Policies & Processes

Develop credible policies and guidelines

Start by creating overarching policies that communicate your commitment to sustainable procurement. As your sustainability practices mature, consider developing issue-specific policies. For instance, these policies could be focused on climate change, human rights and modern slavery, or sourcing particular materials such as palm oil. It can be beneficial to leverage industry standards as guidelines and to seek input from suppliers to create a well-informed policy. Lastly, make sure these policies are used by embedding them 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 a material’s region of origin.¹

Develop a credible supplier code of conduct

A supplier code of conduct communicates 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 own suppliers and subcontractors to the same code.^{4, 5}

EXAMPLE: Apple's supplier code of conduct

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

Adapt and develop processes to deliver on your commitments

To ensure sustainable policies are effectively applied by suppliers, you may need to adapt and develop your policy implementation processes. Here are some key considerations. One, understand the capabilities and needs of your suppliers to avoid setting impractical demands, as this may lead to unintended consequences like unauthorised outsourcing. Two, seek to facilitate open dialogues with different teams, such as finance and design, to identify and resolve any potential conflicts with your sustainable procurement targets. Three, provide training to your team and your suppliers to improve awareness and understanding of relevant policies.