SUSTAINABILITY
ESSENTIALSA SERIES OF PRACTICAL GUIDESFOR THE OLYMPIC MOVEMENTSUSTAINABLE
SOURCING IN SPORTSUSTAINABILITY ESSENTIALSSUSTAINABILITY ESSENTIALS
sustainability across the IOC’s three spheresof responsibility:

Sustainability is one of the most pressing
challenges of our time across a wide
spectrum of social, environmental andeconomic matters. Major issues such as
climate change, economic inequality andsocial injustice are affecting people
throughout the world. These are alsopressing concerns for the sports community,
both for managing its day-to-day affairs andfor its responsibilities towards young people
and future generations. We also recognisethat sport has an unrivalled capacity tomotivate and inspire large numbers ofpeople. This is why we believe that the
Olympic Movement has both a duty and an
opportunity to contribute actively to global
sustainability in line with our vision: “Building
a better world through sport”.

• The IOC as an organisation: To embracesustainability principles and to include
sustainability in its day-to-day operations.

• The IOC as owner of the Olympic 		

Games: To take a proactive and leadershiprole on sustainability and ensure that it isincluded in all aspects of the planning andstaging of the Olympic Games.

• The IOC as leader of the Olympic 		

Movement: To engage and assist Olympic
Movement stakeholders in integrating
sustainability within their own organisations
and operations.

It is therefore logical that sustainability forms
one of the key elements of Olympic Agenda
2020, the Olympic Movement’s strategic
roadmap adopted in December 2014.
In particular, this defined our approach to

Following on from Olympic Agenda 2020,
we issued the IOC Sustainability Strategy inJanuary 2017. The Strategy is based on our
three spheres of responsibility and five
focus areas, as illustrated below.

The IOC Sustainability Strategy framework is illustrated below:
Infrastructure and natural sites
Sourcing and resource management

Mobility

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ClimateSUSTAINABILITY ESSENTIALSThe Strategy sets out a number of actions
in our capacity as leader of the Olympic
Movement. Among these is a commitment
to develop common guidelines,
methodologies and tools for National
Olympic Committees (NOCs) andInternational Federations (IFs).
Further information can be found athttps://www.olympic.org/sustainability.

The “Sustainability Essentials” series of guides
is the first concrete outcome of thiscommitment. These guides aim to provide
simple, practical and essential information on
key aspects of sustainability for NOCs and IFs
to be better able to navigate the complexitiesof this subject and develop effective
sustainability programmes. Whether yourorganisation is just starting out, or is alreadyactively engaged in sustainability, we hopethese guides will provide a valuable overview
and reference point for this important topic.

FEEDBACK
We hope that our “Sustainability Essentials” guides will provide a valuable basis for understanding
sustainability. We also know that sustainability is a constantly evolving discipline, with new issues,challenges and opportunities always needing to be addressed. We therefore welcome feedback,comments and suggestions so that we can continually improve our guidance and ensure ourmaterial is as fresh, relevant and accurate as possible. If you have any comments, please contact
us in any language at: sustainability@olympic.org

PRINTING
This document is available only as a downloadable pdf file from the IOC website.
If you need to print a copy, please set your printer to double-sided copying on recycled paper.
Ideally, please also avoid colour printing and copying.
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SUSTAINABILITY ESSENTIALSCONTENTS
1. Introduction...................................................... 08
About this Guide..................................................... 09
What is sustainable sourcing?............................ 11
What does sustainable sourcing cover?......... 12
Why source more sustainably?.......................... 12
What is the business casefor sustainable sourcing?..................................... 13
2. Securing a Commitment to Action....... 14
Commitment from the top................................... 15
Understanding your specific context................ 16
Developing your strategy...................................... 17
Key Actions............................................................... 17

3. Setting Sustainable
Sourcing Priorities............................................. 18
Rationale for setting priorities............................. 19
Identify categories of goods and services...... 20
Determine potential key
sustainability issues............................................... 21
Setting sustainable sourcing priorities............. 22
Establishing sustainable sourcing goals.......... 24
Key Actions............................................................... 25

4. Identifying Sustainable
Sourcing Requirements.................................. 26
Rationale.................................................................... 27
Establishing sustainablesourcing requirements.......................................... 28
Use of external standards.................................... 28

Developing your own
internal requirements............................................. 31

Developing a Sustainable Sourcing Code...... 31
Disposal and end-of-life management............. 32
Other key considerations..................................... 32
Key Actions............................................................... 3304

5. Managing Sustainable Sourcing........... 34
Defining your approach........................................ 35
Embedding sustainability into contracts.......... 36
Identifying organisational need........................... 38
The Procurement Hierarchy............................ 38
Researching the market....................................... 40
Exercising due-diligence...................................... 41
Finalising the sourcing specification................. 42
Identifying suppliers/partners to
invite to tender......................................................... 43
Pre-qualification.................................................. 43
Inviting organisations to tender...................... 43
Evaluating and engaging suppliers
and partners............................................................. 45
Evaluation approach.......................................... 45
Additional considerations................................. 47
Contract award.................................................... 47
Managing the performance of
suppliers/partners.................................................. 47
Contract management...................................... 47
Grievances and dispute resolution................ 49
Establishing a Supply Chain
Grievance Mechanism...................................... 50
Key Actions............................................................... 51

6. Communicating Sustainable
Sourcing Efforts.................................................. 52
Rationale.................................................................... 53
Internal communications...................................... 53
External communications.................................... 54
Transparency........................................................... 54
Claims and declarations....................................... 54
Key Actions............................................................... 55
7. Enabling Sustainable Sourcing.............. 56

Organisational readiness...................................... 57
Roles and responsibilities.................................... 58
Resources................................................................. 59
Introducing your sustainablesourcing programme............................................. 60
Key Actions............................................................... 61

SUSTAINABILITY ESSENTIALSCONTENTS
8. Appendices....................................................... 62
Appendix A: Sustainable
Sourcing Issues............................................ 63

Principles of Implementation............................... 84

Appendix B: Spend Category
and Issues Matrix......................................... 74
Appendix C: Template Sustainable
Sourcing Code............................................. 78

Integrating Sustainablity into Company
Culture and Business Practices..................... 84

Sustainable Sourcing Code................................. 78
Introduction.......................................................... 78
Contact.................................................................. 78
Core Requirements............................................ 78
Human Rights...................................................... 78
Labour Standards.............................................. 79
Bribery and Corruption..................................... 82
Community Impacts.......................................... 82
Environmental Standards................................. 82
Animal Welfare and Testing............................. 83

Complying with the Sustainable
Source Code........................................................ 84

Use of Sub-Contractors, Homeworkers
or Other Third Parties........................................ 84
Transparency....................................................... 84
Claims and Declarations.................................. 84
Workplace Grievances...................................... 84
Complaints............................................................ 84
Monitoring and Evaluation................................ 85

Appendix D: Example Sustainability
Due-Diligence Questions.............................. 86
Appendix E: References
and Guidance............................................... 87
Useful Guides and Tools...................................... 87
Useful Links.............................................................. 87

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SUSTAINABILITY ESSENTIALSSUSTAINABLE SOURCING IN BRIEF

One of the most effective ways for your organisation to put sustainability into practice is throughyour sourcing processes. Your direct and indirect impacts on the environment and on people,
communities and businesses largely stem from the goods and services you decide to buy, rent,
or license. Your decisions on how to spend your money are where you generally have the greatest
control and influence.
Sustainable sourcing covers a wide range of aspects, which we examine in detail in this Guide.
As a starting point, however, when sourcing goods and services consider the following fiveessential questions to ask (see next page):

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SUSTAINABILITY ESSENTIALSWHAT IS REQUIRED?
This is about understanding how your impact on society can be reduced by doing more with less, such asquestioning if a purchase is really needed or whether it could be done in a different way such as challenging
excessive specifications, renting an item or buying a service instead of a product.

WHERE DOES IT COME FROM AND WHO MADE IT?
We live in an increasingly globalised society. Many of the products we enjoy in everyday life have been sourced
and produced in locations from all over the world. The production of products or delivery of services can havedamaging human rights or environmental impacts. For example, what are the working conditions in thefactories where the product was made or adopted by a provider of services? Labour standards are a hugely
important issue these days, and high-profile entities like sports bodies and sports event organisers can beunder considerable scrutiny from campaign groups and the media.

WHAT IS IT MADE OF?
This is about ensuring that products have minimal negative or positive impact on human health and theenvironment. It is good to give preference to products containing recycled materials and which are recyclable.
Those containing or using toxic or polluting substances should be avoided. Equipment should be efficient inuse, notably with regard to energy, water and consumables (e.g. paper, ink, lubricants, etc.), and low noiseand vibration.

WHAT IS IT WRAPPED IN?
Packaging is a major issue in terms of waste management and resource use. Aim to optimise packaging
wherever possible and emphasise the need for recycled and recyclable materials to be used in any
packaging that is required. Suppliers should take responsibility for taking back and reusing or recycling
their own packaging, but this doesn’t happen automatically and should be specified in the contract.

WHAT WILL HAPPEN TO IT AFTERWARDS?
The responsible disposal of goods and materials after their initial use is a key concern. If this is not consideredat the beginning (i.e. when specifying requirements in tender documents), there can be a lot of unexpected
costs in storage and disposal. Can goods be returned, donated, reused, recycled or otherwise reprocessed
into something useful? By extending the useful life of goods and materials beyond their initial use you would
be contributing to the “circular economy”, a rapidly growing discipline within the world of sustainability.

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INTRODUCTIONINTRODUCTION

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INTRODUCTIONSUSTAINABILITY ESSENTIALSINTRODUCTIONABOUT THIS GUIDEThis Guide is intended to help organisations
within the Olympic Movement and the wider
sports sector to adopt more sustainablesourcing practices. The choices yourorganisation makes in the sourcing of goods
and services will be fundamental to how you
address sustainability as a whole. This isbecause most of the direct and indirect
impacts you have on the environment, people,
communities and businesses will stem fromhow you spend your money. Every item or
project ultimately has a price and has to be paidfor. How you decide which goods and services
you want is ultimately under your control.
In this Guide we prefer the term “sourcing”,
as this conveys a broader sense of how
goods and services may be acquired than
the term “procurement”. In the world of sport
in particular, many goods and services aresupplied through sponsorship and licensing
deals, which go beyond the classic sense ofpurchasing through suppliers.
Although this Guide is presented asa stand-alone document, we recommend it isread in conjunction with the first of the“Sustainability Essentials” guides: “Introduction
to Sustainability”. This will enable you to see
how sourcing fits into the wider picture ofsustainability in practice.
If your organisation is just starting out ona sustainability path, it is best to read thisdocument in the sequence it is presented,
so you can build up your approach in a logicalorder. For those at a more advanced level,
this is intended as a useful reference guideand you may choose to focus on thosesections you consider most relevant inyour circumstances.

We fully recognise that your circumstances
will be influenced by local culture, geography,
legislative context and the economic situation.
However, by structuring this Guide according
to the following three areas as presented in
the diagram below, we hope this will provide
you with a logical pathway to achieving moresustainable sourcing, while allowing a degreeof flexibility.
1. In ‘Securing a Commitment to Action’, theGuide starts with outlining a fundamental
part of the process which is to secure thebuy-in of top management and understandhow sustainable sourcing will support yourorganisation’s core business strategy.
2. The next four sections set out the core
steps that should be followed to develop
and implement a robust sustainablesourcing programme starting with
‘Setting Sustainable Sourcing Priorities’,
establishing sustainability requirements
for these priorities ‘Identifying Sustainable
Sourcing Requirements’, through to taking
these requirements forwards ‘Managing
Sustainable Sourcing’ and ‘Communicating
Sustainable Sourcing Efforts’.
3. In ‘Enabling Sustainable Sourcing’, theGuide outlines key factors that will support
the sustainable sourcing activity and help
set your organisation up for success.
This Guide is intended to be applicable to bothpublic and private sector organisations. Someterritories have legislation which sets out public
sector procurement requirements and what canbe considered throughout the prequalification,tender and contracting process (e.g. EU Public
Procurement Directives). For public sector
sports organisations, this Guide is likely to be
useful but should be read in conjunction withthe latest legislation. It is also advisable thatproper legal advice always be sought.

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In each section, we have highlighted key actions according to three levels of progress:• Basic level – a meaningful start to sustainable sourcing with a commitment to improve• Intermediate level – meeting the fundamentals of sustainable sourcing• Advanced level – going beyond the fundamentals of sustainable sourcing and demonstrating
leadership in action

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INTRODUCTION

WHAT IS SUSTAINABLE SOURCING?
Sourcing is the process by which goods andservices are identified and then bought or
acquired from suppliers, licensees or partners.
To do this more sustainably means satisfying
your organisational needs in a way that will also
result in positive social, environmental, ethicaland economic outcomes.
Examples of some of the key considerations
in sustainable sourcing include:• How the organisation can reduce its impact
on society by doing more with less, such asquestioning if a purchase is really needed
or could be done in a different way – suchas challenging excessive specifications,
renting an item or buying a service insteadof a product;• How items are made and sourced, what
they are made from, their lifetime use andeventual disposal;• How items will be delivered as efficiently
as possible with optimal use of packaging
which can be reused or recycled;• How people in supply chain communities
will be treated and ensuring human rights
are upheld and respected; and• How the sourcing process itself is managed
in a fair and transparent way to avoid issuesof bribery and corruption.

SUSTAINABILITY ESSENTIALSYou need to be confident in the quality of thegoods or services you are buying, so that you
get what you require. At the same time, youneed to consider if there are any health andsafety issues or other risks to be mindful of,such as potential reputation risk. It is also worth
checking that you need the goods or services
in the first place – in the world of sports events
it can be quite common to buy items that areeither unnecessary or in too-vast quantities,
leading to additional cost and waste.
What is especially important is that these key
questions form part of the sourcing process(e.g. reflected in the tender specification andevaluation). In this way, you can make more
informed choices that appreciate “whole life”1
costs rather than take a limited view onpurchase only. Ultimately, by sourcing moresustainably the aim is to create value while in noway undermining – and ideally increasing – thepossibility that people and other life will flourish.
The concept of sourcing more sustainably is
not new. Many businesses and sectors havebeen focusing on environmental and social
issues in supply chains for several decades
now. This includes some excellent examples
within the sport and event sectors, although
this is still a relatively new approach for most
sports organisations and event organisers.

Sustainable procurement is: “Procurement that has the most positive environmental,social and economic impacts possible over the entire life cycle”2

Where all the costs that will be incurred during the lifetime of the product or service are taken into account including purchaseprice and all associated costs (delivery, installation, insurance, etc.); operating costs including energy, fuel and water use, sparesand maintenance; and end of life costs, such as decommissioning or disposal.
2
Definition of sustainable procurement from ISO 20400:2017
1

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SUSTAINABILITY ESSENTIALSINTRODUCTION

WHAT DOES SUSTAINABLE
SOURCING COVER?
In this Guide we consider sustainable sourcing
to have a wide scope that covers everything
your organisation contracts to pay for, tolicense, or to receive via sponsorship or
donations. This includes goods (products andmaterials) and services, such as catering andcleaning. It means everything you pay for(i.e. cash purchases), or through trading ofrights (i.e. licensing, broadcasting andsponsorship deals).
Sustainable sourcing spans the whole cyclefrom identification of needs, negotiating,managing and monitoring of contracts/
agreements for goods and services, throughto when the goods or services are no longer
required. It also includes planning, defining
strategy and specifications and processes forselecting suppliers, licensees and partners.
In many organisations, the purchasing ofmaterials and equipment, their operationaluse and eventual disposal when no longer
needed are treated as separate processes.
This is the traditional linear model of buy, use
and dispose. Adopting a more sustainableapproach to sourcing is about connecting
these three aspects to enhance lifetime
value and minimise waste.
Sustainable sourcing is the front end of thislifecycle approach and is about determining
overall value, rather than purely thinking interms of upfront cost.

WHY SOURCE MORE SUSTAINABLY?
The rationale for engaging in sustainability asa core part of the way you do business is set
out in detail in the first of the “Sustainability
Essentials” guides: Introduction to
Sustainability.
In that introductory guide we explained how
a genuine approach to sustainability goesbeyond ad hoc projects and support for goodcauses, and instead requires a morecomprehensive regime of policies, processes
and practices that are integral to yourorganisation’s way of working. This is vital for
addressing the real impacts that your activities
have on people and the environment, and forunderstanding risks and opportunities for yourorganisation.
For sports organisations, key drivers
may include responding to stakeholder
expectations to maintain a social licenceto operate, complying with legislation andregulation, optimising the use of resources
to reduce costs and environmental impact,economic value creation as well as
demonstrating leadership on the world stage
and good standards of ethics and governance.
Whatever your reasons, one of the mostsignificant areas where you can make a realdifference in terms of sustainability is in how
you source the goods and services you need.
The choices you make will shape yoursustainability performance and help you to bebetter prepared to manage risks arising throughyour value chain (see definition in the box below).
In a world where everything is increasingly moretransparent and connected, understanding andmanaging the impact of sourcing decisions is
becoming ever more critical. Integrating
sustainability considerations into how businessshould be done is fast becoming the only wayof doing business in the future.

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INTRODUCTIONSUSTAINABILITY ESSENTIALSDISTINGUISHING BETWEEN SUPPLY CHAIN AND VALUE CHAIN
These two terms are commonly used inreference to sustainable sourcing and it
is useful to understand their respective
meanings:• Supply chain is the sequence of activities
or parties that provides goods or services
to the organisation (Source ISO 20400:2017
Sustainable Procurement – Guidance).

WHAT IS THE BUSINESS CASE FORSUSTAINABLE SOURCING?
Many organisations hold back from taking
action on sustainability because they fear it will
cost too much. In fact, this need not be thecase. Improved efficiency can lower costs.
More sustainable organisations can also attract
additional sponsorship revenue, and there areunseen benefits in reduced reputational risks
and more motivated staff.
Sourcing decisions are a key part of thisapproach. It is about defining and understanding
value, rather than just purchase price. Of
course, sometimes the preferred option from asustainability perspective may have a higher initialcost. However, when whole life costs (see above)• Value chain has a much wider scope andrefers to all the upstream and downstream
activities associated with an organisation,
including sourcing of raw materials,
production and supply of products andservices and disposal/recycling processes(Source: Adapted from World BusinessCouncil for Sustainable Development)

are taken into account more sustainable
alternatives are often cheaper. Good sourcing
practices will help ensure a competitive,
engaged and competent supply chain to enable
sustainability goals to be introduced in a way thatdelivers value for money.
A similar approach also applies to services.
For example, service providers carry risks inrelation to labour standards, health and safety,
insurance and customer service/satisfaction –as well as potential risks associated with what
they are sourcing to support aspects of theirservice delivery (e.g. uniforms). When all these
are considered you can make a more informed
choice of supplier that will provide bestvalue and complement your sustainability
requirements.

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SECURING A COMMITMENT TO ACTION

SECURING ACOMMITMENT
TO ACTION

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SECURING A COMMITMENT TO ACTIONSUSTAINABILITY ESSENTIALSSECURING A COMMITMENT
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Nor can this be an overnight conversion.
Whether you are an established organisation
with existing suppliers and partners, or startingout as an event organising committee, putting
in place sustainable sourcing policies andprocesses will require acceptance of new ways ofworking and a determination to follow through.
This cannot happen without the full and engaged
support of top management to show leadershipand to enable those in charge of sourcing todevelop and implement the new approach.

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MAIN GOAL
To secure commitment from top management
and understand how sustainable sourcing will
support your core business strategy.

COMMITMENT FROM THE TOP
It has to be a conscious decision to embark
on a sustainability programme and that requiresa clear commitment from top management.
Sustainable sourcing is not something thatcan be done as an ad hoc side project; itneeds to fit into how your organisation works
and support your core organisational strategy.

It is therefore advisable to engage top
management on sustainable sourcing
and why it is important as soon as
possible. The following sets out sometips on how this might be approached:• Seek a senior leadership sustainability
sponsor/advocate – attempt to get amember of top management team boughtin and supportive of sustainability – if you
have a Sustainability team ideally this would
not be the director you report into.
• Know your audience – attempt to understandthe personal interests and motivations of theindividuals on the leadership team – identify
how sustainability may align with their interestsand motivations and assign them with roles
and tasks on this basis.
• Present solid sustainability opportunities– this may include key facts and figures
about the dual sustainability and commercial
successes of recent sporting events(e.g. sponsorship opportunities, revenue
generation, cost savings), keeping
stakeholders supportive and advocatesfor your organisation, as well as providing
external profile-raising opportunities for thesenior leadership.

