Procurement as a force for regeneration: lessons from a green pioneer

Businesses have to play a bigger role in building sustainable ecosystems, how we think about our planet, and how we pursue social equity believes Juliet, a trailblazer in the energy transition who founded the renewable energy provider Good Energy.

“Businesses are the doers in the economy,” she said during a keynote speech at the CIPS Sustainable Procurement & Supply Summit in London on 19 November 2024. “We go out there and actually do. But when you look at the current economic model… the relentless extraction of resources means that we create massive environmental segregations.

“What we’re doing is also taking from somewhere else, from the social context for example,” she explained. “We can’t always see the damage we’re doing. If we continue to extract endlessly from the planet, that’s going to eventually catch up [with us]. As businesses we need to think about what we can do to get ahead and to de-risk your strategy.” 

Benefits of adopting a regenerative approach

Davenport believes the solution is for procurement and the wider business to adopt a regenerative approach to operations. By integrating social, environmental and financial domains, companies can restore and enrich ecosystems, foster social equity, and drive innovation. 

This method also emphasises a focus on sustainability through practices like renewable energy adoption, waste reduction, and ethical supply chains. That in turn creates long-term resilience, reduced risks, and fosters positive impacts for society and the planet.

“The key principle is climate change,” Davenport adds. “What can the impact for your direct procurement be? How do you buy your energy, for example? Can you go a step further? Can your warehouses install solar panels? How do you use your business to make a bigger impact – not just being carbon neutral, but carbon positive and restoring nature?”

Juliet has dedicated over two decades to advocating and creating solutions to climate change. With a background in physics and economics, she founded the UK’s first 100% renewable electricity supplier in 1999, marking a significant contribution to the UK's climate action efforts.

Social equity has to be considered as part of the package, she says. She emphasised the importance of tackling modern slavery within the supply chain, but also stressed the need to go beyond that, and to look at how we support environmental innovation through investment.

“The UK has the best environmental science in the world, but one thing we’re not good at is bringing it to market. Part of that is the way we procure, making sure that we compare preferred service providers, for example, with small innovative businesses to ensure to support them in the marketplace."

In that respect, Davenport said that collaboration should also be high on the agenda, particularly because it fosters innovation and encourages local sourcing. To emphasise the point, she cited the example of Finisterre, a UK-based clothes manufacturer that wanted to use merino wool in its jumpers.

But rather than sourcing the wool from New Zealand, the company worked with a local sheep farmer who reared a herd of merino wool sheep. “They not only reduced their carbon footprint but also secured their long-term supply chain, making that the long-term risk.” 

Sustainability makes financial sense

In a wider context, it shows how the environmental case for regenerative business leads into the financial case, and that essentially, they are one and the same. “One lens is social, one lens is environmental, and one lens is financial,” says Davenport. 

“Often what we are looking for is the middle point where they come together, where you get the efficiency and capability, where you get the de-risking. And in many cases where those begin to overlap, you see the environmental case become a financial case.”

At that point, the business transforms. Davenport highlights that translating the environmental lens and social lens into a financial context can help - for example, considering the risk of employee churn and the cost of going to market if social and environmental issues are not considered. 

How can you get started?

“So how will your business become regenerative, where might you start? Imagine you’ve been challenged to make your business regenerative. What would be the most challenging area to change? And where would you be able to shout from the rooftops?” she recommended in conclusion. 

“Ultimately, would your model hold up to commercial scrutiny, and can you make it pay? To me personally, that is the most exciting part about becoming regenerative. What you do is incredibly important, because it can make a fundamental difference.”

Juliet is a climate scientist, noted expert on carbon offsetting, and author of The Green Start-up. She advises companies on how to develop their sustainability strategies to unlock opportunities. She was a keynote speaker at the CIPS Sustainable Procurement & Supply Summit 2024, which took place at the Kia Oval in London.

Looking for more tips on how to future-proof your organisation? Sessions from the CIPS Sustainable Procurement & Supply Summit 2024 are available to watch on demand on CIPS Download.