When procurement drives the ESG agenda

ESG (environmental, social and governance) strategies have become a boardroom priority. Companies are looking to forge a more sustainable future and do their part in an increasingly unpredictable world, especially in the wake of the pandemic. Business leaders are finding it opportune to reassess their business models, adapt new ways to thrive and be future-ready. With so much at stake, one function will be key in facilitating and accelerating ESG initiatives – procurement.

Sustainable procurement is where organisations transform the function of procurement that supports their sustainability goals. Two-thirds of the average company’s ESG impact comes from suppliers, and between 70 to 90 per cent of a company’s carbon footprint comes from its supply chain. Those in the procurement world could drive real change, and with that opportunity comes the responsibility for action.

Most of what companies do these days goes through procurement, which only means it has the most comprehensive overview of corporate ecosystems, including internal structures, suppliers, assets and customers. This also implies that the task to ensure that the business performs well and is socially and environmentally responsible lies within the procurement arm.