Creating sustainable procurement
Sustainable procurement embeds ESG issues and CSR policies at the heart of specifications and sourcing processes. As consumers are becoming increasingly eco and socially conscious about where to buy from these requirements have began to take priority.
In 2021 a landmark case saw energy giant Shell held to account by multiple courts and governments for the sustainability performance of its suppliers. This therefore demonstrates the need for businesses to proactively pursue suppliers who invest in sustainability. Add the consumer requirement to the emerging priority of ESG and sustainability by investors, international bodies and governments then those businesses who take pre-emptive action will be future proofing their business.
Strong sustainable procurement policies alongside dependable, trusted suppliers is a huge step in achieving necessary targets but how can technology support and improve these processes?
One such technology that supports organisations achieving ESG goals and avoiding issues throughout its supply chain is the application of Blockchain. Applying Blockchain and Smart contract technology provides benefits such as:
Streamlining of processes and increases efficiency throughout all applications within the supply chain
Ensures compliance and regulations are met through the tracking of product from source and the digitalisation of supporting documentation
Tracks data and workflows which provides a consensus of truth and therefore helps avoid investigations regarding issues such as greenwashing
Applying such a technology therefore increases accuracy, efficiency and transparency. ESG requirements and the consumer need for product data is only going to strengthen and therefore adoption of supporting technology is key.