___________________________________________________________________________________________________ Procurement
A staged approach
How procurement can help drive ESG goals for supplier sustainability
By Spencer Young
All eyes are on Chief Procurement Officers ( CPOs ) as organizations look for ways to address Scope 3 emissions , the indirect result of a company ’ s value chain . The added pressure comes as environmental , social , and governance ( ESG ) issues climb to the top of the agenda . According to Deloitte ’ s 2023 CPO Survey , addressing ESG needs has become the second-most important objective for CPOs , with improving operational efficiency remaining in the top spot .
As the conversation around climate and Scope 3 emissions intensifies , procurement leaders should build a greater understanding of the complex factors in play - and how they can help their organizations more effectively achieve ESG goals .
Why Scope 3 emissions matter
Scope 3 emissions are often responsible for the largest proportion of a company ’ s carbon footprint . Under this scope , Category 1 , Purchased Goods and Services , represents the largest emissions category for most industries . And it is the most complex , as it entails engaging with the supplier base . That means procurement has a unique role to play , influencing one of the largest contributors of emissions .
The emissions portion of Category 1 ranges between 35 percent and 40 percent , depending on the industry , according to the CDP . This category alone can move the needle on sustainability efforts , but it requires a deliberate approach that accounts for multiple factors , including access to accurate data , supplier engagement , and supply chain transparency .
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