SUSTAINABLE PROCUREMENT
“ F irms that align their business models to the transition to a carbon neutral world will be rewarded handsomely ; those that fail to adapt will cease to exist .” This was the warning given by Bank of England Governor Mark Carney at his annual Mansion House speech on 21 June . While Carney ’ s focus was on the wider opportunities – and challenges – of transitioning to a carbon neutral economy , his words reinforce the broader message for businesses : environmental , corporate and social responsibility and a focus on sustainability will drive success .
For the procurement function , this is no different . Over the last decade , the role of the Chief Procurement Officer ( CPO ) has seen increasing time spent
34 on implementing sustainable practices into the procurement function .
“ Sustainability is no longer ‘ a nice to have ’, it ’ s a business imperative ,” says Vaughan Lindsay , CEO of ClimateCare , which works with organisations on climate and sustainability issues . For Lindsay , many industries ’ most significant impacts are “ beyond their four walls , in their supply chain and the use of their products .” A procurement team is uniquely placed , he believes , to act on sustainability as it already provides a framework for evaluating suppliers against more traditional parameters , such as cost or service levels . Lindsay explains sustainability performance must be given the same weight as those traditional parameters , requiring a change in thinking from a ‘ do no harm ’ approach – which
AUGUST 2019