Sustainable procurement focuses on purchasing services and products consciously that are created in socially responsible ways, aligning with business sustainability. It is about more than just selecting the right suppliers. Instead, businesses must consider a product’s lifecycle and its negative impact on the planet.
Ultimately, sustainable procurement helps businesses achieve their environmental goals and operate more sustainably. Therefore, if you want to make your business greener, looking at your procurement and implementing sustainable procurement is a great place to begin.
About sustainable procurement
Sustainable procurement is a means of buying services and products that consider the social and environmental effects of an organization’s purchasing decisions at all times. Adopting a sustainable procurement policy means embedding values important to the business in the organization’s supply chain into the life cycle of the organization’s services and products.
It refers to planning for a changing climate and a socially-beneficial and inclusive society. Sustainable procurement sees brands future-proof the company’s investments and chain of supply to ensure they are all viable in the long term. The process of sustainable procurement combines social, governance, and environmental factors into the procurement process whilst also ensuring they still meet stakeholder requirements.
Essentially, it’s about making decisions that will benefit the organization and society and minimize your environmental footprint. Some actions of sustainable procurement can include cutting down on energy consumption, using ethically sourced materials, reducing carbon emissions, and making shipping practices more efficient and streamlined.
Why does sustainable procurement matter?
There is a significant demand now for sustainable products and processes. The main reason for this is that creating more eco-conscious products and implementing sustainable processes can help us reduce our impact. For example, by reducing waste and enhancing resource efficiency.
Sustainable procurement also helps minimize energy consumption and carbon emissions. Additionally, it will help you comply with environmental guidelines. Therefore, incorporating sustainable procurement practices into your business will put less strain on the planet.
However, sustainable procurement has many other benefits besides saving the planet. For instance, it helps your business to comply with laws and regulations and ensures security and continuity of supply. You will also be able to manage your reputation and customer perceptions better.
Implementing socially responsible sustainable procurement practices will help you minimize business risks, facilitate access to capital, and better control costs. Sustainable procurement eliminates child labour, ensures workers get a living wage, and involves employees in essential community projects. Organizations that implement sustainable procurement generally also invest in projects that improve the lives of many members of our society.
Ultimately, sustainable procurement adheres to the 3P or triple bottom line approach as it is often known – people, planet, and profit. In other words, business leaders can do environmental and social good while still carrying out their business operations and making a profit.
Summary
Sustainable procurement is a vital step in aligning with the Corporate Sustainability Reporting Directive (CSRD) strategy. It enables organizations and industries to take the lead in reversing climate damage. Additionally, sustainable procurement reveals the organization is entirely aware of future impacts and takes them into account when making purchasing decisions.
