PSM 606

SUSTAINABLE PROCUREMENT
 SUSTAINABILITY
• Sustainability means meeting our own needs
without compromising the ability of future
generations to meet their needs.
• With natural resources, we also need social
and economic resources, and need to protect
environment degradation.
• Sustainability is not just environmentalism.
• Sustainability also concerns for social equity
and economic development.
PILLARS OF SUSTAINABILITY
PILLARS OF SUSTAINABILITY
 SUSTAINABLE DEVELOPMENT

• Development that meets the needs

of the present without
compromising the ability of future
generations to meet their own
needs
 Sustainable Development Goals
Goal 1. End poverty in all its forms everywhere
Goal 2. End hunger, achieve food security and improved
nutrition and promote sustainable agriculture
Goal 3. Ensure healthy lives and promote well-being for
all at all ages
Goal 4. Ensure inclusive and equitable quality education
and promote lifelong learning opportunities for all
Goal 5. Achieve gender equality and empower all
women and girls
 Sustainable Development Goals
Goal 6. Ensure availability and sustainable management
of water and sanitation for all
Goal 7. Ensure access to affordable, reliable,
sustainable and modern energy for all
Goal 8. Promote sustained, inclusive and sustainable
economic growth, full and productive employment and
decent work for all
Goal 9. Build resilient infrastructure, promote inclusive
and sustainable industrialization and foster innovation
Goal 10. Reduce inequality within and among countries
 Sustainable Development Goals
Goal 11. Make cities and human settlements inclusive, safe,
resilient and sustainable
Goal 12. Ensure sustainable consumption and production
patterns
Goal 13. Take urgent action to combat climate change and its
impacts*
Goal 14. Conserve and sustainably use the oceans, seas and
marine resources for sustainable development
Goal 15. Protect, restore and promote sustainable use of
terrestrial ecosystems, sustainably manage forests, combat
desertification, and halt and reverse land degradation and halt
biodiversity loss
 Sustainable Development Goals
Goal 16. Promote peaceful and inclusive societies for
sustainable development, provide access to justice for
all and build effective, accountable and inclusive
institutions at all levels
Goal 17. Strengthen the means of implementation and
revitalize the global partnership for sustainable
development
 A Company Commitment to
Sustainability
Vision: It is in the best interests of our company
and society as a whole that our company moves
along the path to sustainability. To that end, we
will strive to achieve the following vision of
performance:
Economic Success: the wise use of financial resources
Social Responsibility: respect for people
Environmental Responsibility: respect for life and the
wise management and use of natural resources
 A Company Commitment to
Sustainability
Economic Success: the wise use of financial resources

Company Economic Prosperity

Our business is positioned to survive and prosper
economically.
Community Economic Prosperity
We help our community survive and prosper economically.
 A Company Commitment to
Sustainability
Social Responsibility: respect for people
Respect for Employees
We treat our employees in a respectful, fair, non-exploitative way,
especially with regard to compensation and benefits, promotions, training,
open and constructive dialogue with management, involvement in
decision-making, working conditions that are safe, healthy and
non-coercive, rights of association, collective bargaining, and privacy,
employment-termination practices and work-life balance.
Diversity, Fair Hiring Practices
We promote diversity and use hiring practices that are fair, responsible,
non-discriminatory and non-exploitative for our employees, board
members and suppliers.
 A Company Commitment to
Sustainability
Social Responsibility: respect for people
Responsible Governance
We manage our risks properly, use our economic power responsibly and operate our
business in a way that is ethical and legal.
Respect for Stakeholders
We are transparent, respectful and fair to local populations, investors, suppliers
and other stakeholders outside our organization who may be affected by our
operations. We work collaboratively with our communities to enhance the
well-being of others.
Fair Dealing With Customers
We are honest and fair with our customers, competing fairly for their business,
respecting their privacy and providing them safe and effective products and
services under the conditions we promise.
 A Company Commitment to
Sustainability
Environmental Responsibility: respect for life and
the wise management and use of natural resources
Resource Conservation
We conserve our use of natural resource to the extent practicable.
Waste Prevention and Management
We reduce to the extent practicable the quantity and degree of hazard of the
wastes we generate from our operations and handle them in a safe, legal and
responsible way to minimize their environmental effects.
Environmental Risk Control and Restoration
We minimize the risk of spills and other potentially harmful environmental
incidents, restore the environment where damaged by us and enhance it to better
support biodiversity.
 A Company Commitment to
Sustainability
Environmental Responsibility: respect for life and the
wise management and use of natural resources

Reduction of supply chain Impacts

We work with others in our supply chain to help assure adverse environmental
impacts and risks associated with our products and services are reduced and
properly controlled and environmental benefits optimized.

Collaboration with Communities

We collaborate with our communities to protect and improve the
environment.
 Sustainable Procurement
• The ability to purchase products and equipment,
usually on a large scale, without compromising
resources for future generations
• A management process used to secure the
acquisition of goods and services (products) in a
way that ensure that there is least impact on
society and the environment throughout the full
life cycle of the product
 Sustainable Procurement
UN Definition of Sustainable Procurement
• Procurement is called sustainable when the organization uses its
own buying power to give a signal to the market in favor of
sustainability and bases its choice of goods and services on:
• Economic consideration – best value for money, price, quality,
availability, functionality
• Environmental aspects / green procurement: the impacts on the
environment that the product has over its life-cycle
• Social aspects: effects of purchasing decision on issues such as
poverty eradication, international equity in the distribution of
resources, labor conditions, human rights
 Sustainable Procurement
• Sustainable procurement (or “green procurement”) is the
process of integrating environmental, social, and governance
(ESG) goals into procurement, purchasing, and supply chain.

• Sustainable procurement integrates responsible business

practices and sustainable corporate behavior into procurement
processes, policies, and decisions. It balances sustainability,
profitability, and meeting stakeholder requirements.
 Why sustainable procurement is
important?
► Sustainable procurement is important because we have a
key duty to the planet and people.
► That’s why thousands of companies have already
committed to reduce their emissions and complying with
internationally recognized standards and agreements for
corporate responsibility.
► They regard suppliers as an extension of their business and
work with them to build capacity and reduce long-term
risk. 
 Why sustainable procurement is
important?
Sustainable procurement is also essential for compliance reasons.
Sustainable Procurement also important to measure ESG performance.
Some available guidelines and directives of ESG:
► UN Global Compact
► ETI Base Code
► MNE Declaration
► International Labor Standards
► The UN Guiding Principles on Business and Human Rights
► Global Reporting Initiative (GRI)
► ISO Standards 14001, 26000
► The SA8000 Standard