Procurement Intelligence Unit

Does green procurement mean a policy on your website, or possibly a few questions in your RFI? If so, then as professionals and as global citizens, we need to reflect on a huge opportunity missed for both our businesses and ourselves.

If green procurement is “just” a policy, namely a few supplier questions on your next RFI and the occasional but obligatory press release to reflect your efforts, then you are probably not alone. I would honestly say most organisations are currently at this level of maturity. The global economic downturn has a large part to play in the slow progression of the greening of business processes and understandably so: businesses have been focusing on savings, working capital and managing risk. This was reflected in the Procurement Intelligence Unit’s CPO Strategy 2010 report, published in January this year, where “Green Procurement” ranked near the bottom on the list of priorities for procurement leaders.

For those companies that have continued to invest time into incorporating green measures and processes into their core procurement DNA, I believe they will emerge with a competitive advantage as the upturn starts. That is not to say that those companies which have taken the foot off the pedal will be completely left behind, but they need to catch up quickly. Clearly, the advantage they have is to learn from the early adopters, and the most ambitious ones might even leapfrog maturity levels.

The green agenda is here. Customers are increasingly selecting products and services that fit their desire to be better global citizens and consider the environmental impact of their purchases. Surely, legislation will enforce more detailed reporting of companies’ green credentials throughout their supply chains – it is just a matter of time, and it is our job to make sure our business is ready for it!

Keep in mind that green procurement is not a novelty in the procurement community. Some organisations have been incorporating green elements into their supply chains for years, while others are in the process of overhauling their supply chains to operate on a fully green agenda. The latter are true trend-setters. Not only do they demonstrate their commitment to reduce environmental impact, but also innovative thinking by building novelty technologies and launching products the market has not seen before. In some cases, we have found, they even have the power to influence consumer behaviour.

So where do we start? This is the question that often is the stumbling block for most companies and also the reason that I have decided to focus on Green (sustainable) Procurement and not CSR in the short term. There needs to be a focus on, and some reference points of, success and failure that can help organisations implement pragmatic actions to accelerate their green procurement journey so that it becomes part of their core business DNA, and, most importantly, it needs to be authentic throughout the entire supply chain. This is what I call Bright Green Procurement.

On a personal level, I believe that in order to be good global citizens and procurement leaders, we have an opportunity and in fact a responsibility to raise the green procurement agenda within our businesses and make a difference for our children.

Why does the PIU want to help your business with its Bright Green Procurement strategy?

Firstly, our core value is to maximise the value and impact of procurement on your business. By working with our members to accelerate the adoption of green procurement, we believe this will provide you with a competitive advantage and better manage external risk.

Secondly, seeing ourselves as good global citizens, we try to run our business as green as we can. We are by no means perfect, but continuously strive to improve. Further to this, we see a tremendous opportunity to make a difference by helping companies like you to green your supply chains. This also means addressing your suppliers, whether tier 1, tier 2 or beyond, to ensure a more sustained environment for future generations.

How does the PIU help you adopt a Bright Green Procurement strategy?

We collaborate with our members and the wider business community to identify pragmatic ways to accelerate a sustained and authentic green procurement agenda into your business and that of your supply chain.

What exactly does the PIU do to assist my business to adopt a Bright Green Procurement strategy?

We are already working with companies that are at the forefront of Bright Green Procurement to identify and understand their strategies, projects and challenges. We will share these findings with you to help you spot your own gaps and find ways to close them. Meanwhile, we are committed to unveiling more “best practice examples” that you can learn from and feel inspired by. In essence, our approach is aimed at helping your business leapfrog to being green.

We are also setting up working groups to focus on the areas where our membership feel we can provide the most amount of value in terms of research, setting the future agenda, and, where required, setting up standards.

If you would like learn more about the PIU and how we work with our customers to implement a green procurement strategy, please contact us on+44 (0)20 7501 0598.