Sustainable Procurement Value Monitor
Hence, the Manifesto for Sustainable Procurement serves as a valuable addition to CSR initiatives for the private sector, providing concrete steps towards aligning with CSRD in terms of procurement and supply chain practices. This enables companies to contribute to offering sustainable products and services, thereby reducing CO2 emissions, decreasing energy consumption, and boosting investments in sustainable energy sources.
Socially Responsible Procurement (SRP) is not a new theme within procurement. In 2015, the first action plan was introduced to enhance collaboration between governments in socially (sustainably) responsible procurement, and over the years, more plans have emerged. The successor to the National SRP Plan 2021-2025 is the Manifesto for Socially Responsible Contracting and Procurement (CSRCP), which includes the addition of the ‘C’ for contracting. The ‘C’ for (internal) ‘contracting’ plays a more prominent role in this manifesto. A broader perspective is needed to achieve societal goals. This shift indicates a move from SRP as a specifically procurement-related topic to embedding sustainability throughout the entire organization, including the client. Within a short timeframe, 50 companies have already signed the Sustainable Procurement Manifesto, which should aid in fulfilling sustainability ambitions and working towards achieving the Sustainable Development Goals (SDGs). We use a 3-step method to implement the Sustainable Procurement Value Monitor.
1. Baseline Assessment
The baseline assessment involves analyzing procurement categories and spend to determine where the most gains can be made. During this phase, policy objectives and ambitions are also mapped out, and there may be interviews and surveys conducted within your organization. Following this, we determine your sustainable procurement maturity using our Sustainable Procurement Quickscan. The result of this phase will provide a clear overview of potential areas for improvement and quick wins. Additionally, the main challenges and ambitions are identified and defined here.
2. Action plan
After establishing a four-year plan for sustainable procurement in your organization, the sustainable procurement objectives for the upcoming year are translated into concrete actions through an OGSM. The OGSM is used to develop a concise annual plan focusing on translating strategy into a concrete action plan, providing practical guidance for the entire organization. Based on spend and expenditure plans, strategic objectives, and characteristics per procurement category (from the baseline assessment phase), the Supply Value Sustainable Procurement Matrix is completed. This matrix helps identify procurement categories with the greatest potential for sustainable procurement within the organization. Sustainable procurement themes are then selected based on the highest potential procurement categories.
3. Sustainable Procurement Value Monitor
The Sustainable Procurement Value Monitor is an online dashboard that measures and monitors your sustainable procurement strategy. This provides insight into the extent to which your sustainable procurement strategy is being applied and its resulting impact. You will directly see which of the chosen ESG (Environmental, Social, and Governance) themes you are already doing well on and where there is room for improvement. Additionally, we always consider the specific needs of your organization to ensure the successful implementation of the Sustainable Procurement Value Monitor.
Would you like to explore and learn more about our Sustainable Procurement Value Monitor? Feel free to contact our consultants: Lowi Vervoorn and Joris van Lierop below.
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