The incorporation of Environment, Social, and Governance (ESG) principles has been a topic of discussion for years, with questions surrounding its cost, business case, and long-term implications. However, businesses now recognize that sustainability is not just a moral imperative but also a strategic advantage. The benefits of ESG adoption, such as improved brand value, efficiency enhancements, cost savings, technology adoption opportunities, and societal betterment, make it a vital focus for purpose-driven enterprises. The procurement function, occupying a unique position within an organization, plays a key role in driving and enabling ESG adoption by closely collaborating with functions such as supply chain and finance, and managing a network of suppliers. 

In this viewpoint, we evaluate the role of the procurement function in promoting sustainable practices across processes such as sourcing, category management, and supplier relationship management. The report explores procurement’s current involvement and scope in driving ESG initiatives and identifies potential partners within the ecosystem that can support and empower procurement in these initiatives. 

Scope

All industries and geographies

 Contents

In this viewpoint, we discuss procurement’s role in supporting enterprises to drive their ESG initiatives through the following:

• Leveraging procurement’s unique positioning within the organization as a liaison with internal and external decision-makers 
• Embedding sustainability initiatives across the procurement value chain
• Engaging with third-party providers to enable procurement to achieve the organization’s sustainability objectives 
• Evaluating key considerations for building a mature ESG-focused procurement function 

Membership(s)

Procurement and Supply Chain

Sourcing and Vendor Management