BRIDGING THE GAP

Foreword

Edward Cox, Director, and Simon Whatson, Vice President, challenge procurement leaders to bridge the gap between board-level strategic ESG initiatives and executing an actionable plan.

Sustainability: It’s time to stop talking and start delivering.

Sustainability has moved from being a nascent consideration to the mainstream. Greater scrutiny from consumers, financial markets, governments, and employees means businesses have had to strongly evaluate how they measure up against an array of environmental, social, and governance (ESG) issues. Encouragingly, ESG issues present a prime opportunity for businesses to foster innovation, increase worker productivity and loyalty, and heighten corporate reputation. What was once discussed in theoretical terms is now part of a global conscience and is set to stay.

This gives cause for great optimism. More than 300 significant businesses committed to the Climate Pledge, with signatories aiming to reach the goals of the Paris Climate Agreement 10 years early.

But optimism has never changed the world. While corporate commitments offer promise, what comes next is far more difficult: operationalising ESG strategy.

Through in-depth surveys and interviews with more than 1,000 Business Leaders and Procurement Professionals, we sought to understand the true state of the ESG agenda and its relationship to Procurement and Procurement Professionals. We wanted to know if we are set up for success and, if not, what is going wrong and what needs to change?

We also looked to understand who is going to lead the way, what role Procurement currently plays, and the role it will need to play in the future.

This report has reinforced our belief that Procurement, alongside board-level commitment, is the key determiner for organisations to successfully achieve their ESG objectives.

So, how does procurement do this?

To drive a sustainability transformation and effectively mitigate operational and reputational risks, procurement functions need to take concerted action. They need to assess their supply chains and execute new procurement strategies. They need to drive deeper supplier collaborations, and they need clear measures and targets.

Procurement’s direction has shifted from absolute cost to total value, where sustainability is a key value lever.

We are delighted to share our latest research that uncovers market insight from both Business Leaders and Procurement Professionals about the changing nature of the corporate landscape, the magnitude of issues currently faced by procurement teams, and the challenges of implementing ESG strategy within the supply chain. These challenges are significant but by no means insurmountable.