Integrating environmental, social, and governance (ESG) into procurement goals and processes isn’t just about compliance; it’s a driver of long-term value creation and a growing key component of procurement’s role in the business. To drive better ESG outcomes, procurement should collaborate closely with suppliers, implement robust tracking and reporting, leverage technology, and integrate ESG considerations into every aspect of their decision making process, from sourcing and category management to contract negotiations.
When procurement follows ESG best practices, they not only ensure compliance but they also drive innovation and enhance the brand’s reputation by keeping a sustainable and socially responsible supply chain as a core element of their value proposition.
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