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Marie-Hélène Dembour - CAP Conseil: Sustainable trade, responsible supply chain

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CAP conseil is a private company founded by Marie d’Huart and Serge De Backer, dedicated to sustainability consulting and advising. CAP’s team offers research and consultancy services relating to social responsibility, sustainable development, governance and business ethics. Very pragmatic, CAP develops topics including sustainable trade, responsible supply chain, climate and procurement strategies,… Active since 2003 in this area, CAP is a pioneer company in Belgium with a track record of more than 150 Belgian and international client companies, more than half of them being Belgian listed companies. CAP invests a lot in continuous training and updates regularly on the standards and tools faceting the world of sustainability and social responsibility. Currently, CAP represents Belgium in the development of the future ISO 20400 standard on sustainable procurement. The final version of the standard is expected for mid-2017.

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Marie-Hélène Dembour - CAP Conseil: Sustainable trade, responsible supply chain

  1. 1. ISO 20400 The future ISO guidance on sustainable procurement
  2. 2. Introduction • The standard draws from another guidance document, ISO 26000 on social responsibility • Many people in different levels inside an organisation deal in a way or another with procurement. To make sustainable procurement (SP) a reality, each of these levels has to understand what it needs to know and do to make it effective and impactful. • Its ambition is to explain to all types of organisations how to include sustainability considerations into the procurement management and practices. • The final version of the standard is expected for mid-2017
  3. 3. General view of the standard This International Standard assists organisations to meet their sustainability responsibilities by providing an understanding of: • what sustainable procurement is; • what the sustainability impacts and considerations are across the different aspects of procurement activity: policy, strategy, organisation, process; and • how to implement sustainable procurement practically.
  4. 4. 1. Fundamentals • Target audience: important for everyone • Content: answers to the questions “what is SP” and the “why procure sustainably” • Description: describes the principals of SP, summarizes the range of issues and the reasons for undertaking SP. Important considerations include prioritization, risk management, due diligence, influence and complicity. Scope, principles and drivers of sustainable procurement
  5. 5. 2. Policy & strategy • Target audience: actions and responsibilities for the top management • Content: • Committing to Sustainable Procurement • Aligning with organizational goals • Adapting to the procurement context • Managing implementation • Description: the management of organizations should align its sustainability and corporate policies and strategies with its specific procurement strategies and policies. Public commitment and strong governance are needed to set the tone and organise the entire organisation towards a better way to buy, procure and subcontract. How sustainability considerations should be integrated at a high strategic level? TO DO: - Write a Procurement Policy or integrate the procurement topic in the existant sustainability policy - Integrate the procurement topic in the strategy - Mapping the supply chain to have a better overview - Operational implementation
  6. 6. 3. Enablers Organizing the procurement function towards sustainability Making sure that all the conditions are put in place for achieving SP Target audience: middle management Establishement of a clear governance structure and clear accountabilities. How to have a coherent approach across the different products and services purchased? Enabling people through a supportive organisational culture, performance management (targets and objectives), training, development of tools and guidelines and support. Who has to be trained to SP? The engagement with stakeholders receives a special attention, especially to include the supply chain actors and reality in the reflection. Understanding of how its activities can negatively or positively affect others, and by providing a means to avoid or mitigate those negative impacts or explore positive opportunities. Risk management approach + mapping sustainability issues to purchase categories. How to do a mapping of the supply chain and make a societal risk analysis per category? Define sustainability goals and targets and KPI’s, Monitor performance and take corrective action if necessary + reporting. How to set up a dashboard? Play an important role in mitigating negative impacts in the supply chain and providing access to remedy of affected stakeholders.
  7. 7. Societal risk analysis per category
  8. 8. 4. Procurement process Assess the experience acquired and suppliers’ performance on all relevant criteria including sustainability, capture input from customers then adjust policy based on findings and finally, develop recommendations with a view to continual improvement. 1. Planning Preparing a sustainable sourcing strategy 2. Procurement criteria definition Integrating sustainability in the specifications 3. Sustainability aspects of supplier selection Awarding the contract to a sustainable supplier 4. Contract management Managing the contract sustainably 5. Contract review and lessons learnt Evaluating and improving sustainability performance Integrating sustainability into the procurement process Target audience: actions to be undertaken by the buyers on a daily basis Issue orders, monitor execution and supplier payment performance. It is important that contractual clauses include sustainability criteria and are agreed on. It is also important that sustainable elements and associated performance targets are communicated and understood by relevant internal stakeholders to ensure that any sustainability commitments made in the contract are fully implemented and compliance is monitored. Select suppliers on the basis of a pre-agreed scoring methodology that includes principles of sustainability, sustainability practices, life cycle approach and of goods and services lifecycle costs. Define precise criteria reflecting the key sustainability issues and include details of specific technical environmental features, production methods, the use of specific criteria, as well as procedures for verification of compliance. Integrate sustainability considerations at the outset by identifying stakeholders, analysing business needs, analysing the supply market and analysing profitability based on the approach of product lifecycle and product cost data.
  9. 9. Ex. supplier selection
  10. 10. The needs of SME’s Of course, many organizations are not structured according these 3 former levels of power. Special provisions address the needs of SME’s to simplify the whole process and encourage them to enter into the approach, even informally.
  11. 11. CAP conseil Experts in sustainability and social responsibility Chemin du Stocquoy 3, 1300 Wavre info@capconseil.be Ι 010 24 25 47

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