Finally! The wait is over! For the past several weeks, the Communication
Head of International Standard Organisation (ISO) has been handing out teasers such
as “Sustainable Procurement one step closer to an ISO standard”, “First
International Standard for Sustainable Procurement near publication” etc. As a
result, various stakeholders were eagerly awaiting this standard whose time had
indeed come. At last, on 21st April, she announced, “You are what you buy – the first International Standard for sustainable procurement just
published”.
For an idea that began its journey about a decade and half ago, having an
ISO standard is a gigantic leap forward. I congratulate all those who were/are
remotely connected with developing, nurturing, advocating and bringing forward sustainable
procurement concept to this stage!
Procurement, as a tool to meet socio-environmental objectives of
government and create value for business, has been on horizon for over a decade
now. However, various related concepts such as green procurement, environmental
friendly procurement, responsible procurement, eco-friendly procurement,
circular procurement etc. have also come into play and are used
interchangeably. While these phrases have
similar connotation and all aim at leveraging institutional purchasing power,
they have nonetheless created reasonable amount of confusion in the minds of
stakeholders. With ISO naming its standard on Sustainable Procurement, I hope,
the phrase ‘sustainable procurement’ would now find more acceptance among
stakeholders conveying more nuanced approach towards embedding sustainability
in buying decisions. This would bring much needed clarity to the conversations
on sustainable procurement.
The Standard could not have come at a more
opportune time as governments around the world are beginning conversations,
strategizing and making blueprint for achieving SDG 12.7, which specifically
deals with integrating sustainability in procurement decision. The publication
of a standard would enable organisations in developing and emerging economies
to fast-track sustainable procurement implementation and achieve SDG 12.7.
The choice of phrase used for this
momentous announcement – “You are what
you buy”, itself speaks a lot about this Standard. The stated aim of this ISO is to help interested
organizations develop and implement sustainable purchasing practices and
policies. It is quite important to note that one of the objectives of UN
Environment led 10YFP Programme on
Sustainable Public Procurement is also to support the implementation of SPP
on the ground. Having a recognized
international standard with same objective would surely give fillip to 10YFP
Programme and help organisations, desirous of implementing sustainable
procurement, move on a systematic guided path. This is an excellent prospect that
can save an organisation’s resources that it would have normally spent on
researching how to implement (and which type of) sustainable procurement. However, while using this ISO, one needs to keep
in mind that it provides guidelines, not requirements. This
essentially means that an organisation cannot claim that it is ‘ISO 20400
certified’. I learnt this interesting aspect from none other than Mr Josh
Jacobs, the Chairman of US Mirror Committee on ISO. Therefore, watch out for
consultants claiming to provide consultancy for ISO 20400 certification!
Going through ISO 20400, one gets the feeling that procurement
professionals have given substantial inputs during its developmental process –
inputs that have been considered and indeed incorporated. The Standard has thus
put procurement professionals firmly in the driving role. It is organised
exactly in a way an organisation would like to approach implementation of any
new policy – with clear division of roles and responsibilities. A separate
chapter has been devoted for strategic, operational and tactical issues each to
be addressed by C-suite, middle management and individual procurers
respectively in an organisation; for example – individual procurer responsible
for actually integrating sustainability into procurement process can focus on
Chapter 7 that deals with Procurement Process. This gives enough leeway to
procurement professionals to focus on specific areas, where one has assigned
roles. Similarly, at a strategic level, an organisation may have different
rationale for adopting sustainable procurement. The Standard enlists several
drivers for sustainable procurement and leaves it up to organisations to choose
the most appropriate set of drivers that they deem most suited for establishing
their own sustainable procurement programme. This in-built flexibility in the Standard
would encourage organisations and professionals to tailor make their own
strategy for adopting sustainability practices.
However, the best reason why I believe
this Standard would prove to be a game changer is that it offers a level
playing field to procurers all around the world. I have always maintained that
one of the main hurdles to the implementation of a successful sustainable
procurement plan in developing countries, such as India, is lack of awareness
and know-how to integrate sustainability concerns in procurement process. The
Standard brings this knowledge to everyone’s doorstep. No longer can a
country/organisation hide behind excuses. The Standard lights up the path of C-suite leaders from any
part of the world, and provides them with the wherewithal to develop a
strategic vision of sustainable procurement that can capture the imagination of
stakeholders. The middle management and
individual procurer at the bottom can then translate this vision into actual
implementation. I think this connect – among strategic leader, operational
manager and tactical procurer – is
fundamental for rapid uptake of this concept. It is precisely what this Standard
visualises. The benefit of the Standard does not just stop here. It would come
as a big relief to a whole lot of policy makers struggling to frame an appropriate
policy on sustainable procurement framework. Now governments can issue one line
directive, mandating organisations to implement ISO 20400 and then sit back – job done!
