This document discusses sustainable procurement and its relationship to sustainability. It defines sustainable procurement as procurement that has the most positive environmental, social, economic and cultural impacts over the entire lifecycle. It affects procurement departments internally and customers, suppliers, local communities and society externally. Implementing sustainable procurement brings internal and external effects, raises business ethics issues and can have financial impacts. The document argues that the path of sustainable procurement should not fragment into many individual versions but instead focus on standardization, compliance, stakeholder engagement and measurement to drive change towards greater sustainability.

1. Trend or Philosophy ?
SUSTAINABLE PROCUREMENT

2. CONTENT
• Sustainability & Procurement : How they are related and how they are linked
• Sustainable Procurement : Whom it concerns and Who is affected ?
• Beyond the theory : Sustainable Procurement in Practice
• Internal & External Effects
• Business Ethics
• Financial Impact
• Where does the Sustainable Procurement path lead us ? Should we follow ?

3. SUSTAINABILITY & PROCUREMENT :
HOW ARE THEY RELATED
Sustainability
4 Dimensions
Social
Environment
Economic
Culture
• Social
• Human & Labor rights (Equal opportunities
• Healthy & safe working environments)
• Social Environment : Peace, Security, Justice, Poverty, Education
• Sustainable Living (Social Movements like New Urbanism, Eco-Municipalities: sustainable
cities, reduce environmental impact)
• Economic
• Create economic growth (local/global) without negative environmental impacts
• Raise standard of living without endangering environmental resources
• Environmental - Protect the ecosystem and manage the human consumption of resources
• Minimize waste (recycling, composting or energy recovery, etc.)
• Limit pollution to protect natural systems
• Protect the diversity of nature
• Cultural
• Protect national and global cultural heritage
• Support customs and traditions
• Support the culture diversities
• Respect cultural changes
• Technology
Sustainable

4. SUSTAINABILITY & PROCUREMENT :
HOW ARE THEY RELATED
Procurement
Identify
need
Purchase
Requisition
Approval
Purchase
Order
Goods /
Service
Receipt
Invoice
match /
Payment
Requirement
Definition
Category
analysis /
strategy
Supplier
Identification
RFI/RFQ
Negotiate
Contract
Manage
Contract
Supplier
Management
PurchasingSourcing

5. SUSTAINABILITY & PROCUREMENT :
HOW ARE THEY ARE RELATED
Requirement
Definition
Category
analysis /
strategy
Supplier
Identification
RFI/RFQ
Negotiate
Contract
Manage
Contract
Supplier
Management
Social
Environment
Economic
Culture
Sustainable Procurement
Sourcing
How are we sourcing?

6. • According to the newly issued ISO 20400 the definition for the Sustainable Procurement
is:
• “Procurement that has the most positive environmental, social, economic (and cultural)
impacts possible over the entire life cycle*”
(*from natural resources to final disposal)
SUSTAINABLE PROCUREMENT
Source : ISO (the International Organisation for Standardisation, www.iso.org

7. • INTERNALLY
• Procurement Departments ?
• W/H & Logistics ?
• Finance ?
• HR ?
• Marketing ?
• IT ?
• Sales ?
• Health & Safety ?
• EXTERNALLY
• Customers ?
• Suppliers ?
• Local Community ?
• Country ?
• Society ?
SUSTAINABLE PROCUREMENT –
WHOM IT CONCERNS ? WHO IS AFFECTED ?
To whom it may concern… Who is/are affected ?
• Companies
• Governments
• Society

8. • Internal & External Effects
• Business Ethics
• Financial Impact
BEYOND THE THEORY :
SUSTAINABLE PROCUREMENT IN PRACTICE

9. • Changes in the Supply Chain
Dynamics
• Benefit to Local Population
• Health Benefit
• Improved Market/Product
• Increase Clean Energy
• Job Training
• Reduction of Waste
• Change Management
• Education
• New Partnership
• New Product
• New Service
• New Use of Business
• New Use of Product
• Production Process
INTERNAL & EXTERNAL EFFECTS
Internal Effects External Effects

10. • Actions that are good and legal but not
a legal obligation
• Actions that are bad, and illegal
• Actions that are legal, but bad
• Actions that are good, but illegal
• Social Development and Caring
• Social Responsibility and supporting
• Reciprocity and fair play
• Fairness
• Lying
• Cheating
• Bullying
• Harming
BUSINESS ETHICS
Ethics
The good life
Doing good
Morality
Justice
Avoiding doing harm
Corporate Citizenship Equity Honesty Avoiding doing harm
Social
Development
and caring
Social
Responsibility
and supporting
Reciprocity
and fair play
Fairness Truthfulness Cheating
and
selfishness
Bullying and
social
irresponsibility
Harming and
social
disengagement
Source : Business Ethics & Sustainability, Conrad Lashley, 2016

11. FINANCIAL IMPACT
• Is Sustainable Procurement (more) expensive ?
• Case study : United Utilities delivered financial savings in excess of 6M by following
a 3 year sustainable procurement programme based on BS 8903, improved
procurement staff awareness by 100% , leading to improved retention and achieved
global leadership status in the Dow Jones Sustainability Index, improving
shareholder confidence.
• *Sustainability should not cost more; bad procurement does. The right procurement
techniques will deliver value for money
Sources: IEMA – www.iema.net / Action Sustainability www.actionsustainability.com / ISO 20400 www.iso20400.org

12. • The trap is to follow a path with ‘Individual Sustainable Procurement ‘versions’….
WHERE DOES THE SUSTAINABLE PROCUREMENT PATH LEAD US ?
SHOULD WE FOLLOW ?
S.P v.2
S.P v.1
S.P v.4 S.P v.3
S.P v.5
S.P v.6
S.P v.∞
S.P v.358
S.P v.589
S.P v.68
S.P v.987
S.P v.105
S.P v.7

13. • The trap is to use Sustainable Procurement to close ‘borders’ and minds… and lose :
WHERE DOES THE SUSTAINABLE PROCUREMENT PATH LEAD US ?
SHOULD WE FOLLOW ?
Growth
Science
Technology
Communication
Environment
Culture
Wealth

14. • Would we ever buy from this factory ?
WHERE DOES THE SUSTAINABLE PROCUREMENT PATH LEAD US ?
SHOULD WE FOLLOW ?

15. If it is Sustainable (not to buy), is it Ethical… ?

16. If it is Sustainable (not to buy), is it Ethical… ?

17. If it is Sustainable (not to buy), is it Ethical… ?

18. • Should we turn them our back…?
WHERE DOES THE SUSTAINABLE PROCUREMENT PATH LEAD US ?
SHOULD WE FOLLOW ?

19. • Should we turn them our back…?
WHERE DOES THE SUSTAINABLE PROCUREMENT PATH LEAD US ?
SHOULD WE FOLLOW ?

20. • Should we turn them our back…?
WHERE DOES THE SUSTAINABLE PROCUREMENT PATH LEAD US ?
SHOULD WE FOLLOW ?
2017 : 45.000.000 slaves……

21. THE SINGLE PATH TO SUSTAINABLE PROCUREMENT
• Standardization – ISO 20400 (very similar to BS8903)
• Compliance to Legislation – Modern Act 2015, Waste, Recycle, etc.
• Re-write specs integrating sustainable parameters
• Engage internal and external stakeholders
• Support Change Management
• Training
• Measurement – KPI’s (deemed by an accredited organization)
• Individual and Corporate Responsibility and Sensitivity
• Senior Management Commitment
• Persistence

22. Irini Etimou
e: irinietimou@gmail.com
m: 074693 11226
Thank you for your time and participation !