In an era where sustainability has become a critical business imperative, procurement functions are poised to play a pivotal role in driving organizational success.
BMW's 2022 sustainability initiatives successfully removed 1 million tonnes of carbon emissions from its supply chain. How did it do it and how can you learn from it?
Sustainable Procurement, sometimes Responsible Procurement or Ethical Procurement, is the commitment of applying consideration to environmental, social, and governance factors (ESG) in procurement decisions. These factors should be applied across all aspects of the procurement cycle. It means that the procurement processes are compliant with environmental laws, fair labor practices, resource consumption targets and other core principles of ESG. These factors are becoming more important to overall business performance due to the increase in consumer requirements for sustainable goods and services. Due to this, sustainable factors are now a key pillar of the business requirements gathering activities.
