Five key procurement strategies for a circular economy
SUSTAINABILITY
To achieve a true transition to a circular economy , a business needs to engage all parts of the organisation , to eliminate waste , circulate materials and assist in regenerating nature .
The Ellen MacArthur Foundation ( EMF ) is a non-profit organisation that works with some of the world ’ s biggest companies to build awareness , education , research and best practice around promoting the circular economy , in order to tackle some of the biggest challenges of our time , including climate change , biodiversity loss , waste and pollution .
Increasingly based on renewable energy , a circular economy is driven by design to eliminate waste , circulate products and materials , and regenerate nature , to create resilience and prosperity for business , the environment , and people .
The role of the Ellen MacArthur Foundation “ This transition requires systemic change , radical innovation , and global collaboration ,” says Andres Oliva Lozano , a Senior Research Analyst at the Ellen MacArthur Foundation ( EMF ). “ To achieve our goal , we have brought together businesses , governments , other charities and academia to create the world ’ s leading circular economy network .”
To do this , the foundation produces research , resources , and tools to explore , develop and support solutions that can help everyone realise a circular transformation . Its vision is an economic system that ’ s better for people , business , and nature .
The blockers for circular economies There are many challenges for procurement and supply chain managers who are attempting to increase the sustainability credentials of their organisations , whilst still holding a competitive business advantage and strong returns . Cindy Venho , who is a Project Manager at EMF , believes they can also be held back from achieving circular economy
Five key procurement strategies for a circular economy
• Providing training to and resources for procurement teams on the circular economy and its implications for their jobs .
• Incorporating circular economy criteria into supplier negotiations , proposals and agreements to ensure suppliers are providing circular inputs and adopting circular processes . The circular economy procurement framework provides an overview of the intervention points organisations can use to make their purchasing choices more circular and engage their suppliers in conversations and collaborative circular partnerships .
• Educating and financially supporting suppliers on their transition to a circular economy .
• Piloting and scaling circular initiatives with willing suppliers .
• Collaborating across functions like design , marketing , and logistics to align on circular goals .
116 November 2023