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SUSTAINABILITY ESSENTIALSSECURING A COMMITMENT TO ACTION• Focus and identify issues which offer
leadership opportunities – sustainability
is a big and complicated theme and whilst
there will be a range of things you will likely
need to be address, this may be too
problematic to explain and achieve buy-inin one go. Instead identify key themes andtrends happening globally or in your country
which may present leadership opportunities
for your organisation and focus on this with
top management.
• Invite an inspirational speaker with public
profile – identify someone who theleadership will know and who is also a strong
advocate for sustainability to speak andinspire and excite them into taking action –this may also lead to ambassadorial
opportunities for the organisation. If there isa reluctance for this, other options might
include inviting athletes who are alsosustainability advocates (there are lots out
there) or a senior representative from one ofyour sponsors who may be engaged insustainability.
• Arrange visits in the supply chain to
reinforce moral case – identify
opportunities for the leadership to visit sites(factories, farms, etc) which have been used
to produce/supply items to help makesustainability issues more tangible forthem and reinforce the moral casefor sustainability.
• Invite some critical stakeholders in –identify some vocal critics from civil society
and invite them in for some one-to-one
meetings with key members of theleadership team.
• Use the right language – ensure language
is tailored to the audience. Use businesslanguage, not technical or sustainability
jargon or acronyms.
In engaging your senior leadership it isimportant to really focus on ‘why’ sustainability
is important – this is considered to be more
important than ‘what’ and ‘how’.

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UNDERSTANDING YOUR SPECIFIC
CONTEXT
It is always worth taking time to understandyour current situation and the pressures andcircumstances that are affecting (or will affect)
the way your organisation operates.
In terms of sustainable sourcing it is important
to assess how much your organisation is reliant
on goods and services supplied by others andhow this will affect your sustainability goals andyour wider organisational goals. Ask yourself
the following questions:• What are the main types of goods andservices we currently source, or needto source?
• Are these tied to existing long-term
contracts, or do we have an opportunity
to introduce a new approach?
• What are the drivers for sustainable sourcing:are we under pressure from external
stakeholders, from a regulatory perspective,
or from other factors to source goods andservices more sustainably?
• What are other similar organisations doing?
• How might sustainable sourcing impact on
our organisation’s wider objectives?
This type of exercise is best done incollaboration with your key internal and external
stakeholders. Through such dialogue, you canidentify better the likely risks and opportunities
you will face and reinforce the case for action.
Effective stakeholder engagement is a good
way of fostering goodwill. In this context it isespecially important to have a good relationshipwith suppliers and partners, so that they feelpart of the programme.
This initial exercise to put your situation in its
proper context is a way of building a case foraction to convince your organisation’s
leadership team of the value of sustainablesourcing. Ultimately it will help you prioritise andcommunicate what you intend to do and why.

SECURING A COMMITMENT TO ACTION

DEVELOPING YOUR STRATEGY
Sustainable sourcing considerations need
to be integrated at the highest level in order
to set the tone, direction and priorities for theentire organisation.
A good way of doing this is to produce
a sustainable sourcing strategy. This should
describe your vision, high-level goals anddelivery approach, aligned with yourorganisation’s wider strategy and goals.
If you operate in or source from multiple
territories or jurisdictions you should ensure
your strategy reflects this.

SUSTAINABILITY ESSENTIALSIn addition to setting an overall strategic
direction and objectives, the sustainablesourcing strategy should clarify roles,
responsibilities and accountabilities forsourcing; internal and external resource
requirements; monitoring and measurement;
and key barriers and challenges (see also
section on Enabling Sustainable Sourcing).
The document does not have to be very long orcomplex but should as a minimum outline how
your sustainable sourcing intentions will bedelivered over a given timeframe. It should becommunicated across the organisation andideally externally. You are encouraged to
publish at least a summary of this document
on your website.

WHAT’S THE DIFFERENCE BETWEEN A VISION AND A STRATEGY?
• A vision is a short, succinct and inspiring forward-looking statement of what is intended tobe achieved at some point in the future (say in 5-10 years time). It sets out your organisations
future aspirations without giving a reason ‘why’ or ‘how’.
• A strategy outlines where an organisation is, where it wants to be, what it will focus on,
who it will work with and the key steps it intends to take to get it to where it wants to be.

KEY ACTIONSBasic Level• Top management commitment has been secured and an initial sustainable sourcing
strategy has been developed.
• Top management commitment has been secured and a sustainable sourcing vision,

Intermediate Level

strategy and time-bound set of objectives have been developed in alignment with theorganisation’s overall objectives.
• Top management commitment has been secured and a comprehensive sustainable

Advanced Level

sourcing vision, strategy and time-bound set of objectives have been developed inalignment with the organisation’s overall objectives and with input from key
external stakeholders.

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SETTING SUSTAINABLE SOURCING PRIORITIESSETTINGSUSTAINABLE
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SETTING SUSTAINABLE SOURCING PRIORITIESSUSTAINABILITY ESSENTIALSSETTING SUSTAINABLE
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The aim should be to identify those
goods and services you intend to focus
on first, and which issues will be given moreor less weight. Actions should be prioritised
in relation to the greatest risks and greatest
opportunities.
There are two ways of looking at this. You
can analyse the different categories of goods
and services you use – or intend to use – andhighlight those most likely to carry sustainability
risks or opportunities. Examples might include
branded goods and merchandise due toconcerns about labour standards in theirproduction, or construction materials for event
structures, which might involve, say,unsustainably sourced timber.

MAIN GOAL
To set key sustainable sourcing priorities andgoals for your organisation.

RATIONALE FORSETTING PRIORITIESFor larger sports bodies and those organisingmajor events, the scale and intensity ofsourcing activities means that it is usually
impractical to treat everything to the samelevel of detail. Indeed, not all issues are equal,
or even relevant in every situation. For smallerorganisations, it may be more a matter oflacking the capacity to address sustainablesourcing across all your activities. Therefore,
in most situations, you will be best advised
to consider setting priorities.

Alternatively, you can start from theperspective of critical sustainability issues,
such as climate change or local jobs andskills development, and determine how
your sustainable sourcing policies can
incorporate these aspects.
The extent to which your organisation has
a wider or overall organisational sustainability
programme will be a key factor here. A key
consideration will therefore be to determine
the extent to which you will be dependent
on your supply chain to deliver any goals
that exist at an organisational level.
An even more sophisticated approach would
be to do both and match them together tosee if certain issues and categories coincide,
thereby indicating real priorities to address.

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SUSTAINABILITY ESSENTIALSSETTING SUSTAINABLE SOURCING PRIORITIESIDENTIFY CATEGORIES OF GOODS
AND SERVICES
The first step is to review and analyse what you
source and how you source it – whether this isthrough direct spend, licensing deals or via
sponsorship. This can be done by following
the steps outlined below.
• Identify all sources of spend data – thisshould cover both cash purchases andvalue-in-kind contributions from sponsors.
The information should include detail on
goods and services acquired, where they
are sourced from (i.e. the supplier or partner),and on what basis (purchase, rental, loanetc.). Information may be held acrossdifferent departments, especially where there
is no single procurement function. Thus, it islikely to involve a fair amount of detective
work. The data should be consolidated, in asingle spreadsheet. In doing this, you may
find you will need to correct errors inrecording transactions, weed out any
duplicate data and standardise descriptions.
• Categorise your spend data – theinformation should be examined to identify
key groupings and trends. This should help
you to identify the top spend categories, key
suppliers, long-term versus short-termarrangements, marketing/sponsorship supply
restrictions and year-on-year fluctuations.
This will help you categorise the data intomeaningful groups. Suggested spend
categories relevant to sports organisations
are provided in Appendix B – but you may

20

choose to categorise differently. Some
categories may be too broad and need to be
sub-divided: for example, professional
services might be better split into subcategories such as auditors and legal
services. It may not be easy to categorise
everything, but to start with make sure you
assign everything to what seems to be thebest category, or sub-category fit.
• Analyse your spend – analyse your spend
data to gain a full insight about what you
buy and how you buy it. This will provide
the foundation for how you determine yoursustainable sourcing priorities. Insights you
should seek to find out include:o the total amount spent on goods andservices per category;o which department/team is spending
and on what;o whether single or multiple suppliers
are used for specific categories; ando the proportion of spend with a handfulof core or major suppliers versus
one-off and small transactions.
Ultimately, at an organisational level the key
questions you are seeking to answer at thisstage may be summarised as:• Who sourced it?
• What was sourced?
• When and how often did we source it?
• With whom did we source it?
• How did we source it?
• How much did we pay for it (or what
was the value of it)?

SETTING SUSTAINABLE SOURCING PRIORITIESDETERMINE POTENTIAL KEY
SUSTAINABILITY ISSUES
The second part of your analysis should be toidentify the main sustainability issues relevant toyour organisation. Ideally, this will be something
you have done or are doing with respect to yourwhole organisation, and not just with respect
to sourcing.
Not all the sustainability issues that you
identify for the whole organisation will be
relevant to how you source goods andservices, but generally there should bea close fit. This is because many of the waysof addressing issues will be through sourcing
decisions. For example, if you have identified
climate change as a major issue for yourorganisation and you intend to carry out
measures to reduce greenhouse gas
emissions, ultimately these will come back tosourcing decisions. Say you decide you shouldswitch to a greener energy tariff, or introduce
new, low-emission/energy efficient equipment,
lighting systems or vehicles, all of these choices
will have to go through a sourcing process.
Determining priority issues is what cansometimes also be referred to as a “materiality”
assessment. This should normally cover threeperspectives:• What sustainability issues do you consider
important for achieving your sporting ororganisational goals?
• Are there any specific sustainability-relatedrisks that your sport or organisation faces?
• What do your stakeholders consider tobe important?
For more information on determining whichsustainability issues matter most, see“Introduction to Sustainability” (pages 27-28).

SUSTAINABILITY ESSENTIALS

From these three angles, you will most likely
end up with a long list of issues that you needto filter down to a manageable list of priority
issues. With respect to sustainable sourcing
you will need to determine the extent to whichthese are relevant to your supply chain. In thisregard, it will be especially important to ensure
you have engaged with your existing suppliers
and partners and taken soundings from otherorganisations and experts who understandthe sectors and product/service areas
under consideration.
In the end you will need to make a judgementon the materiality (or significance) of the issues
raised. By seeking input from stakeholders andreviewing your own objectives, activities andrisks, you should have all the informationnecessary to make an informed choice of theissues to prioritise. Ultimately, there is no
absolute right or wrong answer. This is about
being confident that you have identified issues
that are most relevant to your context andbeing comfortable that you are able to justify
these choices.
You should aim to identify the nature andscale of the sustainability issue for all your main
expenditure categories. However, rememberthat in some cases, even low-spend, lesscritical categories may still have significant
sustainability issues/impacts that you willneed to address.
There are a range of tools and resources
available to help you do this, ranging froma simple ‘category-issue’ matrix to proprietary
software. For those starting out it’s best to
keep it qualitative and relatively simple with thegoal of continually improving your knowledge
and understanding over time.

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SUSTAINABILITY ESSENTIALSSETTING SUSTAINABLE SOURCING PRIORITIESAppendix A provides an annotated list of themain sustainability issues and how they relate
to sourcing. Although this is a comprehensive
list, it is not exhaustive and depending on yourspecific circumstances, there might be otherissues that arise. Nevertheless, it does provide
a useful starting point and should be of help tomost sports organisations.
This is not just about the goods and services
you buy or acquire. You should also reflect on
your organisation’s own decision-making andactivities, how these influence sourcing andwhether they may give rise to sustainability
issues. For example, excessive payment terms,
paying suppliers late, having unrealistic delivery
expectations or aggressively negotiating on
prices may impact you in terms of reputation or
reduced quality of supply. Equally, if you treat
suppliers/partners well you are likely to see thisreflected in their performance.

SETTING SUSTAINABLE SOURCINGPRIORITIESHaving categorised all your main items of
expenditure and identified your organisation’s
main sustainability issues, the next step is
to map them together to create a “spend
categories and issues matrix” (seeAppendix B for an example).
The aim here is to find which of your mostimportant spend categories coincide withyour most significant sustainability issues.
You can rate the importance of the spend
categories based on the proportion of yourexpenditure on these categories and/or theirimportance in meeting your organisation’s
needs. On the sustainability side it may be
a question of likely severity of impact and/orlevel of stakeholder concern, or evenregulatory interventions.
You are likely to end up with a long listof categories with a range of potential
sustainability issues attached. You cannot
possibly tackle them all – so you will needto prioritise.

YOU SHOULD REFLECT ON YOURORGANISATION’S OWN DECISION-MAKING
AND ACTIVITIES, HOW THESE INFLUENCESOURCING AND WHETHER THEY MAY GIVE
RISE TO SUSTAINABILITY ISSUES

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SETTING SUSTAINABLE SOURCING PRIORITIESAt this point you will need to reflect on:• What the main social, environmental, ethicalor economic issues are for each category?
• How important each category is to yourorganisation? (e.g. could security of supply
ever be at risk?)• How important each category is to yourwider sustainability programme orsustainable sourcing strategy?
There is a range of factors that should beconsidered when identifying your priority
categories. These may include the size ofthe risk and opportunity, the scope to improveand the leverage you have to make any
improvement happen. As a general ruleof thumb, focus should generally be on
those categories where there is the highest
scope and influence. However, even though
scope and influence might be low for somecategories they could still have significant issues
attached with them. In these instances, you
may decide that it’s important to be proactive
and attempt to tackle these issues too.
Typically, priority categories include:• branded goods, as they carry yourmark and therefore put your reputationon the line if any issues arise;• the highest spending categories onan annual or lifetime basis;

SUSTAINABILITY ESSENTIALS• where there is likelihood of a high sustainability
impact and/or regulatory controls;• items that will contribute to yourorganisation’s sustainability goals; and• “quick wins” – items that are easy to deal
with and can readily deliver sustainability
improvements.
Having done a first attempt at identifying thepriority categories, it is wise to sense checkagainst other potential influencing factors.
These might be changes to your organisation’s
future goals and requirements, changing
legislative or political context, and shifting
societal attitudes and behavioural trends.
Many of these are hard to analyse at one point
in time, so it is important to have a process forregular review and updating of your sustainablesourcing policies to ensure your objectives andpriorities remain valid and relevant.
There will be a fair amount of subjectivity whenidentifying priority categories to take forward.
Stakeholder engagement should be an
important part of the process. You should
provide opportunities for internal and external
stakeholders to get involved at an early stage.
This will help ensure the right priorities aretargeted and will aid buy-in from those who will
be required to implement more sustainability
sourcing in each of your priority categories.

STAKEHOLDER ENGAGEMENT SHOULD
BE AN IMPORTANT PART OF THE
PROCESS. PROVIDE OPPORTUNITIES FOR
INTERNAL AND EXTERNAL STAKEHOLDERSTO GET INVOLVED AT AN EARLY STAGE

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SUSTAINABILITY ESSENTIALSSETTING SUSTAINABLE SOURCING PRIORITIESESTABLISHING SUSTAINABLE
SOURCING GOALS
It is important to establish sustainable sourcing
goals because they will help you understandyour progress and the impact you are having(be it positive or negative), as well as for
obtaining information for making decisions
or reflecting on lessons learned.
In general, there are three main types of goals:• Quantitative goals where specificmeasurements are required to assess
progress (e.g. achieve an average of 120g
per km or less of CO2 emissions across thesmall passenger car fleet – no more thaneight seats in addition to driver’s seat –sourced for an event).
• Improvement-based goals based on practicalinterventions that seek to reduce the impactsof goods and services through the stipulationof specified technologies or practices (e.g.
reduce the overall carbon footprint oflogistics transportation through use ofzero- or low-carbon vehicles).
• Use of recognised sustainability standards/
labels to provide assurance that goods andservices have been sourced/produced toagreed practices (e.g. 100 per cent woodand wood-derived materials/products
sourced must be Forest Stewardship Council(FSC®) certified with full chain of custody
throughout the supply chain).
Goals should ideally be time-bound and set
at both a supplier/partner and product orservice level. These three approaches are notmutually exclusive and your approach is likely
to apply a mix of each. The main thing is thatyou are clear about why you are adopting

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a particular set of goals and that these alignwith your wider sustainability programme
and general organisational objectives.
Here are some key questions you may wish
to consider in this regard:• Do you need something to be quantified(e.g. for reporting or claims purposes)?
• Do you want to be able to measure these
improvements against specific targets?
• Do you want to achieve improvements in
key issue areas such as greenhouse gas
emissions, water, air quality, waste, labour/
human rights, community relations?
• Do you need publicly credible assurances
related to recognised standards or
adherence to standards that will enable
you to make certain claims?
All the above will be heavily influenced by
the nature and scale of your supply chain,availability of resources and capability andcapacity of your supplier/partner. There isno one approach – it will depend on yourcircumstances and what you are attempting
to achieve.
You will most likely start out by measuring
basic inputs (e.g. number of audits carriedout of high-risk suppliers/partners, or theamount of certain materials sourced overa given time). As you develop your sustainablesourcing programme further, you should shift
to measuring more tangible outcomes (e.g.
incidence of forced labour, amount of waste
reduced etc). This outcomes-based approach
will be the most informative way of assessing
progress against your sustainable sourcing
goals. See also section on Communicating
Sustainability Efforts.

SETTING SUSTAINABLE SOURCING PRIORITIESSUSTAINABILITY ESSENTIALSWHAT IS AN OUTCOME?
Outputs and outcomes can often be conflated – but they are different. Outputs are
essentially things that are produced or delivered (be it physical or digital), for example
training or manufacturing of products. Outcomes is the difference these things make,either positive or negative – for example, reduced waste or fewer accidents.
A better understanding of outcomes will help determine which issues are material
and require managing.

KEY ACTIONSBasic Level
Intermediate Level•Initial expenditure analysis undertaken, key sustainability issues identified and used
to develop a basic set of goals for high risk and “quick wins” spend areas.
•Detailed expenditure analysis undertaken to identify key sustainability issues andtime-bound goals have been established for all priority categories.
•Detailed expenditure analysis undertaken to identify all key sustainability issues andAdvanced Level

time-bound goals have been established for all priority categories with input from key
external stakeholders. Goals are outcome-based wherever possible.

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SUSTAINABILITY ESSENTIALS

4

IDENTIFYING SUSTAINABLE SOURCING REQUIREMENTS

IDENTIFYINGSUSTAINABLE
SOURCINGREQUIREMENTS

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IDENTIFYING SUSTAINABLE SOURCING REQUIREMENTSSUSTAINABILITY ESSENTIALSIDENTIFYING SUSTAINABLE
SOURCING REQUIREMENTSSUSTAINABLE SOUR
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MAIN GOAL
To establish appropriate sustainability
requirements for priority categories of goods
and services.

RATIONALE
Having identified your priority categories andmain sustainability issues, and determined
your sustainable sourcing goals, the next
step is to define specific requirements thatwill inform your sourcing decisions.
Sustainability considerations apply at every
stage of the lifecycle of goods and services.
Rarely does every consideration align perfectly
for you to make a “totally sustainable” choice– indeed there is no widely accepted definitionof what that would be. Thus, it is a matter ofdefining what you believe is important anddeciding what matters most when you haveconflicting situations. For example, you may
prefer to source locally, but which is better:a locally sourced product, or one fromfurther afield but which has better
environmental performance? Or what if theenvironmental performance of a product isgood on energy efficiency, but poor on
recyclability? Is it better to use disposable orreusable items, and so on. The answer is notalways obvious and will depend on different
factors and circumstances.
There is no one-size-fits-all approach to thisas there will be many options open to you.
Your requirements will also evolve over time
as your knowledge and understanding
improves and priorities change. The mainthing though, is that you are clear in what
you are trying to achieve at any given time,so that you can make informed decisions,which will enable you to choose moresustainable goods and services – and beable to justify such decisions.
Any sustainability requirements that you
establish will need to be factored into theprocess of identifying and selecting a supplier,licensee or partner for the goods or services
in question. Remember too, that suppliers,
licensees and partners are only obliged todeliver on any sustainability requirements
if they are written into contract.

