines sustainable procurement as “procurement that has the most positive environmental, social and economic impacts possible over the entire life cycle.” Sustainable procurement involves the sustainability aspects related to the goods or services and to the suppliers along the supply chains. Overall, it contributes to the achievement of organizational sustainability objectives and goals and to sustainable development in general.
Why Is Sustainable Procurement Important?
Sustainable procurement is importance since it involves making purchasing decisions that minimize negative impacts on the environment and society while also benefiting the economy, aiming for a positive impact on people, planet, and profit. Additionally, it reduces costs through efficiency, mitigates supply chain risks, enhances brand reputation, and helps organizations meet their environmental and social responsibility goals.
ISO 20400: Sustainable Procurement Guidance
ISO 20400:2017 provides guidance to organizations, independent of their activity or size, on integrating sustainability within procurement, as described in ISO 26000:2010—Guidance on Social Responsibility. It is intended for stakeholders involved in, or impacted by, procurement decisions and processes.
Just as its social responsibility counterpart, ISO 20400:2017 is a guidance standard rather than a certification standard. This means companies cannot be certified for compliance.
ISO 20400:2017 specifically provides guidance on sustainable procurement, helping organizations integrate sustainability into their purchasing processes and supply chains. This international standard outlines how to incorporate sustainability into each stage of the procurement process, including planning, supplier selection, and contract management.
The goal of ISO 20400:2017 is to help businesses manage environmental, economic, and social impacts throughout their supply chains. In this way, organizations can boost their supply chain efficiency and improve sustainable procurement strategies.
How Can ISO 20400 Be Applied When Holiday Shopping?
ISO 20400:2017 provides a framework for sustainable procurement, which can be applied to both businesses and individual consumers. This standard emphasizes the importance of considering the environmental, social, and economic impacts of purchases throughout the product lifecycle—right from raw material extraction to disposal.
When holiday shopping, as consumers, we can look for retailers and brands that align with sustainable procurement principles. This could include products made from recycled materials, brands that engage in fair trade practices, or companies that minimize their environmental impact by sourcing locally. By choosing such products, we help reduce the negative environmental and social impacts that often accompany mass production and global supply chains.
ISO 20400:2017 — Shaping Sustainable Procurement and Consumer Choices for a Greener Future
As more companies focus on sustainable operations, ISO 20400:2017 provides a crucial framework for refining their sustainability efforts and goals. By adopting effective procurement practices, organizations can integrate sustainability principles into their purchasing processes while ensuring value for money. Additionally, this standard helps businesses stay ahead of both current and future regulatory requirements. Similarly, consumers have a role to play in fostering sustainability.
Just as ISO 20400:2017 encourages businesses to prioritize ethical sourcing and environmentally responsible practices, small changes in our shopping habits—like choosing products with lower carbon footprints or supporting ethical brands—can collectively make a significant impact, especially during the holiday season. By aligning our personal choices with broader sustainability goals, we can contribute to a more responsible and eco-conscious marketplace.
ISO 20400:2017—Sustainable Procurement – Guidance is available on the ANSI Webstore.
