Contracting Policy Notice 2023-1: Amendments to the Directive on the Management of Procurement to integrate Human Rights; Environment, Social and Corporate Governance (ESG) Principles
To: Senior Designated Officials for Procurement and Functional Heads of Procurement, Administration and Finance units at all departments
Subject: Amendments to the Directive on the Management of Procurement related to human rights; environment, social and corporate governance principles; and supply chain transparency principles.
The Government of Canada is committed to protecting government spending from unethical business practices and is implementing measures to strengthen federal procurement policies to integrate human rights; environment, social and corporate governance principles; and supply chain transparency principles.
The Directive on the Management of Procurement has been amended to complement existing language supporting socio-economic and environmental objectives with new requirements addressing human rights, ethical, and supply chain principles. In addition, the amendments make the Code of Conduct for Procurement mandatory for all procurements. The amendments take effect on April 1, 2023.
Specifically, the amendments set responsibilities for:
- Senior Designated Officials to ensure that departmental procurement management frameworks integrate respect for human rights, environment, social and responsible corporate behaviour into procurements and include measures for identifying, mitigating and disclosing the risk that human trafficking, forced or child labour, or any other unethical business practices is occurring in departmental supply chains
- Business Owners to support procurement-planning and decision-making by identifying, mitigating and disclosing risks and occurrences that may have a negative impact on human rights, and environmental and social considerations
- Business Owners to ensure that intended outcomes of procurements include, where appropriate, human rights considerations to prevent and reduce the risks of unethical business practices in markets where risks are highest, and to ensure that suppliers doing business with the government operate in a socially responsible manner
- Business owners in collaboration with contracting authorities to protect government spending from unethical business practices and to require that suppliers and sub-contractors of goods and services apply ethical and sustainability standards across their supply chains and adhere to the Code of Conduct for Procurement
- Contracting Authorities to incorporate the Code of Conduct for Procurement into procurements
Departments are advised to update their departmental procurement management framework to reflect the new requirements.
Questions about this policy notice or the Directive on the Management of Procurement should be directed to Public Enquiries.
For questions about the Code of Conduct for Procurement, please email: firstname.lastname@example.org
Assistant Comptroller General, Acquired Services and Assets Sector
Treasury Board of Canada Secretariat
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