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SUSTAINABILITY ESSENTIALSIDENTIFYING SUSTAINABLE SOURCING REQUIREMENTSESTABLISHING SUSTAINABLE
SOURCING REQUIREMENTS
In some cases, you will be very clear inwhat you want to achieve and will have to
set minimum or mandatory criteria that must
be met in order to supply the goods or services
to you. In other instances, you may havea more general objective and are open to how
it should be achieved. Requirements can be
set at supplier/partner, supply chain or
product/service level or all three.
Regardless, you will need to make sure
you have a set of requirements by which
compliance with your sustainability goals
can be judged or measured. For example,
a general requirement related to the circular
economy may be translated into clear criteria
for all items supplied to contain a proportionof reused or recycled content. A requirement
related to respecting human rights andadhering to international labour standards canrefer to detailed criteria as set by, for example,
the Global Social Compliance Programme.
You can either define your own sustainability
requirements or use something developedby an external organisation, multi-stakeholder
initiative or industry schemes (e.g. an external
standard). The decision to develop your own
requirements or use someone else’s will

depend on a range of factors. For example,
when you apply your own requirements you
will likely bear all the costs, all the risks, andall the pros and cons related to credibility of
those requirements.
At this point, it may be useful to review
Appendix A, which highlights some typicalsustainable sourcing issues and suggests
associated actions that may form the basisof your requirements.

USE OF EXTERNAL STANDARDSIn the case of external standards, they may
be checked and verified or certified by third
parties, but this is not always the case. For
example, a decision to adopt a standard is
not necessarily a choice for certification.
Neither does it mean that a standard setsout very firm criteria – it may set out parameters
for process rather than what the process
should achieve by way of outcomes.
For example, ISO 14001 is the world’s mostwidely used environmental management
system standard. It sets out requirements withina predetermined scope, which must be met by
the organisation. If, however, this is a factory
producing white goods it does not also meanthat the actual white goods meet the standard.
It is not a product environmental standard.

YOU WILL NEED TO MAKE SURE
YOU HAVE A SET OF REQUIREMENTS
BY WHICH COMPLIANCE WITH YOURSUSTAINABILITY GOALSCAN BE JUDGED OR MEASURED

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IDENTIFYING SUSTAINABLE SOURCING REQUIREMENTSSUSTAINABILITY ESSENTIALSWHAT IS THE DIFFERENCE BETWEEN VERIFICATION, CERTIFICATION
AND ACCREDITATION?
Verification, certification and accreditation are often used interchangeably and together but
mean different things and it is important to understand the difference between these terms.
This is particularly important for judging the credibility of claims made by suppliers or partners.
• Verification is a general term used for the process of evaluating whether something complies/
meets a set of requirements (which might be internally or externally set). There is no set
approach to this and may be done by a client, a supplier or indeed an independent third party
or wider stakeholder.
• Certification is essentially a written assurance of the conformity of the process, product orservice to a pre-determined scope and set of requirements laid out in a standard. Generally,
this is done by an independent third party – although first party (self) and second party(stakeholder) certification is also possible in some instances (e.g. ISO standards).
• Accreditation, on the other hand is the formal recognition by an authoritative body of thecompetence of an individual or organisation to work to specified standards.
In effect, certification is the third-party endorsement of an organisation’s processes, products orservices, while accreditation is an independent third-party endorsement of the certification itself.
For example, whilst it possible to be certified to ISO 14001 (the international environmental
management system standard) – it is not possible to be accredited to ISO 14001. An accredited
certification body can however be appointed to certify the organisation to ISO 14001.

External standards are prolific and have beendeveloped for a range of scenarios (e.g. sites,
organisations, raw materials, commodities andproducts). Some are consumer facing; someare more business-to-business. However, they
may not cover your particular sustainability
issues, or you may also find that a standard
needs to be supplemented with additional
requirements – an environmentally focusedstandard is unlikely to cover workers’ rights
for instance.
In general, external standards, which areproven and widely recognised, should bechosen above those that are not. Suchstandards are likely to be cheaper and easier
to implement and have much more credibility
with stakeholders. However, you will usuallyfind some critics of any given standard. For
example, an industry-led scheme may be
criticised by major NGOs. Likewise, it may
be a standard promoted by campaigninggroups but not necessarily widely adopted
by the industry concerned. Where a standardis, say, supported by some NGOs, and/or
UN or other international agencies, thechances are it will be sufficiently credible,
even if not perfect.

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SUSTAINABILITY ESSENTIALSIDENTIFYING SUSTAINABLE SOURCING REQUIREMENTS

It is also generally more advisable to adopt anorganisational position on one standard fora particular issue and work with your supply
chain. There may be instances though where
you do decide to accept several standards –this might be acceptable, but you will need to
be clear why and make sure they are not tacklingdifferent issues. For example, Fairtrade andRainforest Alliance certification do not necessarily
address the same issues if one or the other isbeing used. Or indeed your overall sustainability
performance is not being lowered because of
accepting multiple standards. For example,
adopting the Ethical Trading Initiative (ETI) Base
Code as the social standard for suppliers andlicensees to be working towards but in practiceaccept other recognised social standards (e.g.
BSCI, ITCI, etc) without being clear on how they
fared against the ETI Base Code.
There may be costs associated with adopting
an external standard. This might not be due tospecifying the use of the standard though. For
example, there is no premium by virtue ofsomething being BCI cotton or FSC® certified
wood. As with most commodities, pricing is
actually a function of quality, origin, global
market prices, demand and supply, negotiation
skills, volume procured and payment terms –being BCI cotton or FSC® certified wood is not
one of them. That said, standards may
introduce additional costs such as complianceobligations, administrative or record-keeping
including training of key staff. You need toconsider though whether you will be saving
money by adopting an external standard.
For instance, what assurance arrangements

will you need to put in place to meet thesame outcomes if you don’t end up adopting
a specific standard?
Given the increasing scarcity of certain raw
materials (e.g. forestry and fisheries) there isa growing risk that certain products may comefrom over-exploitative sources. Adopting certified
products might provide additional assurancesin this respect – but should not be assumed.
For example, in the EU stipulating the use ofcertified timber does not mean that there isno need for due-diligence and risk assessment
as required by the EU’s Timber Regulation.
It is important to remember that not all
independent standards or schemes areequal in terms of credibility and robustness.
The ISEAL Alliance has developed a setof Credibility Principles which will be
useful to review when considering the useof standards.

Standards Map, developed by the International
Trade Centre, provides information on over 200
standards, codes of conduct, audit protocols
addressing sustainability hotspots3 in global
supply chains. The ISEAL Alliance has also
developed some useful guidance called‘Challenge the Label’ which aims to help
buyers distinguish between credible andnon-credible claims. Claims and declarations
will be discussed further in the section on‘Communicating Sustainable Sourcing Efforts’.

A ‘hotspot’ is an activity within a product’s life cycle that is identified as having a substantial environmental or social impactthat is supported by significant evidence. For example, in the case of coffee its ‘hotspots’ are during coffee bean production(e.g. child labour use, fertiliser application on farm, or supply chain transparency); during coffee bean processing (e.g. worker
health and safety); packaging (e.g. energy consumption) and transportation (e.g. fuel combustion) rather than during its retail,consumption and end of life

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IDENTIFYING SUSTAINABLE SOURCING REQUIREMENTSSUSTAINABILITY ESSENTIALSDEVELOPING YOUR OWNINTERNAL REQUIREMENTS

and partners, so they can understand yourgoals and approach to sustainability.

If you decide to develop your own set of
requirements it is still advisable to refer tocriteria and standards that are already welldeveloped and widely recognised.
You should consider:• What are the issues you want to address
through your requirements?
• Have standard industry or best practices
already been developed for these issues
either generically or specific to the priority
category you are looking at?
• Are there any issues for which best practiceguidance still needs to be developed and/or where no proven or market readysolutions exist?
• Are there opportunities to collaborate withother organisations to drive a sharedunderstanding of how to address the issue
and to share the burden of capacity building?
• Who can best help you to explore and review
best practices to ensure effective
implementation of future requirements?

A Code can be used as the basis for developing
more detailed functional and operation specificprocurement strategies, plans and specifications(e.g. for catering, transport, technology etc.).
Further requirements can be introduced together
with more explicit performance measuresrelating to what is being procured (e.g. foodor vehicles). As a minimum, requirements
should be formally articulated at the tenderstage – but you may also wish to do someengagement with the market prior to tender.

DEVELOPING A SUSTAINABLE
SOURCING CODE
Ultimately you need to document yourrequirements in one form or other. A good
approach is to consolidate your general
requirements in the form of a “Sustainable
Sourcing Code”.
Development of a Code can help you to
consider the relevant issues and establish
a framework for your sustainable sourcing
strategy. It should also be a useful document tocommunicate to existing and potential suppliers

The Code should make clear how it applies
to which parts of the suppliers’, licensees’or partners’ supply chains. Consider to what
extent they will be required to enforce yourrequirements through their supply chain
where it relates to your organisation. A
suggested template for a Sustainable
Sourcing Code is given in Appendix C.
In all cases you will need to ensure the corerequirements of your Code and any othersustainability requirements are integrated
into your final sourcing specification andapplied through your tendering process –see next section.
You should also consider making thisdocument publicly available. This would
be clearly beneficial for prospective suppliers/
partners so that they can familiarise themselveswith your expectations. It will also be ofinterest to your wider stakeholders as they
will be better able to understand your views
on sustainable sourcing and how this isbeing implemented.

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SUSTAINABILITY ESSENTIALSIDENTIFYING SUSTAINABLE SOURCING REQUIREMENTSDISPOSAL AND END-OF-LIFE
MANAGEMENT
Where you are being supplied goods ormaterials you should consider how these
items will be managed once you no longer
want them (which may not necessarily be
the end of their useful life).
You should aim to prevent waste from theoutset wherever possible (see Procurement
Hierarchy on page 38). However, if this is notpossible, then prioritise reuse and recycling
and if this is not possible recovering othervalue (such as energy). Disposal to landfill
or incineration should be the last resort.
Waste disposal has the greatest impact
on the environment and is typically the least
cost-effective waste management solution.
In particular, for most usable assets reuseshould be explored as the preferreddisposal route in procurement contracts.
Identifying and confirming reuse routes cantake time and much research and discussion.
Reuse options are many and varied taking
forms such as buy-back schemes, saleor return, or donation to other events orcommunity organisations such as schoolsor hospitals. A lot of barriers may be
encountered, including concerns overquantities, quality, guarantees or warranties
and collection arrangements.
These requirements should be considered
upfront when determining the need for goods
and services and factored in throughout thedesign, sourcing strategy and tendering
process and use stages. This should include
consideration for disassembly and reuse at
the design stage, ensuring that the need forcomponents and materials are optimised in
the specification and avoiding the use of
substances and materials that could becostly and difficult to dispose of safely.

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Many organisations think the cost of waste is justthe disposal cost but to get the true value youneed to take into account several factors: thecost of purchasing; handling, processing andmaintenance costs; management time; and any
lost revenue and potential liabilities. It has beenshown that the true cost of waste is often 5–20
times that of the actual disposal cost.
Focussing on reducing materials usage,
reusing materials and increasing recycling will
generally save money, boost landfill diversion
rates, generate income, cut greenhouse gas
emissions – and enhance your reputation.

OTHER KEY CONSIDERATIONS
Here is a summary of the key things to bearin mind when establishing a sustainability
requirement:• Keep it meaningful – context is everything.
Are you clear in what you are asking ofyour supplier/partner and why? Will it
serve a clear purpose and tell you
something meaningful? If it doesn’t
don’t make it a requirement.
• Make sure it can be delivered – ensure
your suppliers/partners can do what you’reasking of them – clearly this can be tested
through the selection process (see next
section) but you may still be looking toachieve something that the market simply
is not capable of delivering at this time.
You may need to do some market research.
• Make sure your requirement can bemonitored and measured – do you have theresources and capability to use whatever
information you get from your suppliers/
partners? Make sure you also understand yourbaseline position before setting specific targets.
• Standardise and drive convergence
where possible – try to stipulaterequirements that are seen as standard or
generally accepted. Remember yoursuppliers/partners may be receiving

IDENTIFYING SUSTAINABLE SOURCING REQUIREMENTS

competing requests from their othercustomers – so try to make requirements“add value” by ensuring that they are notjust relevant to you.
• Be flexible. Sustainability requirements
should be dynamic and subject to change
as your knowledge and understanding
evolves – be open to what your suppliers/
partners say in this respect too.

SUSTAINABILITY ESSENTIALS• Be focused. Do not feel you have to set
requirements for all of your priority categories
and all sustainability issues in one go. Keep it
manageable for your own organisation andfor your suppliers and partners.
The next section provides more information
on how to manage sustainable sourcing andhow to take your requirements forwards.

KEY ACTIONSBasic Level• A basic sustainable sourcing policy has been developed alongside key sustainability
requirements for high risk and ‘quick wins’ spend areas.
• A Sustainable Sourcing Code, which sets out minimum standards toIntermediate Level

be achieved, has been developed together with category specific sustainability
requirements for priority categories.
• A Sustainable Sourcing Code, which sets out minimum standards tobe achieved, has been developed together with category specific sustainability

Advanced Level

requirements for priority categories with input from key external stakeholders.
Requirements are aligned with outcome-based goals wherever possible.
• Disposal and end of life asset management has been planned for all key categories(see also section on Managing Sustainable Sourcing below).

BE FOCUSED. DO NOT FEEL YOU
HAVE TO SET REQUIREMENTS FOR
ALL OF YOUR PRIORITY CATEGORIESAND ALL SUSTAINABILITY ISSUES IN
ONE GO. KEEP IT MANAGEABLE

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SUSTAINABILITY ESSENTIALS

5

MANAGING SUSTAINABLE SOURCINGMANAGINGSUSTAINABLE
SOURCING

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MANAGING SUSTAINABLE SOURCINGSUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE
SOURCINGSUSTAINABLE SOUR
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MAIN GOAL
To implement sustainable sourcing
requirements fully across all
priority categories.

DEFINING YOUR APPROACH
The basis for any supply, licensing orsponsorship arrangement is a contract.
Normally you would first set out therequirements in the contract/agreement(typically via a tendering process) and secondly
you would assist your suppliers/partners incomplying with these requirements.
It is relatively straightforward to include
sustainability requirements into a contract; theharder part is to ensure these requirements arefollowed through in delivery. This is where yourrelationships with your suppliers, licensees
and partners will be critical. The strongest
motivation is through cooperation: e.g.
development of best practices, assistancewith compliance and joint reporting ofoutcomes and lessons learned. There is also
the route of contract management, which may
include rewarding compliance and continuous
improvement and de-incentivising noncompliance. The effectiveness of these options
will depend on the nature of your relationships,
the types of sustainability issues being
addressed and the nature of the supply
chain involved.
Introducing sustainability requirements into
contracts is, of course, most appropriate for
new procurement and sponsorship deals.
Where you already have existing – especiallylong-term – arrangements, it will be muchharder, and probably costly, to require changes.
Here the best way forward is through dialogue
and collaborative working to common goals.
Do not assume existing suppliers/partners will
be resistant to new sustainability requirements.
For many companies, this is an area of
business opportunity and they may alreadybe facing similar demands across their wider
client base and/or in their sector.
There will be situations where existing suppliersor partners are reluctant to accept changes
and these will require careful handling. Often
this is through assumed fear of the impact ofchange, rather than specific objections. If you
can be clear on what it is you require andcollaborative in your approach, mostcompanies will cooperate.

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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

There is, of course, the option for change when
the contract is up for renewal. Again, this canbe difficult if the supplier/partner in question
has a long-established relationship with yourorganisation, and/or provides some criticaland specialist goods or services. However,if there is continued resistance to accepting
sustainability requirements, one must question
why this is the case. You also need to consider
potential risks to your wider objectives andreputation of sticking with a supplier/partnerthat is reluctant to change.
In determining your best way forward, it isworth considering these points:• What sourcing approach will you adopt tosource a particular category of goods andservices?
• How will you include sustainability requirements
in your supplier/partner agreements?
• How will you support your suppliers/partners
to meet your sustainability requirements?
• How will you monitor implementation?
• How will compliance with sustainability
requirements be verified?
• How will you evaluate and communicate theimpact of your sustainable sourcing activities?
Many aspects of what is set out in this section
mirror what could be thought to be the basics
of good procurement practice, but in thissection, they are solely being examinedfrom a sustainability perspective.

EMBEDDING SUSTAINABILITY
INTO CONTRACTS
The first course of action is to think about
what you have in place to regulate therelationships with your suppliers/partners.
You should have sustainability clauses
included in your standard terms andconditions or licensing and sponsorshipagreements. There should also be provision
to introduce additional requirements where
necessary (e.g. as a supporting schedule).
These might cover any specific sustainability
requirements you have set, and the related
proposals offered by the prospective supplier/partner in their tender response.
Surprisingly many organisations fail to realisethat even if your chosen supplier/partner has
provided an excellent tender response, thecontents of their proposal will not be
contractually binding unless they are referred
to in some way in the contract. A proposal
from a prospective supplier or partner isotherwise just a marketing document.
You also need to consider whether your contracts
contain effective sanctions against suppliers/
partners who do not meet your requirements,
as well as incentivising compliance or continuous
improvement. A common pitfall is that suppliers/
partners can treat sustainability as a “boxticking” exercise and do not invest the effort
to support your requirements.
Sometimes it is the reverse, whereby pro-active
suppliers and partners feel let down by theclient who is not fulfilling the spirit and letter of
their own sustainability policies. Therefore, as
always with contracts, you need to see this isa two-way engagement and all parties need
to be serious about implementing thesustainability policies and requirements.

36

MANAGING SUSTAINABLE SOURCINGSUSTAINABILITY ESSENTIALSEXAMPLES OF SUSTAINABILITY CLAUSES IN STANDARD TERMS
AND CONDITIONS
Examine the following draft clauses to see if one or more, or a combination would workin your situation.
The Supplier shall comply with any sustainability policies and requirements of [insert
organisation name] that have been notified to the Supplier by the date of this Agreement.
The Supplier shall comply with sustainability practices, procedures and guidelines reasonably
required by [insert organisation name] and shall procure that its Connected Persons do the same.
The Supplier shall conduct its activities pursuant to this Agreement with regard to applicable
environmental laws and equal opportunity /anti-discriminatory laws and any sustainability
policies of [insert organisation name] and shall procure that its Connected Persons do the same.
The supplier shall comply with any reasonable additional sustainability policies and requirementsof [insert organisation name] that may be advised from time to time during the course of thisAgreement.

EXAMPLE OF ADDITIONAL SUSTAINABILITY REQUIREMENTS APPENDED
IN A SCHEDULE FOR A DIRECT SUPPLIER CONTRACTThis is an example of a more specific approach that can be appended as a schedule tocomplement the standard sustainability clause in the main contract.

Schedule X: Sustainability
In performing the Services, the Supplier shall ensure that it and any sub-contractors, which
it engages to provide any of the Services, shall:
1. (a) comply with obligations under clause XXX of this Agreement as they relate to sustainability;
2. (b) use reasonable endeavours to source products with enhanced sustainability credentials(e.g. recycled content);
3. (c) work with [insert organisation name] to explore the utilisation of alternative sustainablemeans of service delivery;
4. (d) make provisions for the appropriate redeployment, re-use and recycling of items suppliedin connection with the Services and in doing so the Supplier shall maximise opportunities forreuse and supply a report on how it has delivered on this obligation; and5. (e) within a reasonable period of the date of the Agreement, prepare appropriate documentation
setting out how the Supplier intends to comply with the obligations set out in this clause.
The Supplier shall nominate a designated member of the Supplier Personnel as the Supplier’s
representative with respect to the Supplier’s sustainability obligations under this Agreement.

