1. ISO 20400 Introduction and ISO 26000 connection Sweden, Stockholm, Tuesday 20 October 2015 Mr. Hans Kröder – The Netherlands Representative of SSRO in ISO 26000 PPO-SAG and Dutch expert within ISO 20400 process Director Learn2improve your planet slide 1

2. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20152 ISO 20400 slide Meetings (PC 277): 23-24 September 2013, France, Paris 25-28 February 2014, Brazil, Foz do Iguacu 3-7 November 2014, Singapore 15-19 June 2015, England, London 18-22 April 2016, ? Chairs (PC 277): Chair: France, Jacques Schramm Vice chair: Brazil, Jorge Soto DIS version, 26 August 2015 commenting period: 14/Nov/2015 - 13/Febr/2016 expected publication date: end of 2016 / begin of 2017

3. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20153 48 countries involved slide --- 35 Participating --- 13 Observing Argentina (IRAM) Brazil (ABNT) Chile (INN) Colombia (ICONTEC) Costa Rica (INTECO) Mexico (DGN) Australia (SA) Barbados (BNSI) Canada (SCC) United States (ANSI) China (SAC) India (BIS) Japan (JISC) Singapore (SPRING SG) Côte d'Ivoire (CODINORM) Egypt (EOS) Nigeria (SON) Rwanda (RSB) Israel (SII) Saudi Arabia (SASO) Austria (ASI) Belgium (NBN) Croatia (HZN) Denmark (DS) France (AFNOR) Ireland (NSAI) Italy (UNI) Netherlands (NEN) Norway (SN) Portugal (IPQ) Serbia (ISS) Sweden (SIS) Switzerland (SNV) Ukraine (DSTU) United Kingdom (BSI) Armenia (SARM ) Congo (OCC ) Czech Republic (UNMZ ) Finland (SFS) Gabon (ANTT) Germany (DIN ) Hong Kong (ITCHKSAR) Irag (COSQC) Korea, Republic of (KATS ) Lithuania (LST ) Poland (PKN) Spain (AENOR ) Thailand (TISI)

4. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20154 Liaisons slide Liaisons IFPSM (International Federation of Purchasing and Supply Management – 24 countries) IIOC (Independent International Organisation for Certification) ITUC (International Trade Union Confederation) OECD (Organization for Economic Cooperation and Development) SPLC (Sustainable Purchasing Leadership Council) UNEP (United Nations Environment Programme), including ISPPI International Sustainability Public Procurement Initiative UNOPS (United Nations Office for Project Services) Internal: ISO/TC207 Environmental management ISO/PC278 Anti-bribery management systems ISO/PC280 Management consultancy

5. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20155 Overview slide ISO 20400 Structure 4. FUNDAMENTALS 3. TERMS AND DEFINITIONS 5. POLICY & STRATEGY 6. ENABLERS 7. PROCUREMENT PROCESS ANNEX: TOOLS 1. SCOPE / 2. NORMATIVE REFERENCE

6. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20156 Scope slide 1. SCOPE This international standard provides guidance to organizations integrating sustainability within procurement, independent of their activity or size, as described in ISO 26000 - Guidance on social responsibility. It is intended for stakeholders involved in or impacted by procurement decisions and processes.

7. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20157 References slide 2. NORMATIVE REFERENCES The following document, in whole or in part, is normatively referenced in this document and is indispensable for its application. ISO 26000:2010, Guidance on social responsibility

8. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20158 Definitions slide 3. TERMS AND DEFINITIONS Definition: Sustainable procurement procurement that delivers long-term social, economic and environmental benefits Social responsibility  Sustainability NOTE 1 to entry: SP involves the sustainability aspects related to the goods and services and to the suppliers along the supply chain NOTE 2 to entry: SP contributes to the achievement of organizational sustainability objectives and goals

9. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 20159 Definitions slide 3. TERMS AND DEFINITIONS  Due diligence  Ethical behaviour  International norms of behaviour Equal source:  Social responsibility  Sphere of influence  Stakeholder engagement  Supply chain  Sustainable development Modified  Fair operating practices Derived from

10. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201510 Fundamentals slide Content Description Primary responsibility 4.1 What is Sustainable Procurement? 4.2 Why procure sustainably? 4.3 Key considerations for Sustainable Procurement Describes the principals of SP, summarizes the range of issues and the reasons for undertaking SP. Key considerations SP include:  setting priorities  exercising diligence and managing risks  exercising influence  avoiding complicity 4. FUNDAMENTALS Scope, principles and drivers of sustainable procurement All

11. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201511 Principles of SP slide 4. FUNDAMENTALS 4.1.2 Principles of sustainable procurement Accountability Transparency Ethical behaviour Respect for stakeholder interests Respect for rule of law and international norms of behaviour (and human rights) and more principles:

12. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201512 Principles of SP slide 4. FUNDAMENTALS 4.1.2 Principles of sustainable procurement (more) Transformative and innovative solutions Focus on needs Integration Global cost (society, environment and economy)

13. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201513 Key considerations slide 4. FUNDAMENTALS 4.3 Key considerations Setting priorities Exercising due diligence and managing risks Exercising influence Avoiding complicity What is it? Why is it important?

14. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201514 Key considerations slide 4. FUNDAMENTALS 4.3 Key considerations: Setting priorities Relevance : The sustainability issue or the aspect applies to the organization or its supply chain. If Not: Specify why not (comply or explain) + factors Significance : The extent of the impact of activities and decisions by the organization on sustainable development (people, society, environment and economy). + criteria Priority : The priority for attention and action. Issues/aspects that are relevant and significant deserve attention and action. + considerations

15. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201515 Policy & strategy slide Content Description Primary responsibility Describes the main considerations when developing an organization sustainability policy and an aligned procurement policy Top manage ment Integrating sustainability into policy and strategy 5. POLICY & STRATEGY 5.1 Committing to Sustainable Procurement 5.2 Aligning with organizational goals 5.3 Adapting to the procurement context 5.4 Managing implementation ORGANIZATIONAL SUSTAINABILITY POLICY AND STRATEGY PROCUREMENT SUSTAINABILITY POLICY AND STRATEGY

16. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201516 Enablers slide Content Description Primary responsibility Organizing the procurement function towards sustainability Procure ment Manage ment Describes the conditions that need to be created to enable SP to be consistently and continuously improved. These conditions are key to successfully integrating sustainable considerations throughout the procurement process. 6. ENABLERS 6.2 Governing procurem ent 6.6 Measuring & improving performance 6.4 Stakeholder engagement 6.7 Grievance mechanisms 6.5 Setting priorities 6.3 Enabling people

17. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201517 Enablers slide Organizing the procurement function towards sustainability 6. ENABLERS 6.2 GOVERNING PROCUREMENT 6.3 ENABLING PEOPLE 6.5 SETTING PRIORITIES 6.6 MEASURING & IMPROVING PERFORMANCE 6.4 STAKEHOLDER IDENTIFICATION & ENGAGEMENT 6.7 GRIEVANCE MECHANISM

18. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201518 Enablers slide 6.5 Setting priorities 6. ENABLERS Due diligence and risk management Mapping sustainability issues to purchase categories Mapping suppliers to critical issues Connecting due diligence with risk management

19. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201519 Procurement process slide Content Description Primary responsibility Individuals who are responsible for the actual procurement Describes how to integrate sustainable considerations and priorities into the procurement of goods and services using a generic procurement process. 7.2 Planning 7.3 Defining procurement criteria 7.4 Sustainability aspects of supplier selection 7.5 Contract management 7.6 Contract review and lessons learnt 7. PROCUREMENT PROCESS Integrating sustainability into the procurement process

20. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201520 Procurement process slide 7. PROCUREMENT PROCESS Integrating sustainability into the procurement process 7.6 CONTRACT REVIEW AND LESSONS LEARNT Evaluating and improving sustainability performance 7.3 PROCUREMENT CRITERIA DEFINITION Integrating sustainability requirements in the specifications 7.2 PLANNING Preparing a sustainable sourcing strategy 7.5 CONTRACT MANAGEMENT Managing the contract sustainably 7.4 SUSTAINABILITY ASPECTS OF SUPPLIER SELECTION Awarding the contract to a sustainable supplier

21. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201521 Annex slide ANNEX: TOOLS Annex A: Help Box – sustainable procurement issues Annex B: Help Box – ISO 26000, Sphere of influence Annex C: Overview of ISO 26000Annex D: Global cost calculation method Annex E: Example of category issue analysies

22. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201522 Annex slide ANNEX: TOOLS Annex B: Help Box – ISO 26000, Sphere of influence Assess the sphere of influence within the supply chain Promote sustainability in the supply chain Exercise influence Plus!

23. ISO 20400 introduction and ISO 26000 connection - Sweden, Stockholm, 20 October 201523slide Thank you for your attention National expert to ISO (DIS) 20400 SSRO Representative in ISO 26000 PPO-SAG Mr. Hans Kröder The Netherlands +31.6 – 22 459 541 kroderhans-skype h.kroder@learn2improve.nl Thank you