Creating Value with Sustainable Procurement

Heat waves, floods, hurricanes: the increasing weather extremes clearly show that the economy must become environmentally friendly and CO2 neutral. Furthermore, sustainability has an ethical component: Human rights should apply to everyone and along the entire supply chain.

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    The importance of sustainability

    Sustainability is the order of the day. To protect our earth and climate we need to live and produce in a climate-neutral way in the future. Political authorities have already defined clear goals. Legal requirements contribute to climate neutrality, but in most cases go far beyond this.

    In many countries, companies are already obliged to take environmental and social standards into account and to monitor compliance with them along their own supply chain. The European Union’s Corporate Sustainability Due Diligence Directive is due to come into force in 2024 and Canada is looking to follow.

    Procurement, with its interface function to the supply chain, plays a central role in making the company sustainable and reducing its carbon footprint. The sustainability focus becomes a real value driver by boosting the organization’s performance and improving the quality of its products. Furthermore, sustainable procurement can enhance a company’s innovation while at the same time reduce risks. For sustainable procurement transformation to succeed, you should rethink the topic: making more sustainable products at less cost and not focusing solely on the risks. Look for ways to make your products better and your processes more efficient.

    Our experts for sustainability and decarbonization will accompany you on this path using the approach set out below.

     

    Sustainability in procurement: This is how INVERTO supports

    As leading experts in supply chain management and procurement, we at INVERTO offer to help your organization from a 360-degree sustainability perspective. Overall, our solutions can be summarized into anchoring of sustainability in procurement and execution of ESG measures, which includes decarbonizing the supply chain, sustainable sourcing and ensuring responsible operations.

    It should be clear to everyone by now that the pressure to act on sustainable procurement is huge and will no longer go away.

    Marianne Kaas Fürst, Principal at INVERTO Copenhagen

    The Social and Governance aspect in Procurement

    We utilize our up-to-date knowledge about the market to support our clients with governance structure, by ensuring compliance with local and international laws and legislations. Further, we help with implementing a social procurement strategy.

    1. Supplier Code of Conduct

      Defining and implementing responsible procurement as well as implementing a Supplier Code of Conduct – a set of standards that suppliers should comply to

    2. Supplier risk assessment

      Conducting end-to-end supplier risk assessment to evaluate the supplier portfolio

    3. Supply Chain Act

      Assessing risks to human rights and child labor by jointly implementing measurable actions

    Anchor sustainability in procurement

    We developed a structured two step model where we firstly assess the maturity level and establish the baseline in which future ESG targets and ambitions are derived based on the findings. The second step is to prioritize the targets into initiatives and transform to a future proof business model, enabling the entire organization to execute on the ESG targets. With the help of our Sustainable Procurement E-map Index, we analyze your procurement. Benchmarking shows where your company stands compared
    to typical companies in your industry. The E-map assesses your procurement department in six dimensions from Governance & Strategy to Supply & Risk management. We support clients across all industries to become more sustainable while procuring materials and products. We support the client throughout the entire journey of selecting right sustainable materials and producing products in a sustainable way.

    Sustainable management includes decarbonization

    We are supporting clients across all industries to reduce their carbon footprint. With our best in class approach, companies are able to identify, prioritize and implement measures in order to reduce their emission. Our decarbonization approach includes four structured steps:

     

    • Establish a scope 3 carbon footprint baseline
    • Deep dive in prioritized suppliers and categories
    • Identify relevant decarbonization opportunities
    • Prioritize the measures and develop the roadmap

     

    Decarbonization of individual products – we help companies estimate CO2 footprint on specific products and optimize these with a focus on decarbonization. We tear-down products from the retail industry as well as the Industrial Goods industry to understand the material that has been used, the CO2 footprint per material and how this can be optimized. We look at both material substitution and production when optimizing the product.

     

    The time is now to take immediate actions to reduce carbon footprint in the supply chain. We support you in finding your way to a carbon-free future.

    Find out more on decarbonization

    Meet our sustainabilty experts

    Denis Di Vito

    Managing Director

    contact@inverto.com Contact

    Marianne Kaas Fürst

    Principal

    marianne.furst@inverto.com Contact

    Sustainable procurement insights

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    Sustainable Procurement Whitepaper 2023

    Download our recent Sustainability white paper to find about the key finding of our study, recommendations for action an further valuable insights.

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