Elements and Benefits of Sustainable Procurement
Elements and Benefits of Sustainable Procurement
Sustainability, once considered a “nice to have,” is becoming standard practice for many businesses—and procurement is at the forefront of driving sustainable operations and supply chains. Major global brands like Bain, Bayer, and Air Liquide have already committed to more sustainable procurement practices.
But how can you be certain you’re increasing the stability and sustainability of your supply chain? And what's the easiest way to partner with vendors aligned with your environmental standards?
As we discuss the basics of developing a more sustainable procurement process, you’ll learn:
- The benefits of increasing procurement sustainability
- Why companies are moving toward sustainability
- How one top brand makes sustainability a competitive advantage
- The steps to building a sustainability strategy
Download the free guide: Building a Sustainable Office Supplies Procurement Strategy
What is sustainable procurement?
Sustainable procurement refers to the practice of purchasing goods and services sourced and produced in environmentally responsible ways. It's about making choices that preserve natural resources, promote environmental stewardship, and reduce negative impacts on the planet and society.
Some examples of sustainable actions businesses can take include:
- Reducing water use or water pollution
- Using renewable raw materials and natural resources
- Ensuring human rights and safe working conditions
- Reducing all sources of greenhouse gas emissions
- Producing lower-carbon and recyclable goods
- Using local production to reduce transportation impacts
- Avoiding toxins like PFAS (per- and polyfluoroalkyl substances) and other “forever chemicals”
Sustainable procurement requires companies to conduct due diligence and work with vendors that use sustainable practices. The goal is to ensure your suppliers—both direct vendors and those across the broader supply chain—actively seek to minimize waste and reduce their carbon footprint.
How is sustainable procurement different from green procurement?
Green procurement focuses on purchasing products and services with minimal environmental impact. It emphasizes using eco-friendly renewable or recyclable materials produced with energy-efficient practices.
Though often used interchangeably, sustainability and green initiatives differ in scope and approach. Green procurement targets specific environmental goals, such as reducing emissions, improving resource efficiency, or minimizing waste. Sustainable procurement takes a more holistic view. It considers environmental, social, and economic factors across the broader supply chain, evaluating everything from ethical labor practices to long-term community impact.
As stakeholder expectations and climate risks increase, making sustainable procurement decisions is becoming a business priority—not just for compliance but also to improve cost savings, innovation, and reputation. To ensure continuous improvement, many sustainability-focused organizations are aligning their efforts with global frameworks like the United Nations Sustainable Development Goals (SDGs).
Building a Sustainable Office Supplies Procurement Strategy
Sustainability is a top priority, and strong procurement is key to meeting these goals. Learn how to make procurement of sustainable office supplies easier.
Key principles of sustainable procurement
Sustainable procurement focuses on maintaining and improving environmental conditions, safeguarding the social impacts of procurement and production, and balancing sustainability with economic growth. The following three pillars form the basis of sustainable procurement policies.
Triple bottom line
The triple bottom line of sustainability considers three critical dimensions: economic, social, and environmental. It encourages organizations to move beyond financial performance by embracing social equity and environmental stewardship, emphasizing long-term sustainability as well as ethical business practices.
Environmental, social, and governance (ESG) Integration
ESG integration embeds environmental, social, and governance factors into decision-making. It not only assesses the immediate impact of purchases but also their extended implications on sustainability goals. By prioritizing ESG criteria, organizations can mitigate risks, enhance their reputation, and drive innovation to create a more sustainable future.
Corporate social responsibility (CSR)
CSR is a business model that incorporates social and environmental concerns into daily operations and stakeholder relationships. It reflects a company's commitment to more than mere regulatory compliance by considering sustainable development goals like ethical practices, environmental conservation, and positive community engagement.
Circular economy principles in procurement
The circular economy focuses on minimizing waste and reclaiming resources by keeping products and materials in use for as long as possible. In procurement, this means selecting suppliers and materials that prioritize recyclability, reusability, and resource efficiency. Embracing circularity not only reduces procurement's environmental impact but also helps companies meet ESG goals.
7 Benefits of sustainable procurement
Sustainability is about more than appearances. Yes, customers may connect with the idea of brands acting as environmental stewards, but implementing sustainable procurement practices also has internal benefits.
Here are some of the ways sustainability drives value creation:
- Improved cost savings: Sustainable procurement helps lower costs by reducing waste, streamlining the supply chain, optimizing logistics, and enabling more strategic sourcing.
- Enhanced risk management: Sustainable sourcing minimizes reliance on harmful materials and fuels while also increasing supply chain resilience and protecting against reputational and regulatory risks.
- Increased innovation: Sustainability drives the exploration of better technologies and more eco-friendly resources and methods, spurring internal innovation for improved processes, products, and services.
- Reduced environmental impact: Sustainable procurement cuts emissions and waste, promotes responsible consumption, and fosters a culture of environmental accountability that can influence competitors as well as the wider public.
- Increased cost efficiency: Thanks to its focus on conserving resources, sustainable procurement can not only help save the planet but also translate to saving cash. Companies with strong ESG credentials reduce costs by 5 to 10 percent through improved operational efficiency and waste reduction.
- Greater compliance: Though each administration has its own agenda, early adoption of sustainable practices increases adaptability as new legislation comes into play.
- Improved brand reputation: Sustainability-forward companies appeal to values-driven consumers, expanding market reach and strengthening trust through transparent, purpose-led initiatives.
Implementing sustainable procurement practices
Building sustainability into the procurement process has its challenges. Getting people excited for change—and following it up with the right implementation approach—may give some procurement professionals pause. But by focusing on a few key components of sustainability, you can ease reluctance and pave the way for lasting positive impacts.
