GRI 204 Procurement practices

By supporting local suppliers, an organization can indirectly attract additional investment to the local economy. Local sourcing can be a strategy to help ensure supply, support a stable local economy, and maintain community relations.

The reporting organization can describe actions taken to identify and adjust the organization’s procurement practices that cause or contribute to negative impacts in the supply chain, including how dialogue with suppliers is used to identify procurement practices that cause or contribute to negative impacts in the supply chain, actions taken to adjust payment policies and procedures. Iz is important to describe policies and practices used to select locally-based suppliers, either organization-wide or for specific locations; furthermore organization should explain the methodology for tracing the source, origin, or production conditions of raw materials and production inputs purchased, if applicable and describe policies and practices used to promote economic inclusion when selecting suppliers.