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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

IDENTIFYING ORGANISATIONAL
NEED
Sustainability issues should be considered
right at the beginning of the sourcing process.
Your ability to influence decisions to optimise
cost, performance and sustainability declines
with time.
Most sourcing begins with the identificationof a business need whatever this might be(see Procurement Hierarchy, below). The firstsustainability task at this stage is to challenge
the assumed actual business need and to
identify opportunities to:• avoid or reduce consumption of materials;• identify if there is a more sustainable alternative
readily available; and• rethink and revise specifications in orderto improve more sustainable outcomes.
The Procurement Hierarchy
We recommend following a hierarchicalprocess for determining procurement
need for goods. This has six levels,
commencing with the most favourable
option for sustainability:

The Procurement Hierarchy
RETHINK NEED:• Elimate waste at source by not purchasing item
if it is not really needed• Assess whether same objective could be met via
a service (e.g. rental) rather than direct purchase.
REDUCE:• Can you redeploy existing assests rather than buying
new and can you reduce the quantity of items you
originally intended to use?

REPLACE:• Seek alternative solutions such as changing material
types or switching to zero-or low-carbon energy sources.

REUSE:• Assess opportunities for the items to have a further
life beyond your use, either by the supplier, or incommunity projects.

RECYCLING:• Negotiate with your suppliers to find the best options forrecycling items and component materials after they havebeen used.

END OF LIFE:• Negotiate end of life management
options with suppliers.

RECOVERY:• Achieve some residual value through energy recovery
processes, rather than landfill or incineration.
Source: Adapted from Waste andResources Action Programme (WRAP)

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MANAGING SUSTAINABLE SOURCING

This involves the relevant teams coming
together to define and scope the technicalrequirements, evaluation criteria andassessment potential risks and issues.
A certain amount of market research isalso likely to be needed (see below).
The purpose of this approach is to challenge
the business requirements and distinguishbetween “wants” and “needs”. This will help
identify available options and the mostappropriate sourcing solution. Avoiding
unnecessary sourcing of goods and services
not only saves costs, but also reduces theenvironmental and social impact of supply.

SUSTAINABILITY ESSENTIALSYou should challenge and question any repeat
sourcing as much as possible and seek
innovative ways to meet your organisational
needs. For example, is a similar product alreadyin use within your organisation – or indeed
within other NOCs/IFs – and could be shared
more widely with other users? Are there
opportunities for existing items to berefurbished, repaired or upgraded to avoid
you having to buy new? Can products beleased on a short or long-term basis insteadof bought or delivered as a service?

EXAMPLE: SHARING A TEMPORARY VENUEThe Spengler Cup, an annual invitational ice hockey tournament, takes place at the end of
December, in Davos Switzerland. A few weeks later, Davos hosts the Annual Meeting of theWorld Economic Forum.
For several years both events’ organisers have collaborated on a shared space in the form ofa temporary pavilion structure, which serves as a hospitality venue for the Spengler Cup andas the media centre for the Forum’s Annual Meeting. This saves costs, time and resources by
having a single structure, requiring modest internal reconfiguration between the two events.

39

SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCINGRESEARCHING THE MARKET
It is advisable to undertake market andindustry research to get a full appreciationof your potential sourcing options. This isa continual process – the pace of changethat is happening with new technologies
and innovations means you should not takeit for granted that you know the market.
Advance market intelligence and engagement
is advisable for several reasons. You might
simply want to understand the current market
and what more sustainable options may exist,
or you may want to give potential suppliers
early notice of your intentions.
Engaging with a diverse range of prospective
suppliers/partners early on in the process canhelp establish if your sustainability needs
can be met or exceeded by identifying:• new technologies, products or other
innovations;• new suppliers/partners previously
unknown to you;• new business models or ways of working; or• innovative buyer-supplier collaborative
relationships

Where sustainability requirements can’t
be met in the current market, you might wish
to consider taking a ‘forward commitment’approach to sourcing. This is where you
provide the market with an unmet need andagreement to purchase a good or service thatcurrently might not exist, at a specified datein the future, on the assumption it can bedelivered to agreed performance levels
and cost.
Clearly this market research approach ispotentially time consuming and may be beyond
the reach of small sports organisations andevent organisers. This is therefore a situation
where a shared approach could be productive.
If different federations and Olympic associations
could come together with a common set ofcriteria and questions for the market, this
could be extremely productive.
A good way to do this is to work withrecognised industry associations in the
sectors most relevant to your sourcing needs.
Through such dialogue, it should be possible
to examine how best to match up sustainability
requirements with industry capability, and toalert a wide range of potential suppliers andpartners to your areas of interest. The World
Federation of Sporting Goods Industries(WFSGI) and the Association of Global Event
Suppliers (AGES) are examples of industry
association that may be engaged.

WHERE SUSTAINABILITY REQUIREMENTS
CAN’T BE MET IN THE CURRENT
MARKET, YOU MIGHT WISH TO CONSIDER
TAKING A “FORWARD COMMITMENT”
APPROACH TO SOURCING40

MANAGING SUSTAINABLE SOURCING

EXERCISING DUE-DILIGENCE
You should expect all suppliers and partners tosource the products and services they provide
to you in an ethical and environmentally
responsible manner. They should be open andwilling to managing their sustainability risks andcapitalising on their sustainability opportunities.
You should be looking to do business only withresponsible companies who treat their staff andworkers well, that understand the nature of thegoods and services they are supplying and thatrecognise their responsibility to protect theenvironment and foster good relations with
their local communities.
It is likely that many of your prospective
suppliers and partners will already have sometrack record on sustainability, or at least they
will claim to be familiar with this topic. However,it can be quite common for an organisation topromise much in terms of sustainability, butwhen you look closer, they are not doing muchabout it themselves.
Therefore, just because a company says its
products/services are more sustainable, you
should still carry out an appropriate level of due
diligence to verify this as far as possible. You
should always question if they can genuinely meetyour sustainability requirements – particularly ifsomething were to go wrong down the line (e.g.
allegations of ethical wrongdoing in the supply
chain). Or, for example, even though a company
claims a product or material is technicallyrecyclable, this might not actually not beable to happen in practice.
Ideally you should check all claims and ensure
they are supported with independently verifiable
information. This will enable you to evaluate all
options with respect to sustainability before you
make any decisions.
For regular sourcing deals, there are two keyquestions to consider:

SUSTAINABILITY ESSENTIALS• To what extent are you likely to have visibility
over the category’s supply chains?
• How far down the supply chain should you
go in terms of interventions/requirements?
Risk and opportunity are the main factors toconsider in deciding how far down the supply
chain you go and whether you opt for a direct
or indirect sourcing approach.
In general, you are likely to be sourcing froma large extended supply chain via suppliers/
partners with whom you have a direct contract/
agreement. In the main you are unlikely to havedirect contractual relationship with the factories
producing the items, let alone locations where raw
materials originate (e.g. farms, fisheries, plantations,mines, quarries etc.). In these instances, you willneed to rely on your suppliers/partners toensure your requirements are implemented
as far along the supply chain as is possible.
You might wish to appoint third parties and/or
require the use of independently certified external
standards to provide you with some additional
assurance that things are as they should be.
The fact remains though, the bigger and more
complex the extended supply chain, the harder itwill be to assure from a sustainability point of view.
This is challenging for any organisation to do letalone smaller sports organisations and event
organisers. Again, this is where collaboration andknowledge sharing between sports organisations
should help to overcome the difficulties of trying
to do all this independently.
While the focus of sustainability due-diligenceon suppliers of goods will be on the products
and their manufacture, in the case of potential
sponsors, your attention should also be on the
reputation of the company/organisation in question.
Due-diligence can be carried out any point in
the sourcing process – for example whilst
engaging with the market (see above) or during
the tender process or post contract (see below).
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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

FINALISING THE SOURCINGSPECIFICATION
Once you’ve determined the most appropriate
approach to sourcing the goods or services
you require, the next step is to finalise thespecification. This is what describes yourspecific needs and requirements for the
goods or services being bought.

In some cases, in may also be appropriate
to consider the use of more outcome-based
specifications to encourage your suppliers/
partners to be more innovative in how theymeet your needs. For example, challenging
a supplier/partner on how they might supply
goods and services in a more sustainable
way or require them to meet a predetermined
standard or requirement (supplying FSC®
certified timber, for instance).

There are essentially two types of specification:• Functional Specification – sets out thefunctions that the goods or services are
expected to fulfil, including the performance
to be achieved; and• Technical Specification – stipulates thetechnical characteristics of the goods
and services (e.g. requirement to meeta specific standard).
It is important to ensure that sustainability
requirements are fully integrated into thespecification so that they are not seen as
additional or optional. In this way they will betaken more seriously by the supplier/partner.
Your core sustainability requirements – which
may be in the form of a Sustainable Sourcing
Code (see above) – and requirements more
specific to what you are sourcing should befully reflected in the specification.

A set of general sustainability questions needs
to be be included in tender documentation
as a matter of course (see Appendix D forsuggested questions). For priority categories
you will need to also set out more specificsustainability questions related to yourrequirements. This will reinforce your duediligence efforts and inform you how seriously
the prospective supplier/partner treatssustainability (see above).
Remember, the specification is the starting
point and sustainability requirements should
be factored into all successive stages of theprocess (e.g. all key sustainability provisions
need to be included in the actual contract) –see below.

IT IS IMPORTANT TO ENSURE THATSUSTAINABILITY REQUIREMENTS
ARE FULLY INTEGRATED INTO THE
SPECIFICATION SO THAT THEY ARE NOTSEEN AS ADDITIONAL OR OPTIONAL

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MANAGING SUSTAINABLE SOURCING

IDENTIFYING SUPPLIERS/PARTNERSTO INVITE TO TENDER
You may well have identified prospective
suppliers/partners through market or industry
research, you may already know them, or
they’ve made themselves known to you.
Depending on the size and nature of theintended procurement, you may decide to
go straight to tender, or you may consider
a pre-qualification stage.
Pre-qualification
This involves vetting potential suppliers ofgoods and services to identify those with mostpotential to meet your requirements, including
sustainability. This can be done in a numberof ways – questionnaires, site visits, orpresentations (to your organisation only or
alongside other prospective suppliers aspart of an industry day). The most widelyused is a pre-qualification questionnaire
particularly where there is a large numberof potential suppliers/partners.
Questionnaires should be tailored to yourorganisation’s key requirements. Questions
may relate to previous experience, the capacity
to supply, financial stability and competence
and commitment to sustainability. With regards
sustainability, identify key things you’d like toknow of the supplier/partner itself and things
more relevant to the goods and services they
may be able to supply. This can be tested
further at the tendering stage.

SUSTAINABILITY ESSENTIALS

It is good practice to provide some feedback
to all organisations you decide to not progressto the next stage. If this was because ofsustainability this sends a clear signal to themarket about how important this is to you.
Inviting organisations to tender
The next step is to agree a list of organisations
that you feel can fulfil your requirements and issue
a Request for Proposal (RFP) or Invitation to
Tender (ITT) (there is no meaningful difference
between these two terms and both are commonlyused). This will set out your requirements and may
take many different forms and range from informal
emails to more formal and lengthy documents
prepared with the involvement of key internalteams (e.g. Legal, Finance, Commercial,
Communications, Sustainability, etc.).
It is good practice to issue an RFP or ITT to
all prospective suppliers/partners regardlessof whether this is for a traditional supply
arrangement or for licensing or sponsorship.
It is likely that your organisation only requires
several quotes if the goods or services are
anticipated to be above a certain monetarythreshold. This is a sensible and practical wayof focusing on major items and not getting overcomplicated on smaller purchases. However,there will be occasions when certain smaller
items carry disproportionate risk, such asbranded goods. For example, even small ordersof branded clothing, gifts and giveaways cancause reputation issues if it is subsequently
discovered there are ethical problems in the
supply chain. You need to identify a way tomanage these types of scenarios (see also
section on Enabling Sustainable Sourcing).

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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

A tender or proposal is a written offer from theprospective supplier/partner to execute work or
supply goods or services at a stated price andunder stated conditions – preferably in a waythat meets your specification. It is crucial that all
likely requirements for the goods and services
are identified and included as partof the process.
A good RFP or ITT should include the following:• contract definition, giving details of timescales
for delivery and completion;• a plain language summary of the key
conditions of contract;• description of the scope of work orservices and specification;• process for submitting the proposal ortender – including any parameters suchas length of submission and timelines; and• full terms and conditions.
You may consider including an indication ofyour budget. This is worth doing where you
are confident you know the value of thecontract to be awarded and you want tofocus on finding the best proposal withinthat limit. It can help avoid unrealistic offers
at either end of the scale.

Usually it is left to tendering companies to set theirprice, in the hope this will produce the mostcompetitive offers. However, price is not always
a reliable guide. The main objective of the process
must be to ensure the “best fit” supplier/partner isselected to supply goods and services to meetyour requirements. This “best fit” supplier/partner is likely be sound commercially andfinancially, technically competent and performs
the best overall on sustainability grounds.
The process should be fair, ethical andtransparent. It is important to be clear on how
you are going to evaluate responses received
from prospective suppliers/partners. It is goodpractice to make organisations aware of thecriteria being used for evaluation (see below).
Equally, no bidder should be given preferenceor assisted with clarification without the sameadvantage being given to others. All responses
to questions should be made available to all
respondents. If you meet with organisations
during the tendering process this should only be
for the purposes of clarification of points. Should
you agree to relax or change the specification for
one organisation then the same should becommunicated to all others still in the process.

PRICE IS NOT ALWAYS A RELIABLE GUIDE.
THE MAIN OBJECTIVE OF THE PROCESSMUST BE TO ENSURE THE “BEST FIT”
SUPPLIER/PARTNER IS SELECTED

44

MANAGING SUSTAINABLE SOURCINGEVALUATING AND ENGAGING
SUPPLIERS AND PARTNERSSUSTAINABILITY ESSENTIALS

It is important to have input to the evaluation
process from all relevant teams, even if there
is a designated person or department
responsible for managing procurement.

Sustainability factors essentially relate toimpact and reputation risk. These are notissues that can be bargained and traded
off against cost reductions. Therefore,
if sustainability is truly important to yourorganisation, rather than base theassessment on a notional weighting it may
be more advisable to opt for a clearer“go/no go” approach where prospective
suppliers and partners can be rated Red,
Amber or Green for instance (see example
below). This assessment can be basedon scoring, a qualitative judgement or
a combination.

Evaluation approach
Tenders/proposals may be evaluated ina variety of ways, but the main ones are:• weighting – where sustainability isscored relative to other factors suchas price, quality, function, etc; and• pass/fail – where sustainability is assessedagainst the specification and key criteria.

There may be situations with the “go/no go”
approach where other “mission critical”
considerations such as deliverability andtime, force you to override the sustainability
objection. In such cases this must be
a conscious risk-based decision with the
implications fully understood and approved
by top management.

Weighting is the commonest method but
presents a problem. By scoring sustainability
against a pre-agreed set of criteria the risk
is that other factors will always outweighsustainability considerations. Even where
sustainability is a particularly important factor
and is given a higher weighting than normal
where this is very important – in practicesustainability is likely to always lose out tothe other factors.

Whichever approach you adopt, it is important
to maintain transparency throughout theassessment process. Ideally, a clear anddocumented audit trail should be in place.
All decisions, and reasons for them, should
be clearly documented with the involvementof key responsible parties.

The goal should always be to do businesswith suppliers/partners who are best placed
to deliver outstanding value for money.
Sustainability must be one of a number ofcore elements that together represent whatvalue for money means to your organisation.

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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

Example of a "go/no" approach to evaluating tenders
Evaluation
response
Green

Amber

Red

Definition

Implication

Actions required

Supplier proposal
is acceptable

Willing to approve
contract award to
this supplier

None

Some sustainability
issues with the
supplier’s proposal,
but these canbe resolved

Willing to approve
contract award to this
supplier, subject tospecific conditions
being met and written
into contract

Detail the conditions thatmust be met by the supplier(e.g. clarification, provisionof further evidence, requiredchanges prior to contract
start date)Significant andinsurmountable issues
with the supplier’s
proposal, or supplier
unwilling to address
issues raised

Not willing to approve
contract award to
this supplier

Provide rationale for the‘Red’ evaluation response,referencing specific detailsof the supplier’s proposalthat have raised concerns

Ideally you should be looking to appoint
an organisation that is fully committed tosustainability and is perfect for yourorganisation in all other respects. In practice
you are likely to be making compromises
across a range of criteria. It might therefore
be appropriate to appoint a supplier/partnerthat does not currently perform well on
sustainability, but that has made a clear
commitment to take action to mitigate any
supply chain risks and/or be more proactive
in capitalising on sustainability opportunities.
The main consideration here is whether you
believe the proposed supplier/partner has thecapability, capacity and genuine commitment
to improve and to meet your sustainability
requirements. If that appears to be unrealistic,
the risk is your organisation will have to step inshould something go wrong and deal with theattendant issues, such as cleaning up pollution
or facing public and media criticism.

46

While it is right that you should look to place
more stringent sustainability requirements on
your suppliers you should also be encouraging
them to develop their own strategies and plans
as well. Sometimes suppliers may respond thatthey cannot have their own strategies and plans
because they need to be able to respond toother client needs. This is not a reasonableargument. It is perfectly possible forsuppliers to develop their own sustainability
strategies and plans to address their own
priority issues, and to accommodate client
specific requirements. In the event of aconflict in policy there can at least be an
informed discussion.
Encouraging your suppliers to develop theirown strategies and plans will enable themto build their own capability and capacityand be in a better position to respond to
your needs in the long run.

MANAGING SUSTAINABLE SOURCING

In the event of a conflict between sustainability
and commercial or functional requirements
then this can be escalated for an informed
business decision to made (see also section
on Enabling Sustainable Sourcing).
Additional considerations
Assessing supply chain aspects of suppliers/
partners may not be robust enough during the
pre-qualification or RFP/ITT stage for certain
categories for spend. This will be the case forhigh-priority categories which have significant
labour or human risks attached to them. In
these instances, unless you have expertise
in-house it may prudent to require independent
third-party audits to be undertaken prior tocontract award or before any production
happens. This can also be at the supplier’s
expense. A key factor here though is allowing
enough time in the tendering process for additional
due-diligence to be carried out if necessary.
It may not always be possible for suppliers/
partners to demonstrate fully how they will meetyour requirements in a proposal or tender.
For instance, they may not know exactly what
they are going to supply and from where it will
be sourced. This is likely to be the case forlicensing and sponsorship deals where thegeneral parameters of supply will be known but
the exact detail will be worked through during
the relationship.
In these instances, it is important to make sure
you evaluate the organisation as best you can
as a “responsible” supplier/licensee/partner andensure that there is flexibility built into contract
to allow for subsequent approval of sourcing
criteria. For example, post-contract award you
can introduce a contractual process whereby
all merchandise must be formally approved
prior to any production taking place. Thisessentially introduces a two-stage approval
process – firstly a decision on whether toappoint the licensee and secondly a decision
later whether to approve the production ofeach item of merchandise.

SUSTAINABILITY ESSENTIALSContract award
Once all negotiations are concluded the
supplier/partner is formally awarded thecontract, which should be approved by allnecessary internal stakeholders. All sustainability
commitments made by the tenderer must be
written into contract to ensure they arecontractually bound to deliver them. Internalteams must be informed of any sustainability
aspects of the contract and deliverables thatare relevant to their areas of work.
Consideration should also be given to
promoting the key sustainability aspects ofwhat has been agreed to in the contract acrossyour organisation – and perhaps also externally(see also section on Communicating
Sustainable Sourcing Efforts).
Unsuccessful suppliers/partners should
be notified and provided with feedback
including whether sustainability was a factor
in this decision.

MANAGING THE PERFORMANCEOF SUPPLIERS/PARTNERS
Having well-thought-out supplier selection
processes and getting requirements embedded
into contract is the relatively easy part.
Getting a supplier/partner to deliver fully inaccordance with their obligations is an entirely
different matter.
Contract management
Contract management is the principal way ofensuring that suppliers, licensees and partners
deliver on their sustainability obligations. This
represents a huge task for most organisations
and one not just limited to ensuring thatsustainability matters are included.
Your approach to contract management is anarea that needs careful thought and should
ideally be considered when prioritising on which
spend areas to focus your efforts. The skill set
required for effective contract management is
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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

not the same as for the initial sourcing andcontract negotiation, so you may consider
some specific training support for key staff.

delivering against them. In part this is because
it can be quite common for the contracting
company to not enforce their requirements.

