Sustainable performance refers to the balancing act of environmental, social, and governance objectives in the delivery of core business activities to meet the customer and stakeholder expectations. In this blog we will cover how procurement can measure sustainability performance and set targets for sustainability.
Why sustainable performance is important?
Procurement is at the forefront of sustainability measurement. Tracking sustainable performance is teamwork. Measuring sustainability helps with tracking progress, evaluating the effectiveness of actions taken, building stakeholder engagement, evaluating tradeoffs, establishing reward mechanisms, meeting new requirements, and communicating goals. Reporting on Environmental, Social, and Governance (ESG) goals rely on reliable and accurate numbers. According to McKinsey, companies measure their sustainability achievements within procurement so that they can drive faster growth, attain higher valuations, drive down costs and reduce waste. Sustainable business conduct eliminates risk, supports a long-term mindset, and addresses rapid changes in the world. The spend data is there: what we are buying, who from, how much we buy, and where it is made. Despite the business case for responsible sourcing, many companies don’t use sustainability measures as primary criteria in decision-making or supplier reviews.
This is the 6th article in the Sustainability series. Click here to read the full series.
This article was first published on sievo.com