Supplier Partnerships Are Key to Sustainable Procurement
By Costas Xyloyiannis, CEO of HICX
At the end of the day, putting suppliers at the heart of your organization will establish a culture whereby suppliers can provide their best information, while doing their best work.
With climate change, sustainability, diversity and inclusion increasingly taking center stage – both politically and in the minds of consumers – environmental, social and governance (ESG) has shifted to the top of the agenda for almost all organizations.
Starting its life as a corporate social responsibility initiative introduced by the UN, the ESG movement has shifted from being a tick-box exercise to a necessity in many businesses. For example, in Germany, the new Supply Chain Act will mean that companies with 3,000 employees or more will be accountable for any exploitation of workers in their supply chains. Meanwhile, according to a recent Deloitte study, 45% of Gen Z consumers stopped purchasing certain brands because of ethical or sustainability concerns. The list of new requirements will undoubtedly continue growing.
While the movement is not new, it is a growing boardroom issue for almost all organizations. So, what can procurement teams do to ensure their organizations are getting the most out of ESG?