Sustainable Procurement Glossary

U.S Federal Government Contractors are required to submit compliance plans to prevent labor abuse and trafficking in contracting and subcontracting activities.

Publicly listed companies doing business in Australia are required to publish an annual slavery and human trafficking statement.

The California Transparency in Supply Chains Act, which became effective on January 1, 2012, empowers California consumers to join the fight against human trafficking by giving them access to information about retailers’ and manufacturers’ efforts to eradicate such labor practices from their supply chains.

The OECD Anti-Bribery Convention establishes legally binding standards to criminalise bribery of foreign public officials in international business transactions and provides for a host of related measures that make this effective. It is the first and only international anti-corruption instrument focused on the ‘supply side’ of the bribery transaction. The 36 OECD countries and 8 non-OECD countries – Argentina, Brazil, Bulgaria, Colombia, Costa Rica, Peru, Russia and South Africa – have adopted this Convention.

The Health and Safety at Work etc Act 1974 is the primary piece of legislation covering occupational health and safety in Great Britain.

Occupational Safety and Health Act of 1970 was created to assure safe and healthful working conditions for working men and women in the United States.

The Foreign Corrupt Practices Act of 1977 was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.

UK Bribery Act of 2010. An Act to make provision about offences relating to bribery; and for connected purposes. Allowing penalties of an individual or a company with any link to the United Kingdom no matter where the crime occurred.

International labor standards are legal instruments drawn up by the United Nations International Labor Organization’s constituents (governments, employers and workers) and setting out basic principles and rights at work. They are either conventions, which are legally binding international treaties that may be ratified by member states, or recommendations, which serve as non-binding guidelines. The ILO brings together governments, employers and workers of 187 member States, to set labour standards, develop policies and devise programmes promoting decent work for all women and men.

AMLD IV (EU) is the European Union Anti-Money Laundering Directive that reinforces EU rules to prevent the use of financial systems for the purposes of money laundering or terrorist financing.

This directive aims to enhance the transparency of the social and environmental information provided by undertakings in all sectors. Mandating that businesses divulge information on sustainability such as social and environmental factors, with a view to identifying sustainability risks and increasing investor and consumer trust.

Kyoto Protocol operationalizes the United Nations Framework Convention on Climate Change by committing industrialized countries to limit and reduce greenhouse gases (GHG) emissions in accordance with agreed individual targets. In its Annex B, the Kyoto Protocol sets binding emission reduction targets for 36 industrialized countries and the European Union.

Agreement is set to ensure sustainable sourcing for 95 percent of all EU imports of tin, tantalum, tungsten and gold. This regulation aims to stop the financing of armed groups in developing countries through the trade of tin, tantalum, tungsten and gold. The agreement on the Regulation, brokered by the Commission, will ensure that the vast majority of these minerals and metals imported to the EU are sourced responsibly.

An Act to make provision for the improved control of pollution arising from certain industrial and other processes.

Today, ESG ratings are used to evaluate a company based on its environmental, social, and governance practices, to provide transparency for investors, customers, and the industry as a whole

Social responsibility in business means that businesses not only work to maximize shareholder value but that they also act in a manner that is beneficial to society.

The Sustainable Development Goals (SDG) were established in 2015 by the United Nations General Assembly and are a compilation of 17 agreements made by 193 countries to work toward achieving in order to “transform the world by 2030.”

The Carbon Footprint is the amount of greenhouse gas emissions created by the activities of an entity, such as a business, organization, or individual.

Sustainability reporting enables organizations to consider their impacts on a wide range of sustainability issues. This enables them to be more transparent about the risks and opportunities they face.

A Supplier evaluation refers to the process of evaluating and approving potential suppliers by quantitative and qualitative assessment.

A supplier code of conduct is created for the purpose of ensuring that a company’s suppliers are working in responsible and environmentally-friendly conditions

A CSR assessment is an evaluation of how well a company has integrated the principles of CSR into their business. An assessment program is a first step into an ongoing monitoring process

Corporate social responsibility is an organization’s responsibility for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior

Sustainable Sourcing, also called “Responsible sourcing”, is the integration of social, ethical and environmental performance factors into the process of selecting suppliers

This guide gives you answers to frequently and commonly asked questions on sustainable procurement

Sustainable procurement is the adoption and integration of Corporate Social Responsibility (CSR) principles – including Environmental and Ethical criteria into your procurement processes