Why is sustainable procurement important?
- Supporting sustainability and ESG objectives
- Complying with regulations such as CSRD and European directives
- Managing reputational and supply chain risks
- Driving innovation and long-term value creation
Driving impact and responsibility
Sustainable procurement focuses on creating positive impact through purchasing decisions. Organisations use their buying power not only to achieve economic value but also to contribute to environmental sustainability, social responsibility and ethical business practices.
Sustainable procurement means taking environmental, social and governance (ESG) factors into account when sourcing goods and services. This includes reducing negative impact, encouraging innovation and making responsible choices across the supply base.
Applying sustainable procurement requires an integrated approach in which sustainability and social impact are embedded throughout procurement processes, from strategy to execution. This involves defining clear ESG criteria, actively assessing and engaging suppliers on their performance and continuously monitoring outcomes against set objectives. By combining this with collaboration across the supply chain and leveraging innovation, organisations can progressively build more responsible and future-proof procurement practices.
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Sustainable procurement is relevant for organisations aiming to integrate impact and responsibility into procurement, including: