What is the impact of climate change on procurement
Podcast Transcript
What is the impact of climate change on procurement
Daniel: [00:00:00] What is the impact of climate change on procurement? That's what we're talking about today.
Daniel: So we're gonna talk about how procurement can assist, aid, or even lead on the sustainability journey that every organization, I think, will undertake. And they'll probably start undertaking this more than ever. In 2023,
Daniel: there is an organization called Carbon Trust
Daniel: they state that 80% of a organization's carbon footprint can be locked away in the supply chain. That is a startling figure, and if any of you're listening to this and you still think that procurement shouldn't be getting mixed up with sustainability, just, just challenge yourself on that.
Daniel: CIPS, ran poll a while back, and 90% of respondents fought that sustainability and probably that wider ESG piece, right? Should be a focus in procurement decision making. I completely agree with that notion. If we are not considering the impact that our [00:01:00] suppliers have on our planet, firstly we're just going down the wrong path altogether, and I appreciate that.
Daniel: People will say that we need our CEOs, our C-Suite, to be on board. I agree. I think they are. But you can also push from your level, whatever level you are, within your hierarchal system, within your business, you can definitely push for this.
Daniel: The World Bank has even suggested that adopting sustainable procurement processes could create saving opportunities of up to 20%. And just whilst we're talking about savings, there's a huge opportunity here to create savings because if we are saving the planet and we are bringing in more sustainable products, components, parts, commodities, materials, resources, that we then turn into products or services out there.
Daniel: I think having that and almost without it being a green washing exercise to, to be able to shout from the rooftops and say, Hey, we're sustainable. We are green, and we can back it up. I think this is a key point our businesses need to start doing is like, Hey, actually we source from these suppliers and we [00:02:00] have these insights and transparency as to where they source their products from. We can even provide certifications or we have information that's stored in this blockchain, which is public, and you can go and view it to show that we've done all we can to prove, to validate the providence of everything we're saying here, and I think people are going to buy into that.
Daniel: Consumers. Other suppliers or partnerships and investors. So I think there is a very good opportunity here to make more money by being far more sustainable, and that is an exciting proposition.
Daniel: So practical tips. Now, how do we make this work? We need some sort of sustainability policy within our business. How do we make that work with our suppliers though? So we take the key parts of that that we can, that we can implement, that we can have an impact on. So it may be that we a certain number of female led suppliers from a wider ESG perspective, or we want.
Daniel: Remove wood from our [00:03:00] supply chain and use ethically sourced bamboo. I don't know, just thinking of some examples out loud here for you, my friends. And we can then include that in our rfx in into our requirements when we go out to market. And we can ask as we're doing the onboarding process as well, for any of these suppliers, we can ask certain questions.
Daniel: Maybe we can ask them about their scope free emissions, and are they tracking that, how they dispose of waste? There are 1,000,001 ways in which you can ask questions to your suppliers for them to have an input into your business so that you can start collating data and build. up, an image of your entire supply chain.
Daniel: Not to mention you can get sustainability data feeds and elements like that or use procurement tech that covers sustainability to get better insights into your supply chain.
Daniel: Just to summarize, procurement needs to deal with sustainability. 2023 seems like a good year to do it. There are [00:04:00] commercial up upsides to doing it and. Practically, it's not impossible to do it. You could start doing small changes now, even if you're just using that Excel template that you send out to your suppliers to collate information.
Daniel: A couple questions in there around sustainability efforts would go a long way. If you haven't watched it yet. Check out this video that I made all about risk management, why that needs to be a focus. I think sustainability, risk management will become a big . I hope it will. Uh, I don't know. I want it to be anyway.
Daniel: See you.