6 Steps for Procurement to Drive Environmental, Social, Governance Excellence for the Enterprise

Introduction

Changing consumer trends, the rise of activist investors, and the tightening of government regulations have made sustainability a top priority for many organizations across the world. And if ambitious corporate sustainability targets are to be met on time, all parts of the business will need to transform their operations, including the procurement function.

Indeed, procurement teams are uniquely positioned to respond to the challenges and opportunities in this shift towards sustainability, sitting as they do at the intersection of all arms of the business and its suppliers.

As such, procurement shouldn’t simply keep pace with the demands of the business when it comes to sustainability but act as a catalyst to drive change and exceed targets. In order to do so, chief financial officers and chief procurement officers need to equip their teams with the right methodologies and expertise.

While procurement’s efforts have traditionally been centered around costs, adopting a holistic framework with environmental, social, and governance (ESG) aspects will support sustainable decision-making and unlock benefits in terms of company value and growth, ecological footprint, and social equity.

Reimagining cost to focus on ESG-based value empowers procurement to drive the sustainability agenda and maximize value for the wider business. This is pivotal in today’s world, where companies that act quickly gain a competitive advantage and are seen favorably by consumers, investors, and policymakers.

What Inside:

• Steps to make procurement strategy reflect business ESG goals
• How to adopt the total value of ownership methodology to reassess costs
• Ways to embed and track ESG metrics within supplier relationship management

This timely white paper is a must-have guidebook for CPOs to consistently make decisions in line with their company’s wider sustainability goals.