This glossary provides procurement professionals with 20 essential concepts and terms critical to aligning procurement with SCP (Sustainable Consumption and Production) principles. Each term includes a detailed explanation and its relevance to SCP, ESG, and SDG compliance.

1. SCP (Sustainable Consumption and Production)
   A systemic approach to resource-efficient, low-emission, and socially responsible production and consumption. SCP is the core strategy under SDG 12 and drives ESG-aligned procurement. Procurement officers must prioritize goods and services that reduce life cycle impacts, enhance circularity, and support equity.
2. ESG (Environmental, Social, Governance)
   The three pillars used by investors and global buyers to assess business sustainability. Procurement must integrate ESG criteria when selecting suppliers, especially in industries targeted by FTSE Russell or EU Taxonomy.
3. SDG 12 (Responsible Consumption and Production)
   The Sustainable Development Goal most directly tied to procurement practices. SCP-aligned procurement contributes to SDG 12 targets like 12.2 (resource efficiency), 12.4 (chemical management), and 12.6 (corporate sustainability reporting).
4. Responsible Sourcing
   The practice of sourcing raw materials or services in a way that minimizes environmental damage and maximizes social good. It’s foundational for SCP and expected in EU/US/Japan procurement systems.
5. Supplier Code of Conduct
   A formal document suppliers must sign, outlining labor rights, environmental practices, and ethical standards. Integral for SCP-aligned supply chains and part of ESG due diligence.
6. ESG Due Diligence
   A structured process to assess suppliers’ environmental, social, and governance risks. Essential for identifying gaps and aligning procurement decisions with SCP.
7. Scope 3 Emissions
   Greenhouse gas emissions occurring outside the company’s direct operations (e.g., in supply chains). SCP procurement must actively reduce Scope 3 through supplier engagement and design changes.
8. Circular Procurement
   A key SCP strategy that focuses on purchasing durable, repairable, and recyclable products, encouraging closed-loop systems. This supports SDG 12.5 (waste reduction).
9. FTSE Russell ESG Indicators
   Global benchmarks used to score firms and suppliers on sustainability. Relevant SCP indicators include ECC01 (emissions), SHR07 (human rights), and EPR24 (circular economy).
10. Life Cycle Assessment (LCA)
    A methodology for evaluating the environmental impact of a product throughout its life. SCP procurement requires understanding LCA to select low-impact alternatives.
11. Human Rights Due Diligence
    A critical element of responsible supply chains, ensuring that procurement does not contribute to forced labor, child labor, or rights violations, per OECD and UNGPs.
12. Green Public Procurement (GPP)
    Public procurement policies that prioritize environmental sustainability. SCP-aligned private procurement increasingly mirrors GPP principles.
13. OECD Due Diligence Guidance
    International standards on responsible business conduct in supply chains. SCP-aligned procurement relies on these for conflict minerals, human rights, and environmental vetting.
14. Traceability
    The ability to track and verify the origin and journey of products and materials. Key to SCP enforcement and circular economy verification.
15. Carbon Disclosure
    Supplier transparency on carbon emissions, especially Scope 1, 2, and 3. Enables SCP-informed decisions that align with climate goals.
16. Ethical Trade
    Fair labor, safe working conditions, and equitable business practices. SCP procurement embeds ethical trade into supplier selection.
17. Conflict Minerals
    Materials sourced from conflict zones or unethical operations (e.g., cobalt, tungsten). SCP demands rigorous sourcing policies and supplier transparency.
18. CSCAP (Consumer Sustainability Cooperation Action Platform)
    A UN-aligned initiative to connect SCP-ready suppliers with global ESG buyers. Acts as a matchmaking and verification platform.
19. SSA (Sustainability Services & Supply Chains Alliance)
    A global alliance under STNSM.org that helps suppliers implement SCP practices and gain visibility in ESG markets.
20. ISO 20400 – Sustainable Procurement Guidelines
    The global standard for integrating sustainability into procurement. Provides principles, process guidance, and stakeholder engagement aligned with SCP.

This glossary is a foundational tool for procurement professionals transitioning from traditional practices to SCP-aligned systems, enabling access to global ESG markets and enhancing long-term commercial and sustainability performance.