On the 8th of September 2022, we concluded an insightful and thought-provoking webinar with a stellar panel.
Moderated by Mr. Jon Hansen (Founder & Chief Editor, Procurement Insights), the panel consisted of Mr. Vivek Luthra (Managing Director, Accenture), Mr. Manishankar Prasad (ESG Manager, North-South Initiative), Mr. Kiranjeet Singh (CEO & Head of Procurement & SCM, Strategic Management Solutions), and Mr. Ashan Kumar (Managing Director, PR Wire Sri Lanka).
In the wake of COVID-19, sustainability has become a top priority for businesses and the society at large. The enterprises are under increased scrutiny to not only do well financially but also in environmental, social and governance (ESG) terms.
ESG is a framework for measuring the social and environmental impact of an organization’s business activities. Increasingly, investors are using ESG criteria when making decisions about where to allocate their capital. In addition, consumers are becoming more conscientious about the brands they support and the products they purchase. They are looking for brands that align with their values and are making a positive impact on the world.
As we move into 2023, it is clear that ESG will continue to be a top priority for businesses and investors alike. To stay ahead of the curve, procurement teams must take the lead in accelerating ESG adoption within their own enterprises.
What are the priorities for ESG Adoption in organizations?
- Investment and asset optimization
- Top-line growth
- Cost reduction
- Reduced regulatory and legal intervention
- Employee productivity uplift
ESG is no longer optional, in order for organizations to maintain their license to operate, they must increasingly integrate sustainability into all aspects of their business, including procurement. By taking the lead on ESG adoption, procurement can help ensure that the enterprise remains competitive in terms of supplier management and improved compliance.
But it is not that easy to do. Procurement professionals face a lot of issues when planning or implementing a sustainable procurement process.
Some of them were identified as:
- Lack of knowledge about Sustainability
- Few internal resources
- Lack of support or pushback from suppliers
- Lack of government funding and cultural support
- High costs of implementing
- Difficulty in accessing the right technology
To overcome these hurdles, procurement teams need to understand where they are lacking and then fill those gaps as much as possible. As key decision-makers within their organizations, procurement leaders have a great deal of influence over the other parts of the business. They are in a unique position to drive change and adopt new practices that will have a positive impact on the environment and the society at large.
Incorporating ESG criteria into procurement processes is essential for ensuring that sustainability is embedded into every decision made about suppliers. But making this shift won’t be easy;it will require changes to how procurement teams operate as well as investments in new technologies and processes. Procurement teams must take the lead in accelerating ESG adoption across the entire organization to put their enterprises on the path to sustainable success. The procurement team has good visibility when it comes to the global supplier networks and that is a good point to start optimizing an organization’s ESG strategy.
Watch this webinar on-demand, to gain insights in this thought-provoking session and take a lead in driving ESG adoption.