The Future Of Sustainable Procurement: What Should Businesses Prioritise?

Long gone are those days when sustainable procurement used to be the cherry on top of a cake. Now, it has become a necessity for businesses worldwide. Climate change and environmental disruptions have changed the way people view this. Businesses that lack sustainability are falling behind and losing opportunities. Did you know that 50% of consumers said that sustainability is their top criterion when making decisions for purchasing? 

Wondering what can be done? Well, for this, businesses must implement sustainable procurement systems effectively. However, doing this isn’t easy with the growing competition, be it the oil and gas or any other business. Wondering how to create more sustainable procurement practices? To help reduce your carbon footprint and to help your businesses grow responsibly, here are some tips to follow. 

Top Priorities for Businesses Towards Sustainable Procurement

Here are some priorities that businesses should focus on when it comes to sustainable procurement:

  • Selecting the Right Suppliers

Businesses, be it oil and gas or any other industry must prioritize selecting the right suppliers. Businesses can promote economic inclusion and contribute to the development of different communities. Wondering how? 

This can be done by lending support to small, local and minority-owned businesses. Since sustainability is an ongoing effort and needs change, switching suppliers every time issue might not be favourable for long-term outcomes and strong partnerships. 

  • Collaborate with Suppliers 

To ensure successful energy procurement, businesses must involve engaging all parties in the decision-making process. This involves suppliers, consumers and employees. This cooperative approach ensures everyone is dedicated to achieving sustainability goals.

To accurately track the effects of ESG on your supply chain and procurement, you must involve your suppliers. While working together, make sure you exchange data on social and environmental indicators. This requires special attention when monitoring energy use and greenhouse gas emissions. 

  • Transparent Reporting 

Data is the driving force behind sustainable procurement strategies. This is when businesses must prioritize transparent reporting as it is essential for setting goals and achieving success. 

Before turning into data, it must be assessed and checked. Transparent reporting is a crucial part of a company’s annual reporting process. Based on the reports, procurement teams must employ new approaches. 

  • Reducing Environmental Impact

Another thing businesses must prioritize for sustainable procurement is reducing environmental impact. It is a core aspect of sustainable procurement and includes selecting goods and services that use resources effectively. This includes producing less waste and having a low carbon footprint. 

By emphasising eco-friendly solutions, businesses can drastically reduce their environmental impact. Additionally, make sure you clearly define your sustainable goals be it reducing carbon emissions or improving resource efficiency. 

  • Set Targets

Another important thing that must be prioritized by businesses is targets. Developing targets for ESG procurement practices is crucial. Businesses must assess the current setup and identify areas that need improvement. You must conduct a thorough evaluation of the policies, procedures and processes. 

Establishing a strong setup for sustainability goals requires an understanding of the current status. While setting targets, also be ready to evaluate advantages and disadvantages, possibilities and risks. For instance, targets should focus on reductions such as cutting greenhouse gas emissions.

  • Brand Reputation 

Businesses these days are under growing pressure from investors and customers to act responsibly towards the environment and society. This is when businesses must prioritize ESG procurement methods. This shows stakeholders that your company is dedicated to ESG. 

As a result, this enhances stakeholder trust and brand reputation. Investors seeking long-term, sustainable growth will find this emphasis on sustainable sourcing interesting. Moreover, it also fits with the expanding trend of sustainable investment practices. 

  • Economic Viability

Another thing businesses must prioritise is focusing on balancing ESG procurement and economic viability. Sustainable procurement refers to weighing expenses versus long-term value. 

This includes choosing solutions that offer the best total value, not just the lowest price. It also includes considering a product or service’s whole lifecycle, from manufacturing to disposal. 

  • Commit to Sustainable Sourcing 

Businesses must prioritise sustainable sourcing meaning they should purchase goods and resources from suppliers who uphold transparency and avoid corruption.

It also includes choosing goods that use resources like raw materials, water and energy. Additionally, it also involves the disposal of products, favouring those that can be recycled, reused or disposed of securely to minimise waste. 

  • Follow Culture and Regulatory Compliance  

In addition to environmental concerns, sustainable procurement must emphasize social responsibilities, be it in oil and gas or any other industry. Businesses must prioritize human rights, fair labour conditions and the welfare of the community in their procurement process. This creates a culture of sustainability and ensures adherence to social responsibility guidelines. Leaders in supply chains and procurement must comply with ever-tougher regulations regarding ESG policies. 

Sustainable procurement requires adherence to environmental, social and governance (ESG) requirements. Therefore, businesses must prioritize regulatory compliance at all times. Businesses should ensure that their procurement procedures adhere to industry certifications and standards. This, as a result, lowers risk and offers a framework for sustainable operations. 

  • Monitoring and Innovation

Another thing businesses must prioritise is continuous monitoring of their sustainability operations. To increase energy procurement performance over time, businesses should regularly review and refine their process. This ensures that businesses will not fall behind when it comes to adjusting to new sustainability possibilities. 

Businesses must prioritise encouraging innovation by selecting suppliers who provide sustainable solutions. Fostering innovation and implementing cutting-edge digital solutions brings huge differences. This includes improving sustainability practices as well as obtaining a competitive advantage in the market. 

It’s Time to Achieve Your Sustainable Goals

At ReflowX, we are the best platform when it comes to sustainable procurement. As the best carbon management platform, we can help you take care of your business’s carbon footprint. Our sustainability experts offer the best services along with customised solutions. 

Whether your company’s energy procurement requires the latest updates or looking for suppliers or buyers who focus on sustainability, you can rely on our platform. For more, you can contact us today without any hesitation.