Why Sustainable Procurement?
Sustainable procurement according to ISO 20400 is the way to integrate ESG principles into the entire purchasing process, with the aim of minimizing potential environmental, social and governance (ESG) risks associated with the acquisition of goods and services.
Environmental management systems such as ISO 14001, EMAS, or broader Corporate Social Responsibility commitments under frameworks like Ecovadis, SMETA, Label Toumaï, GRI Reporting Standards, IQNet SR10 or Forética, require continuous improvement throughout the supply chain. Sustainable procurement is an effective tool to support responsible practices and contribute to sustainable development by integrating social and environmental responsibility across the entire supply chain.
ISO 20400 provides practical guidance for embedding sustainability into procurement processes. It represents an opportunity to strengthen competitive positioning and better manage the risks that may affect business continuity.
Sustainability in the Procurement Process
To implement a sustainable procurement process in accordance with ISO 20400, an organisation should:
- Examine its procurement culture: Assess how the organisation purchases and from whom. How much control does the organisation have over supplier risks? Are the organisation’s requirements for suppliers clear and realistic?
- Evaluate the supply chain: What proportion of the organisation’s revenue is allocated to supplier payments? Does the organisation understand the social and environmental impact of its suppliers?
- Define the strategy: Consider the risks and opportunities of working more closely with suppliers.
- Ensure top management support: Verify that key decision-makers understand the benefits, opportunities and potential consequences of implementing sustainable procurement practices in line with ISO 20400.
As a sustainability consultancy specialised in procurement, we support organisations in implementing a fully sustainable procurement process.
ISO 20400 requirements for sustainable procurement
ISO 20400 supports the integration of sustainability into procurement. It considers:
- Environmental, social, and economic aspects of purchasing.
- Identification and management of sustainability-related risks and opportunities. We help identify and assess common risks associated with sustainable and digital purchasing so they can be mitigated. This involves defining strategies to address them. In general, the most frequent risks in sustainable procurement include: greenwashing, high costs, limited availability and accessibility, lack of clear regulations, supply-chain impacts, complexity in measuring sustainability performance, and market resistance.
- Active collaboration with suppliers and assessment of impacts throughout the supply chain.
- It promotes ethical practices, transparency, and accountability, ensuring that purchasing decisions effectively contribute to sustainable development. Some guidelines to assess the authenticity of products and brands include:
- Verifying official certifications, such as Fair Trade, EU Ecolabel or FSC (Forest Stewardship Council).
- Reviewing corporate transparency in environmental and social impact reports, particularly their efforts toward continuous environmental improvement.
- Choosing local and responsibly produced goods, which reduces CO₂ emissions in the supply chain and helps lower the carbon footprint. A GHG Report verified under the GHG Protocol or ISO 14064 supports the selection of more sustainable products or services.
- Evaluating product quality and lifespan. A product with a longer useful life prevents waste generation and reduces the need for additional resources.
- Reducing unnecessary consumption to avoid overuse. Before purchasing, assess whether the item is truly needed and whether reusable or second-hand alternatives exist.
- Training, capacity-building and stakeholder commitment to sustainable procurement.
Implementing policies and procedures that promote sustainability throughout all stages of the purchasing process, in line with the Sustainable Procurement Plan.
FAQs on Sustainable Procurement
What does ESG mean?
ESG refers to the English initials for Environmental, Social and Governance. In practice, these are the factors that define a company as sustainable through its social commitment (for example, RSC certifications, RSC audits or GRI reporting), its environmental performance (such as ISO 14001 or EMAS) and its good-governance structures (such as Corporate Compliance), while never overlooking financial performance.
What does implementing sustainable purchasing involve?
Sustainable procurement does not only focus on reducing the environmental impact of products, but also on their social and economic effects. Moreover, truly sustainable purchasing must consider three fundamental factors:
- Origin and materials: Sustainable products should be manufactured with recycled, biodegradable or responsibly sourced materials. In the case of food, for instance, locally produced and organic options are prioritised.
- Manufacturing process: Sustainable production requires efficient use of resources, reduced CO₂ emissions and fair working conditions for employees.
- Durability and life cycle: A sustainable product must be designed to last, minimise waste and allow for reuse or recycling at the end of its lifecycle.