ECOVADIS AND THE SUSTAINABLE SUPPLY CHAIN
risk reduction as key priorities within procurement , although compliance has grown markedly in importance as regulations tighten .
Similarly , pursuing sustainable procurement practices is driven by a desire to protect brand reputation , reduce risks and achieve compliance , according to report respondents .
“ Very few global corporations are doing it just for ethical objectives - most are doing it because it delivers significant cost savings or cost benefits ,” says Thaler .
“ We work with a very large global FMCG [ fast-moving consumer goods ] company that had 70,000 suppliers , and they are using this CSR program to reduce this to 20,000 . They ’ ve already generated more than $ 300mn in savings as a byproduct of this compliance exercise .”
Historically , sustainable procurement or responsible sourcing focused on a company ’ s top 100 suppliers because that ’ s where 80 % of savings could be found . But , as the report notes , applying sustainable procurement requirements to large-spend suppliers alone won ’ t protect against reputational risks .
“ A very small vendor where you
“ Clients use our analysis to decide which suppliers they want to work with and to identify which suppliers need to improve if they want to remain in business ”
– Pierre Francois Thaler , EcoVadis Chief Executive and Co-Founder , EcoVadis
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