Implementing a Sustainable Procurement Strategy

Written by Karoline Pereira, Sustainable Procurement | Sustainability & Customer Success Consultant

Overview

In today’s competitive and regulated sustainability market, organisations face increasing pressure to adopt more sustainable practices into their daily activities. One area gaining significant traction is Supply Chain and more specifically, sustainable procurement. This case study explores how a global manufacturing company successfully implemented a sustainable procurement strategy, aligning its operations with sustainability principles and ESG goals while driving value across its supply chain.

To overcome these challenges, it was important to adopt a phased approach:

1. Assessment and Goal Setting

The first step was conducting a baseline assessment of the company’s procurement activities:
  • Materiality Analysis: Identified high-impact suppliers based on categories, spend and criticality adding the risk factor based on the previous + industry and location factors.
  • Stakeholder Engagement: Consulted internal teams, Decision makers, key suppliers, and external experts to align on key sustainability priorities.

2. Policy Development

The company developed a comprehensive sustainable procurement policy:
  • Supplier Code of Conduct: Outlined sustainability expectations, including labor & human rights, environmental management, and ethical practices.
  • Evaluation Framework: Introduced weighted sustainability criteria in supplier selection and contract renewal processes.

 

3. Capacity Building

To address resource constraints, the company:
  • Training Programs: Conducted training sessions and workshops for procurement staff and suppliers on sustainability, extending internal and external communication to build engagement.
  • Technology Investments: Deployed a procurement management platform able to track sustainability performance and improvement actions, facilitating reporting and growth in maturity.

4. Buyer and Supplier Engagement

Engaging buyers and suppliers was critical to success:
  • Buyer accountability: KPIs were set to buyers directly linked to their suppliers sustainability performance or at least willingness to improve.
  • Collaboration Initiatives: Provided assistance to suppliers who needed improvements and partnered with key suppliers to co-develop sustainable solutions.

5. Monitoring and Reporting

The company implemented monitoring systems:
  • Performance Dashboards: Used available data to track progress against sustainability goals.
  • Annual Reports: Published updates on supply chain sustainability efforts based on the collected data and strategy, adding long and short term goals.

Key Takeaways

  1. Leadership Commitment: Strong support from senior management was crucial to driving change.
  2. Collaboration: Open communication from buyers, assistance and partnerships with suppliers fostered trust and innovation.
  3. Continuous Improvement: Regular reviews, updates and feedback loops ensured the strategy remained relevant and effective and that employees and suppliers remained engaged.

Conclusion

This case study highlights how integrating sustainability into procurement can create value beyond compliance. Organisations embarking on similar journeys should prioritise clear goal-setting, phased approach and change management strategies, stakeholder engagement and accountability, and leveraging technology to maximisese clear goal-setting, phased approach and change management strategies, stakeholder engagement and accountability, and leveraging technology to maximise impact.