ISO INTERNATIONAL STANDARD 20400 First edition 2017-04 Sustainable procurement Guidance AchatsresponsablesLignes directrices Referencenumber IS020400:2017(E) ISO @IS02017 IS020400:2017(E) COPYRIGHTPROTECTEDDOCUMENT IS02017,Published in Switzerland All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address below or ISO's member body in the country of the requester. ISOcopyrightoffice Ch.de Blandonnet8.CP401 CH-1214 Vernier, Geneva, Switzerland Tel. +41 22 749 01 11 Fax +4122749 0947 [email protected] www.iso.org ii @ IS0 2017-All rights reserved IS020400:2017(E) Contents Page Foreword ..V Introduction.. ...vi 1 Scope.. 2 Normative references 3 Terms and definitions 4 Understanding the fundamentals .7 4.1 Concept of sustainable procurement .7 Principles of sustainableprocurement .1 4.2 4.3 Core subjects ofsustainableprocurement ..8 4.4 Driversforsustainableprocurement. 4.5 Key considerations for sustainableprocurement. 9 4.5.1 Managing risk (including opportunity). .9 4.5.2 Addressingadverse sustainabilityimpactsthroughduediligence ..10 4.5.3 Setting priorities for sustainabilityissues ..10 4.5.4 Exercising influence. ..11 4.5.5 Avoiding complicity. .11 5 Integrating sustainability into the organization's procurement policy and strategy ..11 5.1 Committing to sustainable procurement. .11 5.2 Clarifying accountability.. .12 5.3 Aligning procurement with organizational objectives and goals ..13 5.4 Understanding procurement practices and supply chains ..13 5.5 Managing implementation. .14 6 Organizingtheprocurementfunctiontowards sustainability. ..14 6.1 Governing procurement. ..14 6.1.1 Governance. ..14 6.1.2 Procedures and systems .14 6.2 Enablingpeople .15 6.2.1 Organizational culture ..15 6.2.2 Performance management. ..15 6.2.3 Learningthrough collaboration ..15 6.2.4 Guidance. .15 6.3 Identifying and engaging stakeholders. .16 6.3.1 Identifying key stakeholders. .16 6.3.2 Engaging the supply chains .17 6.3.3 Engaging other stakeholders. .18 6.4 Setting sustainable procurement priorities .18 6.4.1 Applying risk management. .18 6.4.2 Using different approaches to set priorities .19 6.5 Measuring and improving performance 21 6.5.1 Defining metrics and indicators 21 6.5.2 Reporting. 22 6.5.3 Benchmarking .23 6.6 Establishing a grievance mechanism 23 7 Integrating sustainability into the procurement process .24 7.1 Building on the existing process. 24 7.2 Planning. 25 7.2.1 Integrating key elements of sustainable procurement .25 7.2.2 Assessingsustainabilityrisks (includingopportunities) 25 7.2.3 Analysing the costs. .26 7.2.4 Analysing organizational needs. .27 7.2.5 Analysingthemarket. .27 7.2.6 Completing the sourcing strategy 28 @ IS0 2017 -All rights reserved iii