Sustainable Procurement Explained: Its Importance Highlighted
In today's global economy, sustainable procurement has become more than just a trend - it's a necessity. This approach to procuring goods and services involves considering not only cost and quality, but also the environment and society.
Companies that embrace sustainable procurement are making a conscious effort to reduce their carbon footprint, conserve natural resources, and promote recycling. By doing so, they are not only attracting social investors, employees, and partners, but also improving their corporate image and customer trust.
One of the key elements in sustainable procurement is defining clear, achievable, and reasonable sustainability objectives. These objectives help guide the procurement process, ensuring that decisions are made with a focus on the triple bottom line: people, planet, and profit.
Several tools and strategies can help companies achieve their sustainability goals. Leveraging technology, such as data analytics and blockchain, can provide transparency, monitor, and evaluate the sustainability of procurement. Supplier checks and assessments are also crucial, allowing companies to determine where changes are needed.
Engaging suppliers and encouraging them to embrace sustainability is another important step. This can be achieved through reviews and ratings, as well as checks of a supplier's certifications.
The German company Henkel, for instance, has been a pioneer in sustainable procurement. In 2024, they implemented an environmentally friendly and socially responsible process optimization in procurement. This included initiatives like 100% responsible sourcing covering about 97% of its purchasing volume and involvement in the "Together for Sustainability" initiative which introduced a standardized data platform for supply chain emissions.
Various national authorities also implement enhanced rules on environmental and social responsibility, forcing firms to change for the better. Compliance with these regulations is important, as it helps organizations meet these enhanced rules and avoid potential penalties.
Sustainable procurement also offers long-term cost efficiency. By using energy-efficient equipment, reducing waste, and promoting innovation, companies can save money in the long run. Furthermore, sustainable procurement can mitigate supply chain risks by ensuring suppliers adhere to key areas such as environment, labor, and ethics.
In conclusion, sustainable procurement is not just a luxury, but a necessity for businesses in the modern economy. By focusing on low carbon emissions, sparing natural resources, and recycling, companies can not only improve their environmental impact, but also attract investors, improve their corporate image, and save costs in the long run.
