First global standard for sustainable procurement hits the market

After four years of development, the first international standard for sustainable procurement was launched late last week by the International Standards Organisation (ISO).

The first standard of its kind in the world, ISO 20400 aims to help companies make better purchasing choices throughout their supply chains by establishing guidelines for companies to judge suppliers on ethical and sustainability issues.

Jacques Schramm, chair of ISO/PC 277, the committee which developed the standard, said it would help organizations avoid the financial, environmental and reputational risks associated with poor supply chain management.

“The risks of not understanding and managing practices throughout the whole supply chain are great,” he said in a statement. “At best, poor quality products or ruptures of stock can result. At worst, disasters like the Rana Plaza in Bangladesh in 2013 can happen. Sustainable procurement helps to minimize risks such as these by encouraging buyers and suppliers to work closely together for a better result for all.”