Officer at SEDEX, explains more about what sustainable procurement means in practice. “Sustainable procurement is an approach to purchasing products, components and services in a way that upholds good social, environmental and ethical standards. For example, it might involve agreeing timelines with suppliers that don’t require their labourers to work excessive hours or choosing components that use less energy to create.” In its early days, sustainable procurement
was often seen as a ‘nice-to-have’ for companies with strong corporate social responsibility (CSR) commitments. It focused primarily on reducing environmental impacts, such as using recycled materials or choosing suppliers with eco-friendly practices. Over time, however, the concept has expanded to encompass social factors like fair labour practices, ethical sourcing, and community engagement. “This shift is partly driven by growing awareness of global challenges like climate change, human rights abuses and resource scarcity,” says Maurizio. Several other factors have accelerated
the evolution of sustainable procurement. These include:
Regulatory pressure: Governments around
the world are enacting laws and regulations aimed at promoting sustainability and ethical procurement. Businesses that fail to comply can face fines, product seizures and other penalties
bakeryproduction.co.uk
alongside reputational damage. Investor demand: Investors are increasingly scrutinising companies’ environmental, social, and governance (ESG) performance. This has led to a surge in sustainable investing and a greater focus on ESG reporting. Consumer preferences: Consumers are increasingly demanding sustainable products at affordable prices. They expect brands to develop these and offer solutions that support a consumer’s own sustainability efforts – such as recycling or using less water. Supply chain resilience: The Covid-19 pandemic exposed vulnerabilities in global supply chains. Sustainable procurement practices, such as in-depth supply chain mapping and supporting suppliers to reduce their carbon emissions can help mitigate these risks. Maurizio suggested some key steps that
should be taken to integrate sustainability into a sourcing strategies:
Develop a comprehensive strategy: Define
your sustainability goals, identify priorities, and integrate sustainability criteria into your procurement processes. Engage stakeholders: Collaborate with suppliers, customers, employees, and other stakeholders to build a shared commitment to sustainability.
Measure and report: Track your progress,
measure the impact of your sustainable procurement initiatives and transparently report your findings. “Always ask what your suppliers and your industry peers already use as a solution too,” concludes Maurizio. “Engaging with suppliers to understand their experiences can help you align procurement practices, reduce the reporting burden on suppliers, and foster industry-wide sustainability.”
Sustainability challenges Ensuring sustainability of the supply chain is inherently challenging, largely stemming from a lack of capacity, resources, and visibility. Erin McVeigh, Executive Director - Supply Chain Sustainability and Responsible Sourcing Practice Lead at Anthesis, believes that collaboration is a vital component for a successful supply chain sustainability program because it creates a foundation on which to break down and eliminate challenges. Erin pointed out that supply chains are often complex, involving multiple stakeholders who can affect and are affected by one another. “Collaboration therefore ensures that all parties work towards shared sustainability goals, understanding that the actions of one can have significant downstream and upstream impacts,” she says. Collaborative efforts allow supply chain
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