Even if you have awarded contracts forgoods and services that fall within one of yoursustainability priority spend areas, it may not be
possible to “police” all of them. You may
therefore need to further prioritise specificcontracts that you consider present thegreatest risk and opportunity for yoursustainability programme.

There are several options to consider asa response to this challenge, for example:• Agreeing for bonuses to be paid to the
supplier/partner when certain targets
and milestones are met.
• Agreeing fixed price contracts may be
used as an incentive to reduce waste
or improve efficiency.
• Linked to the above, agreeing to share any
gains from improvements in sustainability
performance linked to the supply
arrangements – for instance revenue sharing
for recycling.
• Introducing penalties or payment retentions
for aspects of non-delivery – for instanceexcess waste.

For each priority contract you will need toagree a delivery and performance plan withthe respective suppliers/partners. This does
not need to be a detailed formal arrangement,
but the main point is that you jointly agree how
the contract will be managed including thereview process and any monitoring andperformance targets.
There are also tools and resources that may
be useful to support the contract management
process. These include management plans,
independent social and environmental audits,
certifications to external sustainability standards
and proprietary specialist software that helps
manage supply chain sustainability risks andopportunities. An example of the latter is the
Supplier Ethical Data Exchange (Sedex) (seebelow below).
While suppliers/partners may be used toagreeing to a set of requirements during thetendering process, they may be less used to48

Provided there are no conflicts with brandprotection rules, you might also consider
rewarding or recognising the efforts ofsuppliers/partners that achieve or exceed
sustainability performance goals. For example,
communicating their achievements on yourwebsite or via other channels such as social
media (see also section on Communicating
Sustainable Sourcing Efforts).
Regular review and feedback enables all
parties to reflect on what is working well andwhere there are problems and opportunities
for improvement. You should be open andreceptive to hearing any concerns raised andbenefiting from the suppliers/partners expertise.

MANAGING SUSTAINABLE SOURCINGSUSTAINABILITY ESSENTIALSTHE SUPPLIER ETHICAL DATA EXCHANGE (SEDEX)
Sedex is a web-based platform for sharing data to helporganisations manage ethical supply chain risk and streamline
the process of engaging with multiple tiers of the supply chain.
It is understood to be the largest platform for managing ethicalsupply chain data and aims to drive convergence in responsible
business practices.
Through a secure online portal, Sedex members can share and manage information related tolabour standards, health and safety, environment and business ethics. Members also have accessto a range of resources and reports, including industry specific self-assessment questionnaires
and risk analysis tools.
For buying organisations, Sedex offers an online system for collecting and analysing information
obtained from the supply chain. The system enables reports to be run on a variety of ethicalsupply chain data and track suppliers’ progress on key issues. In addition, a risk management
tool helps companies to identify the likelihood of risk in their supply chain and prioritise resourcesto effectively manage this risk.
For suppliers, Sedex provides an effective way of sharing information with multiple customers.
This helps to cut down on unnecessary paperwork, saving companies time and money. Suppliers
complete a self-assessment questionnaire and can choose to share this with their customers
along with other relevant ethical information such as audit reports, certificates and corrective
action plans. This also helps reduce the need for multiple audits, allowing both parties toconcentrate on making improvements.
Sedex members span over 150 countries and many sectors, ranging from small independent
farms to some of the world’s largest retailers and consumer brands.
For further information see: https://www.sedexglobal.com/about-us/what-is-sedex/

Grievances and dispute resolution
Consideration should be given to what
provisions are in place or required in theevent of a dispute. This could occur wherea supplier appears not to have met
a contractual requirement, or where you
become aware of an issue with a service
provider or at a site producing goods foryou. Such issues may arise from allegations
published in the media or by campaigningorganisations, or even direct complaints from
affected people.

Surprisingly it is common for contracts tobe finalised without any thought to issues
management and dispute resolution. Even
with a sound procurement process, things
can go wrong during the implementation
phase of a contract, so it is important to beprepared. It is like insurance; you hope neverto call upon it, but if you have to, you are glad
it is there. Also, like insurance, the robustnessof your grievance mechanism can vary inquality and it is worth seeking legal opinion
on how effective it would be if it were ever tobe relied upon in practice.

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SUSTAINABILITY ESSENTIALSMANAGING SUSTAINABLE SOURCING

Establishing a Supply Chain
Grievance Mechanism
Suppliers/partners should be expected toprovide a grievance mechanism for workers
in their supply chain and their wider
stakeholders to raise workplace and othersustainability concerns. In practice, mostconcerns are likely to be related to humanrights and labour standards.
As a minimum, this mechanism should be alignedwith the key principles set out in the UN
Guiding Principles on Business and Human
Rights. It should involve an appropriate level ofmanagement and address concerns promptly,
using an understandable and transparent processthat provides timely feedback to all thoseconcerns without fear of retribution/retaliation.
It should also allow for anonymous complaints
to be raised and addressed. The existence andscope of this mechanism must be clearlycommunicated to all workers and theirrepresentatives, and all workers must haveequal access. The mechanism should notprejudice access to available legal channels
and existing institutions judicial mechanisms
or trade unions but offer additional
opportunities for recourse and redress.
The characteristics of effective grievancemechanisms are listed below:• Legitimate – enabling trust from stakeholder
groups for whose use they are intended,
and being accountable for the fair conductof grievance processes.
• Accessible – being known to all stakeholder
groups for whose use they are intended,and providing adequate assistance for those
who may face particular barriers to access.
• Predictable – providing a clear and known
procedure with an indicative time frame
for each stage, and clarity on the typesof process and outcome available andmeans of monitoring implementation.

50• Equitable – seeking to ensure thataggrieved parties have reasonable access tosources of information, advice and expertisenecessary to engage in a grievance process
on fair, informed and respectful terms.
• Transparent – keeping parties to agrievance informed about its progress,
and providing sufficient information about
the mechanism’s performance to build
confidence in its effectiveness and meet
any public interest at stake.
• Rights compatible – ensuring theoutcomes and remedies accord withinternationally recognised human rights.
• A source of continuous learning – drawing
on relevant measures to identify lessons for
improving the mechanism and preventing
future grievances and harms.
• Based on engagement and dialogue– consulting stakeholder groups forwhose use they are intended on theirdesign and performance, and focusing
on dialogue on the means to address
and resolve grievances.
Where a supplier/partner has failed to live
up to expectations actions may include:• Commissioning independent specialists
to investigate the issue and identify
root causes.
• Offering capability and capacity building
support and assistance to help the
supplier/partner address the issue.
• Working collaboratively with otherorganisations that have relationships
with the same supplier/partner toincentivise improvements/action.
• Working with other organisations on
a wider regional or industry basis toincentivise improvements/action.
Walking away from a supplier/partner
relationship should always be the last resort
after all other attempts have been made toresolve the issue.

MANAGING SUSTAINABLE SOURCINGSUSTAINABILITY ESSENTIALSRESOLVING ISSUES THROUGH NATIONAL CONTACT POINTS
Another option open to you is to point stakeholders to your National Contact Point (NCP) if you
operate in or from a country that adheres to the OECD Declaration on International Investment
and Multinational Enterprises. NCPs provide a conciliation and mediation platform for resolving
complaints that may arise in connection with implementing the OECD Guidelines for Multinational
Enterprises. Any interested party can file a complaint where they feel the guidelines have beenbreached by a multinational corporation. NCPs seek to resolve issues through amicablediscussions to the satisfaction of the parties involved. If conciliation fails, complaints go througha process of mediation and if this ultimately fails the NCP issues a statement or makes arecommendation. Contact details for each country which has an NCP is available here.

The establishment of grievance mechanisms is very much an emerging area and few organisations
have put effective mechanisms in place. As such good practice in this area is still developing. With
this in mind, it is advisable to seek independent specialist advice and support on this topic.

KEY ACTIONS• New key contracts start to include sustainability criteria.
Basic Level• Sustainability is factored into the sourcing process for most high risk and‘quick wins’ contracts.
• All new contracts include standard sustainability terms and supplemented with specificclauses where relevant.
• Sustainability requirements are factored in at an early stage in the sourcing process

Intermediate
Level

for new priority-spend category contracts.
• Steps are taken to encourage key suppliers/partners bound by existing contractual
terms to implement sustainability requirements.
• Contract management has been prioritised based on sustainability risk and opportunity.
Assessment of supplier/partner capabilities and performance is supported by the use ofinternally developed tools and/or proprietary software.
• Sustainability requirements are fully embedded in the sourcing process from theoutset for all new priority-spend category contracts.
• Most key suppliers/partners bound by existing contractual terms have implemented
priority sustainability requirements.
• A formal process exists for capturing and disseminating lessons learned within

Advanced Level

the organisation.
• Grievance mechanisms for workers and wider stakeholders are in place for all key
contracts. The organisation has its own grievance mechanism for workers andstakeholders to use where supplier/partner mechanisms fail.
• Disposal and end of life management strategies are in place for all relevant contracts(see also Identifying Sustainable Sourcing Requirements above).

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SUSTAINABILITY ESSENTIALS

6

COMMUNICATING SUSTAINABLE SOURCING EFFORTS

COMMUNICATINGSUSTAINABLE
SOURCING EFFORTS

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COMMUNICATING SUSTAINABLE SOURCING EFFORTSSUSTAINABILITY ESSENTIALSCOMMUNICATING SUSTAINABLE
SOURCING EFFORTS
including reacting to potentially negative
media issues before they get out of hand.

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Sustainability can be a complex subject tocommunicate. It may well be necessary to simplify
messages and talk in a language people canrelate to and understand. Ideally communication
efforts should sit as part of your wider
communications and engagement approach,however formal or informal this might be.

INTERNAL COMMUNICATIONSRATIONALE

Communicating on sustainable sourcing
internally in a clear and consistent manner will
help it become part of your culture. You should
and leverage existing channels as much as
possible (e.g. Intranet, newsletters/e-briefings,
internal events, workshops or roadshows, etc).
Identifying people in the organisation who aresupportive of sustainability is a very good wayof promoting your sustainable sourcing efforts.
It is also important to understand who the key
influencers are within your organisation toensure they understand ‘why’ sustainablesourcing is so important.

Taking a more sustainable approach tosourcing is an important step, but it is equallyimportant to communicate what you are doing
internally and externally. There are a number ofreasons why this is important:• Raising and maintaining awareness ofsustainable sourcing activities andpromoting achievements.
• Building stronger stakeholder relationships
and partnerships with your suppliers/
partners and wider stakeholders.
• Generating positive media coverage.
• Receiving and responding to enquiries,
concerns and other stakeholder feedback

Key questions to ask when setting out how you
will approach internal communications include:• How does sustainable sourcing fit into yourwider internal communications plans?
• What sustainability information should becirculated internally, when and to whom?
• Are employees informed of agreed externalsustainable sourcing messages/lines?
• How is sustainable sourcing information
communicated to employees and suppliers?
• How sustainable sourcing achievements
communicated internally?
• How do you encourage feedback from
employees and suppliers?

MAIN GOAL
To proactively communicate sustainablesourcing efforts to internal and external
stakeholders and ensure your organisation
is able to respond to issues and allegations.

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SUSTAINABILITY ESSENTIALSCOMMUNICATING SUSTAINABLE SOURCING EFFORTS

EXTERNAL COMMUNICATIONSCommunicating externally to your suppliers/
partners and wider stakeholders (e.g. others in
the Olympic Movement) sends an importantmessage about how you do business. It will
help to influence your suppliers/partners
practices as well as help build a positive profile
for your organisation.
How you decide to approach this will dependon your organisations position on external
communications. This might include publishing
information on your website, preparing
stakeholder newsletters, leveraging social
media and writing blogs, issuing press releases
or publishing a periodic sustainability report.
Key questions to ask when setting out how you
will approach external communications include:• How does sustainability fit into your wider
external communications plans?
• Have key external stakeholders been
identified? What information are theyinterested in?
• How is key sustainable sourcing information
communicated to key stakeholders?
• Who is authorised to speak to the press/
media about sustainability? Have they been
appropriately trained?
• How are external enquiries on sustainability
matters received and managed? Are theright people informed or consulted internally?

TRANSPARENCY
Today's increasingly digital world has put us
in an era dominated by a need and demand
for greater transparency. Technologicalinnovations and changing consumer and social
expectations mean that we need to evolve ourstandards of transparency. You should be
looking to work with your suppliers/partners in
an open, constructive and transparent manner– and you should expect them to do the same.

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In this spirit, suppliers/partners must be willingto provide information about the sustainability
credentials of their goods and services
including full details of all sites used (e.g.
factories). If necessary, this should be reflectedin contract as a condition of supply.
Although this is clearly a decision for yourorganisation to make, public disclosure of key
supply chain information is fast becoming thenorm. Because of sustained stakeholderpressure many global brands are publishing
the names and locations (site level) of all theirfirst-tier manufacturing sites and some aregoing further. Such pressures are commonly
applied to high profile brands, which haveincluded major sports organisations and events.

CLAIMS AND DECLARATIONSIn recent years there has been a surge in claims
about the sustainability attributes of products orservices. Claims cover a wide array of activities
and take many forms:• suggestive unspoilt landscapes or wildlife;• direct claims in text (e.g. ‘this service iscarbon-neutral’ or ‘this is a zero-emissions
event’ or ‘100 per cent recyclable’); or• specially developed symbols and labels.
Such claims can be made in advertisements,
direct marketing materials, on websites ordirectly on product packaging. Claims can beon a specific issue (e.g. ‘organic’) or about thecharacteristics of inputs (e.g. ‘PVC-free’). They
might be third party labels (e.g. FSC® certified
or Marine Stewardship Council (MSC) certified)or industry or multi-stakeholder schemes(e.g. Roundtable on Sustainable Palm Oil orthe Better Cotton Initiative). They might also
be a strategic commitment from the company– to develop more sustainable products or to
donate a percentage of profits to a worthy
charitable cause, for instance.

COMMUNICATING SUSTAINABLE SOURCING EFFORTS

The proliferation of claims and labels canbe incredibly complicated and can result ina degree of uncertainty and confusion about
which claims or labels to trust and how best
to make an informed decision. For most criteria,labels or certifications exist that may provide
you with additional guarantees on thesustainability credentials of the product orservice. However, not all claims are equal,
and the systems behind claims are diverse.
For example, you can purchase coffee whichis Rainforest Alliance certified, Fairtradecertified or Organic certified – all these labels
are essentially attempting to address different
issues (or ‘hotspots’) in the value chain.
Some claims and labels may seem impressive
but are in fact not addressing issues relevant to
the product or service in question. Many maylack enough independent verification from reputablesources. A credible sustainability claim is clear,accurate and relevant, and can be backed up bysystems that are transparent and robust. For
example, if a supplier says their service has a 25
per cent lower carbon footprint than their closest
competitor, they should be prepared to provide
independent evidence to support such claims.
The ISEAL Alliance has developed some
useful guidance called ‘Challenge the Label’

SUSTAINABILITY ESSENTIALS

which aims to help buyers distinguish between
credible and non-credible claims. The guidance
sets out four key questions:
1. What product or service does theclaim cover?
2. What type of claim is being made?
3. What sustainability attributes does theclaim cover?
4. How is the claim verified?
In summary, all sustainable sourcing claims
and declarations you make or by yoursuppliers/partners, must be legal, fair, honest
and transparent and must be verifiable (i.e.
they must not be misleading and able to besupported by relevant data that is subject toverification and from reputable sources). They
also need to be sensitive to the views andneeds of stakeholders. For example, products
marketed as recyclable need to be able to bereclaimed for recycling via end users, rather
than the claim being based on a technicality.
The use of third-party logos (e.g. FSC®) is likely
to be strictly controlled so the necessary licenses
and permissions must be obtained from therelevant certification or licensing body prior to use.
For example, the FSC® requires organisations
wishing to promote their use of FSC® certified
finished products to have a trademark licence.

KEY ACTIONS• Sustainable sourcing commitments and requirements are communicated internally
Basic Leveland to relevant suppliers.
• The organisation's website expresses a general commitment to sustainable sourcing.
• Key sustainable sourcing messages and achievements are incorporated into ongoing

Intermediate
Levelcommunication channels with key stakeholders, such as the wider Olympic Family,
press/media and civil society.
• The organisation’s website outlines the sustainable sourcing vision, strategy and goals
it has committed to achieve.
• Top management communicates sustainable sourcing goals and strategies inAdvanced
Levelcommunications with external stakeholders.
• The organisation’s website includes information on its sustainable sourcing performanceand steps have begun to be taken to engage suppliers/partners in collecting and disclosing
sustainability information of interest to key stakeholders.
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ENABLING SUSTAINABLE SOURCINGENABLINGSUSTAINABLE
SOURCING

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ENABLING SUSTAINABLE SOURCINGSUSTAINABILITY ESSENTIALSENABLING SUSTAINABLE
SOURCING
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MAIN GOAL
To ensure organisational governance,
culture, behaviours, capability and capacity
are fully aligned with and support sustainablesourcing efforts.

This Guide has focused on the practicalaspects of establishing and implementing
an effective sustainable sourcing programme.
However, this is not something that can bedone in isolation. To do this well requiresorganisation-wide support and commitment,
not just to sustainable sourcing, but also tosustainability as a whole. We therefore
recommend you refer to the firstof the “Sustainability Essentials” guides:“Introduction to Sustainability”. This highlights
the importance of top management
commitment, effective governance procedures
and a management systems approach tointegrating sustainability into your organisation’s
ways of working.

Sustainable sourcing needs to ultimately
be embedded across your organisation,
cutting across silos, organisational structuresand hierarchies, with sourcing activities alignedwith strategic priorities. Your organisation’s
prevailing culture and management andgovernance structures will either help orhinder your efforts.
There are several questions you may wish
to reflect on as you look at the culture,
management and governance of yourorganisation:• Do you have the right culture and values
in place in your organisation to deliver yoursustainable sourcing strategy?
• Is there an appropriate level of governancein place in terms of processes, lines ofaccountability, resources and reporting?
• Have you fully defined roles andresponsibilities of relevance tosustainable sourcing?
• How will you introduce your sustainablesourcing strategy across the organisation:
as a limited pilot project, in phases, ora complete package?
• Do your people have the necessary
knowledge, experience and motivation to
implement the sustainable sourcing strategy,
or will you need specialist training support, or
to recruit additional qualified staff?
This form of readiness checking will help
you to determine roles and responsibilities,
the resources and other forms of support you
will need for implementing sustainable sourcing,with whom you will need to engage andcommunicate and how best to introduce
the new approach.
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SUSTAINABILITY ESSENTIALSENABLING SUSTAINABLE SOURCINGROLES AND RESPONSIBILITIESAs with any sustainability programme, thismust be seen as a shared endeavour acrossthe organisation. It is not the domain of a single
central figure or department. Of course, it isimportant for sustainable sourcing to becoordinated and applied consistently, but thismust be in the context of a broader frameworkthat allows for input from different teams.
This means ensuring there is a clear set ofprocesses and lines of accountability. At thesimplest level you could nominate “sustainablesourcing champions” in each budget-owning
team. Their role will be to promote the initiative
and to support their colleagues in implementing
the correct processes. They will be the initial“go-to” people for advice.
For larger organisations with multiple
departments all requiring budget for theirwork, it is best to have a centralised
procurement department that can oversee
management of the sourcing processes andensure decisions are made in the best interestof the organisation as a whole, rather thanfocusing solely on individual team requirements
and budgets. In smaller organisations, it is likelythat top management will ratify all significant
sourcing decisions directly, thereby providing
a level of consistency.
If your organisation also has licensees andsponsors, and these are managed via different
departments to the procurement team, it will beessential to ensure effective coordination between
the three areas. If it is discovered that there aredifferent standards and requirements being
applied to suppliers and partners, this will atbest cause confusion and potentially resentmentby those to whom the higher standards andrequirements are being demanded.
Attention should also be given to how you
would handle situations when things don’t
go to plan. Good risk management should
include provision for change management andescalating issues for top management decision.
It is surprising how often such contingency
planning is not anticipated and when issues
do arise, they become instant crises. Sourcing
and contract management are complex
undertakings and there always will be variations
and situations to address. By having a clear
process in place that is understood by all
managers in the organisation, you will be wellplaced to handle issues whenever they arise.

