Sustainable procurement and the link to ethics

Sustainable procurement is the practice of buying the products and services you need, achieving good value for money while also taking into account other concerns, such as the community, the economy and the environment.

Sustainable procurement is underpinned by the Triple Bottom Line of Profit, People and Planet: 

• People: an organisation can have a positive or negative impact on its most important resource, its people. These include employees, families, customers, suppliers and communities.
• Planet: the positive and negative impact an organization has on its natural environment. This includes its carbon footprint, use of natural resources and toxic materials and the disposal of waste.  
• Profit creates wealth and employment, fosters innovation and generates tax. An organisation that does not make a profit over a reasonable period is unlikely to be sustainable in the long term.

Sustainable Development Goals

The United Nations Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere. Climate change and influences on sustainability have now become an existential threat to humanity.

This is why, increasingly, organisations are being challenged over their environmental impact. There is now a great focus on the procurement function, which should prioritise sourcing sustainable resources and products from its external suppliers.

Sustainable procurement can make a positive contribution to the SDGs in a number of ways:

• Deforestation

The Forest Stewardship Council (FSC) is an international organisation established in the early 1990s and is dedicated to promoting responsible management of the world’s forests. Becoming FSC certified shows that you comply with the highest social and environmental standards on the market. Public concern about the state of the world’s forests and timber resources is increasing, and FSC provides you with a credible solution to complex environmental and social issues. 

• Global warming and climate change

• Energy

• • Energy supply contracts that include electricity generated from green/renewable sources.
  • Buying green “alternative” products can be more energy efficient.
  • Ask prospective suppliers to include the most energy-efficient options in their proposals .
  • Develop a green code of conduct
  • Encourage suppliers to measure their environmental impact. The Carbon Disclosure Project (CDP) provides a model with global recognition.

• Pollution and waste

• • Reducing your energy consumption through more efficient production process and better insulation.
  • Source renewable energy and seek to influence all parts of your supply chains to do the same.
  • Buying raw materials made from recycled waste.
  • Manufacturing and distributing closer to your customer base.

A key development in waste management is the concept of the circular economy which focuses on preventing the production of waste through waste minimisation and the re-use of waste materials through recycling. This links directly to procurement issues, where careful selection of materials, suppliers, process redesign for disassembly and reverse logistics can all reduce the amount of wastes produced or facilitate recycling and re-use.

Here are some tips for managing your wastes and developing your waste management strategy:

• Understand the legal implications of the waste produced in your organisation by identifying the specific legislation that affects you.
• Look at your general environmental issues – what role does waste play in these?
• Quantify and identify your waste. Where does it arise and how much does it cost? Undertake a walk around audit and look at your bills.
• Identify a waste management champion or team to drive things forward.
• Produce an action plan for reducing your waste.
• Get commitment from senior management for the action plan.
• Identify the possible disposal options where you cannot reduce or recycle.
• Select your waste carriers carefully and make sure your Duty of Care responsibilities are met.
• Monitor and review your achievements. Communicate your successes to your staff, senior managers and outside your organisation to interested stakeholders.