Sustainable Procurement is the adoption and integration of sustainability principles into your procurement processes and decisions while also ensuring, they meet the requirements of your company and its stakeholders.
Sustainable Procurement integrates requirements, specifications and criteria that are compatible with the protection of the environment and the society. It is not simply about not using child labor or illegal chemicals that can damage the environment and peoples’ health.
Commitment in sustainable procurement ensures values which are core to the business are integrated through a company’s supply chain into the life cycle of the company’s products and services. Best practice would be to future proof your company’s sustainable procurement and investments with sustainable policies in order to increase the viability for the long term.
Integrating Sustainability into the Procurement Process:
Sustainable procurement conceptually comprises three dimensions, sometimes referred to as the triple bottom line: social, environmental and economic sustainability. Implementing sustainable procurement involves balancing the different and sometimes competing priorities that occur across these three dimensions.Thus, during a procurement, certain aspects of sustainability may be prioritized over others, depending on the inherent nature of the goods/services, relevant sustainability impacts and supply market conditions.
Why is Sustainable Procurement Important for you?
- 15-30% measurable brand value increase: Sustainable procurement practices result in brand equity (Source: World economic forum: Beyond Sustainable procurement)
- 90% have lower cost of capital: 90% of studies on the cost of capital show that sound sustainability standards lower the cost of capital of companies (Source: Oxford/arabesque)
- 9-16% Sustainable procurement cost reduction: Sustainable procurement practices can reduce costs linked to Sustainable procurement by 9-16% (Source: World economic forum: Beyond Sustainable procurement)
Benefits of Sustainable Procurement:
- Minimizes risk in a company’s business practices
- Compliance with environmental and social legislations
- Enhance consumer perception
- Control costs by adopting a wider approach to whole life costing
- Creates markets for new products and services
- Reduce waste and improve resource efficiency
- Competitive advantage
- Facilitate access to capital and increase valuation
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