In this second article from the 2022 SIG Procurement Technology Summit Keynote Series, we will tap into the expertise of an esteemed panel of industry leaders who will share their experiences with mobilizing their respective organizations' ESG initiatives to achieve progressive outcomes. Make particular note of the words progressive outcomes because implementing and maintaining an ESG strategy is not a destination but an ongoing journey that requires commitment and the agility to respond to ever-changing marketplace realities.
Rather than just a generalized or conceptual discussion on ESG, these individuals delivered personal and detailed accounts regarding the successful transformation of their supply chains to align with social imperatives and financial objectives. In other words, during the discussion, they effectively "blazed" a trail of understanding that can serve as a helpful roadmap for the successful implementation of your organization's ESG strategy.
No Longer An Option
In the recent Oliver Wyman article, Powering Your Sustainability Strategy Through Procurement, it is clear that the proactive implementation of a successful ESG strategy is not an option for organizations – not that it ever was.
The authors specifically talk about how "For many years, calls have been getting louder for business leaders to pay more attention to their organization's environmental, societal, and governance (ESG) strategy."
Fueled by "intensifying pressure" from all directions, including customers, employees, investors, and governments, good intentions must now materialize into tangible outcomes sooner rather than later.
Our deepest belief is that the procurement functions, by connecting with stakeholders and creating coalitions along the entire supply chain, are uniquely positioned to accelerate transformations and deliver the impact promised by most corporations on environmental, social, and corporate governance (ESG).
SIG and Oliver Wyman have developed a survey to assess the current maturity level of Procurement organizations globally, across various industries and geographies, to highlight the best practices and identify the upcoming challenges for CPOs.
Specifically, this survey examines the following criteria to determine your maturity in sustainable procurement:
Convert ESG-related company ambitions into strategic procurement objectives
Build a robust baseline on each ESG dimension
Embed ESG in category strategy
Explicitly state your goals and pledge to suppliers
Embark, engage, and challenge suppliers
Team up with partners to share ESG-related best practices
Champion change internally
Accelerate change externally
Reinvent procurement performance monitoring towards ESG
Embed sustainability in the core procurement processes
Upskill teams to better engage suppliers on sustainability
Embed ESG in procurement data and digital asset strategy
Share your insights with SIG and Oliver Wyman on our new Sustainable Procurement Maturity Survey!
The concept of sustainable sourcing, also known as green purchasing or social sourcing, is nothing new. Sustainable sourcing is impacting nearly every area of corporate business and the consumer’s mindset. Everything from sourcing materials, talent attraction and consumer purchasing habits is changing because of sustainable sourcing growth. However, the term gets thrown around in the procurement industry quite often and is often misunderstood or misused. So, here’s a guide with all the basics you need to know about sustainable sourcing.
WHAT IS SUSTAINABLE SOURCING
First and foremost, we have to define the term. Sustainable sourcing is the integration of social, ethical and environmental performance factors into the process of selecting suppliers. It includes purchasing sustainably preferable products and services (products made from recycled or remanufactured materials), as well as green purchasing guidelines that might pertain to certain products or commodities.
Just last month, when thousands of people took time away from their day-to-day, to gather to focus on Sustainable Procurement at the 2021 Sustain event. There was an air of anticipation, with a whiff of panic. The 5000+ registrants and 3000+ attendees (over twice the number from last year and ten times the number just five years ago) are a testament to how Covid and all the calamity of 2020 has moved the supply chain into a very bright spotlight. A year as disastrous as 2020 demands a deep strategic rethink of how we approach, value, build and optimize our value chains, with an ESG/Sustainability lens.
Procurement, supply chain and sustainability leaders alike are groping for guidance on how they can rebuild better and more resilient supply chains in the face of such massive uncertainty. There is a visceral passion and ambition by the sustainable procurement community to reinvent. But along with this spirit was an unsettling mix of uncertainty, anxiety, and trepidation about HOW to do it right.
Four Ways we Must RETHINK Supply Chain
We see four key factors that we must RETHINK about supply chain sustainability, which sets a framework and direction for launching or accelerating a sustainable procurement program to meet the needs of the New Normal.
Happy New Year! We kick 2021 off with sustainable procurement for executives and training resources that will elevate your team to excellence for the New Year.
Sustainable Procurement Strategies for 2021
Executives are invited to attend SIG’s next CPO & Executive Virtual Series on January 13 for open-mic discussions on sustainable procurement, enabling growth through partnership and innovation, and how to nurture talent and culture.
Sourcing and procurement professionals learned a lot in 2020: The importance of making supply chains and operations nimbler, how to digitize your processes and mitigating unforeseen risk were all key lessons. Get a jumpstart to your 2021 with a SIG University certification.
Delivered entirely online, a certification can be completed in five, six, 10 or 12 weeks depending on the area of study. Programs start in January and February. Prefer to go at your own pace? Inquire about the new self-paced option.
Future of Sourcing, SIG’s flagship digital publication, is looking for new contributors. Once you've reviewed the editorial calendar and the contributor guidelines, reach out to pitch us an article. You have the choice to submit articles on a regular cadence or you can submit whenever you feel inspired. Contributors are encouraged to subscribe to Future of Sourcing's email newsletter, which is delivered to readers twice a month.
COVID-19 has created a ripple effect of disruption through supply chains across the world, causing many companies to assess their weak spots and reevaluate their operations to ensure future resiliency and continuity.
Rebounding from the current crisis with more solid resilience is itself creating immense value. Forward-thinking companies are looking a step further, perhaps with the climate crisis clearly in view. They are leveraging sustainability and purpose – with an upside creating long-term value across a wide range of business levers, from competitive differentiation, grow sales revenue, supplier innovation to support future circular business models, talent recruitment and retention.
Procurement’s Key Role in Turning Purpose into Profit
With momentum growing toward stakeholder capitalism, businesses have made a greater commitment to sustainable purpose through reducing emissions of greenhouse gas, limiting plastic use, providing decent working conditions and more. The recent COVID-19 pandemic has brought risk mitigation and resiliency top-of-mind – and we’re seeing clear proof points that sustainable procurement is the answer.
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 (1).png "Rethink and Rebuild for the New Normal")
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Is Your Supply Chain ESG Ready? (A SIG Summit 2022 Keynote Review)
In this second article from the 2022 SIG Procurement Technology Summit Keynote Series, we will tap into the expertise of an esteemed panel of industry leaders who will share their experiences with mobilizing their respective organizations' ESG initiatives to achieve progressive outcomes. Make particular note of the words progressive outcomes because implementing and maintaining an ESG strategy is not a destination but an ongoing journey that requires commitment and the agility to respond to ever-changing marketplace realities.
Rather than just a generalized or conceptual discussion on ESG, these individuals delivered personal and detailed accounts regarding the successful transformation of their supply chains to align with social imperatives and financial objectives. In other words, during the discussion, they effectively "blazed" a trail of understanding that can serve as a helpful roadmap for the successful implementation of your organization's ESG strategy.
No Longer An Option
In the recent Oliver Wyman article, Powering Your Sustainability Strategy Through Procurement, it is clear that the proactive implementation of a successful ESG strategy is not an option for organizations – not that it ever was.
The authors specifically talk about how "For many years, calls have been getting louder for business leaders to pay more attention to their organization's environmental, societal, and governance (ESG) strategy."
Fueled by "intensifying pressure" from all directions, including customers, employees, investors, and governments, good intentions must now materialize into tangible outcomes sooner rather than later.