The Boardroom Wake-Up Call: Why Procurement is a Sustainable Growth Driver
Procurement used to be a numbers game. The champions of the field ten years ago were those who could secure the lowest costs, streamline supply chains and maximise efficiency. From fast popular fashion giants to tech titans, without naming names, the formula seemed infallible: cut costs, increase margins and deliver faster than the competition. But what was once considered as "best practice" is not anymore.Today, these same procurement strategies are being exposed as environmental and ethical liabilities. The cheap materials, the opaque supply chains, and the relentless pursuit of efficiency each have left a trail of consequences. Factories in developing countries produced low-cost goods under questionable labour conditions. Deforestation surged as food conglomerates prioritised volume over sustainability. Electronics companies fueled the demand for conflict minerals, unaware or unconcerned about the human cost. The high cost of cheap is becoming painfully clear as businesses now grapple with the long-term fallout of their short-sighted procurement decisions.Consumers, regulators and even investors are demanding transparency and sustainability. Companies once celebrated for their cost-cutting prowess are now trying to undo the damage of their procurement choices. The ghosts of past procurement strategies face a new reality: sustainability isn't just an ethical choice; it's a business necessity.
Ana-Maria Velica, Director and Founder of Green Apples®, emphasises this shift, "Sustainable procurement is all about sourcing goods and services in a responsible manner that considers environmental, social and economic impacts throughout their life cycle. It goes beyond cost and quality by integrating sustainability criteria into procurement decisions to mitigate risks."Many organisations approach sustainable procurement to:
Onboard suppliers on transparent supply chain platforms like Ecovadis or Sedex;
Or to engage suppliers into sustainability programs that aims to get suppliers engaged on Product Carbon Footprint strategies and measurements;
Or to promote Suppliers Diversity as a corporate focus;
Promote responsible sourcing by choosing raw materials, products and suppliers that reduce carbon footprint, meet certified standards and ensure fair labour practices;
Report company sustainability efforts.
However, as Ana-Maria Velica underlines, sustainable procurement isn’t just about external suppliers and compliance checklists:“Sustainable Procurement starts from inside out. It begins with the internal procurement processes, procurement compliance and procurement organisation design. Leaders need to be educated on what sustainable procurement actually is. Sustainable procurement starts with looking in the mirror and assessing the internal procurement processes and people practices.” This brings an important question: How can an organisation demand fair wages and ethical labour practices from its supply chain if it doesn’t uphold those same standards for its own employees?A truly sustainable procurement strategy starts at home.
Leaders must act now!
Sustainable procurement is no longer an optional CSR initiative; it is a critical framework for ensuring long-term success. It focuses on:
People: Ensuring fair labour practices, human rights protections and corporate social responsibility.
Profit: Achieving financial sustainability while maintaining ethical and responsible business practices.
“At Green Apples Career, we are approaching Sustainable Procurement as a transformation that starts with the Board Room, continues with the internal procurement and continues externally with the suppliers. To implement long-term sustainable growth, the board and C-suite need to endorse a clear sustainable procurement mindset.”Organisations that fail to integrate sustainability into their procurement processes could face scrutiny, reputational damage and potential regulatory penalties. But those who embrace sustainable procurement will have new growth opportunities, build stronger relationships with suppliers and future-proof their operations. Sustainable procurement is not just about ethics, it is a competitive advantage.
Discover more about the remarkable journey of the Founder and Director, Ana-Maria Velica, by watching the episode "Why Mentorship Matters" on the HEART2CORE podcast where she offered wisdom and inspiration for professionals at every stage of their career. https://www.youtube.com/watch?v=d84hZ6_O50Q
