Since 60-90% of a company’s Environmental, Social and Governance (ESG) footprint lies with its suppliers and nearly 90% of greenhouse-gas emissions come from a company’s supply chain, you’ll never meet your ESG goals or properly manage your supply chain and inflationary presures without a strong procurement leader.
Procurement has traditionally been viewed as a simple function of sourcing materials quickly and cheaply. However, CPOs and their teams are now responsible for managing a host of issues that matter deeply to consumers and employees, such as carbon emissions and ethical sourcing practices.
Governments worldwide are tightening regulations around ESG measures in the supply chain, and organizations have legal obligations to uphold.
It requires the participation of everyone in the organization, but the chief procurement officer (CPO) may have to take on more new responsibilities than any other executive.
The CPO is responsible for ensuring that the company’s procurement practices align with its ESG goals. This includes sourcing materials and services from suppliers that support the company’s values and ESG goals.
In summary, the CPO plays a crucial role in ensuring that a company’s procurement practices align with its ESG and purpose-driven goals. Companies which put more focus on all 3 ESG pillars, benefit from higher levels of customer loyalty, commitment, and positive word-of-mouth, and employees are more likely to be engaged and loyal to the company.
How do you integrate your procurement colleagues and suppliers into your ESG goals and measurements?