How to Develop a Social and Sustainable Procurement Policy.

Organisations are increasingly recognising the importance of adopting social and sustainable procurement policies. These policies not only help in mitigating environmental impact but also contribute to social equity and economic development. Social and sustainable procurement involves integrating social, environmental, and economic considerations into procurement processes and decisions. So you must certainly be wondering how you can help your organisation develop a robust social and sustainable procurement policy, ensuring that your organisation can contribute positively to society and the environment while achieving its business objectives.

Before diving into the development process, it’s essential to understand what social and sustainable procurement entails. Social procurement focuses on generating positive social outcomes, such as promoting diversity, equity, and inclusion, supporting local communities, and ensuring fair labour practices. Sustainable procurement, on the other hand, aims to minimise the environmental impact of purchasing decisions by considering factors like resource efficiency, waste reduction, and the use of environmentally friendly materials and practices. Integrating these two approaches creates a holistic procurement strategy that addresses social and environmental concerns.

The first step in developing a social and sustainable procurement policy is to assess your organisation’s current procurement practices. This involves conducting a thorough review of existing policies, procedures, and supplier relationships to identify areas where improvements can be made. Key questions to consider during this assessment include: Are current procurement practices aligned with your organisation’s social and environmental goals? How are suppliers selected and evaluated? What criteria assess the sustainability and social impact of products and services? Are there any current partnerships or collaborations with socially responsible and environmentally conscious suppliers? This assessment will provide a baseline understanding of your organisation’s procurement practices and help identify gaps and opportunities for improvement.

Once you have a clear understanding of your current procurement practices, the next step is to define the objectives and goals of your social and sustainable procurement policy. These objectives should align with your organisation’s mission, values, and strategic goals. Some common objectives for social and sustainable procurement policies include reducing the environmental impact of procurement activities, promoting ethical labour practices and fair trade, supporting local and minority-owned businesses, encouraging eco-friendly and sustainable products, and enhancing transparency and accountability in the supply chain. Setting clear and measurable objectives will provide a roadmap for implementing and evaluating the success of your procurement policy.

So you have assessed your current procurement practices and mapped out your objectives and goals for the policy. The next step is to bring in the stakeholders. Developing a social and sustainable procurement policy requires the involvement and support of various stakeholders, both internal and external. Key stakeholders may include senior management, procurement teams, suppliers, customers, and community organisations. Engaging stakeholders in the policy development process ensures that their perspectives and needs are considered, fostering a sense of ownership and commitment to the policy.

To engage your stakeholders effectively, consider the following strategies: Conduct workshops and meetings to gather input and feedback, establish a cross-functional working group to oversee the policy development process, communicate the benefits and importance of social and sustainable procurement to build support and buy-in, collaborate with industry associations and networks to share best practices, and learn from others. By involving your stakeholders from the outset, you can create a more inclusive and comprehensive procurement policy that addresses the needs and priorities of all parties involved. It also makes it easier to implement once you have developed your policy framework.

With the objectives and stakeholder input, the next step is to develop your policy framework for social and sustainable procurement. This framework should outline guiding principles, criteria, and processes essential for the procurement strategy. Key components may include guiding principles that reflect values like environmental stewardship and social equity, criteria for supplier selection such as environmental certifications and labour practices, procurement processes detailing steps for policy implementation, and performance metrics like KPIs to measure policy impact. By establishing a robust policy framework, organisations can align procurement activities with social and environmental goals effectively.

Implementing the social and sustainable procurement policy requires careful planning and execution. This involves integrating the policy into existing procurement processes and systems, as well as providing training and support to your procurement teams and suppliers. Key steps in the implementation process include communicating the policy with all relevant stakeholders, offering training and resources to procurement team members, updating procurement processes, and engaging suppliers to ensure compliance with the policy. By taking a systematic approach to the implementation process, you can effectively integrate the policy into your organisation’s procurement activities.

Now, we move onto the exciting world of data analytics by measuring and reporting! Monitoring and evaluating the effectiveness of your social and sustainable procurement policy is crucial for continuous improvement. This involves regularly assessing your policy’s impact, identifying areas for improvement, and making necessary adjustments. Key steps in the monitoring and evaluation process include tracking performance metrics by regularly measuring and reporting on the KPIs established in your policy framework. This may comprise tracking the percentage of sustainable products purchased, reductions in environmental impact, and improvements in social outcomes. Conducting audits and assessments periodically on suppliers and procurement processes to ensure compliance with the policy, which may involve on-site visits, surveys, and third-party evaluations through one of our SaaS offerings. Gathering feedback from stakeholders, including procurement team members, suppliers, and community organisations, to identify areas for improvement and address any challenges or concerns. Reviewing and revising the policy based on the findings from monitoring and evaluation as needed to ensure it remains relevant and effective as they are living documents after all. By continuously monitoring and evaluating the policy, you can ensure that your organisation’s procurement activities align with its social and environmental goals and drive positive outcomes.

Finally, you must celebrate the successes and share what you have learned from your social and sustainable procurement policy, which is essential for building momentum and inspiring others. Recognise and reward the efforts of your procurement team, suppliers, and stakeholders who have contributed to the policy’s success. Additionally, share your organisation’s achievements and best practices with industry peers, customers, and the wider community. This can help inspire others to adopt similar policies and contribute to a more sustainable and equitable future.

Developing a social and sustainable procurement policy is a critical step for your organisation’s commitment to making a positive impact on society and the environment. By following the steps outlined in this blog—assessing current practices, defining objectives, engaging stakeholders, developing a policy framework, implementing the policy, monitoring and evaluating, and celebrating success—you can create a comprehensive and effective procurement policy that aligns with your organisation’s values and goals. By doing so, you will not only contribute to a more sustainable and equitable future but also enhance your organisation’s reputation, resilience, and long-term success.