Policies & Processes

Develop credible sustainable procurement policies and guidelines

Start by creating overarching policies that communicate your commitment to sustainable procurement. To become more specific as your sustainability practices mature, consider developing issue-related policies, like those focused on climate change, human rights and modern slavery, or sourcing particular materials such as palm oil. It could be beneficial to leverage industry standards as guidelines and seek input from suppliers for a well-informed policy. Make sure to embed these policies into various procurement procedures, including supplier assessments and material sourcing requirements.

EXAMPLE: Disney's conflict minerals policy

Disney created a materials sourcing policy specific to the issue of conflict minerals. The policy addresses sustainability risks related to the region of origin.¹

Develop a credible supplier code of conduct

A supplier code of conduct conveys your organisation's values, expectations, and grievance procedures.² While a basic code typically includes labour rights, environmental responsibility, and ethical practices, you can enhance it by referencing specific benchmarks or external standards with established third-party support.³ Ensure you provide ample context and examples to clarify expectations and unfamiliar concepts.

EXAMPLE: Vodafone cascading expectations

Vodafone's Code of Ethical Purchasing states that suppliers must hold their suppliers and subcontractors to the same code.^{⁴ ⁵}

EXAMPLE: Apple's supplier code of conduct

Apple's Code of Conduct uses reputable third-party guidance referencing OECD due diligence guidance on responsible mineral sourcing.⁶

Adapt current processes and develop new processes to deliver on your sustainability commitments

To ensure sustainable policies are effectively implemented, adapt your current processes and develop new ones that align with your sustainability aspirations. Begin with understanding the capabilities and needs of your suppliers to avoid setting impractical demands, which may lead to unintended consequences like unauthorised outsourcing. Facilitate open dialogues with different teams, such as finance and design, to resolve potential conflicts with your sustainable procurement targets. Further, provide training to your team and suppliers for improved awareness and understanding of relevant policies.