GOOD RISK MANAGEMENT SHOULD
INCLUDE PROVISION FOR CHANGE
MANAGEMENT AND ESCALATING ISSUESFOR TOP MANAGEMENT DECISION

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ENABLING SUSTAINABLE SOURCINGRESOURCESThe success of your sustainable sourcing
strategy will be heavily dependent on:• How competent, engaged and motivatedyour staff and supply chain are.
• How additional resources are able tobe leveraged internally and/or externally.
In allocating resources for your sustainablesourcing programme, it is important separateout one-off start-up costs (investments) andlong-term operational costs. Investment costs
are likely to relate to:• specialist consultants;• specialist staff hires;• training courses;• proprietary tools;• supply chain audit and assurance
arrangements; and• establishing grievance mechanisms.
These additional resources need not always
come at a direct cost to your organisation.
For example, can you leverage additional
support and resources from partners andother organisations such as trade associations
that are working on similar initiatives to help you
through the “learning curve”? There are several
other avenues that could also be explored inthis respect, such as:• Leveraging government resources foradvice, training and awareness.
• Participating in collaborative programmeswith other organisations in the Olympic
Movement, wider industry or suppliers
to share knowledge and technology.

SUSTAINABILITY ESSENTIALS• Participating in industry or trade forums
to identify and address common issues,
share experiences, engage external
resources, and so on.
• Exploring whether there are any sponsorship
opportunities of relevance to sustainability orwhether you are eligible to apply for any
sources of grant funding.
• Identifying and reviewing existing sustainablesourcing-specific education initiatives suchas lessons learned case studies, webinars,
workshops and so on.
• Identifying what support yourstakeholders may be able to provide atno or limited cost (e.g. provision of specialist
secondees) particularly if there is a mutual
legacy benefit.
Once it is established and operating as
intended, sustainable sourcing itself should
not require significant ongoing resource,
provided it is properly part of your day-to-day
management system – it is a process, nota budget line. In time you should begin torealise cost savings and see other benefits
through operational efficiencies and positive
stakeholder relations.
Occasions when additional costs mightoccur in operation are when issues arise
requiring special investigations, audits andimplementation of grievance mechanisms.
These can be budgeted in contingency funds,
as they might not be required, but if cases do
occur, it will be essential to act promptly andnot to have to wait to secure budget.

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SUSTAINABILITY ESSENTIALSENABLING SUSTAINABLE SOURCINGINTRODUCING YOUR SUSTAINABLE
SOURCING PROGRAMME
You will need to think about how and when
you will introduce your sustainable sourcing
programme. You will be heavily dependent
on your supply chain, which is where mostof the work will be done.
Adopting a high standard too early may be
counterproductive. It may be worth exploring
the use of such standards with certain suppliersor categories first – for example as a pilot. This
does not necessarily need to be as part of thetendering process; it may be that you havea strong relationship with an existing supplierthat is willing to work with you to trial a new

approach. By doing this, you can learn more
about how easy or difficult it is to implementcertain requirements and how receptive thewider supply base will be.
It may also be worth starting with a small
number of selected priority categories before
rolling out the entire programme. Start witheasy or quick wins that will give you some
initial traction internally and build relationships
with your most engaged or strategically mostimportant suppliers/partners. If you do startsmall, do consider scalability from the outset.
Any action or activity should have the potential
to be scaled up so that it can be applied toyour day-to-day sourcing practices.

ADOPTING A HIGH STANDARD TOO EARLY
MAY BE COUNTERPRODUCTIVE. IT MAY BE
WORTH EXPLORING THE USE OF SUCH
STANDARDS WITH CERTAIN SUPPLIERS OR
CATEGORIES FIRST AS A PILOT

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ENABLING SUSTAINABLE SOURCINGSUSTAINABILITY ESSENTIALSKEY ACTIONS• A review of sustainable sourcing efforts and performance takes place at least
once a year and is communicated to top management.
Basic Level• Sustainable sourcing ‘champions’ have been identified and key individuals
with responsibility for sourcing goods and services have received basic training
in sustainability.
• Appropriate resources (staff and budget) are assigned to design and executethe sustainable sourcing strategy.
• All individuals with responsibility for sourcing goods and services have received
basic training in sustainability.

Intermediate Level• Sustainable sourcing is included as part of employee induction programmes
and in key recruitment competencies and selection criteria.
• Appropriate governance is in place and the organisation’s sustainablesourcing strategy and performance is formally reviewed at least once a yearwith top management.
• Accountability for sustainable sourcing is formally assigned to a member of
top management.
• Appropriate resources are assigned to support evaluation, reporting,and continuous improvement processes.
• Reward and recognition is linked to achievement of sustainable sourcing
objectives for key individuals.

Advanced Level• The organisation participates in industry or multi-stakeholder collaborative
initiatives that aim to drive more sustainable outcomes in the wider market.
• Key suppliers/partners recognise they must continually improve their sustainability
performance to keep your business.
• Your organisation’s sustainable sourcing strategy and performance is formallyreviewed at least every six months with top management with input from key
external stakeholders.

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SUSTAINABILITY ESSENTIALSAPPENDICES

8APPENDICESAPPENDIX A: Sustainable sourcing issues
APPENDIX B: Spend category and issues matrix
APPENDIX C: Template sustainable sourcing code
APPENDIX D: Example sustainability due-diligence questions
APPENDIX E: References and guidance

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APPENDIX A SUSTAINABLE SOURCING ISSUESAPPENDIX ASUSTAINABILITY ESSENTIALSSUSTAINABLE SOURCING ISSUES

The range of potential issues to consider when sourcing goods and services is huge and must
be looked at holistically. This appendix provides a non-exhaustive list of issues and examples ofactions to consider. Actions taken to address one issue should not adversely affect another. It canbe read alongside the prioritisation matrix in Appendix B.
Alongside the author’s own knowledge and expertise, several sources have been used to compile
this appendix including the UN Guiding Principles on Business and Human Rights, the UN Global
Compact, OECD Guidelines for Multinational Enterprises, OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflicted-Affected and High Risk Areas, Global
Reporting Initiative, SDG Industry Matrix, Global Social Compliance Programme Reference Tools,
Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in
the Context of National Food Security, ISO 26000: 2010 – Guidance on Social Responsibility, andsustainability insights created by The Sustainability Consortium.

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SUSTAINABILITY ESSENTIALSAPPENDIX A SUSTAINABLE SOURCING ISSUESISSUECONSUMERS
Consumer Data
Protection andPrivacy

DESCRIPTION

EXAMPLE ACTIONS

Privacy is a fundamental human rightrecognised in the UN Declaration of Human
Rights, the International Covenant on Civil andPolitical Rights and in many other internationaland regional treaties. Consumer dataprotection and privacy must be safeguarded
by limiting the types of information gathered
and the ways in which such information
is obtained, used and secured.

Consumer
Health and
SafetyFinished goods must meet all agreed orlegally required standards for consumer
health and safety, including those pertaining
to health warnings and safety information.
Negative residual health impacts of any
production or of goods and or services
supplied must be eliminated to the extent
practicable. This includes communicationof proper usage and disposal instructions
in a clear and accessible manner.
Materials and ingredients used to create
goods may contain substances such as
heavy metals or other chemicals that posea risk to human health or the environment
when used. Suppliers and partners should
work with their supply chains to ensure
safe materials and ingredients and finishedgoods by excluding hazardous materials
and ingredients from their products,
understanding their raw materials,
assessing alternatives when needed,
and routine testing.

• Collection of personal data associated with supply of goods
and services is done in accordance with the law and thetypes of information gathered and the ways in which suchinformation is obtained, used and secured is limited.
•Suppliers and partners have trained key personal
responsible for data protection and privacy in relevant
policies and processes. This includes the conduct of
personnel (e.g. security) towards third parties rightto privacy and the potential risk for inappropriate orexcessive force or other violations of human rights.
• All goods and services are produced and supplied inaccordance with relevant consumer protection legislation
including that they are safe for users and other persons,their property and the environment under normal andforeseeable conditions of use. Where safety legislation
is not considered adequate, steps should be taken to
go beyond this where there is evidence that higher
requirements would achieve better protection.
• Safety risks associated with goods and services have been
identified, evaluated and mitigated through inherently safe
design, protection devices and information for users. Safety
information supplied with goods and services takes accountof different consumer needs, understanding and capability.
• Use of chemicals in connection with goods and services
that are harmful to human health and the environment
are avoided wherever possible. Chemical ingredientsshould be fully disclosed.

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NOTE: See also Chemicals, page 67.

APPENDIX A SUSTAINABLE SOURCING ISSUESISSUEDESCRIPTIONMANAGING THE SUPPLY CHAIN
Anti-Corruption Organisational dealings with suppliers andwider partners must be conducted ethicallyand responsibly. Corruption may manifest,
for example, in bribery (soliciting, offering
or accepting a bribe in money or in kind),fraud, money laundering, embezzlement,
concealment or obstruction of justice.
Steps should be taken in collaboration
with suppliers and wider partners toprevent and combat corruption in allits forms.
Grievance
Stakeholders, particularly those who are
Mechanisms
more vulnerable, within a suppliers/partners’
supply chain should be able to raise issues
or concerns and seek remedy. The supplier/partner should facilitate this by establishingan accessible and transparent grievancemechanism through a range of channels.
The mechanism must also allow foranonymous complaints to be raised andaddressed. The existence and scope of thismechanism must be clearly communicatedto all workers and their representatives,and all workers must have equal access.
Supply Chain
Addressing many of the environmental
and social challenges within supply chains
Transparency
requires cooperation among companies atdifferent stages of the supply chain.
Suppliers of finished goods should identify
the locations used in the production andsupply of products and engage in initiatives
that improve transparency, communication,and data sharing. Chain-of-custody andother data sharing systems and initiatives
can help improve transparency about where
items are being sourced, and suppliers/
partners can work together to addresscommon issues, such as energy, water,
chemicals, worker health and safety,
and labour rights.

SUSTAINABILITY ESSENTIALSEXAMPLE ACTIONS• All sourcing decisions are done in accordance with thelaw and your organisation’s anti-corruption policies andall suppliers/partners are appointed on these terms.
• Processes are in place to identify corruption risks in the
supply chain and appropriate due-diligence is in place
to ensure risks are mitigated.
• Steps are taken to raise awareness, support andtrain individuals who are responsible for sourcing
representatives and contractors and encourage thereporting of unfair treatment and violations with yourorganisation’s anti-corruption policies.
• Suppliers/partners are encouraged to provide a grievancemechanism for workers (and their organisations, where they
exist) which meets the requirements of the UN Guiding
Principles on Business and Human Rights to raise
workplace concerns without fear of retaliation/retribution.
• Suppliers/partners are encouraged to publicly report on
the use and performance of their grievance mechanisms.

• Suppliers and partners are contractually required todisclose the locations of all sites used in the production
and supply of goods and services fully to you.
• Suppliers and partners are contractually required toprovide information about a product or services social,environmental and ethical credentials on request.
• Suppliers and partners are asked to demonstrate thesteps they are taking to advance sustainability within
their own supply chain (e.g. efforts made to trace fromsuppliers to subcontractors back to raw materials suppliers).

65

SUSTAINABILITY ESSENTIALSAPPENDIX A SUSTAINABLE SOURCING ISSUESISSUEDESCRIPTIONUSE OF RESOURCES
Animal Health
Animals reared for food or are used
for non-food products (e.g. wool) may
and Welfare
experience issues related to animal welfare.
Animal derived products or raw materials
should be sourced from suppliers/partners withcomprehensive management plans, including
programmes, that ensure animal welfare foranimals. Plans or programmes should
include practices that avoid painful procedures;
ensure access to adequate housing and proper
nutrition; require proper handling, propertransportation, and humane slaughter
methods, such as pre-stunning in case offood products; and promote good healthin ways that are appropriate to the animal.
Depending on local, legal, and regulatory
requirements, animal testing may berequired to substantiate the safety ofingredients and final formulations of certain
products. Suppliers/partners should continue
to support the development and validationof alternative testing methods, to prevent
unnecessary animal testing of personalcare and cleaning products.
Biodiversity and Sourcing of raw materials can significantly
Natural Capital impact flora and fauna species including
through the spread of invasive species;
sourcing endemic, threatened or endangered
species; and contributing to biodiversity loss
through unsustainable practices. Suppliers/
partners should adopt sustainableagricultural, fishing, and forestry practices
including aspects related to animal welfare,for example, as defined in internationallyrecognised standards and certification
schemes. Approaches that threaten thesurvival or lead to the global, regional or
local extinction of species, or that allow the
distribution or proliferation of invasive
species to be avoided.

66

EXAMPLE ACTIONS• All sourcing of animal derived sources for food items(meat, fish/shellfish, dairy, eggs) must be done in fullcompliance with all relevant legislation of relevance toanimal health and welfare and standards are in line with
the internationally recognised ‘Five Freedoms’ Framework.
• Use of national foundation farm assurance/welfare
standards is required for all animal derived sources
where available.
• Suppliers and partners are asked to demonstrate theprovenance of animal derived sources and how animal
health and welfare has been considered as part ofsourcing decisions.
• Suppliers and partners are asked to demonstrate thesteps which have been taken to ensure high standardsof animal health and welfare when sourcing materials ofanimal origin for non-food items (leather, feather/down,wool, cashmere, etc.).
• Ingredients in cosmetic and household type products(e.g. cleaning or personal care items) supplied have notbeen tested on animals.

• Raw materials of natural origin must be sourced legallyand products or packaging supplied/used do not makeuse of any fur, skin, feathers, food or food ingredientsof plant or animal origin (including fish) of any species
specified in the Convention on International Trade inEndangered Species of Wild Fauna and Flora (CITES)
Appendices and in the International Union for Conservationof Nature (IUCN) Red List of Threatened Species.
• Incorporate protection of natural habitat, wetlands,
forest, wildlife corridors, protected areas and agriculturallands as part of event planning and operations.
• Encourage the adoption of sustainable agriculture,
fishing and forestry practices including aspects related
to animal welfare.

APPENDIX A SUSTAINABLE SOURCING ISSUES

ISSUE
Chemicals

Climate andEnergyDESCRIPTION
Chemicals can be used during manufacture
and, if released into the environment, canadversely affect human health and theenvironment. These effects can be mitigatedby programmes, practices and technologies
that optimise chemical usage in combination
with systems to recover waste produced
during production.
Some formulations or materials (e.g. plastics)
can contain chemicals that, depending on
use and exposure, may be harmful tohumans on contact or if consumed.
Suppliers/partners should determine
whether such chemicals are present intheir goods and strive to reduce, eliminate
or restrict their use. They should workwith their supply chains to exclude
harmful chemicals from their products,
understand what risks may be present
and assess alternatives.
Production of goods can consume significant
amounts of electricity and energy, leading togreenhouse gas emissions. Items should besourced from suppliers/partners that help
abate these impacts by measuring, tracking
and reporting energy use and greenhousegas emissions, with a focus on reduction.
They should also perform preventative
maintenance on equipment, replace
inefficiency equipment, use renewableenergy sources and encourage energy
efficient behaviours throughout
their operations.

SUSTAINABILITY ESSENTIALSEXAMPLE ACTIONS• All chemicals supplied directly or indirectly required to meet
all relevant legislation regarding chemical use and disposal.
• Suppliers/partners are encouraged to use substances andmaterials that represent a low risk to human health and theenvironment. Where practicable, they are asked to seek to
use such substances and materials in connection with the
products and services they supply.
• Suppliers/partners have policies and restricted or
prohibited substances requirements which go beyond
the law• Supplier/partners are asked to demonstrate how they
adopt the precautionary principle and substitute hazardous
chemicals with less harmful alternatives or adopt
different ways of working which limit the use ofhazardous substances/materials (e.g. chemical
free cleaning methods).

• Categories of goods and services which contribute mostto the your organisation’s greenhouse gas emissions(i.e. carbon footprint) have been identified. This should
include consideration of embedded carbon associatedwith goods and services.
• Steps are taken to measure, reduce and reportclimate exposure and progress on actions to combat
climate change taken by those suppliers/partners withgreatest associated carbon emissions.
• Specify the use of equipment and infrastructure whichmeets recognised/best practice energy efficiency standards
wherever possible. This includes promoting innovation in
product development that reduces energy consumption
and improves energy efficiency in product use.
• Climate adaptation needs of your organisation/sport
have been considered as part of key sourcing activities
and decisions.

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SUSTAINABILITY ESSENTIALSAPPENDIX A SUSTAINABLE SOURCING ISSUES

ISSUE
Disposal andEnd-of-Life

DESCRIPTION
Items no longer useful or wanted need tobe collected and disposed of responsibly
to ensure that the product and valuable
components and materials are available
for further reuse or recycling. Materials
and components should be compatible withend of use/life management arrangements.
Suppliers/partners should ideally participate
in stewardship programmes and engage
downstream partners to ensure products
are responsibly managed at the end of
the useful life.

Food Waste

Excessive food surplus (edible) or waste(inedible) may be generated because of
producing too much or over-ordering or
because of poor storage or processing.
Often this is disposed of in landfills, leading
to a waste of resources and food. Efforts
should be made to reduce any surplus andspoilage as well as looking at alternatives tolandfills, such as redistribution to community
organisations or charities, use as animal
feed or use for energy recovery.

Material
Efficiency

The production of goods depletes both
energy and material resources, and theirimproper disposal can represent a loss ofotherwise reusable materials, and potentiallyreleases pollutants into the environment.
Impacts should be minimised by designingitems that optimise durability whilst using
the least possible amount of material overall.
Efforts should be made to specify material
that is reusable and recyclable and/or comesfrom reused and recycled sources.

68

EXAMPLE ACTIONS• Data is collected and reported on the amount of generaland hazardous waste generated and the destination ofeach waste type.
• All waste is required to be managed and disposed of in fullcompliance with all relevant legislation and requirements
are communicated to suppliers and partners.
• All waste is proactively managed according to thewaste hierarchy where waste prevention and recycling isprioritised over disposal (i.e. landfill and incineration) including
training of key staff and contractors on the correct
segregation and handling of different types of waste.
• Suppliers/partners are required to proactively reduce waste
and supply items which can be reused or easily recycled andhave clear plans for how assets will be managed when they
are no longer required. This includes take-back arrangements.
• Suppliers and partners are required to send no waste
directly to landfill or incineration and the amount that issent to energy recovery/waste to energy technologies
is minimised (<20% of overall total waste produced).
• Suppliers/partners encouraged to offer innovative solutions
in line with zero-waste/circular economy principles.
• Data is collected and reported on the amount of foodwaste generated and where it goes.
• All food waste is required to be managed and disposed ofin full compliance with all relevant legislation and suppliers
and partners are required to proactively reduce the amountof food waste that is produced.
• Steps are taken to redistribute edible surplus food toworkforce or community programmes and no foodwaste is sent directly to landfill.
• Contractual food waste reduction targets have been
established and actively monitored and reported against
to workforce and key stakeholders.
• Encourage redesign of products to reduce the amountof material needed, or substitute materials or processes
that are less energy intensive to produce or deplete lessnon-renewable resources.
• Products and packaging are required to be designed sothat they can be easily reused, repaired or recycled andif possible, offering or suggesting confirmed recycling
services in the territory/country.
• Encourage production and supply products and materials
which have been made reused or recycled material.
• Encourage supply and use higher quality productswith longer product life.

APPENDIX A SUSTAINABLE SOURCING ISSUES

ISSUE
Packaging

DESCRIPTION
Packaging design should be optimised toensure that packaging performs its essentialfunctions of containment and protection
while minimising use of materials, energy
resources and environmental impacts acrossthe life-cycle of the packaged product.
Under-packaging and over-packaging canboth lead to increased impacts. These
impacts may be mitigated by using more
efficient-manufacturing, selecting recyclable
and sustainably managed renewablematerials, and encouraging reuse
and recycling.

Pollution

Various production processes can result inemissions that pollute the land, water andair. Suppliers/partners should implement
best available practices and technologies
to avoid or mitigate such impacts.

Product
Efficiency

Significant amounts of energy and water
may be used when using energy and waterusing products. To reduce these impacts,
equipment must be designed to be asenergy and water efficient as possible andensure instructions for proper usage areclear and accessible.

