The upwards trend of green and sustainable procurement
Times have changed, and purchasing preferences have changed with it. Buying from a company that takes supply-chain sustainability seriously is now one of the most important criteria for consumers – and companies now need to adapt to help shape a better future.
Supply chains, especially global ones, are also at risk when it comes to environmental issues and climate change. In 2020, CDP, a system that researches and discloses environmental impacts for investors, companies and cities, reported that climate change and deforestation can put at risk around 1 trillion dollars of revenue.
Procurement should now be escalating their role within the organisation to ensure the development of more sustainable supply chains, with companies increasingly being challenged to change the way they are impacting the environment.
According to CDP, Supply chain emissions tend to be 11 times higher than emissions from companies that have direct operations – and depending on the sector or the way the company produces, supply chains are responsible for around 80% of total greenhouse gas emissions.
It's not easy to change, but it's more than necessary. Some Research from Yale recently showed that just one google search can generate up to 7 grams of carbon dioxide emissions – which highlights just how large the carbon footprint of the entire internet is.
But the argument to reduce carbon footprints might also be beneficial to a companies bottom line with the same CDP research showing that suppliers reported combined savings of 33 billion dollars in 2020 by cutting their emissions.
How the cloud can help with sustainability
Switching to the cloud would be a big step for businesses looking to become more sustainable. Cloud-based infrastructure and software eliminate the need for physical servers which require lots of hardware, a lot of space to house and a massive power supply to keep it working and cooled.
For procurement, choosing a procurement solution that is hosted on the cloud opens up a number of benefits, including the reduction of carbon footprints. The management of all suppliers on a single & secure portal that can be accessed anywhere on the globe for instance would also reduce the need for geographically placed data-centres and help align and unify procurement practices no matter where a purchase was made from.
Working with the cloud also allows companies to support their employees with remote work, which is now a new reality for most organisations.
To find out how Maistros cloud-based procurement solution is helping organisations drive better sustainability within supply chains, get in touch now.