SUSTAINABILITY
“ There is a significant need for further ESG awareness and capability building ”
PETER SPILLER PARTNER MCKINSEY
Of course , there are still tradeoffs to be made here when both requirements are not equally met , but there are opportunities to achieve this dual mission of carbon and cost reduction .
How embedded is ESG compliance in sourcing ? There is a significant need for further ESG awareness and capability building , not just in the procurement function but in general across the corporate world – but we are seeing progress .
In the best case , procurement professionals will become pioneers , both in achieving sustainability targets with suppliers and analysing their own operations but also in their ‘ tier-n ’ value chain ( supplier development for sustainability ).
For many producing companies , the biggest part of the sustainability footprint – carbon , waste and water – sit in the supply chain and therefore with ‘ tier-n ’ suppliers .
What companies are the standard bearers for sustainable procurement ? One pioneering company I would name here is Danfoss , a global components manufacturer . Adding decarbonisation targets to its procurement strategy , it has
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