SUSTAINABILITY ESSENTIALSEXAMPLE ACTIONS• Use of packaging is required to be avoided wherever
possible and, where it is needed, its use is optimisedand can be reused or recycled within the territory/country.
• Packaging is required to be produced and supplied which
has been made from reused or recycled material or comesfrom verified more sustainable sources.
• Supply/use of single-use plastics is prohibited orheavily restricted.
• Supply/use of oxo-degradable plastics is prohibited.
• Supply/use of compostable materials is only permitted
where materials cannot be recycled and composting
facilities in the territory/country will accept such materials.
• Introduce take-back arrangements for packaging materials
which are difficult to handle or recycle.
• Categories of goods and services with inherent pollution
risks (fuel usage, air emissions, noise/odour) have been
identified and implement measures to reduce and minimise
direct and indirect pollution (e.g. minimum standards forvehicles, requirement for temporary generators to havearrestment for particulate emissions, secondary
containment for fuel storage tanks, etc.).
• Measure, record and report on significant sources ofpollution and reduction of pollution, water consumption,
waste generation and energy consumption.
• Require suppliers/partners supplying goods andservices with inherent pollution risk to put in placeenvironmental accident and incident response
arrangements (e.g. spill response).
• Categories of goods and services with the potential
to use significant energy and/or water when utilised
have been identified.
• Energy and water using products meet recognised/bestpractice energy and water efficiency standards.
• End users are provided with information on the productsenergy or water efficiency features to ensure correct andproper use.

69

SUSTAINABILITY ESSENTIALSAPPENDIX A SUSTAINABLE SOURCING ISSUESISSUEDESCRIPTION
Sustainable Fish Harvesting fish and shellfish faster thanthey can replenish contributes to resourceand Shellfish
depletion, reduces biodiversity, and impacts
the climate. Fishing and farming operators
can use certifications and implement
programmes, practices, and technologies
to reduce impacts on resources, biodiversity,and the climate. Suppliers/partners should
be selected that are working to improvesustainability and adopt standard guidelines
from certification schemes for fishand shellfish.

Sustainable
Forestry andDeforestation

70

EXAMPLE ACTIONS• All sourcing of fish and shellfish must be done in fullcompliance with all relevant legislation and a
Responsible Fish and Shellfish Sourcing Policy isin place and implemented.
• Fish and shellfish sourced must not include species
that are listed on the Convention on International Tradein Endangered Species (CITES) or the International Union
for Conservation of Nature (IUCN) Red List as CriticallyEndangered, Endangered, Vulnerable or Near Threatened.
• Wherever possible, all wild-caught and farmed fish andshellfish comes from independently certified sources(e.g. Marine Stewardship Council or Aquaculture
Stewardship Council certified sources) or fromsources which have made a public commitment
to become certified within an agreed timescale(e.g. Fishery Improvement Project).
Unsustainable sourcing of wood, or wood• All legal obligations have been met with regards thederived materials, can result in deforestation, sourcing of wood and wood-derived materials (e.g. EU
decreased biodiversity, land and water
Timber Regulation) and all spend categories which may
degradation and climate change impacts.
be at risk of using controversial or illegal forest sources
When sourcing wood and wood-derived
have been identified.
materials sourcing policies should be• A Wood Sourcing Policy, which covers as a minimum
adopted which monitor progress on zerowood and wood-derived materials, is in place anddeforestation commitments. Sourcing
fully implemented.
policies should also promote protection of• Wood and wood-derived materials used in connection withgoods and services have been confirmed to have at least
high conservation value forest habitats,been legally harvested.
which have unique plants and animals.
Requiring third-party audits or certifications • Preferably, all wood and wood derived materials has been
responsibly sourced, i.e. is Forest Stewardship Council
based on site-specific observations can also
(FSC) certified; or is Programme for the Endorsement of Forest
reduce risks of deforestation. The other key
Certification (PEFC) certified; or comes from independently
forest risk commodities are: paper, palm oil,verified reused or recycled sources; or has been determinedcattle products such as leather and beef
as otherwise protecting forests and communities.
and soy.
• Where relevant, a comprehensive set of policies covering
all key forest risk commodities (e.g. beef, leather, palm oiland soy) are in place and implemented.

APPENDIX A SUSTAINABLE SOURCING ISSUESISSUETransportationand Logistics

DESCRIPTION
Goods are transported by land, sea and air.
Suppliers/partners should select carriers thatuse fuel-efficient modes and vehicles to reducegreenhouse gas emissions and emissions that
impact local air quality such as particulates
and nitrogen oxide (NOx). Fuel efficiency canbe addressed through preventative
maintenance, use of alternative fuels andselection of optimal vehicles, routes andtransport modes. Transportation efficiency canalso be improved by maximising load capacity
in vehicles and optimising the packaging oftransport vehicles. Transportation of goods
within a supply chain can have negative
impacts on communities, including vehicle
accidents and health risks in areas of heavy
traffic, noise from distribution centres andhubs, and air and water pollution. Transport
carriers should engage with local
communities in planning and risk
management, and work with vehicle
manufacturers to improve vehicle design
to reduce noise and emissions.

Water

Production of some goods or certain
activities can use a significant amountof water, which can contribute to freshwater
depletion and may be problematic inwater-stressed regions. Items should besourced from suppliers/partners who
measure water use and perform water use
assessments throughout their supply chains
to map water risk in different geographicalregions and mitigate impacts associatedwith freshwater depletion. Water pollution
should be avoided throughout their supply
chain, including where local government
monitoring is lax.

SUSTAINABILITY ESSENTIALSEXAMPLE ACTIONS• Categories of goods and services that contribute mostto your organisation’s transportation environmental andsocial impacts have been identified. This should include
transportation of products and materials and people andideally look to set baseline emission measurements
including anticipated fuel usage.
• Steps are taken to measure, reduce and reporttransportation impacts and progress on actions taken
by suppliers/partners with greatest associated impacts.
• Suppliers/partners required to optimise transport efficiency
and/or minimise transport distances wherever possible.
• Where possible, suppliers and partners asked to supply
vehicles which meet recognised/best practice air quality
emission standards and have the lowest practicablereal-world tailpipe CO2 emitted over their lifetime (ideallyalso the lowest possible Well-To-Wheel CO2 emissions) anddemonstrate the best achievable fuel efficiency/economy.
• Wherever possible, vehicles are procured in line withinclusive design principles and fully accessible
where required.
• All drivers required to receive training on improved fuelefficiency, reducing environmental pollution, advanced
safe driving and diversity and inclusion.
• Encourage opportunities to use alternative vehicles(e.g. electric) and modes such as rail and water.
• Categories of goods and services which contribute mostto your organisation’s water footprint have been identified.
Where possible, this should include identifying the mostmaterial and at-risk watersheds in its anticipated extended
supply chain.
• Steps are taken to measure, reduce and report water
impacts and progress on actions taken by suppliers/
partners with greatest associated water impacts.
• Suppliers and partners are asked to supply/use equipment
and infrastructure which meets recognised/best practicewater reduction and efficiency standards wherever possible.
This includes promoting innovation in product developmentthat reduces water consumption and improves water
efficiency in use.
• Encourage supplier/partner companies shipping goods by
sea adhere to environmental standards on marine shipping.

71

SUSTAINABILITY ESSENTIALSAPPENDIX A SUSTAINABLE SOURCING ISSUESISSUEDESCRIPTION
WORKERS AND COMMUNITIESCommunity
Local and indigenous people who have
Rightstraditional rights to land that companies
want to develop for certain commodities
can be harmed by development that does
not consider their rights. Suppliers/partners
should demonstrate that they are working
with local government and community
representatives to ensure that traditionalrights (customary rights) are respectedprior to land development and throughout
production operations including free, priorand informed consent has been granted.
Growers on small farms, called smallholder
farmers, may have limited access to
information, technology, and resources.
Suppliers/partners should determine where
their crops are grown, understand if theysource from small farms, and work withorganisations that help smallholder farmers
overcome challenges and achieve greaterand more sustainable results.
SocialSourcing decisions and activities may
impact local communities in close proximity
Investment
to where goods and services are to bedelivered or upstream in the wider supply
chain. Impacts of such decisions andactivities in the local and wider community
should be analysed and should be mitigatedthrough positive contributions andinvestments (e.g. create local employment,
use of local suppliers or investments incommunity infrastructure projects suchas schools, health facilities or open/
recreational space).

72

EXAMPLE ACTIONS• Processes are in place to identify and assess risks andimpacts related to land rights risks (individuals, indigenous
people and local communities including business andcommerce) within your organisation’s value chain.
• Where sourcing involves property or land, including theuse and transfers of it, suppliers and partners are requireddemonstrate how all negotiations adhere to the principles
of free, prior and informed consent, contract transparency
and disclosure.
• Encourage suppliers and partners to provide opportunities
to support growing artisan and smallholder producers
within your organisation’s value chain.
NOTE: See also Sustainable Forestry and Deforestation,
page 70.

• Promote community development as part of sourcing
activities and decisions including consideration of theeconomic and social impacts of entering or leaving
a community.
• Analyse impact of sourcing decisions on employment
creation and capacity building and on the alleviationof poverty.
• Explore opportunities for participation of SMEs,
non-profit social enterprises, women-owned andminority ethnic businesses and young entrepreneursin your organisation’s value chain.
• Consider participation in local and national skills
development programmes, including apprenticeshipprogrammes, programmes focused on disadvantaged
groups and skills recognition schemes.
• Help develop or improve skills development programmes
in the community where these are inadequate inpartnership with key stakeholders.
• Provide opportunities to local suppliers to supply goods
and services and contribute to local supplier development
where possible.

APPENDIX A SUSTAINABLE SOURCING ISSUESISSUE
Sustainable
Mining &Conflict Minerals

Workers

DESCRIPTION
Mining operations can pollute the air andwater, diminish natural resources andjeopardise community and worker rights,
health and safety. Raw materials should
be sourced from suppliers/partners thatbenchmark the sustainability practicesof their mining operations against
recognised standards.
Certain minerals, including gold and oresof tantalum, tin and tungsten, that may bemined in areas where groups responsible
for human rights abuses control and profit
from mining operations. Materials should
be sourced responsibly and efforts madeto help improve stability and quality of life
for miners and their communities.
Workers may be exposed to hazards in theworkplace such as dust, noise, harmful
chemicals or be mistreated. In some partsof the world, they may be subject to forced
labour conditions and their rights to freedomof association, equal opportunity andtreatment and fair wages may not beprotected. Goods and services must be
sourced from suppliers/partners that respecthuman rights and address worker health andsafety and labour rights proactively
and transparently.

SUSTAINABILITY ESSENTIALSEXAMPLE ACTIONS• All sourcing of metals and minerals, particularly thoselikely to be from Conflict-Affected and High-Risk Areas,
must be identified and be done in full compliance withall relevant legislation.
• Risks associated with sourcing metals and minerals inthe supply chain must be identified and an appropriate
level of independent due-diligence carried out. Suppliers
and partners are required to demonstrate the steps they
have taken to identify mines, smelters and refiners forcertain metals and minerals.
• Suppliers/partners required to verify traceability or chain ofcustody information (e.g. mine of origin, trade routes, suppliers)
for metals and minerals used in key products (e.g. medals).
• Encourage use of recycled content in products to reducethe burden and negative impacts of metal and metalproduct manufacturing across the supply chain.
• Suppliers and partners have confirmed that they meet relevant
human rights legislation (e.g. Modern Slavery Act) and havemade a public policy commitment to meet their responsibility
to respect internationally recognised human rights standards.
• Due-diligence processes are in place to identify actual andpotential negative human rights impacts of sourcing
decisions and activities with the aim of avoiding and mitigatingsuch impacts. Actual and potential negative impacts on humanrights resulting from activities by initial assessment of suppliers
and partners are identified, prevented and addressed.
• Processes are in place to enable individuals who believe
their human rights have been abused in the supply chain
to raise this and seek redress and remedy.
• Ensure that core labour rights are upheld by suppliers andpartners, such as freedom of association and collective
bargaining, no forced labour, equal opportunities andnon-discrimination, fair employment practices and social
protection, health and safety and no child labour.
• Require suppliers/partners to take appropriate steps
to create a safe and secure working environment for
all workers in their supply chains.
• Suppliers/partners are encouraged take appropriate
steps to create an inclusive environment and protect
their employees against discrimination by others.
• Consider participation in programmes that aim toprovide individuals in the supply chain with access to
skills development, training, opportunities for improving
their capabilities, functioning and for career advancement.
NOTE: See also Grievance Mechanisms, page 65.

73

SUSTAINABILITY ESSENTIALSAPPENDIX B

APPENDIX B SPEND CATEGORY AND ISSUES MATRIXSPEND CATEGORY AND ISSUES MATRIXThe following matrix contains a list of spend categories that are typically sourced or procuredby the Olympic Movement and, for each spend category, a view on the relevance of key
sustainability issues highlighted in Appendix A. Where an area is flagged as high priority,
this means that this aspect should be given careful consideration during the engagement
and tendering process.
The matrix is indicative and is intended as a starting point for what needs to be considered.
Even if a particular issue might be thought to be a low priority it should not be taken to meanthat this is not necessarily relevant or important. The matrix should be reviewed on a case bycase basis and may need to be adapted to better reflect local circumstances and priorities.

74

APPENDIX B SPEND CATEGORY AND ISSUES MATRIXSUSTAINABLE SOURCING ISSUES(APPENDIX A)TYPICAL SPENDCATEGORIES

Consumers
Consumer
Data
Protection
and Privacy

Consumer
Health and
SafetySUSTAINABILITY ESSENTIALSManaging the Supply Chain
AntiCorruption

Grievance
Mechanisms

Supply Chain
Transparency

Use of Resources
AnimalHealth andWelfareBiodiversity
and natural
capitalChemicals

Accommodation andconference facilities
Administrative services
Business travel services
Catering and food services
Cleaning services (including laundry,
pest control)
Clothing, footwear & textiles
Domestic appliances
Editorial services
Event management services
Floriculture and silviculture products
Furniture and fittings
Gifts and giveaways
IT, broadcasting and telecoms
Logistics
Mail and courier services (including
freight forwarding)Marketing materials, signage
and accessories
Medical and laboratory services& equipment
Merchandise
Office accessories, supplies
and services
Printing services
Professional services
Security and safety equipment
and supplies
Sports equipment supplies
and accessories
Temporary construction andfit-out (overlay)
Utilities (including temporary power
generation)
Vehicles (including transport
services)
Venue services (including retail,operations and maintenance)
Victory ceremonies
Waste management (including snow
removal services)

HIGH PRIORITY

MEDIUM PRIORITY

LOW PRIORITY

75

SUSTAINABILITY ESSENTIALSSUSTAINABLE SOURCING ISSUES(APPENDIX A)TYPICAL SPENDCATEGORIESAPPENDIX B SPEND CATEGORY AND ISSUES MATRIXUse of Resources
ClimateandEnergyDisposaland Endof LifeAccommodation andconference facilities
Administrative services
Business travel services
Catering and food services
Cleaning services (including laundry,
pest control)
Clothing, footwear & textiles
Domestic appliances
Editorial services
Event management services
Floriculture and silviculture products
Furniture and fittings
Gifts and giveaways
IT, broadcasting and telecoms
Logistics
Mail and courier services (including
freight forwarding)Marketing materials, signage
and accessories
Medical and laboratory services& equipment
Merchandise
Office accessories, supplies
and services
Printing services
Professional services
Security and safety equipment
and supplies
Sports equipment supplies
and accessories
Temporary construction andfit-out (overlay)
Utilities (including temporary power
generation)
Vehicles (including transport services)
Venue services (including retail,operations and maintenance)
Victory ceremonies
Waste management (including snow
removal services)

HIGH PRIORITY

76

MEDIUM PRIORITY

LOW PRIORITY

Food
Waste

Material
Efficiency

Packaging

Pollution

Product
Efficiency

Sustainable
Fish and
Shellfish

APPENDIX B SPEND CATEGORY AND ISSUES MATRIXSUSTAINABLE SOURCING ISSUES(APPENDIX A)TYPICAL SPENDCATEGORIESSUSTAINABILITY ESSENTIALS

Use of Resources
Sustainable
Forestry andDeforestation

Transportationand Logistics

Workers & Communities
Water

Community
RightsSocialInvestment

Sustainable
Mining &Conflict
MineralsWorkers

Accommodation andconference facilities
Administrative services
Business travel services
Catering and food services
Cleaning services (including laundry,
pest control)
Clothing, footwear & textiles
Domestic appliances
Editorial services
Event management services
Floriculture and silviculture products
Furniture and fittings
Gifts and giveaways
IT, broadcasting and telecoms
Logistics
Mail and courier services (including
freight forwarding)Marketing materials, signage
and accessories
Medical and laboratory services& equipment
Merchandise
Office accessories, supplies
and services
Printing services
Professional services
Security and safety equipment
and supplies
Sports equipment supplies
and accessories
Temporary construction andfit-out (overlay)
Utilities (including temporary power
generation)
Vehicles (including transport services)
Venue services (including retail,operations and maintenance)
Victory ceremonies
Waste management (including snow
removal services)

HIGH PRIORITY

MEDIUM PRIORITY

LOW PRIORITY

77

SUSTAINABILITY ESSENTIALSAPPENDIX CAPPENDIX C TEMPLATE SUSTAINABLE SOURCING CODETEMPLATE SUSTAINABLE SOURCING CODE

This appendix is intended as an aid to help you create your own organisational Sustainable
Sourcing Code. The wording supplied is not intended to be used verbatim, but rather as a template
to craft your own document. You will need to insert information that is specific to your organisation
in some sections. These can be idenified by the double brackets << >> and red italic text.

SUSTAINABLE SOURCING CODE
Introduction<<Set out a summary of the Sustainable
Sourcing Code and your organisation’s
approach to sustainable sourcing. Thissummary may include:• a lay summary of what sustainable sourcing
means to your organisation and why it
is important;• who the Code is aimed at in terms ofaudience;• what goods and services the Code applies to;• how the Code will be applied/used; and• whether the Code will be updated and how
stakeholders can provide feedback.>>
Contact
Any questions regarding this Sustainable
Sourcing Code can be addressed to:<<insert email address>>.
Core Requirements
The following sections set out the standards
we expect our suppliers and partners tocomply with and the processes and systems
we expect them to implement. Our
requirements reflect our commitment topromote adherence to internationally agreed
standards, including the UN Universal
Declaration of Human Rights,

the ILO Declaration on Fundamental Principles
and Rights at Work and the UN Guiding
Principles on Business and Human Rights.
We have also drawn from a number of multistakeholder environmental, social and ethicalstandards and codes including the UN Global
Compact and Global Social Compliance
Programme Reference Tools. In doing so,
we aim to align our requirements withinternational standards and to promotecomparability between the standards ofdifferent buying organisations.
We also recognise that some of ourrequirements will be more relevant to our
product-based suppliers and partners thanto our service-based suppliers and partners.
Human Rights
Suppliers or partners shall respect
internationally proclaimed human rights4 andensure that they are not complicit in humanrights abuses. They shall ensure any violationof human rights is remedied in a mannerconsistent with international agreements,
applicable laws and regulations, including theUnited Nations Guiding Principles on Businessand Human Rights.

