ISO 20400:2017 - Sustainable Procurement

Explains the concept of sustainable procurement and how it considers environmental, social, and economic impacts across the life cycle.

• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment
• supplier evaluation scorecard

• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training
• gaps in contract sustainability clauses

Defines core principles including accountability, transparency, respect for human rights, and ethical behaviour.

• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy

• missing supplier sustainability assessment
• insufficient buyer training
• gaps in contract sustainability clauses

Describes the core sustainability subjects aligned with ISO 26000 including governance, human rights, labour, environment, and fair practices.

• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard

• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training

Identifies external and internal factors driving organizations to adopt sustainable procurement practices.

• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment

• insufficient buyer training
• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment

Describes key considerations including risk management, life cycle perspective, due diligence, and stakeholder expectations.

• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct

• missing supplier sustainability assessment
• insufficient buyer training
• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence

Requires top management to demonstrate commitment to integrating sustainability into procurement strategy and governance.

• supplier code of conduct
• spend category sustainability assessment
• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy

• insufficient buyer training
• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment

Guidance on ensuring procurement strategies support broader organizational sustainability goals and policies.

• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment

• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training
• gaps in contract sustainability clauses

Requires establishment of measurable objectives and indicators to track sustainable procurement progress.

• spend category sustainability assessment
• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct

• insufficient buyer training
• gaps in contract sustainability clauses
• incomplete performance monitoring

Guidance on engaging internal and external stakeholders in shaping sustainable procurement strategy.

• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy

• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment

Describes organizational conditions and management techniques needed to implement and improve sustainable procurement.

• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment

• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment

Requires organizations to build procurement staff competence in sustainability issues through training and development.

• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct

• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment

Guidance on developing supplier relationships that promote sustainability throughout the supply chain.

• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment
• supplier evaluation scorecard
• contract clause library

• missing supplier sustainability assessment
• insufficient buyer training
• gaps in contract sustainability clauses
• incomplete performance monitoring

Requires collaboration across organizational functions to integrate sustainability into procurement decisions.

• supplier code of conduct
• spend category sustainability assessment
• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard

• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence

Requires systematic monitoring, evaluation, and improvement of sustainable procurement practices and outcomes.

• spend category sustainability assessment
• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy

• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training

Guidance on incorporating sustainability criteria into procurement planning, including needs analysis and market research.

• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment

• insufficient buyer training
• gaps in contract sustainability clauses
• incomplete performance monitoring

Guidance on defining sustainability requirements in product and service specifications and tender documents.

• spend category sustainability assessment
• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct

• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training

Guidance on evaluating suppliers against sustainability criteria during the selection and award process.

• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment

• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment

Guidance on embedding sustainability performance requirements in contracts and monitoring supplier compliance.

• supplier evaluation scorecard
• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct

• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training

Requires review of procurement outcomes to capture lessons learned and improve future sustainable procurement processes.

• contract clause library
• procurement KPI dashboard
• sustainable procurement policy
• supplier code of conduct
• spend category sustainability assessment

• gaps in contract sustainability clauses
• incomplete performance monitoring
• weak leadership commitment evidence
• missing supplier sustainability assessment
• insufficient buyer training

Establish baseline understanding of sustainable procurement concepts, drivers, and how procurement contributes to sustainability outcomes.

• Sustainable procurement primer
• Training records
• Concept glossary
• Briefing decks

• No shared definition of sustainable procurement
• Awareness limited to procurement team

Address ISO 26000 core subjects across governance, human rights, labour, environment, fair operating practices, consumer issues, and community.

• ISO 26000 mapping matrix
• Materiality assessment
• Issue register

• Selective coverage of core subjects
• No materiality basis

Identify internal and external drivers including regulation, stakeholder expectations, risk, and value creation.

• Driver analysis
• PESTLE
• Stakeholder map

• Drivers not refreshed
• Stakeholder views not captured

Apply due diligence, complicity avoidance, sphere of influence, supply chain transparency, and life cycle thinking.

• Due diligence procedure
• Supply chain map
• LCA references

• Tier 2+ visibility absent
• Lifecycle not applied

Establish governance structures, procedures, and decision rights for sustainable procurement.

• Governance charter
• Procurement procedures
• DoA

• No sustainability gates in DoA
• Procedures silent on sustainability

Provide capability, competence, training, and incentives for staff to deliver sustainable procurement.

• Competency framework
• Training plan
• KPI linkage

• No buyer training
• Incentives reward cost only

Operationalise stakeholder engagement within procurement lifecycle including suppliers and end users.

• Supplier forum minutes
• User surveys
• Engagement plan

• Engagement bypasses suppliers
• User needs not captured

Translate organisational priorities into procurement-specific priorities at category and sourcing-event level.

• Category strategies
• Sourcing plans
• Priority matrix

• Categories not refreshed
• Sourcing plans omit sustainability

Measure procurement performance against sustainability KPIs and feed results into continual improvement.

• KPI dashboard
• Quarterly review packs
• CAPA log

• KPIs not reviewed
• No corrective action

Provide accessible grievance channels for suppliers, workers, and communities affected by procurement.

• Grievance procedure
• Channel records
• Remedy log

• No grievance channel for workers
• Cases not remediated

Top management commits to sustainable procurement via policy aligned with organisational strategy and values.

• Sustainable procurement policy
• Board approval
• Strategy alignment note

• Policy not signed by leadership
• Disconnected from strategy

Define accountability for sustainable procurement outcomes across executive, procurement, and business unit roles.

• RACI
• Role descriptions
• Charter

• No named owner
• Accountability sits only in procurement

Translate sustainability commitments into procurement objectives, KPIs, and category strategies.

• Procurement strategy
• KPI dashboard
• Category plans

• KPIs absent or vanity
• Categories untouched

Identify and engage internal and external stakeholders in shaping sustainable procurement priorities.

• Stakeholder register
• Engagement plan
• Workshop minutes

• Engagement one-off
• No feedback loop

Prioritise sustainability issues by materiality, spend, risk, and influence to focus effort where impact is greatest.

• Priority matrix
• Spend analysis
• Risk heatmap

• Priorities not data-driven
• Low spend areas overweighted

Define metrics, targets, and review cycles for sustainable procurement performance with continual improvement.

• KPI definitions
• Targets register
• Improvement log

• No targets
• Improvements not tracked

Integrate sustainability into procurement planning including need analysis, market analysis, and risk assessment.

• Procurement plan
• Market analysis
• Risk assessment

• Need analysis skipped
• Risk assessment formulaic

Embed sustainability criteria in technical specifications, performance requirements, and outcomes.

• Spec templates
• Criteria library
• Outcome statements

• Boilerplate specs
• No outcome focus

Apply sustainability criteria in supplier prequalification, selection, and award decisions.

• PQQ
• Evaluation matrix
• Award memo

• Sustainability score is tokenistic
• Award still cost-led

Embed sustainability clauses, KPIs, and review cadences in contracts and manage performance against them.

• Contract clauses
• SLA register
• Performance reviews

• Clauses unenforced
• KPIs not measured

Conduct post-contract reviews to capture sustainability outcomes, lessons learned, and improvement opportunities.

• Post-contract review
• Lessons log
• Improvement actions

• Reviews skipped
• Lessons not shared