Can Procurement actually do anything to avert Climate Change?

I’m not trying to depress you, but we do need to face the facts.

The irreversible effects of human-caused global warming are already here.

The situation will only worsen as long as we continue to emit greenhouse gases.

To avert catastrophic health impacts and prevent millions of climate change-related deaths, it’s now imperative we limit the temperature rise to 1.5°C.

In 2024, global warming reached 1.36°C.

At our current pace, global temperatures are projected to reach a1.5°C rise between 2026 and 2042.

Yup, just 2 years from now…you read that right.

Continuing with business as usual will see the 2°C threshold breached by 2050, leading to a major and irreversible transformation of our world.

Neither rapid cuts in emissions nor direct removal of carbon from the atmosphere will be enough to reverse these changes.

It’s clear to everyone ‘Business as usual’ is not an option.

So what should every Procurement professional be doing?

As procurement professionals we’re uniquely placed within an organisation to have a far bigger impact than we can in our daily lives.

Here are the basic actions very Procurement professional should be taking.

If these are not bedrocks to your Procurement approach in your business, ask questions of the purpose of your function.

1. Sustainable Sourcing

Evaluate and select your suppliers based on their environmental credentials. These include but are not limited to the ISO 14001, SA 8000, FSC and Fairtrade.

Wherever possible, minimise the companies carbon footprint by sourcing products locally.

Prioritise products made from renewable, biodegradable or recycles materials.

2. Reward good supplier practice.

We have a huge role to play in making sure that suppliers are rewarded for having good sustainability practices.

We should also proactively engage our existing suppliers to enhance their environmental practices and support their sustainability initiatives.

3. Be role models within your organisation.

Procurement can be the role model for adopting and enforcing standard for sustainable procurement within the organisation as well as outside of it.

Don’t underestimate your influence.

4. Implement Take-back schemes & recycling programmes.

Take-back schemes and recycling programmes can be implemented to minimise waste in the supply chain.

Promote closed-loop systems where materials are continually reused and recycled within the supply chain.

Optimise and reduce energy usage and use fuel-efficient transportation methods wherever available.

5. Monitor and report the impact of Procurement activities.

Monitor and report the environmental impact of procurement activities regularly, use this to set targets for reducing environmental impact of procurement activities within your organisation.

But more importantly use these reports to drive action and generate ideas for improvements.

6. Educate yourself and train your team

Train yourself and your staff on sustainable practices and the importance of taking environmental responsibility and then use your team to raise awareness within the organisation about the benefits of sustainable procurement.

7. Remember the pay back benefits

If your responsibility to tackling climate change as a person living on earth is not enough then remember the benefits that sustainable procurement can also bring.

Sustainable partners often prevent the increased cost of transfer of ownership allowing cost savings that can be re-invested in the business.

Sustainable procurement also helps an organisation to future-proof themselves against the inevitable consequences of climate change and protect themselves from future fines and penalties.

Sustainable partners are also less likely to encounter environmental issues in the future, lowering risk-management for procurement.

All of this goes without mentioning the obvious the enhanced reputation of the brand amongst not only suppliers and investors but also the future of the organisation: Gen Z.

Is this enough?

I guess it depends on your perspective.

It’s clear business as usual is no longer viable in the face of escalating climate change.

As procurement professionals, we have a responsibility to drive sustainable practices within our organisations.

By adopting sustainable sourcing, integrating environmental criteria into procurement policies, and implementing take-back schemes and recycling programmes, we can significantly reduce our carbon footprint.

Optimising energy usage, choosing fuel-efficient transportation, and regularly monitoring our environmental impact are crucial steps.

Sustainable procurement not only helps mitigate climate change but also brings cost savings, futureproofing against climate risks, and enhances our brand reputation among suppliers, investors, and future generations.

Every action we take contributes to a larger impact, making a significant difference in ensuring a sustainable future.

So, whether you believe in climate change, believe you have power to avert the crisis or simply want to deliver the best Procurement within your organisation..

It’s simply the right thing to do.