The Sustainability Category

The CPO’s Conundrum (Part 1B): How Outside-In Issues are Shaping the Course of Procurement [PRO]

As we noted in yesterday’s Spend Matters PRO article, if you were to ask a roomful of CPOs what was their top concern was, for this year or even the coming decade, chances are the majority would lead with cost management and supply assurance. And while this makes sense, supply assurance and cost reduction are just two of a host of broader issues that are being pushed to the front of mind for today’s CPOs. So we are dedicating a series to the broad scope of issues that the modern CPO must face, starting with an overview of how they break out in the common PESTLE framework. Yesterday we addressed the “PES” — Political, Economic and Social — and today we will address the “TLE” — Technological, Legal and Environmental.

The State of Sustainable Procurement: What to Expect in 2019

wind power

We’re just a month into 2019 and all signs point to an interesting year ahead. There already has been developments on climate change, business ethics, anti-corruption efforts, air pollution and sustainability in general. What does this momentum tell us about the state of sustainability this year — and what does the current landscape specifically mean for procurement teams? Answers to these questions lie in a few critical trends assembled with the input from our team of experts at EcoVadis.

North America, Europe Include Top Business Performers in Anti-Corruption Efforts

As companies become increasingly aware of their own corporate social responsibility (CSR) obligations, various watchdog groups are beginning to take stock of these indicators. While some companies might look the other way as conflict gold passes through their supply chains, others might be making efforts to do positive things with their power, such as donating to charitable causes. In a new EcoVadis study, “The Fight Against Corruption: Insights Into Ethical Performance in Global Supply Chains,” the company considers the issue of corruption and how prepared companies are to address it.

Addressing CSR and Sustainability Goals Through Improved Indirect Spend Management (Part 1): Background and Challenges

The list of corporate social responsibility (CSR) and sustainability risks in the physical supply chain is long. When securing direct materials, procurement organizations must assess factors from restricted or hazardous substances to the kind of labor that went into raw material extraction and even political restrictions like sanctions on whether companies from certain countries are even allowed to do business with you. Because of these and numerous other potential issues, many companies have begun to focus on identifying and eliminating such risks from their supply chains with the help of third-party CSR data sources and risk-monitoring platforms. But while the value of assessing CSR risks for direct materials spend has gained prominence in recent years, the other side of the procurement coin, indirect spend, has not received nearly as much interest. That’s a shame — and a risk in itself.

Commodities Roundup: Global Steel Production, M&A Activity and an Alunorte Update

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters. This week: Steel production rising, M&A activity, a Spitfire for your wrist.

Sustainable SRM Is Focus of 10th Annual State of Flux Report on Supplier Relationships

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Many businesses have come around to the idea that sustainability is not just a hashtag or a marketing ploy but something that can help a company advance its business goals. But as organizations dive into all the ways they can save energy and use friendlier materials, they soon realize there are only so many they control. Truly leveraging sustainability requires close collaboration all the way down the supply chain to find mutual incentives for all, according to the latest report by State of Flux, a global procurement and supply chain consultancy.

Want to Know Your Industry’s Risks? CSR Index from EcoVadis Takes Deep Look

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As customers and businesses seek better environmental practices and fair labor standards, corporate social responsibility (CSR) reporting has taken on greater importance for executives who could face questions about why they use conflict minerals or buy products created by forced labor. To help take a deeper look at the issues, EcoVadis has assessed the CSR reporting of more than 33,000 companies around the world. The Paris-based company is a provider of business sustainability ratings, intelligence and performance-improvement tools for global supply chains.

On CSR Reporting, Smaller Firms Outscore Larger Ones in Global Study

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Small and medium-sized businesses outscored larger companies in managing their corporate social responsibility reports — but all sizes of firms could improve CSR management and remove more risk for their companies, according to EcoVadis’ second annual study of more than 33,000 businesses around the world. Out of 100 points, small and medium-sized companies (26-999 employees) scored 42.4, and large ones (more than 1,000 employees) scored 39.6, the study said. Results below 45 indicate “an unstructured approach” to CSR management — with a medium to high risk for a business on the EcoVadis scoring scale, and the study said large companies have much further to go in improving their CSR practices.

A Big Green Idea: How Procurement Can Balance Profitability and Sustainability

External forces — from climate change to shifts in generational expectations — are causing businesses to take a hard look at the sustainability of their supply chains, and procurement organizations are uniquely positioned to effect environmental and financial change for the greater good, speakers said at Procurious’ 2018 Big Ideas Summit on Thursday in Chicago. In presentations from leading procurement professionals and supporting technology providers, speakers encouraged attendees to reconsider what was possible in the supply chain, including common misconceptions about sustainability.

Why Supply Chains Should Put Curbing Global Food Waste at the Forefront

More than 2 billion tons of food worth $1.5 trillion could be wasted in 2030, according to the Boston Consulting Group. It’s not an unrealistic estimate considering the 1.6 billion tons worth $1.2 trillion lost just three years ago. Food waste is a concept so vast and systemic that one must go beyond the individual impact and look toward how entire companies involved in the process – from production to consumption – can actively work in a way that helps solve a global crisis while attaining tangible business benefits.

The Rise of the Social Enterprise (Part 2): Why Corporate Citizenship is Crucial

As the nature of work changes, so too does our understanding of careers. This is one of the most important trends covered in Deloitte’s 100-page 2018 Global Human Capital Trends Report. While 84% of respondents who took part in Deloitte’s survey deemed the ability to build a 21st-century career as “important” or “very important,” only 37% think they are ready to do so. Part 1 of this series covered C-suite, contingent workforce and compensation trends. Today’s post will discuss four more trends in human capital: corporate citizenship, corporate wellness, longer careers and the redefinition of the career itself.

GAO: Majority of Companies Can Now Determine Origins of Their Conflict Minerals

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For the first time, more than half of companies filing conflict minerals reports are able to determine the source of these minerals, according to a Government Accountability Office report on conflict minerals disclosures filed with the U.S. Securities and Exchange Commission (SEC) in 2017. Last year, 53% of the companies were able to report whether their conflict minerals — tin, tungsten, tantalum and gold — came from the Democratic Republic of the Congo or one of the nine neighboring countries.