**Global:** Organisations are increasingly adopting sustainable procurement tools, integrating technology to enhance efficiency and reduce environmental impact. Supplier sustainability, certifications, energy-efficient products, and digital metrics monitoring underpin this shift towards responsible supply chain management aligned with net-zero goals.
In the rapidly evolving landscape of procurement, technology is emerging as a crucial driver not only for streamlining complex processes but also for fostering sustainable practices within supply chains. The intersection of technology and sustainability is increasingly being recognised as vital for creating procurement systems that positively impact society and the environment.
Recent data from the 2024 Gartner Sustainable Procurement Pulse Survey highlights a significant trend: the adoption of sustainable procurement tools has surged from 54 per cent to 70 per cent among organisations. This growth underlines a broader commitment within industries to ensure procurement processes are both efficient and environmentally responsible.
Central to this shift is the selection of suppliers whose sustainability goals align with those of the procuring company. Procurement teams are adopting stringent sustainability criteria, meticulously evaluating the environmental and social footprint of products, and verifying ethical sourcing protocols before entering agreements. Certifications such as LEED (Leadership in Energy and Environmental Design), ISO (International Organization for Standardization), and FSC (Forest Stewardship Council) are becoming pivotal benchmarks for assessing supplier credentials.
In addition to supplier considerations, procurement functions are increasingly prioritising energy-efficient products to reduce carbon footprints. Waste management practices—focused on reuse and recycling in compliance with environmental legislation like the Wildlife Protection Act (1972), the Forest Conservation Act (1980), and the Biological Diversity Act (2002)—are becoming integral to procurement strategies.
Formulating clear and actionable sustainable policies is viewed as the foundational step for companies aiming to embed environmental responsibility into procurement. These policies define sustainability objectives and outline measurable targets within specified time frames. Furthermore, continuous assessment and corrective mechanisms ensure organisations remain aligned with their sustainability goals throughout their procurement activities.
Advanced technological tools play a key role in enabling sustainable procurement practices. Carbon accounting systems assist businesses in monitoring scope 3 emissions—the indirect emissions resulting from supply chain activities—across various procurement categories. Automation provides real-time metrics on sustainability performance, allowing procurement teams to make informed decisions swiftly.
Rahul Wadhwa, head of the Department of Strategic Global Sourcing & Design Analysis at Signature Global, emphasises the integrated nature of sustainability in procurement, stating, “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.” His perspective encapsulates a growing corporate understanding that sustainable procurement extends beyond individual products to encompass the entire ecosystem of partners involved.
On a practical level, organisations are adopting behaviours to support sustainability, including the use of fuel-efficient vehicles, conducting regular training on waste management, and employing electronic devices with energy star certification. These initiatives contribute incrementally to reducing environmental impact across the procurement function.
Alongside environmental concerns, corporate social responsibility (CSR) remains a critical consideration. Companies are focusing on fair labour practices, community impact, diversifying supplier pools, and enforcing supplier codes of compliance as metrics for responsible procurement.
While economic benefits such as cost reduction are apparent, the broader advantages of sustainable procurement include social and environmental viability. Digitisation of procurement has led to decreased use of paper and other non-renewable resources, thus lowering carbon emissions. Digital tools also enhance transparency and the ability to monitor environmental impact effectively.
The integration of technology and sustainability in procurement indicates a paradigm shift in the way organisations approach supply chain management. By balancing efficient operations with ecological considerations, businesses aim to ensure resource availability for current and future generations while adhering to responsible business practices. The ongoing transformation underscores the essential role of procurement in supporting broader sustainability objectives within industry.
Source: Noah Wire Services
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