Why We All Should Celebrate World Sustainable Procurement Day on March 21st
by Jennifer Suri
“The World Sustainable Procurement Day is about impact and people…Procurement has the power and the responsibility to make the difference.” Bertrand Conquéret, Chief Procurement Officer of Henkel and Co-Founder of the Sustainable Procurement Pledge.
After quarantining, masking and vaccinating, we came out of the pandemic ready to restart our lives and get back to normal, but it wasn’t that easy. Suddenly we found empty shelves and missing products. It wasn’t just toilet paper — everything from cat food to cereal was hard to find. We were all told the same thing — it’s the supply chain. Even if we didn’t exactly know what the supply chain entailed, we learned how important it is to our everyday lives–not only for getting the products we use, but for creating a more sustainable lifestyle.
March 21st is World Sustainable Procurement Day when procurement and supply chain professionals will gather to discuss the impact they have on sustainable practices in business and government. That probably doesn’t mean you, but you can still benefit.
What is Sustainable Procurement?
Procurement is an important part of the supply chain. It is a way for organizations to reflect their beliefs. A company that purports to be eco friendly should contract with sustainable contractors for its raw materials, energy source, and cleaning and office supplies. Procurement is at the root of how companies define their commitment to their business strategy.
Sustainable: “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
Supply Chain: “the companies, materials, and systems involved in manufacturing and delivering goods.”
Procurement: “the sourcing, negotiation, and selection of goods and services, usually those that are of a greater importance to an organization.”
Sustainable Procurement: “the integration of Corporate Social Responsibility (CSR) principles into a company’s procurement processes and decisions while ensuring they still meet the requirements of stakeholders.”
Why Does Procurement Matter to the Consumer?
Procurement policies are not always transparent to a consumer (do you know where your cosmetic company sources its energy?) but they should be. Consumers want to make a difference and are looking for ways to live more sustainably and this starts with how the companies they buy from do business. Two thirds of total respondents and 75% of millennials in a Mckinsey study said they consider sustainability when making a purchase. According to a Deloitte study, producing sustainable packaging and products along with respect for human rights are among consumers’ top five most important sustainable practices. The same study found that 35% of adults in the UK are influenced by companies having a transparent, accountable and socially and environmentally responsible supply chain influence.
Companies and governments have taken notice of these trends, looking for ways to sustainably source and select goods and services needed to produce their own consumer goods and services..
What Does This Mean for Small Businesses?
It’s not just large contracts that make a difference. The decisions that small businesses make to source their supplies and services can help turn the tide.
“Softly has partnered with Amazon Business to help businesses purchase inline with their mission statements and sustainable initiatives. And it’s a worthwhile endeavor because business and government purchasing accounts for 32% of all spending in the US. At Softly we write often about personal consumer spending, and how we each have a responsibility to purchase sustainable products. But what about workplace purchases?
With Softly you can choose the product attributes that align with your sustainability goals — recycled office supplies or chemical free cleaning products.” Mollie Hughes, Softly CEO
What is Public Sustainable Procurement?
Governments also make decisions about what they spend their (our) money on when they govern. According to the 2022 Sustainable Public Procurement Global Review:
“Large corporations, as well as intergovernmental organizations, with annual procurement volumes in the billions, are also well-positioned to influence and encourage sustainability across their supply chains.”
Sustainable procurement procedures are included in the UN’s 2030 Sustainable Development Goals as well as the 2016 Paris Agreement to aid in “the shift to sustainable procurement among national governments.”
We often feel that there is not much we can do. Climate change and social justice are big problems and need even bigger solutions. Corporations and governments make decisions about how resources are used and business is done. But every little bit helps. Educating ourselves about the problem and what businesses and governments are doing for their bottom line to make the products we use sustainable from start to finish is valuable.
References
- World Sustainable Procurement Day creates Momentum for Best Practices in Environmental and Social Impact Purchasing across Supply Chains
- Sustainable Procurement Pledge
- Sustainability | United Nations
- Supply chain Definition & Meaning — Merriam-Webster
- Procurement vs purchasing: what’s the difference for growing businesses?
- Sustainable Procurement Definition | EcoVadis.
- EcoVadis
- The global eco-wakening: how consumers are driving sustainability
- Sustainability & Consumer Behaviour 2022 | Deloitte UK
- Sustainable Public Procurement: 2022 Global Review (Parts I and II) | One Planet network
- Sustainable Public Procurement: 2022 Global Review (Parts I and II) | One Planet network
