Implement an organisational procurement operating model
Consider where specific sustainability expertise needs to reside within the business, fostering a culture of collaboration and providing resources and leadership engagement at all levels. Additionally, look at the balance of your procurement model - centralisation provides standardisation and buying power, while decentralisation can avoid bureaucracy and leave room for innovation and outcomes-based approaches.³ You could achieve this balance by establishing sustainability centres of excellence⁴ to provide expert guidance to category managers and other procurement staff for effective implementation and by promoting cross-functional team coordination to manage risks effectively.⁵ ⁶ ⁷ To reinforce your sustainable procurement model, consider how you can drive internal sustainability behaviours and accountability through aligned KPIs and incentives.
EXAMPLE: A. P. Møller-Mærsk considers adding centres of excellence to its two existing sustainability teams
The integrated container logistics company has a Group Sustainability Team driving company-wide sustainability efforts, a CSR compliance team within its procurement function, and sustainability responsibilities attached to each procurement role. The company is now evaluating the benefits of creating a procurement sustainability competence centre to further support its procurement team.⁸
EXAMPLE: Sustainable Procurement Targets and Performance Indicators at Rijkswaterstaat⁹
Rijkswaterstaat, the Dutch infrastructure agency, sets and tracks sustainable procurement targets across six themes. It integrates these themes into procurement decisions, continuously monitoring progress and identifying improvement areas to meet targets.
