What is a responsible purchase? A responsible (or sustainable) purchase integrates economic, environmental, and social performance criteria. It is the application of Sustainable Development and CSR to purchasing decisions.
Why develop a responsible purchasing policy?
Consumers, NGOs, rating agencies, and others are increasingly demanding information about product origins and adherence to social and environmental practices (child labor, pollution, etc.). Public authorities, through public contracts and calls for tenders, are also increasingly demanding CSR (Corporate Social Responsibility) considerations. Your company will undoubtedly benefit from a better image with its clients by learning to communicate the CSR efforts undertaken by its purchasing department.
A responsible purchasing policy also generates so-called “intangible” value: trust, collaboration, mutual support, partnership, etc., instead of a purely economic and financial relationship that limits opportunities for negotiation and mutual development.
Responsible purchasing also helps reduce indirect costs (less packaging, optimized transportation, energy savings, etc.).
How to develop a responsible purchasing policy in your company?
You can start by carrying out risk analyses in the 3 areas: economic, social and environmental.
You will therefore answer the following specific questions:
• Where do the products come from?
• Who manufactured them?
• What are they made of?
• What are they packaged in?
• What will happen to them after they are used?
• What is their environmental impact?
• What is their social impact?
• What is the impact on the company’s overall performance?
By asking these questions, you increase your knowledge of your supplies and your suppliers. You reduce risks, both in terms of supply chain management and in terms of your company’s image.
You can also address the issue of packaging and waste optimization/recycling. Fewer boxes received mean fewer boxes to open, move, or dispose of, resulting in lower waste management costs. While these savings aren’t always directly quantifiable, they are increasingly being factored into cost-saving calculations.
During environmental impact assessments, you will need to consider ecological issues (greenhouse gases, acid rain, deforestation, etc.) or energy-related issues (renewable energies, rare earth management, etc.). Understanding the products you buy also allows you to better manage the end-of-life of your own products and to participate in the analysis and implementation of Life Cycle Assessments (from design to dismantling, including manufacturing, use, and maintenance).
During social impact studies, these include aspects of compliance with labor law (legal obligations), safety, working conditions, and even aspects of training and professional development in your suppliers’ companies.
Establish a Charter for Responsible/Sustainable Purchasing
To formalize, communicate, and increase the impact of your approach, it is useful, even essential, to establish a charter for your purchases. Sustainable purchasing charter, purchasing ethics charter, code of conduct, sustainability policy with a dedicated purchasing section… the options are numerous, and depending on your sector, you can contact organizations related to sustainable development that will help you define the initial content for such a document, based on the scope you wish to cover. ISO 26000 is currently the benchmark for CSR, and you will find an AFNOR guide to responsible purchasing (NF X50-135) to assist you in its implementation.