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Sustainable Procurement

Procurement professionals must be increasingly aware of the importance and benefits of sustainable procurement. Procurement is identified as sustainable when environmentally conscious decisions are made throughout the entire procurement process. This takes into account the environmental, social, and economic consequences of design, material use, processes, transportation and logistics, disposal, and so on.

Benefits of Sustainable Procurement

There are many benefits to an organization for pursuing sustainable business practices.  Below are some that pertain specifically to procurement, both internally and for the supplier base: 

  •  Improved performance in reuse, recycling and waste management
  • Reductions in supply chain risk through security of supply and increased mitigation using sustainability principles Fostering of increased loyalty and improved relationships with suppliers, contractors, and customers
  • Increased worker productivity and encouragement of innovation due to a focus on workplace and employee issues
  • Practical demonstration to the global community of the organization’s commitment to sustainability

Purchasing decisions, including supplier selection, can have an impact on reputation and brand image based on perceptions of stakeholders and/or customers on how companies are behaving.  For this reason, it is important that procurement find and source from responsible suppliers who hold the same kind of ethical and sustainability standards as the buying organization.



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