Why sustainable procurement continues to be important
Explore why sustainable procurement is more important than ever
What is sustainable procurement and why does it matter?
Sustainable procurement supports the sustainability goals of the organisation and optimises the environmental, social, and economic impacts over the life cycle of the product or service.
Take a look below at some of typical sustainable procurement practices
- Compliance with environmental laws and targets
- The removal of hazardous/forbidden materials and waste in the supply chain
- The thorough vetting of suppliers for fair labour practises.
Sustainable procurement should give organisations a competitive advantage and help to ‘future proof’ it’s long-term objectives.
Why procure sustainably?
Social issues in the supply chain, such as slavery, forced labour and human trafficking, affects every industry. Whether that’s electronics, steel, agriculture, seafood, textiles and many more. Whilst modern slavery is illegal in every country in the world, it still occurs.
Governments and consumers are supporting, if not demanding, that organisations act to implement ethical and sustainable practices. Here are just a few of the negative impacts that organisations can face if actions and function in the supply chain are not done sustainably.
- Reputational damage if they are found to be sourcing from suppliers who use exploitive labour, forbidden materials, or poor waste disposal practices
- Face legal action if they do not meet the minimum legal requirements
Procurement professionals also have a key role to play, to ensure suppliers are rewarded for good sustainability practices. Environmental issues such as pollution, carbon emissions, deforestation, recyclable materials, energy usage, end of life disposal can also be addressed to minimise the impact on the planet.
What benefits does sustainable procurement bring to your organisation?
A track record of implementing sustainable procurement has several benefits. These can be summarised below:
- If a supplier is associated with an organisation that has bad practices like child labour or pollution, this can have a financial impact on the organisation and its brand reputation.
- Sustainable procurement partners should prevent increased costs of the transfer of ownership and the consumption of energy costs in the long-term. Cost savings allows re-investment into an organisation.
- Consumers that buy into sustainability can improve organisations financials and increase brand equity and loyalty. An organisation can also save money from using sustainable procurement partners.
- Developing sustainable procurement practices allows the organisation to future proof themselves against scarcity in supply and changes in social, economic, and environmental factors.
- Reducing the impact of hazardous substances on human health and the environment.
- Encourages innovation when thinking about how to be more efficient using natural resources.
- Improve risk management by working with suppliers who are less likely to encounter risks due to environmental issues.
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