Results from Procura’s Sustainable Procurement Pulse Survey 2021
A significant proportion of most organisations’ revenue is re-spent through its supply chain. On average, supply chain emissions are 5.5 times greater than the emissions from their direct operations.
As such, the procurement function is a key enabler for organisations who want to raise their environmental and ethical profile and executive leaders must utilise their procurement functions and engage their supply base if they want to become more sustainable.
Those who are doing this well are reaping the rewards of being viewed as sustainability leaders in their market, however, there are many barriers to achieving Sustainable Procurement.
Procura have undertaken a Sustainable Procurement Pulse Survey which tested the state of play of Procurement Leaders across a range of geographies and sectors. The results were insightful.
Sustainability is in vogue … no surprise there
Sustainability is clearly in vogue and there is a clear link between sustainable procurement, brand and overall value creation. Interestingly, whereas previously cost reduction had been the prime focus of more than 90% of procurement leaders, it is now only 47% with 32% now saying the driving sustainability is their number one focus.
But very little action … and a lot of obstacles
However, whilst the high focus on ESG may not come as a surprise, the most significant results show a lack of action and, of concern, 97% of organisations said they are facing obstacles to Sustainable Procurement. These include difficulty of measuring impacts, lack of knowledge and, very simply, not knowing where to focus their efforts.
Everyone is agreed, it is time for action.
There are some key areas of insight that can be drawn from the Pulse Survey and a number of practical recommendations.