___________________________________________________________________________________________________ Procurement
4 . Execute strategy
When it comes to executing strategies and initiatives , think in terms of onetime actions as well as continual activities . One-time actions may cover key communications , alignment , and engagement with suppliers , as well as updating terms and conditions or going through a sustainable sourcing exercise . Continual activities depend on the strategy adopted and can include training suppliers , managing their access to funding , or administering penalties when a supplier does not meet agreedupon goals .
5 . Monitor and manage
Many companies hit the ‘ pause ’ button after measuring emissions , failing to progress meaningfully toward their emission-reduction goals . To help ensure suppliers meet new emissionreduction obligations , procurement ’ s role should evolve to include monitoring suppliers ’ ESG metrics , as part of a performance management framework , and reassessing supplier engagement strategies as needed .
Taking the next steps
While transforming procurement ’ s approach to Scope 3 emissions and suppliers can be intimidating , realize that this is not a disruptive , one-time project . It ’ s a journey . And the need to start sooner rather than later is growing as climate change affects more companies directly and indirectly .
For additional insights that can help you get started , visit https :// www2 . deloitte . com / us / en / pages / consulting / articles / scope-3-sustainableprocurement . html ■
For a list of the sources used in this article , please contact the editor .
Spencer Young www . deloitte . com / about
Spencer Young is a principal that leads Sustainable Procurement within Deloitte Consulting LL ’ s Supply Chain and Network Operations practice . Deloitte provides industry-leading audit , consulting , tax and advisory services to many of the world ’ s most admired brands , including nearly 90 percent of the Fortune 500 ® and over 8500 US-based private companies .
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