Companies are under massive pressure in procurement due to supply chain problems, rising energy prices, sanctions and so on, factors that are an expression of a much more uncertain world. Sustainable procurement is the answer with its focus on resilience, risk mitigation and other so far neglected topics.
CPO survey: Sustainability edition
More than half of an enterprise’s environmental footprint derives from procurement
A Chief Procurement Officer’s (CPO) job used to be based solely on a product’s cost, quality and (delivery) time. They struck a delicate balance between the needs and goals of the product(s), the business and its customers. Today, this balance is shifting to include a new procurement pillar that businesses simply cannot afford to ignore anymore: sustainability.
Robust sustainable procurement may be all that a business needs to dramatically reduce its carbon footprint, thereby cutting costs, boosting revenue, and winning great favor with customers and investors. Sustainability can unleash significant innovation potential in the supply base and break up traditional behavior patterns.
What is sustainable procurement?
Sustainable procurement identifies and reduces the environmental impacts of an organization’s supply chains. To make a true impact, this should expand to social and corporate governance as well (e.g., diversity targets, travel behavior, etc.).
For a sustainable procurement strategy to be successful, the CPO must ensure all business partners can successfully implement sustainability criteria in the product portfolio. Departments across the enterprise must implement this strategy (through sustainable products, practices, etc.). Sustainability should not be regarded as a burden, but rather as an opportunity to be a cost driver that adds value.
How can companies start sustainable procurement?
There are a few key practices companies can implement to kick off their sustainable procurement strategy:
- The procurement department must set themselves a level of ambition as well as quantified targets, which support the corporate strategy.
- Consider other aspects of sustainability, rather than just reducing emissions.
- When hiring, look for candidates with the right skills and competencies to support a sustainable strategy.
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When it comes to sustainability, companies have different maturity levels. Roland Berger is committed to fostering this vital trend in the business world by enabling businesses to set their sustainability goals and align procurement with it.
Take part in our short questionnaire – and take the first step towards building an intelligent sustainability strategy for your company!
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