April 28, 2023 | Procurement Strategy
Sustainable purchasing is to the acquisition of goods and services that consider environmental, social and economic factors throughout a product’s life cycle. Sustainable purchasing is more about evaluating goods and services in a broader context rather than costs, such as:
Here are the environmental, social and economic benefits of sustainable purchasing:
Procurement plays a critical role in cutting Scope 3 emissions – first, by understanding emission hotspots and then collaborating with suppliers. Here’s how procurement teams with sustainable purchasing can help reduce Scope 3 emissions:
Sustainable purchasing requires a comprehensive and efficient strategy that considers the entire value chain and engages suppliers, stakeholders and customers to drive sustainable change.
Here are some effective ways to implement sustainable purchasing:
Getting leadership buy-in: Discuss the advantages of sustainable buying with your co-workers and top management. It’s crucial to have co-workers’ support, especially from executives.
Critically evaluate suppliers: Identify suppliers who are low-impact, fair trade or environmentally friendly and those who aren’t. Evaluate the carbon footprint of underperforming suppliers to reduce the environmental impact of the supply chain. Additionally, businesses can use a scorecard to evaluate supplier performance.
Fostering a culture of sustainability: Foster a company culture that values sustainability and encourages employees to make sustainable choices, especially the procurement teams. Additionally, train staff on sustainable purchasing best practices and their importance.
Communicate your achievements: Spreading the word about your success in sustainable purchasing is a powerful way to promote your company’s products or services within and outside of your organization. This can also motivate peers to purchase sustainably.
Encourage environment-friendly practices: Promote suppliers whose businesses provide environmentally sustainable products or services and encourage the development of environmentally friendly practices within suppliers.
With growing environmental concerns and emerging sustainable methods of production, companies are taking a shift from the traditional ways of purchasing and considering environmental, social and economic factors. Sustainable purchasing improves CSR reputation, boosts customer loyalty, renewable resources’ usage and profitability.