**London**: Technology is transforming procurement by boosting the use of sustainable tools and aligning strategies with eco-friendly and socially responsible standards. A rise from 54% to 70% in sustainable tool adoption highlights firms’ focus on ethical sourcing, environmental compliance, and digital innovation for greener supply chains.
Technology is increasingly shaping the landscape of procurement by streamlining complex processes and fostering a greener, more sustainable supply chain. Recent trends show a marked rise in the adoption of sustainable procurement tools, signalling a shift towards eco-friendly and socially responsible purchasing practices among businesses.
According to data from the 2024 Gartner Sustainable Procurement Pulse Survey, the utilisation of sustainable procurement tools has grown substantially, rising from 54 per cent to 70 per cent among organisations. This surge reflects a growing commitment across industries to integrate environmental and social considerations into procurement decisions.
Central to this emerging approach is the alignment of procurement strategies with sustainability objectives. Companies are now prioritising suppliers whose values reflect a shared dedication to responsible sourcing and environmental stewardship. Procurement teams are encouraged to set rigorous sustainability criteria, thoroughly evaluate the ecological and social impacts of products, and verify ethical sourcing standards before entering contracts. Certifications such as LEED (Leadership in Energy and Environmental Design), ISO (International Organization for Standardization), and FSC (Forest Stewardship Council) are increasingly used as benchmarks during supplier evaluations, ensuring that partners adhere to recognised green standards.
A focus on energy-efficient products has become another cornerstone of sustainable procurement, helping companies reduce their carbon footprints. Practising effective waste management – emphasising reuse and recycling while staying compliant with relevant environmental regulations – is also a priority. Key laws mentioned include the Wildlife Protection Act (1972), the Forest Conservation Act (1980), and the Biological Diversity Act (2002), which form a regulatory framework procurement professionals must navigate to maintain ecological compliance.
Establishing comprehensive sustainability policies is viewed as a foundational step for companies aiming to make their procurement practices more environmentally friendly. These policies articulate the company’s sustainability goals and establish metrics to evaluate progress over defined periods. Periodic assessments of existing procurement methods allow organisations to identify areas requiring improvement to stay aligned with their green objectives.
Technology supports these initiatives through tools such as carbon accounting software, which helps businesses track Scope 3 emissions related to their procurement activities. Automation technologies can provide real-time data on procurement sustainability metrics, enhancing transparency and decision-making efficiency.
Rahul Wadhwa, head of Strategic Global Sourcing & Design Analysis at Signature Global, emphasises this integrated approach: “For us, sustainable procurement isn’t just about materials—it’s about choosing partners who align with our net-zero goals. Every contractor, supplier, vendor, and even our procurement platform plays a huge part in our climate journey,” he told ET Infra.
Practical measures that promote sustainability in procurement include the use of fuel-efficient vehicles, ongoing training in waste management practices, and selecting electronic devices bearing energy star certification. These initiatives, though seemingly small, collectively contribute to a more environmentally responsible procurement sector.
Beyond environmental concerns, corporate social responsibility (CSR) remains a vital aspect of sustainable procurement. Companies are encouraged to uphold fair labour practices, contribute positively to communities, ensure diversity within their supplier base, and enforce supplier codes of compliance. These actions underscore the social dimension of responsible procurement.
Overall, sustainable procurement is poised to deliver a triple bottom line—economic savings, social benefits, and environmental protection. One notable advantage has been the rise of digital procurement, which has reduced reliance on paper and other non-renewable resources, thereby lowering associated carbon emissions. Digital tools have also enhanced the ability to monitor procurement functions accurately, helping businesses safeguard the environment while optimising efficiency.
In summary, the convergence of technology and sustainability is set to define the future of procurement. By embedding these principles into their practices, companies strive to balance current operational needs with the imperative to conserve resources for future generations, combining business success with environmental and social responsibility.
Source: Noah Wire Services
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