ISO 20400:2017 Sustainable Procurement –A Game Changer

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 21^st 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!