Support the Strategy

Build the business case for sustainable procurement

Building the business case for sustainable procurement is one crucial way that procurement can contribute to conversations about the organisation’s strategic priorities.³ Start by reframing your sustainable procurement objectives to clearly show how they overlap with your organisation’s sustainability priorities. This will reveal procurement’s integral role in the sustainability agenda. Engaging in projects with suppliers that demonstrate quick wins, can pave the way for broader, more transformative proposals in the future. Where possible, document the financial or other quantifiable benefits associated with your sustainable procurement projects. You can then share these successes to help strengthen the business case for future sustainable procurements.⁴^, ⁵

EXAMPLE: Aligning sustainability with business priorities at NSG Group

NSG Group created a cross-functional steering group to create a consensus on aligning sustainable procurement with organisation-wide business priorities. This included highlighting the connections between sustainable supply chains and meeting rising consumer and investor expectations for sustainability, compliance requirements, reducing risks, and increasing employee engagement.⁷

EXAMPLE: Strategic supplier partnerships for reusable in-store displays at Best Buy

Best Buy aimed to redesign its in-store display units for reuse to reduce costs.⁶ Success required cross-departmental alignment, involving stakeholders from store operations to branding, and strategic engagement with suppliers to identify sustainable material substitutions.

Leverage procurement as a hub for innovation and insight

The procurement function can be a source of innovation. Stepping into this role requires procurement to proactively look across the value chain for trends and sustainable solutions. This may include collaborating with suppliers to scout for new technologies or exploring sustainable alternatives that address business challenges. For instance, you may discover alternative materials or circular business models that fit your organisation’s needs. By consolidating this intelligence, you can create a portfolio of potential sustainable solutions and projects to share with colleagues across the business.

Procurement’s direct engagement with suppliers also gives it unique insights into the risks associated with value chain trends and challenges. Consider how your team can better engage in strategy discussions to share these important sustainability insights.

EXAMPLE: Kingfisher’s working group for product circularity

Kingfisher's home improvement company has drawn on experts from its production, manufacturing, retail, and logistics to create an innovation-focused working group called "ReMade”. Its mandate is to develop products with end-of-life management credentials through recyclability and reusability.⁹