ESG
manufacturing in their direct or indirect operations . As we move through the 2020s , it ’ s essential that CPOs prioritise sustainable water usage throughout their operations .”
Moving into the social portion of ESG , Perera believes that it continues to make good business sense for CPOs to have a robust methodology for reporting on human rights in their supplier base .
Businesses can find themselves involved in lawsuits , suffer reputational harm , and
“SUSTAINABLE SOURCING IS BOTH AN ESTABLISHED PRACTICE FOR CPOS , AND ONE THAT ’ S GOING TO NEED FURTHER COLLABORATION AND INNOVATION TO REMAIN VIABLE ” miss out on opportunities and investments if they fail to properly care for the people who keep them in business . And , against the backdrop of modern slavery cases rising significantly in recent years – 86 % of which took place in private sector supply chains – human rights must remain top of any CPO ’ s social agenda .
From a governance standpoint , Perera says that sustainable sourcing is both an established practice for CPOs , and also one that ’ s going to need further collaboration and innovation to remain viable . With increasing interest in greener versions of much-needed materials like steel and aluminium , a new issue is emerging : the lack of supply to meet the demand .
Without very deliberate decisions made by buying companies to adhere to sustainability principles , this lack of supply will both force companies to revert to sourcing original materials and drive up the prices of recycled alternatives .
MARK PERERA , CEO AND CO-FOUNDER , VIZIBL procurementmag . com 135