[Note: This is a partial preview. To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] ISO 20400:2017 is the world's first International Standard for sustainable procurement. The standard provides guidelines for integrating sustainability into an organization's procurement processes. Aimed at top managers and directors of the purchasing function, it helps to align procurement with an organization's goals and objectives and create a culture of sustainability. By implementing ISO 20400, your organization will contribute positively to society and the economy through making sustainable purchasing decisions and encouraging suppliers and other stakeholders to do the same. This presentation can be used to create awareness of your organization's sustainable procurement processes and practices in support of the U.N. Sustainable Development Goals (SDGs). LEARNING OBJECTIVES 1. Acquire knowledge on sustainability management 2. Gain an overview of the ISO 20400 standard and its contents 3. Gather practical tips on how to get started with ISO 20400 CONTENTS 1. Introduction to Sustainability 2. Overview of ISO 20400 Sustainable Procurement 3. Contents of ISO 20400 4. Getting Started with ISO 20400

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© Operational Excellence Consulting. All rights reserved.
ISO 20400:2017
Sustainable Procurement

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© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
Acquire
knowledge on
sustainability
management
Gain an overview
of the ISO 20400
standard and its
contents
Gather practical
tips on how to get
started with ISO
20400
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation, please
visit: https://www.oeconsulting.com.sg

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Contents
3 Contents of ISO 20400
2 Overview of ISO 20400
1 Introduction to Sustainability
4 Getting Started With ISO 20400

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Projected Growth In Population & Resource
Demands By 2050
With 9.7 billion people on the planet by 2050, we can expect a
54 percent increase in global food demand and 56 percent
increase in energy demand.
Source: The Nature Conservancy

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$1Trillion
Worth of all food produced each year ends up rotting
in the bins of consumers and retailers, or spoiling
due to poor transportation and harvesting practices.
Source: United Nations Global Compact

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Mindset Of A Non-sustainability Thinker
“Impact of our effort will
be so low it won’t even
move the needle.”
“A PR project to
enhance the
company image.”
“It only has to do with
Marketing and
Operations.”
“Let’s leave it to
others to do it.”

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What is Sustainability?
Climate Change?
Conservation?
Renewable Energy?
Eco-friendly?
Circular Economy?
Green?
Grassroot Activism?
Sustainable Growth?
Better Use of Technology?
A Population Problem?
Regeneration?

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What is Sustainability?
§ Sustainability first operates
under the assumption that
resources are finite
§ Since resources will not last
forever, sustainability attempts to
meet present-day needs in such
a way as to not compromise
resources for future generations
§ When making use of resources,
we should contemplate long-term
goals and the consequences of
reaching those goals

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© Operational Excellence Consulting. All rights reserved. 9
The Three Pillars Of Sustainability – Balance
Between The Environment, Society & Economy
ENVIRONMENTAL
A viable natural environment
ECONOMIC
Sufficient
economy
SOCIAL
Nurturing
community
SUSTAINABLE
DEVELOPMENT

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What Is A Sustainable Business?
A sustainable business is one that:
§ generates profits for its owners,
§ protects the environment, and
§ improves the lives of the people
with whom it interacts

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Why Is Sustainability Important?
New Growth
Opportunities
Sustainability is not only essential in
order to prevent negative global
changes but also offers opportunities
in new areas of growth.
Green Investment &
Societal Development
Sustainability is seen as a necessary
component in business; investors keep
in mind the company’s environmental
protection and community
development efforts.
Positive Business
Results
A reasonable degree of sustainability
in business is usually responsible for
improved productivity, lower debts,
equity, and better financial condition.
Improve Corporate
Reputation
Most reputable businesses believe that
sustainable business strategies
improve the company’s mission,
reputation, and customer reviews.

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U.N. Sustainable Development Goals (SDGs)
§ The SDGs represent an
ambitious plan to enhance
peace and prosperity,
eradicate poverty and protect
the planet
§ They are recognized globally
as essential to the future
sustainability of our world

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ISO Standards Contribute Directly To The U.N.
Sustainable Development Goals (SDGs)
ISO 14001:2015
Environmental
Management
System
ISO 20400:2017
Sustainable
Procurement
ISO 37101:2016
Sustainable
Development in
Communities
ISO 26000:2010
Social
Responsibility
ISO 9001:2015
Quality
Management
System
ISO 50001:2018
Energy
Management
System
ISO 37001:2016
Anti-Bribery
Management
System
ISO 45001:2018
Occupational
Health & Safety
Some examples of popular ISO standards that are adopted
by various companies and organizations:
This presentation will focus
on ISO 20400

