What is the BSI/ISO 20400 standard and how does it relate to contracts?
If you’re in the business of procuring goods and services, you may have heard of the BSI/ISO 20400 standard, but what exactly is it? The BSI/ISO 20400 standard is a set of guidelines that provide guidance on how contracts should be managed. It’s an international quality management system created by the British Standards Institute (BSI) and International Organization for Standardization (ISO) which outlines best practices to ensure that purchasing processes are done effectively, efficiently and ethically. In this blog post, we’ll discuss why the BSI/ISO 20400 standard is so important when it comes to contracts and offer tips for implementing these guidelines into your own procurement process.
What is the BSI/ISO 20400 standard?
BSI/ISO 20400 is a standard for sustainable procurement. It was developed by the British Standards Institution (BSI) and the International Organization for Standardization (ISO) and published in 2016.
The standard provides guidance on how to integrate sustainability into procurement processes, including how to consider social and environmental factors in decision-making. It also includes requirements for reporting and monitoring progress.
BSIs/ISO 20400 is voluntary, but many organizations are choosing to adopt it as a way to show their commitment to sustainable practices. In 2018, the United Nations Global Compact launched a initiative called “Adopt a Standard”, which encourages businesses to adopt one of the ISO’s voluntary standards, including ISO 20400, as part of their sustainability strategy. Many companies are now incorporating sustainable procurement policies and practices into their operations, in line with the recommendations of ISO 20400.
What are the benefits of the BSI/ISO 20400 standard?
The BSI/ISO 20400 standard is a new international standard for sustainable procurement. It was developed by the International Organization for Standardization (ISO) and the British Standards Institution (BSI). The standard is voluntary, but it provides guidance on how to integrate sustainability into procurement practices.
The standard covers four main areas:
# Social responsibility
# Environmental responsibility
# Economic responsibility
# Ethical responsibility
The BSI/ISO 20400 standard can help organizations to:
# Save money by reducing waste and improving resource efficiency
# Improve their reputation and brand image by demonstrating their commitment to sustainability
# Strengthen their relationships with suppliers by working together to improve social and environmental performance
How does the BSI/ISO 20400 standard relate to contracts?
The British Standards Institution (BSI) and the International Organization for Standardization (ISO) have jointly developed the ISO 20400 standard, which is a set of guidelines for sustainable procurement. The standard includes requirements for how organizations should consider social and environmental aspects when procuring goods and services. It also encourages the use of contracts that promote sustainable development.
The BSI/ISO 20400 standard does not mandate specific contract provisions or clauses related to sustainability. However, it does provide guidance on how to integrate sustainability into procurement contracts. For example, the standard suggests that organizations consider using eco-friendly products and services, setting targets for reducing greenhouse gas emissions, and using renewable energy sources.
What are the requirements of the BSI/ISO 20400 standard?
The requirements of the ISO 20400 standard are as follows:
1. The standard must be implemented throughout the life cycle of a contract, from planning and procurement through to execution and close-out.
2. It is important to establish a clear understanding of the objectives and desired outcomes of the contract before procuring goods or services.
3. The selection of suppliers should be based on a fair, transparent and competitive process.
4. Contracts should be clearly written and understandable, with any risks and responsibilities clearly allocated.
5. Execution of the contract should be closely monitored, and any changes or deviations from the original scope should be documented and approved by all parties.
6. On completion of the contract, a thorough review should be conducted in order to identify any lessons learned that could improve future contracts.
How can the BSI/ISO 20400 standard be used in practice?
The BSI/ISO 20400 standard can be used in practice by specifying that all new contracts should aim to comply with the standard, and by setting up a system to monitor and review compliance. This will help to ensure that the principles of sustainable procurement are embedded into all aspects of the contracting process, from supplier selection to contract management.
Conclusion
In conclusion, the BSI/ISO 20400 standard is a useful tool for organizations to use when assessing and managing their contracts. By taking into account the key principles of sustainability, it provides essential guidance during both contract preparation and throughout its lifespan. This helps ensure that parties benefit from improved performance while minimizing environmental impacts as much as possible. With an increasing demand for more sustainable practices in all aspects of business operations, organizations should consider implementing this standard to ensure they are meeting these expectations.