Supplier selection
Selecting sustainable suppliers is a smart way to bring more sustainability into your procurement practices. Look for partners that prioritize environmental and social responsibility, ethical sourcing, and waste reduction. Engage in transparent communication and establish clear evaluation criteria to help develop long-term partnerships that support shared sustainability goals.
Product specifications
Sustainable product selection is another easy-to-implement practice that has an immediate impact. Choosing suppliers with certified sustainable practices makes it easier to find products made from renewable resources and those with minimal environmental impact throughout their lifecycle. Defining and adhering to stringent product standards can help your company prevent waste, lower carbon emissions, and promote ethical labor practices.
Supply chain transparency
Greater visibility in your supply chain helps uncover inefficiencies and ensure fair labor practices. Start by mapping your current supply chains, conducting audits to assess suppliers' sustainability credentials, and leveraging technology to track sourcing and logistics information. Engage with suppliers that share a commitment to creating a more sustainable supply chain to ensure continuous improvement.
Waste reduction
Reducing waste in purchasing and inventory management offers tangible benefits with minimal operational disruptions. Simple measures like optimizing resource use, recycling obsolete supplies, and streamlining procurement across locations can have a substantial positive impact on your sustainability journey.
Lifecycle assessment
Fine-tuning your vendor lifecycle management program by adding sustainability metrics strengthens supplier relationships and improves brand reputation. Track sustainability credentials like green certifications and prioritize open communication to foster improvements over time. This ensures your supply chain contributes to environmental goals across every contract and vendor transaction.
Navigating sustainability regulations in procurement
Guidelines around sustainability are evolving. While regulations differ in various regions and industries, it’s important to stay informed and build compliance management programs into your procurement process. By getting ahead of regulations, you not only avoid pitfalls like extra fees or unnecessary paperwork, you also increase alignment with global standards, improve agility, and make efficient progress toward long-term goals.
Stay informed: Keep up with local and international sustainability regulations by subscribing to industry newsletters, attending relevant webinars, and participating in forums.
Educate stakeholders: Make sure your procurement team understands the importance of environmental sustainability regulations and how to comply with them. Regular training sessions can be beneficial.
Incorporate sustainable selection criteria: When choosing suppliers, include sustainability performance as a key criterion. This not only ensures compliance but also promotes environmental responsibility.
Audit regularly: Conduct regular audits of your supply chain to flag compliance risks early and take prompt corrective action when needed.
Seek expert advice: Large organizations and those facing complex requirements may benefit from consulting with sustainability advisors or legal experts specializing in environmental law.
Leverage technology: Use compliance management software to track regulatory changes and assess their impacts. Intelligent procurement tools can also help with reporting and adherence.
By building these practices into your procurement strategy, you can not only navigate the complexities of today's sustainability regulations but also put your organization in a better position to adapt to future challenges.
Building a Sustainable Office Supplies Procurement Strategy
Sustainability is a top priority, and strong procurement is key to meeting these goals. Learn how to make procurement of sustainable office supplies easier.
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The hidden impacts of ignoring sustainable procurement
Ignoring sustainable procurement can have far-reaching effects on the immediate business environment as well as a company's financial health and reputation. Here are several critical consequences organizations may face:
- Inefficient spend: Without sustainable practices, companies often spend more in the long run. Sustainability leads to cost savings through more efficient use of resources and reduced energy consumption.
- Fines for noncompliance: As regulations regarding sustainability continue to change, failure to comply can result in hefty fines and penalties that negatively impact the bottom line.
- Loss of competitive advantage: Many businesses and governments require suppliers to meet specific sustainability criteria. Ignoring these requirements means potential disqualification from lucrative contracts.
- Reputational impacts: Consumers are increasingly environmentally conscious, and backlash spurred by harmful procurement practices can spread quickly, leading to a public relations nightmare and a damaged brand reputation.
These hidden impacts underscore the importance of integrating sustainable practices into procurement strategies. Ignoring sustainability is no longer just an ethical issue—it's a critical business risk.
Sustainable brands are already winning
The data is in, and it shows that brands prioritizing sustainable procurement are outperforming those that don’t. Higher ESG-rated companies fared better than lower ESG-rated companies when markets tumbled at the start of the COVID-19 crisis, and BlackRock believes this trend will continue.
In a recent report, the firm said, “We believe companies managed with a focus on sustainability should be better positioned versus their less sustainable peers to weather adverse conditions while still benefiting from positive market environments.”
Take Patagonia as an example. The brand is known for championing sustainable initiatives—even encouraging customers not to buy new products. Their famous 2011 “Don’t buy this jacket” ad encouraged gear repair over replacement, yet it led to a 30% increase in sales.
Today, Patagonia's core values are front and center, showcasing “build the best product” to prolong usability and reduce waste as well as “protect our home planet” to address the connection between environmental destruction and social justice. As a privately held company, Patagonia doesn't make its full financial records available, but its continued brand loyalty and growth reflect the power of well-executed sustainable practices.
Enabling sustainable procurement through smarter tools with Order.co
Procurement platforms help create visibility in the procurement process, a key aspect of improving sustainability in purchasing. With Order.co, you can increase the efficiency of your supply chain and streamline your order process to eliminate redundancy and errors.
Order.co helps you take control of your purchasing process by:
- Enabling buying from preferred vendors and curated selections
- Finding sustainable options for important supplies
- Detailing usage trends so you can make better purchasing decisions
- Reducing waste and unnecessary spending in the procurement process
Want to make your office supplies procurement more sustainable? Start with our sustainable office supplies guide. To learn more about driving efficiency in the procurement process, request a demo of Order.co today.
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