ISO 20400, published in April 2017 by the International Organization for Standardization (ISO), is a global standard for sustainable procurement. It offers direction to businesses looking to include sustainability into their procurement procedures, taking into account the environmental, social, and economic consequences of their purchase decisions.
It is based on the idea that procurement decisions influence more than simply financial outcomes. Every purchase an organization makes can have environmental and social consequences, ranging from resource extraction to workforce practices, as well as the energy used in manufacturing and product disposal after their useful life. ISO 20400 intends to assist organizations in understanding and mitigating these impacts, thereby promoting positive sustainability outcomes throughout their supply chains.
Here are the 7 main principles of ISO 20400:
Organization Governance - This principle is at operation to make sure that transparent policies, procedures, and structures are built to assist in the enhancement of sustainable procurement practices. Consequently, the companies can be motivated to enhance their organization and governance skills in business accountability.
Human Rights: At the point of this consideration human rights entails that humans are treated fairly through different supply chains i.e. dealing with fair labor practices, discouraging child labor and preventing discrimination amongst others.
Labor Practices: Similarly, to the above core value of ISO 20400, this principle paves the way towards a safe and fair working environment to be applied across the organization, i.e., adequate salaries and the focus on health and safety (or EHS).
Environmental Situation: Apparently, ISO 20400 can enable firms to minimize any negative environmental impact by increasing the sustainability of the supply chain and enhancing the procurement process.
Fair Operating Practices: This is ISO 20400 basic concept, promotes transparency and demonstrates the long-term advantages of ethical behavior in supply chains.
Consumer Problems: In 2022, a staggering 90% of Europeans said sustainability was important to them when purchasing a new product. ISO 20400 can assist businesses in attracting these types of clients, since ethical sourcing and increased awareness.
Inducing the Enveloping Community: As a result, ISO 20400 can help to stimulate sustainable actions beyond the organization, such as increasing local sourcing and developing green infrastructure.
These are the main advantages of obtaining ISO 20400 (Sustainable Procurement) certification:
