The AOP Buyer Power Score is a new content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category.
Today we are reviewing carbon management services.
The Buyer Power Score for carbon management services is -1.9 on a scale of -5 to 5, with -5 signifying low buyer power and 5 meaning high buyer power. The more power a buyer has the greater leverage they have to get lower prices and better contract terms.
Although the advantage currently goes to the supplier, this Buyer Power Score comes with a ‘Buy Now’ recommendation. Buy-side leverage is expected to diminish over the next three years, making a shorter term buying decision preferable under the circumstances..
How to Use this Information
These services are for testing and monitoring carbon emissions so that companies can take steps to mitigate their negative impact on the environment. Once the carbon footprint is known, service providers can suggest methods for reducing emissions. Often used to meet Environmental Protection Agency (EPA) standards, these services may play a key and high visibility role in a company’s Environmental, Social, and Governance (ESG) program.
Because this is a relatively specialized service, companies should be aware of general ESG trends in their industry. Is the interest increasing steeply? Are there pending regulations on the horizon? If these are the case, demand – and therefore cost – can be expected to increase, providing a second incentive to buy now rather than later.
We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday. To dig deeper into the carbon management category, click here.