ISO 20400 in Practice: How Organisations and Geographies are Using It to Drive Impact

In an interview with Farid Yaker, Programme Officer, United Nations Environment Programme (UNEP), we learned that in the public sector, 33 countries implemented Sustainable Public Procurement policies and action plans (complying with UN SDG 12.7.1). These countries represent 69% of the global GDP.

I am a big believer in ‘you don’t ask, you don’t get!’. If you need to deliver sustainable outcomes, you must engage your supply chain. There is no doubt about that. If 70% – 80% of your spend is with the supply chain, then using that leverage, influence as a catalyst for good and realising your sustainability goals is a no-brainer.

About 2 years ago we did a report showcasing the efforts and ensuing progress in sustainable procurement in 3 sectors: Construction, Utility companies and Train Operating Companies (TOCs). Some of the common themes for impact areas by integrating sustainability into their procurement processes were to achieve cost savings, reduce risks, improve brand image, and foster better supplier relationships.

Risk Reduction

Identifying what are the triple bottom line sustainability risks in whatever we are procuring (environmental, economic, social), helps us to focus our efforts on the areas of spend and the supply chain that are part of that spend category/ies, therefore helping organisations identify and mitigate risks, such as environmental damage, in their supply chains. 

Cost Savings

It is a myth that being sustainable as an organisation will cost you more. If anything, it should help streamline and drive efficiencies in the procurement and supply chain management process, which can lower costs related to waste management, energy consumption, and other operational expenses. SUEZ (read page 37) recognise that whilst they need to be profitable, they can do this while caring for the environment, the people and communities affected by their operations. Procurement plays an integral part as one of their main goals is to save the company money whilst also increasing social value and protecting the environment.

Improved Supplier Relationships

Having a successful sustainability strategy includes collaboration with the supply chain. My firm belief is that you cannot force an organisation to be sustainable. They either want to be or don’t wish to be. But for those who want to and are struggling for resources, skills, and time, it is only fitting that we collaborate to bring them along on that journey. This can take many shapes and forms, such as training sessions for SMEs, early payment terms, and support for achieving certifications and accreditations. This supports the building of long-term partnerships with suppliers who share similar sustainability values. Avanti talk about the steps they have taken to encourage supply chain participation in bringing sustainability benefits and solutions to the table for both parties.

Enhanced Brand Image

It is the right thing to do. And in doing so, sustainability for an organisation supports a positive brand image by demonstrating a commitment, which can attract eco-conscious customers.

Community Support

Is one of the many areas of social value generation that benefits when we consider social sustainability. This area is often skipped or seen as a nice-to-have. From reducing carbon and waste to volunteer days, STEM activities, local employment, and local spending, an organisation has multiple ways it can employ to ensure community engagement and investment.

All of this does not come without its challenges. The strategic integration of sustainability priorities into the procurement policies, practices, and decision-making processes can quash many a procurement manager’s dreams of generating social value. Fear not, we have some tips to share with you. Here, you will hear from Rory on the systematic process he put in place, whilst at SSE, to strengthen the procurement process and empower internal teams and stakeholders to deliver on the organisation’s ESG goals.

Starting and progressing sustainable procurement can be done in many ways; there is no one-size-fits-all approach. However, when it comes to challenges faced by procurement functions during the implementation and delivery of sustainability in procurement and supply chains, there are a few challenges that nearly every organisation faces.

Our involvement in developing ISO 20400 and our global leadership in sustainability ensure your procurement strategies are cutting-edge. We take great pride and care in helping organisations fulfil their sustainability ambitions. For any support on strengthening your procurement process and embedding your ESG and sustainability requirements, please reach out to Lead Sustainable Procurement Consultant – Mellita D’silva