Proportion of spending on local suppliers, GRI 204-1 (G4-EC9-a)
What proportion of the company's spending goes to local suppliers? 

About the data

This metric is based on the Global Reporting Initiative Sustainability Standards. 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.

GRI 204 addresses the topic of procurement practices. This covers an organization’s support forlocal suppliers,or those owned by women or members of vulnerablegroups

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 disclosures in this Standard can provide information about an organization’s impacts related to market presence, and how it manages them.

In 2018, the GRI G4 Sustainability Reporting Guidelines were superseded by the GRI Sustainability Reporting Standards (GRI standards). For this metric, the code G4-EC9-a is used in company reporting prior to 2018, and the new GRI 204-1 code used in reporting from 2018 onwards. The methodology for the former G4 standard for this metric can be found here.

For this metric question you are being asked to identify percentage of the procurement budget used for significant locations of operation that is spent on suppliers local to that operation (such as percentage of products and services purchased locally).

Answers & Calculations
Local purchases can be made either from a budget managed at the location of operation or at an organization’s headquarters.

If more than one location is reported, the metric value should relate to the location where the company is headquartered.

Keywords and search terms for this metric
- Procurement
- Local suppliers
- 204
- GRI Index

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