Ethical and sustainable procurement is no longer just a trend, but a crucial aspect of responsible business practice. Companies are increasingly recognising the importance of sourcing goods and services in ways that benefit both society and the environment.
At Accelerate, we’re a leading procurement consultancy and sustainability is very close to our heart (you can see more of what we have to say about this important topic here and here.) We are committed to helping companies across all sectors implement best practices. Here’s how you can implement ethical and sustainable procurement in your business…
Understanding ethical and sustainable procurement
Ethical procurement involves sourcing goods and services in a manner that upholds principles of fairness, integrity, and respect for human rights. It includes ensuring fair labour practices, preventing exploitation, and promoting diversity in the supply chain.Sustainable procurement goes a step further by focusing on the environmental impact of procurement activities. This includes choosing suppliers who employ eco-friendly practices, minimise waste, reduce carbon footprints, and use resources responsibly. Sustainable procurement aims to balance economic, social, and environmental factors.
Developing a clear policy
The first step to achieving ethical and sustainable procurement is to establish a clear policy. Your procurement policy should outline your company’s commitment to ethical practices and sustainability goals. This includes defining standards for supplier behaviour, such as fair wages, safe working conditions, and environmentally friendly practices. Make sure to communicate this policy to all stakeholders, including suppliers, employees, and customers.
Conducting supplier assessments
Assessing suppliers is a crucial aspect of ethical and sustainable procurement. Before engaging with suppliers, conduct thorough evaluations to ensure they align with your company’s values. This assessment should include:
- Labour practices: Ensure suppliers adhere to fair working conditions, provide a safe work environment, and comply with labour laws. Look out for certifications such as Fair Trade and SA8000, which indicate a supplier’s commitment to ethical practices.
- Environmental practices: Evaluate a supplier’s environmental impact, including their resource usage, waste management, and carbon emissions. ISO 14001 certification is an indicator of a supplier’s commitment to sustainable practices.
- Diversity and inclusion: Support diversity by including suppliers from various backgrounds, including minority-owned and local businesses.
Setting clear standards and expectations
It’s essential to set clear standards for your suppliers regarding ethical and sustainable practices. Create a supplier code of conduct that outlines your expectations for labour conditions, environmental responsibility, and business ethics. Include clauses that encourage continuous improvement in these areas and establish consequences for non-compliance.
Building long-term supplier relationships
Fostering strong, long-term relationships with suppliers can lead to more ethical and sustainable practices. When you view suppliers as partners rather than just providers, you encourage collaboration and trust. Open communication allows you to work together on initiatives such as waste reduction, carbon footprint minimisation, and improving labour conditions. By investing in these relationships, you can influence suppliers to adopt better practices, ultimately benefiting the entire supply chain.
Implementing sustainable sourcing strategies
When sourcing products or services, prioritise those that meet sustainability criteria. Consider the following strategies:
- Local sourcing: Procure goods and services from local suppliers to reduce transportation emissions and support the local economy.
- Eco-friendly products: Choose products made from recycled, renewable, or biodegradable materials. This helps minimise environmental impact and supports suppliers who prioritise sustainability.
- Energy-efficient logistics: Work with suppliers who use energy-efficient transportation methods and packaging to further reduce the carbon footprint.
Regular monitoring and auditing
Once you have established relationships with suppliers, it’s important to monitor and audit their practices regularly. This ensures ongoing compliance with your ethical and sustainable procurement standards. Use key performance indicators (KPIs) to measure aspects like carbon emissions, waste reduction, and fair labour practices. Regular audits provide insights into areas for improvement and help maintain high standards throughout your supply chain.
Educating and engaging stakeholders
For ethical and sustainable procurement to be effective, it’s vital to educate and engage all stakeholders. Train your procurement team on the importance of these practices and how to implement them. Additionally, involve suppliers, employees, and customers in sustainability initiatives to create a culture of responsibility.
The benefits of ethical and sustainable procurement
Implementing ethical and sustainable procurement practices not only contributes to a healthier planet but also enhances your company’s reputation, reduces risks, and improves long-term profitability. By adopting these practices, your business can build stronger relationships, meet regulatory requirements, and respond to the growing demand for socially responsible products.
Ethical and sustainable procurement: how we can help
Achieving ethical and sustainable procurement requires a well-defined policy, thorough supplier assessments, clear standards, and ongoing engagement. By taking these steps, your business can make a positive impact on society and the environment while promoting a fair and responsible supply chain. As a procurement consultancy, we are committed to helping companies implement sustainable procurement practices and navigate the complexities of the transition towards a more sustainable future.
At Accelerate, we provide forward thinking procurement solutions. We are a team of entrepreneurial procurement consultants who have led and transformed global procurement functions and service provider organisations. Whilst our background is in procurement, our work goes beyond procurement alone to positively impact all areas of your business and help it to realise its full potential.
If you need support when it comes to ethical and sustainable procurement practices, contact us today to see how we can help.