First, you want to do the right thing, but it also comes from demands from your stakeholders like:
- Consumer awareness, today consumers are much more aware of where things come from. Since procurement is responsible for the supply chain and the vendors, sustainability awareness in procurement and being on top of that is more important than ever.
- Expectations from society, society expect that you act in an ethical and sustainable manner otherwise your company’s reputation can be damaged.
- Investor focus, investors are more and more focused on green investments and ESG.
- Employee retention and recruiting, employees are interested in working in companies they can be proud of, behaving in an ethical and sustainable way.
- Regulations and laws.
If procurement excels on the sustainability agenda, then the department also gets more muscle power and relevance for the company to be represented on C-level.