With every five weeks that pass, we edge 1% closer towards the end of the 2020s which has been the most decisive decade of our lives for the climate crisis and, more broadly, for the sustainability of our planet.
As of 2023, the situation could not be graver. We now have a 50% chance of exceeding the Paris Agreement’s 1.5°C warming limit before we even reach 2030. This year has seen record heat waves rip across Europe and beyond, Pakistan ravaged by deadly floods as a result of glacial melt and extreme monsoon rains, and record wildfires have raged across Spain, Australia and California. We are pulling more natural resources out of the ground than ever before, our aquifers are drying up, we waste one-third of the food we produce globally and at our current rates of deforestation, the planet may be left with just 10% of its forests by 2030.
As our natural environment suffers under the weight of unsustainable consumption patterns, so too do our communities. Climate change is exacerbating pre-existing social inequalities that persist across the globe, compounding the effects of poverty and marginalization that increase along lines of race, ethnicity, disability, geography and gender. The result will be poorer health, safety and socioeconomic outcomes, poorer food and water security and, ultimately, poorer people.
Though they do not threaten us equally, these challenges do threaten us all and, while they might like to think otherwise, businesses are no exception. Businesses, particularly global enterprises, produce almost everything we manufacture, use and dispose of. They touch just about every community and every person on the planet. As a result, much of the responsibility for averting what awaits us sits with these organizations, but so too does most of the room for positive change and concrete improvement.
How companies can become more sustainable
Despite their longevity and even their very existence being endangered by the grave sustainability situation we all face, the corporate world is not acting quickly enough. 2022 saw more than its fair share of greenwashing with many enterprise organizations completely failing to make the necessary changes to the way they run their operations. Instead, they have doubled down on measurement to quantify where we’re starting from when it comes to issues such as emissions and put out endless reams of PR implying that this is the same as actually doing something. In all but the most progressive and sophisticated of organizations, there has been startlingly little progress in actually pursuing more sustainable business practices.
It is imperative that we get started immediately as we are already behind. This will become truer as we see the results come in from 2022’s frenzy of running the numbers. As measurements become more robust and disclosures more comprehensive, it is likely that the current state of play will be considerably worse than we anticipate.
Not only does failure to act now come with disastrous consequences for the planet and its people, it also signals true business risk. Some penalties already exist for flouting certain ESG issues. UK headquartered companies, for example, can face fines up to £20 million and their executives risk two year prison terms if found to be knowingly relying on modern slavery. Last year, we saw the Shell ruling where the fossil fuel giant was taken to court by private citizens and ultimately deemed legally liable for the emissions of not just its own operations, but also of “the suppliers and customers of the group.”
More recently, the UN has called for the end of greenwashing and corporate inaction as its High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities launched their Integrity Matters Report at COP27 in November. In it, they make “a call for governments to regulate net zero commitments, starting with large emitters” — a rallying cry which should signal to all enterprise businesses that more scrutiny is coming. This rising tide will not — and should not — slow.
As businesses look to make improvements fast, it will be necessary to decide where it’s most efficient to pool their time and resources. The key lies outside of their own four walls. Given that most corporate environmental impact isn’t a result of a company’s own operations but a result of emissions and other impacts elsewhere in their supply chains, it’s imperative that companies, especially large enterprise organizations, work closely with supplier stakeholders to reduce their impact on the environment.
To address this reality, sustainable procurement has emerged, both as a movement and as a distinct business unit. Yet, despite the huge growth in such departments and job titles over 2022, the maturity level is still low across the board.
That’s where the Sustainable Procurement 2030 Guide comes in. My colleagues at Vizibl and I have written the guide as an overview of some key sustainable procurement issues that should be top of the priority list, along with the benefits that sustainable procurement initiatives will bring to the organizations who launch them successfully. We have also signaled some key barriers to look out for along the way and provided an overview of how to build a successful post-contract sustainable procurement program through Supplier Collaboration and Innovation.
Sustainable procurement is broad-ranging and complex, touching on topics such as technology, data architecture and finance. As such, we have provided many other materials along the way to support you in areas such as selecting the right procurement platforms, harnessing supplier innovation and constructing a robust business case for sustainable procurement. These resources and more are also aggregated for your convenience at the end of the guide.
We hope that this resource proves helpful to you and your wider team as your organization embarks upon – or continues – your sustainable procurement journey.
Get the guide on the Vizibl site: Sustainable Procurement 2030 Guide