The International Organization for Standardization (ISO) created ISO 20400: Guidelines for Sustainable Procurement, an international standard designed to help businesses integrate sustainability into their purchasing procedures. It was initially released in April 2017 and applies to every business, regardless of its size, industry, or geographical location.
The Primary Goal of ISO 20400
ISO 20400 aims to:
- Help groups make purchasing decisions that benefit their business as well as the environment and society.
- Ensure that procurement adheres to sustainability values like ethical behavior, respect for human rights, and environmental protection.
- Through sustainable supply chains, increase long-term cost effectiveness and improve risk management.
ISO 20400's Structure
The criteria is broken down into three primary components:
1. Comprehending the Fundamentals of Sustainable Procurement
- Sustainability principles and definitions in purchasing.
- The three pillars: economic, environmental, and social.
2. Incorporating Sustainability into the Organization's Procurement Policy and Strategy
- Bringing acquisition into line with the objectives and values of the company.
- Stakeholder involvement, leadership, and administration.
3. Facilitators and Practices
- Prioritizing, managing the supply chain, and developing skills.
- Bringing sustainability into all stages of the procurement process (e.g., planning, supplier selection, contract management).
Core Principles Promoted
- Responsibility
- Transparency
- Respect for human rights and ethical conduct
- Accountability to the environment
- Value for money over the entire lifecycle costs (not simply the purchase price)
Key Benefits of Implementing ISO 20400
- Lower risks to the environment and society.
- Increased faith from stakeholders and a better brand reputation.
- Better connections with suppliers and more creativity.
- Through life cycle cost optimization, increased long-term value.
- Adhering to global and regulatory sustainability requirements (e.g., the UN SDGs).
Who Is the Target Audience for ISO 20400?
- Managers and procurement specialists
- CSR and sustainability teams
- Vendors and contractors
- Public and commercial sector entities looking to enhance their purchasing procedures