Including those contained in the International Bill of Human Rights and the International Labour Organization’s Declaration
on Fundamental Principles and Rights at Work

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APPENDIX C TEMPLATE SUSTAINABLE SOURCING CODESUSTAINABILITY ESSENTIALSLabour Standards
Forced, bonded, indentured
and prison labour

Child labour

Freedom of association andeffective recognition of theright to collective bargaining•All work must be conducted on a voluntary basis, and not under threat of any penalty
of sanctions.
•The use of forced or compulsory labour in all its forms, including prison labour when not inaccordance with ILO Convention 29 (Forced Labour), is prohibited.
•Suppliers and partners shall not require workers to make deposits/financial guarantees andshall not retain identify documents (such as passports, identity cards, etc), nor withhold wages.
•Bonded labour is prohibited. Suppliers and partners shall not use any form of bonded labour nor
permit or encourage workers to incur debt through recruitment fees, fines or other means.
•Indentured labour is prohibited. Suppliers and partners shall respect the right of workers toterminate their employment after reasonable notice. Suppliers and partners shall respect theright of workers to leave the workplace after their shift.
•In the case of agency/indirectly employed workers, suppliers and partners shall ensure thatsuch workers do not pay any form of recruitment fees to any agents to gain employment.
• Suppliers and partners shall comply with:–The national minimum age for employment; or–The age of completion of compulsory education; or–Any otherwise specified exceptions; and–Shall not employ any person under the age of 15, whichever of these is higher. If however,
local minimum age law is set at 14 years of age in accordance with developing country
exceptions under ILO Convention 138, this lower age may apply.
• Suppliers and partners shall not recruit child labour nor exploit children in any way. If children
are found to be working directly or indirectly for the supplier/partner, the latter shall seek asensitive and satisfactory solution that puts the best interests of the child first.
• Suppliers and partners shall not employ young workers under 18 years of age at night, or in
conditions which might compromise their health, their safety or their moral integrity, and/or
which harm their physical, mental, spiritual, moral or social development.
• Workers have the right to join or form trade unions of their own choosing and to bargain
collectively, without prior authorisation from suppliers and partners’ management. Suppliers
and partners shall not interfere with, obstruct or prevent such legitimate activities.
• Where the right to freedom of association and collective bargaining is restricted or prohibited
under law, suppliers and partners shall not hinder alternative forms of independent and freeworkers representation and negotiation, in accordance with international labour standards.
• Suppliers and partners shall not discriminate against or otherwise penalise worker
representatives or trade union members because of their membership in or affiliation
with a trade union, or their legitimate trade union activity, in accordance with international
labour standards.
• Suppliers and partners shall give worker representatives access to the workplace in order tocarry out their representative functions, in accordance with international labour standards.

79

SUSTAINABILITY ESSENTIALS

Discrimination, harassment
and abuse

Health and safety

80

APPENDIX C TEMPLATE SUSTAINABLE SOURCING CODE

• Suppliers and partners shall take appropriate steps to create a culture and adopt practices thatrecognise, respect, value, and embrace difference for everyone’s benefit.
• Suppliers and partners shall respect equal opportunities in terms of recruitment, compensation,access to training, promotion, termination or retirement.
• Suppliers and partners shall not engage in, support or tolerate discrimination in employment
including recruitment, hiring, training, working conditions, job assignments, pay, benefits,
promotions, discipline, termination or retirement on the basis of gender, age, religion, marital
status, race, caste, social background, diseases, disability, pregnancy, ethnic and national
origin, nationality, membership in worker organisations including unions, political affiliation,
sexual orientation, or any other personal characteristics.
• Suppliers and partners shall treat all workers with respect and dignity and base all terms andconditions of employment on an individual's ability to do the job, not on the basis of personal
characteristics or beliefs.
• Suppliers and partners shall not engage in or tolerate bullying, harassment or abuse of any
kind or other forms of intimidation.
• Suppliers and partners shall establish written disciplinary procedures and shall explain themin clear and understandable terms to their workers. All disciplinary actions shall be recorded.
• Suppliers and partners shall provide safe and clean conditions in all work and residential facilities
and shall establish and follow a clear set of procedures regulating occupational health and safety.
• Suppliers and partners must take adequate steps to prevent accidents and injury to health arisingout of, associated with, or occurring in the course of work, by minimising, so far as is reasonably
practicable, the causes of hazards inherent in the working environment.
• Appropriate and effective personal protective equipment shall be provided as needed and workers
shall be trained on the proper use and maintenance of such equipment.
• Suppliers and partners shall provide access to adequate medical assistance and facilities.
• Suppliers and partners shall provide all workers with access to clean toilet facilities and to
drinkable water and, if applicable, sanitary facilities for food preparation and storage.
• Suppliers and partners shall ensure that residential facilities for workers, where provided,
are clean and safe.
• Suppliers and partners shall assign the responsibility for health and safety to a senior
management representative.
• Suppliers and partners shall provide regular and recorded health and safety training toworkers and management, and such training shall be repeated for all new or reassigned
workers and management.
• Suppliers and partners shall provide adequate safeguards against fire, including providing anadequate number of unblocked escape routes and exits, and shall ensure the strength, stability
and safety of buildings and equipment, including residential facilities where provided.
• Where provided, accommodation must be segregated from production facilities, located only inbuildings designed for the purpose of worker accommodation, and provides for individual privacy
and secure storage of personal belongings.
• Suppliers and partners shall undertake sufficient training of workers and management of
workplace health and safety hazards, including waste management, handling and disposalof chemicals and other dangerous materials, fire safety and emergency procedures.

APPENDIX C TEMPLATE SUSTAINABLE SOURCING CODE

Wages, benefits and termsof employment

Working hours

SUSTAINABILITY ESSENTIALS• Work performed must be on the basis of a recognised employment relationship established incompliance with national legislation and practice and international labour standards, whicheveraffords the greater protection.
• Labour-only contracting, sub-contracting or home-working arrangements, apprenticeshipschemes where there is no real intent to impart skills or provide regular employment, excessive
use of fixed-term contracts of employment, or any comparable arrangements shall not be used
to avoid obligations to workers under labour or social security laws and regulations arising fromthe regular employment relationship.
• Suppliers and partners must compensate their workers by providing wages, overtime pay,
benefits and paid leave which respectively meet or exceed legal minimum and/or industry
benchmark standards and/or collective agreements, whichever is higher. Wages andcompensation for regular working hours shall meet basic needs and provide some discretionary
income for workers and their families.
• Suppliers and partners shall provide all workers with written and understandable information
about their employment conditions, including wages, before they enter into employment; andabout details of their wages for the pay period concerned each time that they are paid.
• Suppliers and partners shall not make any deductions from wages that are unauthorised
or not provided for by national law. Suppliers and partners shall not make any deduction fromwages as a disciplinary measure.
• The supplier or partner shall provide all legally required benefits, including paid leave, to all
workers as well as maternity leave provision and support for child care where appropriate.
• Suppliers and partners shall always compensate all workers for all overtime at a premium rate,
as required by law and, where applicable, by contractual agreement.
• Suppliers and partners shall set working hours that comply with national laws or benchmark
industry standards or relevant international standards, whichever affords greater protection toensure the health, safety and welfare of workers.
• Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours
per week.
• All overtime shall be voluntary, shall not exceed 12 hours per week and shall not be requested ona regular basis. Overtime shall always be compensated at a premium rate, which isrecommended to be not less than 125% of the regular rate of pay.
• The total hours worked in any seven day period shall not exceed 60 hours unless in exceptional
circumstances where all of the following are met:
– this is allowed by national law;
– this is allowed by collective agreement freely negotiated with a workers’ organisation
representing a significant portion of the workforce;– appropriate safeguards are taken to protect the workers’ health and safety; and– the supplier or partner can demonstrate that exceptional circumstances apply such as
unexpected production peaks, accidents or emergencies.
• Workers shall be provided with at least one day off in every seven-day period or, where allowedby national law, two days off in every 14 day period well as public and annual holidays.

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SUSTAINABILITY ESSENTIALSAPPENDIX C TEMPLATE SUSTAINABLE SOURCING CODE

Bribery and corruption
We expect suppliers and partners to act
professionally, fairly and with integrity in all theirbusiness dealings and relationships wherever
they operate and to assess risks, implement
and enforce effective systems to counter fraud,
bribery, and other forms of corrupt businesspractices. Suppliers and partners must also
uphold fair business standards in advertising,sales and competition.
If we have serious concerns about a suppliers
and partners ethical business conduct(whether they relate to our organisation or not)we will review our relationship with them.

Community impacts
We expect all suppliers and partners tounderstand how their decisions and activities
impact on local communities and the generalpublic (e.g. nuisances) and take appropriate
steps to mitigate such impacts. They areencouraged to make positive contributions andinvestments in their local and wider community.
Environmental Standards
Suppliers and partners shall conduct all
operations in full compliance with all applicable
environmental laws and regulations as well
as develop, implement and maintain businesspractices that minimise the impact of theiroperations, products and services on
the environment.
Suppliers and partners shall support
a precautionary approach to environmental
challenges.

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APPENDIX C TEMPLATE SUSTAINABLE SOURCING CODE

Impact on climate andair quality

Waste, reuse and recycling

Use of chemicals

Conservation of species
and natural habitats

SUSTAINABILITY ESSENTIALSThe supplier or partner should aim to mitigate impacts on climate change and air quality by:•Mitigating greenhouse gas emissions and other air emissions that harm the environment.
•Continuously improving energy management and efficiency (e.g. using/supplying products thatmeet or exceed recognised energy efficiency standards).
•Selecting energy sources responsibly and taking appropriate steps towards adopting lower-carbon
intensity and renewable energy sources.
•Using low- or zero-emission transport modes. Suppliers and partners should aim to optimisetransport efficiency and/or minimise transport distances wherever possible.
We place a high priority on the prevention of waste. Suppliers and partners are expected todemonstrate a pro-active approach in this area by reducing waste, achieving high reuse andrecycling, avoiding the use of landfill and proactively offering solutions aligned with circular
economy innovation.
•Use of primary, secondary and tertiary packaging must be optimised.
•Where practicable, all products and packaging should be able to be easily reused or recycled.
Suppliers and partners must confirm that such items can actually be reused or recycled or put
specific reuse or recycling arrangements in place.
•Proposing solutions to take back products and packaging and ensure their reuse or recycling,
if requested.
•Suppliers and partners are also encouraged to propose products which contain reused or
recycled content.
We encourage the use of substances and materials that do not represent a risk to humanhealth and the environment. This is not limited to those that have been regulated or restricted
in particular regions.
<<Include specific requirements on chemicals including substances/materials that must be
prohibited from use, or are restricted in their use>>
Suppliers or partners shall ensure raw materials of natural origin have been sourced legallyand must not supply or use products or packaging that make use of any fur, skin, feathers,
food or food ingredients of plant or animal origin (including fish) of any species specified in
the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
Appendices and in the International Union for Conservation of Nature (IUCN) Red List of
Threatened Species.
We reserve the right to stipulate additional requirements of relevance to the conservation of
species and natural habitats including sourcing raw materials from more sustainable farming
and forestry practices.

Animal welfare and testing
Suppliers and partners must ensure the highest standards of animal health and welfare both for animals
that are raised for meat, fish, eggs and dairy products and for animals used for work and transport. Theinternationally recognised ‘Five Freedoms’ is used as the reference point for such standards.
All cosmetic and cleaning products and ingredients supplied must not have been tested on animals
and ideally be certified as an internationally recognised standard, such as ‘Cruelty Free’ by Cruelty Free
International.

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SUSTAINABILITY ESSENTIALSAPPENDIX C TEMPLATE SUSTAINABLE SOURCING CODE

PRINCIPLES OF IMPLEMENTATION
Complying with the Sustainable
Sourcing CodeThe requirements set out in this Sustainable
Sourcing Code constitute minimum and not
maximum standards. Suppliers and partners
are expected to comply with applicable laws
and regulations related to environmental andsocial responsibility and to ethical businessconduct. Where regulatory provisions are more
stringent, suppliers and partners shall apply
the more stringent provisions.
Integrating sustainability into company
culture and business practices
Suppliers and partners must manage theimpacts of their activities in the context of the
products and services supplied to <<insert
name of organisation>> and have a basic
management system in place (which may or
may not be independently certified). Suppliers
and partners should take appropriate steps tointegrate the relevant requirements of thisSustainable Sourcing Code into their business
management practices as appropriate.
It is the supplier and partners responsibility
to achieve and maintain our standards andto communicate, monitor and enforce thesestandards within their own supply chain.
Use of sub-contractors, homeworkers
or other third parties
Suppliers and partners must agree with us inadvance the organisations and the production
site or sites to be used. Sub-contracting of any
kind (e.g. organisations, sites or units) is not
permitted without pre-authorised permission
in writing from us.

84

Transparency
In today’s increasingly transparent world weare committed to working with our suppliers
and partners in an open, constructive andtransparent manner and we request our
suppliers and partners to do the same. In thisspirit, suppliers and partners must be willingto provide information about a product’s orservice’s social, environmental and ethicalcredentials including full details of all sites
used (e.g. factories). We also reserve theright to disclose and/or publicise suchinformation to advance our sustainability goals.
Claims and declarations
Suppliers and partners must ensure that any
claims and declarations made about products
and services (e.g. recyclability, recycledcontent, or ‘carbon-neutral’) are legal, honest,transparent and verifiable. The use of thirdparty logos (e.g. FSC®, Fairtrade, or Rainforest
Alliance) is likely to be strictly controlled so thenecessary licenses and permissions must be
obtained from the corresponding certification
or licensing body prior to use.
Workplace grievances
Suppliers and partners shall provide
a mechanism for their employees and workers
in their supply chain to raise workplace issues
and concerns without fear of retribution.
This grievance mechanism should involve anappropriate level of management and seek toaddress concerns promptly and transparently.
Arrangements must allow for issues andconcerns to be raised and addressed
anonymously and be clearly communicatedto all workers and their representatives.
Complaints<<Include information on how complaints
about implementation of the code by suppliers/
partners may be received/submitted>>APPENDIX C TEMPLATE SUSTAINABLE SOURCING CODE

Monitoring and evaluation
We will monitor and evaluate our suppliers
and partners’ adherence to our requirements
through various methods, including review of
documented evidence or independent
specialist audits if deemed relevant.

SUSTAINABILITY ESSENTIALS

Any violations of our standards may jeopardise
the supplier or partners business relationshipwith the us and may lead to the terminationof the contract or cooperation. We reserve
the right to take any further legal action atits discretion.

SUSTAINABLE SOURCING CODE – SUPPLIER/PARTNER COMMITMENT

As a <<insert name of organisation>> supplier/partner we understand that they wantto engage and collaborate with organisations that share their sustainability ambition beyond
managing risk and complying with the law to contribute actively to global sustainability in linewith their vision: <<insert reference to vision>>
As a minimum, we commit to complying with the requirements outlined in this Sustainable
Sourcing Code, and to implement them in our business and supply chains. We acknowledge
that these requirements constitute minimum and not maximum standards.
We agree to be monitored and evaluated on our sustainability performance within the areas
described in this Sustainable Sourcing Code.
We also acknowledge that we may be asked to meet additional sustainability requirements
which are specific to certain categories of products and services.
<<insert signature>>………………………………………………..
<<insert name and position held>>
duly authorised to sign for and on behalf of<<insert company name>>
Date………………………………………………..

85

SUSTAINABILITY ESSENTIALSAPPENDIX D EXAMPLE SUSTAINABILITY DUE-DILIGENCE QUESTIONSAPPENDIX D EXAMPLE SUSTAINABILITY
DUE-DILIGENCE QUESTIONS
The following questions are examples of whatmight be asked of organisations during prequalification and prior to issuing a tender.
If you progress straight to tender these orsimilar questions should be asked alongside
those more specific to the goods and services
being sought.
Please provide details of your approach tosustainability, covering the following:• Does your organisation have a publicsustainability policy and/or strategy?
If so, please provide details, includingorganisational scope (i.e. the extent theywould apply to goods and services supplied).
• Does your organisation have a senior
manager and/or management committee
responsible for sustainability? If so, please
give a role description, and the name andgrade of the person in that role.
• Has your organisation undertaken a review
of its environmental and social issues andimpacts and set appropriate performance
objectives and targets? If so, please provide
details of key objectives and targets in thisarea and related achievements.
• Do you communicate sustainability
objectives and targets employees andwider external stakeholders? If so, pleaseprovide details.
• Does your organisation have formal certified
systems in place to manage environmental
and social issues (examples include:
Environment (e.g. ISO 14001); Health &Safety (e.g. ISO 45001); Event Sustainability(e.g. ISO 20121)) or does it
have business specific or informal systems
in place? If so, please provide details.
• Does your organisation undertake auditsof your management system arrangements?
If so, please provide details.

86• Does your organisation formally report
externally on progress towards meeting yoursustainability objectives and targets? If so,please indicate how and to whom, andprovide examples (e.g. your latest
Sustainability Report).
• Is training provided to employees in relation
to sustainability? If yes please provide detailsof the training.
• Has your organisation been successfullyprosecuted for infringement of environmental
or social legislation and/or received adverse
media or stakeholder notoriety in the past
five years? If yes, please outline themeasures your company took to rectify thesituation and measures taken to minimise
the chances of reoccurrence.
Please provide details on your approachto managing your supply chain, covering
the following:• Does your organisation have an EthicalSourcing Policy or Supplier Code of
Conduct? If so, please state what it covers– e.g. human rights, labour standards,
environmental management, animal
welfare etc.
• Does your organisation assess theeffectiveness of your Ethical Sourcing Policy
or Supplier Code of Conduct? If so, pleaseprovide details.
• Has your organisation traced the tiers of its
supply chain? If so, please details of the levelof visibility you have across different tiers.
• Does your organisation ensure that people
affected by your supply chain activities haveaccess to grievance mechanisms andremedy? If so, please provide details.

APPENDIX E REFERENCES AND GUIDANCEAPPENDIX ESUSTAINABILITY ESSENTIALSREFERENCES AND GUIDANCE

Useful guides and tools• BSI, Sustainable Events Guide – Developing
a sustainability management system forevents: A stepping-stone to BS ISO 20121• BSI, Executive Briefing: BS 8001 – a Guide:
The world’s first standard for implementing
the principles of the circular economy inorganizations• BS 8001:2017, Framework for implementing
the principles of the circular economy inorganizations – Guide• Ergon Associates Ltd, Access to remedy– operational grievance mechanisms:
An issues paper for ETI• ISO 20121:2012, Event sustainability
management systems – Requirements withguidance for use• ISO 20400:2017, Sustainable procurement– Guidance• OECD, OECD Guidelines for Multinational
Enterprises• OECD, OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas• Sedex, Sedex Supplier Workbook• UN, Guiding Principles on Business andHuman Rights• UN, Buying for a Better World: A Guide on
Sustainable Procurement for the UN System• UN Global Compact and BSR, Supply Chain
Sustainability: A Practical Guide forContinuous Improvement• UN Global Compact and BSR, A Guide
to Traceability: A Practical Approach toAdvance Sustainability in Global Supply
Chains• World Business Council for Sustainable
Development, People Matter Reward: Linking
sustainability to pay

Useful links• The Events Industry Council Principles for
Sustainable Events were developed byrepresentatives of global events, tourism andsustainability bodies to guide and motivate
event organisers worldwide to embrace andimplement more sustainable event practices.
View the principles at https://eventscouncil.
org/Sustainability/Sustainability-Pledge formore information.
• The Global Social Compliance
Programme Reference Tools are a suiteof documents compiling best practices for
managing sustainable supply chains. Visit
the website at https://www.
theconsumergoodsforum.com/initiatives/
sustainable-supply-chain-initiative/globalsocial-compliance-programme-gscp for
more information.
• The Supplier Ethical Data Exchange(Sedex) is the world’s largest collaborative
platform for sharing responsible sourcing
data on supply chains. Visit the website
at https://www.sedexglobal.com for
more information.
• The ITC Standards Map provides information
on standards, codes of conduct and audit
protocols addressing sustainability hotspots
in global supply chains. Visit the website at
http://sustainabilitymap.org/standardidentify/
for more information.
• The ISEAL Credibility Principles provide
guidance on fundamental qualities that makestandards most likely to achieve positive
impacts. Visit the website at https://www.
isealalliance.org/credible-sustainabilitystandards/iseal-credibility-principles for more
information.

87

SUSTAINABILITY ESSENTIALSAPPENDIX E REFERENCES AND GUIDANCE• The ISEAL Challenge the Label webpage isa tool for claims users to distinguish between
credible and non-credible claims. Visit thewebsite at https://community.isealalliance.
org/challenge for more information.
• The Sustainability Consortium is a globalorganisation working with the consumer
goods industry to deliver more sustainableconsumer products. They have developed
the ProductFinder online platform, which
includes free sustainability insights on a wide
range of consumer goods products.
Visit the website at https://www.
sustainabilityconsortium.org/productsustainability/productfinder/
for more information.

88• The EU has developed Green Public
Procurement (GPP) criteria for public bodies
for certain categories of goods and services.
Visit the website at http://ec.europa.eu/
environment/gpp/eu_gpp_criteria_en.htm for
more information.
• The GRI, the UN Global Compact and theWorld Business Council for Sustainable
Development (WBCSD) have developed the
SDG Compass which aims to support
companies of all sizes in aligning theirstrategies with the UN Sustainable
Development Goals. Visit the website https://
sdgcompass.org for more information.