Making Quick Progress With Sustainable Procurement

Procurement decisions are one the areas of business that have the biggest impact on the carbon footprint of any company. But it does take time to create a sustainable supply chain, so it is helpful to make it as straight forward as possible, and do what is realistically possible when time allows. What follows describes the quicker ways to start making an impact.

Use Suppliers That Have Green Credentials

Price, quality and reliability are the traditional key factors in selecting suppliers, and environmental credentials can be added to the list, even the other three considerations have to take precedence. Simply having sustainability as a consideration will make a difference to decision making to some degree.  

Buying with climate change in mind is made easier with companies that push robust sustainable practices forward. If nothing obvious is publicly visible from prospective suppliers, then it is worth asking about green credentials. Those making positive progress will be keen to provide details. Not only does adding sustainability to required supplier criteria heighten supply chain efficacy, but it also encourages other companies to improve environment policy thus forming a positive circle with the more buyers looking for best practice and more businesses responding accordingly.  

Qualification for eco standard marks and accreditation, plus independent assessment of green practice are key indicators to look for, particularly in the case of larger companies. But absence does not necessarily mean lack of action on the environment. It may just indicate a lack of independent assessment. Smaller companies often do not have the time or finances to go through formal qualification processes. Asking a few relevant questions should reveal the real picture.  

Switch to Green Energy

One of the fastest ways to make a big difference towards creating a planet friendly supply chain is switching to a green energy provider. It does not take long to find an appropriate supplier at a competitive price, and can often be a money saving exercise. Transfer of utility company takes no more than two or three weeks to significantly improve carbon footprint.

External IT and Web Hosting

It may not seem obvious, but web hosting services and other server based third party support such as cloud storage, is contingent on using large amounts of energy. At the extreme end of this is the 110 terawatt hours a year consumed by Bitcoin, which is 0.55 per cent of the World’s yearly energy consumption, and equal to the annual needs of Sweden.

Though obviously on a smaller scale, the third party server systems that SMEs rely on are also very thirsty when it comes to electricity, so a positive move can be to enquire to find out if suppliers operate energy efficient systems, and whether they use power from a renewable source. Though it may not be viable to switch suppliers if the answers are negative, nevertheless it will encourage server based providers to adopt better practices.   

Certification and Standard Marks    

For many products, services and even types of business, there are standard marks and certification that verify credentials relating to sustainability. Near the top is B Corp, which is a hard to achieve qualification in environmental and social responsibility, with a huge number of other identifiers below covering subjects from building design to recycled paper.

There are literally hundreds of accreditation schemes, and they provide a short cut to procurement selection because they offer a high level of assurance when buying. For a complete briefing on environmental standard and certification marks, please see our guide that contains a list relevant to SMEs.

Buy Local

If all other considerations are equal, such as price and quality, then a good way to keep emissions to a minimum is by purchasing products as locally as possible. The most eco friendly product loses green credentials if it trails a carbon footprint half way around the World. It is therefore helpful to not only check for environmental compliance in terms of components and manufacturing process, but also where an item is made. It sounds time consuming, but usually the information is printed on packaging or website descriptions. If not, suppliers should know.  

Being realistic, it is sometimes a necessity to buy technical equipment and other merchandise from countries as far afield as the Far East, but even buying imported goods from local suppliers cuts the carbon footprint of final shipping journey. Purchasing from within a 20 mile radius when possible, gradually starts to make a difference to company environmental profile.    

Second hand

Buying previously used items can be a good procurement option. It will not be feasible a lot of the time, but for example, buying used desks and chairs is a form of recycling, and it is not necessary to compromise on quality. There lots of suppliers of good preowned furniture, and there are auctions too. Plus, there are a growing number of office furniture remanufacturers that rebuild cabinets, chairs and tables to give them a new lease of life, and they normally provide warranties. The same applies to electrical equipment such as photocopiers, printers, computers and mobile phones, that can be obtained having undergone a professional overall, and also carry guarantees of a year or more. 

Not only does buying second hand prevent items ending up in landfill, it can often be bought for a fraction of the price for new counterparts. 

Bought In Services

There is usually a need for most companies to buy in services, ranging from cleaning companies to IT support. Based checking green credentials before awarding contracts can help reduce carbon footprint. In the case of providers that use products on company premises, such as decorators and cleaning firms, it is possible ask for the use of carbon friendly products. For example, paint using Volatile Organic Compounds (VOC) is based on petroleum, but not only that, it gives off fumes that are harmful to people, and can in some circumstances, cause significant health problems. In the case of both decorating and cleaning, it is rarely necessary to use harsh or damaging chemicals. 

Reduce Reuse Recycle

There are a number of basic ways to make buying more sustainable. The Three Rs are helpful with this: Reduce, Reuse, Recycle. With a little consideration, it is sometimes possible to reduce the consumption of some products, extend their working life through updates or refurbishment, and also focus more recycling. In considering these factors, sometimes the conclusion is going to be that they are not a feasible option, but just having the three Rs back of mind can create little wins that all add up. And if that approach is transferred and adopted by employees, then lots of incremental gains start adding up to big ones.

It also makes a positive difference to ask employees for their thoughts on improving the supply chain. They often understand the products and services needed for their roles better than anyone else, and they may have ideas for making buying changes.

Creating a formal process that encourages ideas to be put forward is a positive move, not only in terms of environmental considerations, but also as a form of staff motivation. There is a huge amount of research that says the majority of employees want to the company they work for to adopt good eco practice, and that they would like their job to be a positive influence on the planet even if its purpose is not directly concerned with the environment.  

Next steps

In deciding to make changes to the supply chain, it is a good idea to create a list of actions. But be realistic. Trying to do too much too quickly can have a negative effect if it is found impractical within a short timeframe. A modular approach is often best.

Some larger companies have the luxury of using sophisticated software programmes to track carbon output, including measuring progress with procurement, but for SMEs it is frequently not a realistic idea both in terms of time and cost. However, a simple tick box chart or similar, is a good way to monitor progress. Not only does it track advances, but seeing advances often becomes a motivation that builds momentum around itself, and something that can be further enhanced by posting information to employees, and even the wider community through PR and social media.

In fact, telling clients and sales prospects about positive eco developments can help generate sales as more B2B buyers and consumers seek green credentials as a buying criteria.

It can be useful to have a biannual review to make a check on activity. If the number of actions is increasing, then it is safe to assume that intention is being matched by reality. If things are slow or stagnant it may be a signal to shake things up, or perhaps seek advice, which does not necessarily mean engaging some form of consultants. Asking other business owners for advice often produces positive suggestions.

As with all aspects of reducing company carbon footprint, the key element with supply chain is making headway, whether fast or slow. It is getting there in the end that counts.