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Procurement in the public sector alone
accounts for around 12% of GDP and
29% of government expenditure in
OECD member countries.
Source: 2016 OECD Survey on Public Procurement

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What is Sustainable Procurement?
§ Sustainable procurement entails making purchasing
decisions that meet an organization’s needs in a way that
benefits them, society and the environment
§ This is achieved by ensuring that the working conditions of its
suppliers’ employees are decent, the products or services
purchased are sustainable, where possible, and that socio-
economic issues, such as inequality and poverty, are
addressed

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What is ISO 20400?
§ ISO 20400 is the world’s first
International Standard for
sustainable procurement
§ Aims to help organizations develop
and implement sustainable
purchasing practices and policies
§ Guides managers and directors of
the procurement function to align
procurement with an organization’s
goals and objectives and create a
culture of sustainability

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Who is ISO 20400 for?
§ ISO 20400 is aimed at
organizations of all sizes, in both
the public and private sectors
§ It is intended for stakeholders
involved in, or impacted by,
procurement decisions and
processes
§ Applies to virtually every
purchasing decision from office
supplies and caterers to energy
providers, building materials and
more

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ISO 20400 Is Applicable To Any Organization That
Wishes To…
§ Develop and implement
sustainable purchasing practices
and policies
§ Make sure that the products and
services that it buys achieve value
for money with the lowest
environmental impact and most
positive social results
§ Ensure that each stage in the
supply chain meet certain
sustainability targets

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Benefits of ISO 20400
§ Ensures supply chain security (i.e.
product recall or supplier failure)
§ Prevents financial, environmental
and reputational risks
§ Fosters investor and customer
confidence
§ Promotes employee well-being
§ Contributes to opening new
markets for products and services

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Table of contents of ISO 20400
1. Scope
2. Normative references
3. Terms and definitions
4. Understanding the
fundamentals
5. Integrating sustainability into
the organization’s
procurement policy and
strategy
6. Organizing the procurement
function towards
sustainability
7. Integrating sustainability into
the procurement process

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Schematic view of the contents of ISO 20400
4. UNDERSTANDING THE FUNDAMENTALS
4.1 Concept of sustainable procurement
4.2 Principles of sustainable procurement
4.3 Core subjects of sustainable procurement
4.4 Drivers for sustainable procurement
4.5 Key considerations for sustainable procurement
Provides an overview of sustainable procurement.
Describes the scope and principles of sustainable procurement.
Examines why organizations should undertake sustainable
procurement.
All
5. INTEGRATING SUSTAINABILITY INTO THE ORGANIZATION’S
PROCUREMENT POLICY & STRATEGY
5.1 Committing to sustainable procurement
5.2 Clarifying accountability
5.3 Aligning procurement with organizational objectives and goals
5.4 Understanding procurement practices and supply chains
5.5 Managing implementation
Provides guidance about how sustainable considerations should
be integrated at a strategic level within the procurement function
to ensure that the intention, direction and priorities are
documented and understood by all parties involved in
sustainable procurement.
A key deliverable is the sustainable procurement strategy.
Top management
6. ORGANIZAING THE PROCUREMENT FUNCTION TOWARDS
SUSTAINABILITY
6.1 Governing procurement
6.2 Enabling people
6.3 Identifying and engaging stakeholders
6.4 Setting sustainable procurement priorities
6.5 Measuring and improving performance
6.6 Establishing a grievance mechanism
Describes the organizational conditions and management
techniques needed in order to successfully implement and
continually improve sustainable procurement.
Procurement
management
7. INTEGRATING SUSTAINABILITY INTO THE PROCUREMENT
PROCESS
7.1 Building on the existing process
7.2 Planning
7.3 Integrating sustainability requirements into the specifications
7.4 Selecting suppliers
7.5 Managing the contract
7.6 Reviewing and learning from the contract
Describes how sustainability considerations should be integrated
into existing procurement processes.
A key deliverable is a sourcing strategy that includes
sustainability.
Individuals
responsible for the
actual procurement
1. SCOPE 2. NORMATIVE REFERENCES 3. TERMS & DEFINITIONS
Description Mainly intended for
ANNEXES
Source: ISO

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Getting Started With ISO 20400
§ Know your supply chain
• Evaluate the cost of the supply
chain in your organization
• What proportion of your
revenue goes towards paying
suppliers?
• Do you know their societal and
environmental impact?
Source: ISO

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