Support the Strategy

Build the business case for sustainable procurement

Aligning procurement objectives with your organisation's sustainability goals can redefine procurement as a strategic contributor to business solutions ³. First, evaluate the overlap between your commitments to sustainable procurement and overall organisational priorities. This analysis will underline the integral role of procurement and supply chain in supporting your sustainability agenda. Engaging suppliers to demonstrate quick wins can earn leadership's trust, paving the way for broader, more transformative proposals in the future. Document financial savings associated with some of your sustainable procurement projects where possible. Sharing these successes will help strengthen the business case for sustainable procurement.⁴ ⁵

EXAMPLE: Strategic supplier partnerships for reusable in-store displays at Best Buy

Best Buy aimed to redesign its in-store display units, made from various materials, for reuse and cost reduction.⁶ Success required cross-departmental alignment, involving stakeholders from store operations to branding and strategic engagement with suppliers to identify sustainable material substitutions.

EXAMPLE: Aligning sustainability with business priorities at NSG Group

NSG Group created a cross-functional steering group to create a consensus on aligning sustainable procurement with organisation-wide business priorities. This included highlighting the connections between sustainable supply chains and meeting rising consumer and investor expectations for sustainability, compliance requirements, reducing risks, and increasing employee engagement.⁷

Leverage procurement as a hub for innovation and insight

Your procurement function can be a source of innovation by proactively identifying sustainability solutions across your value chain. Also, procurement can provide unique insights into value chain risks and opportunities due to its close interactions with suppliers. Consider how your team can better engage in leadership discussions, sharing sustainability trends and potential challenges and risks that may impact your business in the short and long term.

Collaborate with suppliers, scout for new technologies, or explore sustainable alternatives to address your business challenges, such as alternative materials or circular business models. By consolidating this intelligence, you can create a portfolio of potential sustainable solutions and projects to share with colleagues across the business. Start building credibility with leadership by initiating low-risk experiments or pilot projects, such as sustainable supply summits or engaging with suppliers on new initiatives. Over time, you will need to build out your toolbox for innovation⁸ and may even need dedicated teams that help to manage your value chain innovation activities.

EXAMPLE: Kingfisher’s working group for product circularity

Kingfisher's home improvement company has drawn on experts from its production, manufacturing, retail and logistics to create an innovation-focused working group – ReMade”. Its mandate is to develop products with end-of-life management credentials through recyclability and reusability.⁹