You have likely been hearing a lot about environment, social and corporate governance (ESG) of late. ESG is a measurement that investment managers have been utilizing for nearly a decade to assess the environmental and societal responsibility of companies for potential investment. With the turmoil experienced in summer 2020 and continuing into 2021, companies have made ESG a focus and in many cases have established aggressive goals. Procurement can play a leading role in achieving these goals.
Procurement is uniquely positioned within a company to see across all aspects of the organization. Couple that with Procurement’s direct involvement with supplier relationship management and its easy to see how Procurement can significantly impact a company’s ESG goals.
Procurement should take several key steps to maximize this impact. First, Procurement should understand the organizations broader ESG goals and craft sourcing and procurement specific objectives that align to these goals. Developing category specific supplier diversity goals is a great example. Next, Procurement should update sourcing and procurement processes to ensure that optimal outcomes can be achieved. RFP documents, supplier codes of conduct, contracting templates, etc. should be updated and ESG related criteria should be built into the supplier evaluation process. Finally, Procurement should develop enhanced spend analytics incorporating ESG metrics to track performance and identify areas of opportunities.
It is often difficult for Procurement teams to balance proactive initiatives such as driving ESG strategies while also continuing to conduct business as usual. PEAQ Procurement can help. Through our rapid assessment capabilities and 100% remote working capability, our team can be deployed quickly to drive results.
To find out more, please visit our website at www.peaqprocurement.com.
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However big or small your challenge, PEAQ Procurement is here for you.