GRI 204: Procurement Practices 2016 sets out reporting requirements on the topic of procurement practices. This Standard can be used by an organization of any size, type, sector or geographic location that wants to report on its impacts related to this topic.
In the context of the GRI Standards, the economic dimension of sustainability concerns an organization’s impacts on the economic conditions of its stakeholders, and on economic systems at local, national, and global levels. It does not focus on the financial condition of an organization.
The Standards in the Economic series (200) address the flow of capital among different stakeholders, and the main economic impacts of an organization throughout society.
GRI 204 addresses the topic of procurement practices. This covers an organization’s support for local suppliers, or those owned by women or members of vulnerable groups. It also covers how the organization’s procurement practices (such as the lead times it gives to suppliers, or the purchasing prices it negotiates) cause or contribute to negative impacts in the supply chain.
The disclosures in this Standard can provide information about an organization’s impacts related to procurement practices, and how it manages these impacts.
Effective date: 1 July 2018
Earlier adoption is encouraged.
GRI 204: Procurement Practices
1. Management approach disclosures
2. Topic-specific disclosures
Disclosure 204-1 Proportion of spending on local suppliers