UNEP Asia-Pacific GPP & Ecolabelling

Training Workshop

ISO 20400: Sustainable Procurement

Beijing, China | December 17, 2016

Agenda

Why do we need an ISO Standard for

Sustainable Procurement
Development History
Content of the Guide
Benefits of Using the Guide
 Path to Creation

TMB sets up
Strategic Brazil & Sweden
Advisory Group selected as secretariats

2002 2004

2003 2005

ISO Committee Findings Reported

on Consumer back to TMB -
Policy suggests Vote
CSR Standard
 Path to Creation

99 Countries & 40 Intl

Meetings Organizations

2006 2008 2010

2007 2009

Meetings 25,000+ comments ISO 26000

from 450 experts Published
ISO 26000

Scope
Guidance on Social Responsibility
a) concepts, terms and definitions
b) the background, trends and characteristics
c) principles and practices relating to
d) the core subjects and issues
e)integrating, implementing and promoting throughout
the organization and, through its policies and practices,
within its sphere of influence
f) identifying and engaging with stakeholders
g)communicating commitments, performance and
other information related
Procuring According to Social Responsibility
Concepts

2010
BSR 8903: 2010 Procuring Sustainably
ISO 26000: 2010 Published
2012
NFX 50 135 Responsible Purchasing (ISO 26000)
2013
Launch of PC277 France and Brazil co-secretariats/Meeting (France)
2014
Committee Drafts/Meetings (Brazil & Singapore)
2015
Draft International Standard/Meeting (London)
2016
2nd Draft International Standard/Meetings (Sydney & Rio)
2017
Publish (hopefully)
Global Involvement

37 Countries have commented; 13 Observing

Liaison Organizations

External Liaisons
• United Nations Environment Programme (UNEP)
• Organization for Economic Co-Operation and Development (OECD)
• Intl. Federation of Purchasing and Supply Management (IFPSM)
• Independent International Organization for Certification (IIOC)
• International Trade Union Confederation (ITUC)
• United Nations Office for Project Services (UNOPS)
• Sustainable Purchasing Leadership Council (SPLC)
ISO 20400 Content

1) Scope 2) Normative References 3) Terms and Definitions

4) Fundamentals

5) Policy & Strategy

6) Enablers

7) Procurement Process

9
ISO 20400 Content

4) Fundamentals – Targeted to All

Overview of Sustainable Procurement. Describes Scope and Principles of

Sustainable Procurement. Why should Orgs undertake SP.

1. Concept of Sustainable Procurement

2. Principles of Sustainable Procurement

3. Core Subjects of Sustainable Procurement

4. Drivers for Sustainable Procurement

5. Key Considerations for Sustainable Procurement

10
Important Ideas from Section 4
4.1 – Introduction of ‘…most
positive environmental, social,
and economic impact…’
2. Principles
• Accountability
• Transparency
• Ethical Behavior
• Full and Fair Opportunity
• Respect for Stakeholder Interests
• Respect for Human Rights, the
Rule of Law and Intl Norms of
Behavior
• Innovative Solutions
• Focus on Needs
• Integration
• Life Cycle Costin
• Continual Improvement
Important Ideas from Section 4

3. – Core Subjects
• Organizational Governance
• Human Rights
• Labour Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and
Development
 Important Ideas from Section 4

4.4 – Drivers (15 total)

Legislation and Competitive

Regulation Advantage Supply Chain
Innovation Security
Economic
Customer Value
Important Ideas from Section 4

4.5 – Key Considerations

Setting Exercising
Managing Risks
Priorities Influence

Addressing
Avoiding Adverse
Complicity Impacts thru
Due Diligence
ISO 20400 Content

5) Policy & Strategy – Targeted to Upper Management

Guidance about how sustainable considerations should be integrated at a

strategic level within Procurement Function.

1. Committing to Sustainable Procurement

2. Clarifying Accountability

3. Aligning Procurement with Organizational Objectives & Goals

4. Setting Procurement Policies

5. Managing Implementation

15
Important Ideas from Section 5

5.2 – Clarifying Accountability

Important Ideas from Section 5

3. – Aligning Procurement with Organizational Objectives and Goals

4. – Setting Procurement Priorities
5. – Managing Implementation
ISO 20400 Content

6) Enablers – Targeted to Procurement Managers

Describes the conditions and management techniques needed in order to

successfully implement and continually improve Sustainable Procurement

1. Governing Procurement

2. Enabling People

3. Identifying and Engaging Stakeholders

4. Setting Sustainable Procurement Principles

5. Measuring and Improving Performance

6. Establishing a Grievance Mechanism

18
Important Ideas from Section 6

6.2 – Enabling People

Culture

Performance Enabling Guidance

Mgmt People

Collaboration
Important Ideas from Section 6

6.3 – Engaging Stakeholders

Internal Supply Chain Others

Mgmt Tier 1 Customer

Procure Tier 2 Investors

Enviro Partners Govt

Important Ideas from Section 6

6.4 – Setting Sustainable Procurement

Priorities
• Applying Risk Management
• Category Approach
• Supplier Approach
• Issue Approach
6.5 – Measuring and Improving
Performance
• Metrics
• Reporting
• Benchmarking
ISO 20400 Content

7) Procurement Process – Targeted to Procurement Individuals

Procurement Process itself. How Sustainability considerations should be

integrated into existing procurement process

1. Building on the Existing Process

2. Planning

3. Integrating Sustainability Requirements in the Specifications

4. Selecting Suppliers

5. Managing the Contract

6. Reviewing and Learning from the Contract

22
Important Ideas from Section 7
Important Ideas from Section 7

2. – Planning
• Assessing Risks (and Opportunities)
• Analyzing Organizational Needs
• Analyzing Market
• Analyzing the Costs
Important Ideas from Section 7

3. – Integrating Sustainability Requirements in the Specifications

• Define Criteria
• Ensuring Requirements are Met
Important Ideas from Section 7

4. – Selecting Suppliers
5.– Managing the
Contract
6.– Reviewing and
Learning
Potential Outcomes

Stakeholder Engagement – Internal/External

Better Understanding of Supply Chain
Innovation
Risk Management
Environmental, Social, Financial Impact
Continual Improvement
QUESTIONS

THANK YOU and GOOD LUCK

Josh Jacobs
josh.jacobs@ul.com
www.UL.com/environment