SUSTAINABILITY
The transformation of procurement from cost-focused function to sustainability driver represents one of the most significant shifts in corporate responsibility today.
As organisations grapple with Scope 3 emissions – which typically account for 70-90 % of a company’ s total carbon footprint, according to the UN Global Compact Network UK – procurement teams find themselves at the centre of decarbonisation efforts that extend far beyond their traditional remit.
“ One of the biggest challenges in addressing Scope 3 emissions is the lack of consistent, accurate data from suppliers,” explains Fang Chang, Chief Product Officer for Procurement at SAP.
“ The most critical capability is collecting supplier- and customerspecific emissions data tied directly to what the company purchases.”
This data challenge has become more pressing as regulatory frameworks evolve rapidly across global markets.
Aniththa Jeyakumaran, Senior Manager for Sustainable and Resilient Supply Chains at Deloitte UK, adds:“ Sustainability regulations are constantly evolving and reshaping procurement. Regulations such as CSRD, CSDDD, EUDR, CBAM and PPWR mandate greater sustainability and due diligence, requiring companies to assess environmental and social impacts across their supply chains.”
The implications extend well beyond compliance reporting. These regulatory changes are fundamentally altering supplier selection criteria, contract negotiations and risk assessment frameworks.
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