Sustainability

What is Sustainable Procurement?

Sustainable procurement is the act of adopting social, economic and environmental factors alongside the typical price and quality considerations into the organisations handling of procurement processes and procedures.

Typical sustainable procurement practises include compliance with environmental laws and targets, the removal of hazardous materials and waste in the supply chain and the thorough vetting of suppliers for fair labour practises.

Sustainable procurement and sourcing should genuinely improve the organisations business and future-proof it’s long term objectives.

Why does Sustainable Procurement Matter?

Effective Sustainable Procurement matters because it means an organisations lives up to its mission statement and builds reputation and trust amongst its target consumers and partners. The benefits of Sustainable Procurement can be summarised into four key areas.

  • Risk & Reputation - A supplier association with an organisation that has bad practises like child labour or pollution can have a financial blowback on the organisation and its brand value.
  • Cost Reduction - Sustainable procurement partners should prevent cost increased through the transfer of ownership and the consumption of energy costs. Cost savings allows re-investment into an organisation.
  • Revenue Growth - Consumers that buy into sustainability can improve organisations financials and increase brand equity and loyalty. An organisation can also save money from using sustainable procurement partners.
  • Future Proofing – Developing sustainable procurement practises allows the organisation to future proof themselves against scarcity in supply and changes in social, economic and environmental factors.

CIPS Knowledge related topics, best practice guides and white papers include: sustainable and ethical procurement and corporate social responsibility (CSR).

Featured Resources

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CIPS Sustainable and Ethical Procurement Guide

Whilst the concept of ethical and responsible procurement is not new, the increase in global sourcing opportunities has highlighted some serious issues in procurement practices that must be addressed.

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Demand Management

 

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Tackling Modern Slavery

Tackling Modern Slavery

Through purchasing decisions companies have the capacity to improve the working conditions of those employed by exploitative suppliers

CIPS Ethics Test

CIPS Ethics Test

CIPS Ethics e-Learning and online test continues to help anyone in the profession to build confidence in employers, suppliers and colleagues

Embedding Sustainability

Embedding Sustainability

Whether setting goals or being a change agent to embed sustainability in your organisation, the Embedding Project tools support you on your journey

Knowledge Topics:

Circular Procurement

Circular Procurement

Learn more about Circular Procurement, the consideration of a product from design stage through to disposal

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CSR

CSR

Corporate social responsibility is a way of ensuring that the business monitors its compliance with the law and industry standards

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Modern Slavery

Modern Slavery

There are believed to be over 40 million people enslaved worldwide, generating an estimated US $150 billion in illegal profits per year

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Sustainable Procurement

Sustainable Procurement

Sustainable procurement takes a wider view and incorporates the net benefits for both the buyer organisation and the wider world

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Sustainable Procurement Tools

Sustainable Procurement Tools

CIPS members can download these tools to help your organisation with its ethical conduct and sustainable practices

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Waste

Waste

If supply chains can reduce their percentage of waste going into landfill, this contributes towards the supplier becoming more sustainable

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Probity

Probity

Probity is defined as evidence of ethical behaviour in organisational processes adhering to standards of integrity, transparency and honesty

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Find all the CIPS core study guides with quality recommended reading to equip you with everything you need to excel through exams and get qualified.

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CIPS membership grants access to resources, networking, support, discounts and so much more to accelerate your career and progress your knowledge.

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CIPS Global Standard

Benchmark your competency level

Now in its third edition, the CIPS Global Standard for Procurement and Supply is a competency framework used to enhance efficiency and performance.

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