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What is ISO 20400?
ISO 20400 an international guideline for sustainable procurement. It helps organisations adopt a holistic and responsible buying culture that considers the entire life cycle of a product or service. Opportunities can then be identified to reduce environmental impacts and improve social conditions.
ISO 20400 sustainable procurement guidance is not a certifiable standard. However, it facilitates advice on how to integrate sustainability into your procurement activities. Consequently, recommendations must be translated within your organisation’s specific context and activities. TÜV SÜD validates the sustainable procurement practices implemented by your organisation. You can use our report to gain stakeholder confidence.
Integrate sustainability within the procurement process
Minimise supply chain risk
Ensure human rights are respected within your supply chain
Manage financial, environmental and reputational risk
Encourage SME suppliers
Promote Innovation
Contribute to the local economy
Reduce resource waste and emissions
Save money
Gain a competitive advantage
How TÜV SÜD can help you with ISO 20400
TÜV SÜD is an expert in global sustainability standards and has broad experience of assessing organisations against sustainability frameworks. Our team of qualified sustainability experts provide assessment services against sustainable procurement guidance within ISO 20400. They take time to understand your organisation, customers and value chain, working with you to understand your organisation’s needs. We can also support you with ongoing ISO 20400 assessment and annual re-assessment.
Frequently asked questions (FAQs)
What are the four main parts of ISO 20400?
- Fundamentals:
- Principles
- Core subjects
- Drivers
- Consideration
- Policies and strategies
- Leadership and accountability
- Aligning with organisational goals
- Understanding your supply chain
- Managing implementation
- Enablers
- Governing procurement
- Enabling people
- Engaging stakeholders
- Setting priorities
- Measuring and improving performance
- Establishing grievance mechanisms
- Procurement process
- Planning
- Integrating sustainability requirements in specifications
- Selecting suppliers
- Managing contracts
- Reviewing and learning
What are the objectives of ISO 20400?
- The guideline supports the integration of sustainability considerations into procurement practices within organisations.
- It helps organisations to identify and address the ESG risks and opportunities associated with their supply chains.
- This guidance encourages the adoption of responsible and ethical practices in procurement to improve accountability, transparency, and stakeholder engagement.
- It fosters collaboration and innovation between buyer-supplier to improve sustainability performance and drives continuous improvement in procurement practices.
What are the seven core subjects of ISO 20400?
Sustainable procurement establishes the implementation of an organisation's Corporate Social Responsibility (CSR) strategy into the buyer-supplier relationship. The procurement function should therefore be taking into consideration seven core subjects, and their interdependence with sustainability issues, when developing its sustainable procurement policy:
- Organisational governance
- Human right
- Labour practices
- Environment
- Fair operating practices
- Consumer Issues
- Community involvement and development
What are the three pillars of sustainable procurement?
The three pillars are interlinked and mutually dependent. Implementation of sustainable procurement practices generates value for organisations, their stakeholders, and the environment.
- Environmental – Implementation of sustainable procurement practices has positive impacts on resource use, energy, consumption, emissions, waste generation, and biodiversity.
- Social – Sustainable procurement practices can positively impact labour rights, working conditions, human rights, community engagement, and diversity and inclusion.
- Governance – Sustainable procurement can facilitate ethical business practices, fair trade, and responsible sourcing.
All 3 pillars are important considerations for material sourcing, production, distribution, use, and disposal of goods and services.
What is sustainable procurement?
Sustainable procurement is critical to the sustainable transformation of every company as it helps reduce environmental impacts, improve social conditions, mitigate supply chain risks, enhance reputation, and create economic benefits. An appropriate sustainable procurement strategy is crucial for an organisation to act responsibly, as well as contribute to sustainable development and the United Nation’s SDGs. Furthermore, it is mandatory to report up to date information about due diligence, risk assessment, measurement, and management of non-compliances.
Adoption of sustainable procurement policies and practices will lead to:
- Demonstration of commitment to sustainability and building long-term value for the organisation and its stakeholders.
- Managing risks (including opportunities) for sustainable environmental, social, and economic development.
