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What is Sustainable Procurement?
Sustainable procurement involves purchasing products with minimal environmental impact, considering ecological and economic factors from production to disposal. It is a crucial component of a company’s sustainability strategy. However, companies often face challenges in selecting the most cost-effective, environmentally friendly, and socially just options, as the cheapest offer may not align with these goals. To mitigate this challenge, various resources such as guidance and informational tools are available to streamline the procurement process and reduce the burden on companies.
Reasons for Sustainable Procurement
The primary objective of sustainable procurement is to mitigate the risk of breaching fundamental social and environmental standards within the supply chain. By prioritizing adherence to social standards and fair compensation, businesses can significantly enhance working conditions locally and globally. Moreover, they can play a pivotal role in fostering ecological and social advancements and influencing the enactment of more stringent legislation.
There is a growing expectation from consumers for companies to embrace social responsibility and serve as exemplars. Through targeted marketing, businesses can inform customers about their initiatives, thus enhancing their reputation. This aligns with the evolving preferences of investors, who increasingly favor “green investments” driven by consumer demand.
Furthermore, products designed with sustainability in mind often exhibit greater durability and ease of repair, in addition to conserving energy and resources, thereby benefiting both the environment and the company’s bottom line. Consequently, sustainable procurement contributes to the resilience, longevity, and profitability of a company in the long term.
How can companies make procurement more sustainable?
To enhance the sustainability of the procurement process, it’s beneficial to consider various options beforehand. Here are some key questions to ponder:
- Are there alternative products crafted from reused or recycled materials?
- Can disposable items be substituted with reusable alternatives?
- Is the product designed for durability and ease of repair?
- Is there an opportunity to minimize packaging materials?
- Can the use of plastics be minimized, with exploration of natural material alternatives?
- Does the product contain solvents or heavy metals that may pose environmental risks?
- What are the direct and indirect costs associated with the purchase?
- How can the product be disposed of? Is recycling feasible, and are there additional associated costs?
