Did you know that when it comes to CO2 emissions, suppliers’ operations are responsible for 65% to 95% of a company’s total emissions*?
Therefore, there is no way around involving your Supply Chain and your Suppliers in your sustainability / ESG strategy.
So how can corporate supply chains create social and environmental impact? One clear answer is through social procurement.
This Spend Matters article ”How Social Procurement can Create Value In Your Corporate Supply Chain Strategy”, published on March 14th, 2022, states – Social procurement is a global movement that is slowly gaining momentum, where large corporations are integrating social businesses into their value chains. SAP for example, has committed to source 5% of its addressable spend from social entrepreneurs, alongside another 5% from diverse suppliers by 2025 (5×5 by 25). There are other great examples in this publication from Spend Matters.
“Bringing social procurement into the corporate supply chain can seem intimidating at first, but it’s about starting small, focusing on less risky areas, and finding partners that can support you. It’s as much about bringing in innovation and diversity to your supply chain, as it is about social impact. Companies that are engaged in social procurement today will continue to succeed and lead in the future” says Oliver Hurrey, Chair of the Sustainable Procurement Pledge, a growing global non-profit community of thousands of procurement leaders wanting to more easily embed sustainability into procurement.
Reach out if fips consulting can help you to build a more social and sustainable supply chain.