Sustainable Purchasing Policy Template

Policy Statement

It is the policy of [Sender.Company] to practice a continuous improvement approach to sustainability.

With this policy, [Sender.Company] establishes sustainable purchasing as a priority, which will strengthen our commitment to (organizational aim/CSR goal). Our approach will address the social, economic, and environmental aspects of [Sender.Company]’s procurement of goods and services.

Definitions

Sustainable purchasing means ensuring that [Sender.Company]’s suppliers and the services and products they supply deliver value for money. They will generate benefits not only for [Sender.Company] but also for society, the economy, and the environment.

Circular Economy means producing and consuming products in a way that extends their life cycle. That includes but is not limited to repairing, reusing, recycling, refurbishing, and leasing. These practices aim to ensure the highest value and utility.

Substances of Very High Concern refer to substances that have serious and sometimes irreversible effects on the environment and human health. Categories include:

• persistent bioaccumulative and toxic (PBT) carcinogenic

• mutagenic, reprotoxic substances (CMR)

• endocrine disrupting (ED)

• very persistent and very bioaccumulative substances (vPvB).

Carbon-Based Fuels or fossil fuels are products that are used for fuel, industrial processes, heating, and cooling. Examples include natural gas, coal, petroleum products, renewable biomass, and other products containing carbon that emit greenhouse gases, such as methane and carbon dioxide.

Core Strategies

We commit to the following actions, taking into account traditional purchasing considerations, including budget, availability, and performance requirements.

3.1 Sufficient financial and staff resources are allocated to meeting sustainable outcome goals and reporting the results.

3.2 All staff will review and consider these core strategies when making procurement decisions. Furthermore, (responsible entity) will take the lead in designing, implementing, and reporting on sustainable purchasing.

3.3 We will use products, services, processes, and technologies that reduce the consumption of natural resources.

3.4 We will employ processes that reduce waste.

3.5 Seek products, services, processes, and technologies that support a Circular Economy and biodiversity and minimize environmental and human exposure to Substances of Very High Concern.

3.5 Prioritize processes, goods, services, or technologies that support transparency in [Sender.Company]’s supply chain.

3.6 Invest in fuel-efficient products, services, processes, or technologies that reduce the use of Carbon-Based Fuels.

3.7 Design procurement processes to support a diverse contractor base, including small and minority-owned or women-owned businesses.

3.8 Verify sustainability by choosing products or services that are independently certified to show they meet a certain standard.

Implementation

4.1 The (responsible entity) will review and update this policy based on (annual) evaluation and feedback from relevant stakeholders.

4.2 The (responsible entity) is responsible for sourcing or delivering sustainable procurement training as required to ensure that staff are able to plan, design, and implement procurement processes while considering sustainable purchasing.

4.3 The (responsible entity) will ensure this policy is considered when developing project and department budgets and strategies.

4.4 The (responsible entity) will ensure that the updated version of this policy is disseminated to all staff.

4.5 The (responsible entity) will share information regarding best practices and lessons learned through the implementation, tracking, and reporting of sustainable purchasing efforts.

4.6 [Sender.Company] will work within the industry and its network to enhance its approach to sustainable purchasing and promote this activity at internal and external events.

Tracking

The (responsible entity) will consult the (Organization’s management structure) to establish an appropriate monitoring and reporting system to track [Sender.Company]’s progress in implementing the core strategies listed in section 3.0.

Reporting

Each (quarter), the (responsible entity) will use the agreed monitoring system, as listed in section 5.0, to review and report on the progress to (Organization’s senior executives). Each (year), a report detailing sustainable purchasing actions and outcomes will be shared with stakeholders. Details of the report can include but are not limited to the following.

6.1 Instances when core strategies were followed, including details on department, purchase type, and category.

6.2 Contract amount and any spend and resources associated with sustainable purchases.

6.3 The key outcomes associated with sustainable purchase, including environmental, economic, and social impacts.

6.4 Recommendations for engaging with and prioritizing relationships with sustainable contractors and suppliers.

Sign & Approve

This policy is effective as of (insert date).