SUSTAINABILITY not just in the procurement function but in general across the corporate world – but we are seeing progress .
In the best case , procurement professionals will become pioneers , both in achieving sustainability targets with suppliers and analysing their own operations but also in their ‘ tier-n ’ value chain ( supplier development for sustainability ).
For many producing companies , the biggest part of the sustainability footprint – carbon , waste and water – sit in the supply chain and therefore with ‘ tier-n ’ suppliers .
What companies are the standard bearers for sustainable procurement ? One pioneering company I would name here is Danfoss , a global components manufacturer . Adding decarbonisation targets to its procurement strategy , it has embarked on an ambitious journey toward net zero by leveraging the latest digital solutions , including McKinsey ’ s Catalyst Zero Product .
The result is a cost-optimised decarbonisation roadmap showing , for example , alternative suppliers for certain materials like iron , steel , and aluminium , helping Danfoss create low-carbon versions of existing products still at low cost .
This supports its goal of reducing direct and indirect emissions from purchased energy by 46.2 %, reducing emissions across the value chain by 15 %, and becoming carbon neutral across its operations by 2030 . ( The full impact story can be found here ). procurementmag . com 117