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.

 

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 future. Political authorities 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 is planning a Supply Chain Act, too.

Procurement, with its interface function to the supply chain, plays a central role in making its own production sustainable and reducing the company’s carbon footprint. . The sustainability focus becomes a real value driver by boosting the organization’s performance and improving the quality of the products. Furthermore, sustainable procurement can enhance its innovativeness while at the same time reduce risks. For this to succeed, you should rethink the topic: do not focus 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.

Sustainable Procurement Survey 2022

How is your company and procurement function progressing in its ambition to become more sustainable – especially now that other topics have taken the spotlight due to crises? Which obstacles and opportunities have you encountered? Share your assessment with us!

Take part here

 

The ESG dimensions

At INVERTO, we define sustainability – in accordance with the United Nations guidelines – on the basis of the three pillars of environment, economy and society.

All of the Earth’s environmental systems should be in balance, while natural resources are consumed only at the rate at which they are replenished. Environment is defined by the four dimensions of circular resources, carbon development, land use and water use.

Universal human rights apply to all people. Everyone should be able to meet basic needs, i.e. have access to sufficient resources to keep their family and community healthy and safe. Society is represented by the two dimensions of health and agency/participation.

Societies around the world should be able to sustain their own well-being and meet their needs through circular and intact economic systems. The economy includes the dimensions of consumer welfare and fair business practices.

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.

Anchor Sustainability in procurement

 

Assess maturity to establish baseline and define ESG target ambition

Re-shape operating model to reach ESG ambition and enable organization to execute ESG measures

 

Execute ESG measures

Decarbonization of supply chains

  • Framework & governance setup
  • Footprint transparency
  • Enablement of CO² reduction process
  • Implementation of measure

Sustainable sourcing of materials and products

  • Sustainable Packaging
  • Sustainable Textiles
  • Sustainable Food
  • Circular Economy
  • Responsible procurement/ Supplier code of conduct
  • Supplier risk management
  • Supply Chain Act

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.

Sustainable sourcing of materials and products

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.

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. Some of our offerings within this space are listed in the following1. Defining and implementing Responsible procurement/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

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

Philipp Mall

Managing Director

contact@inverto.com Contact

Marianne Kaas Fürst

Principal

marianne.furst@inverto.com Contact

Sustainable procurement insights

INVERTO Magazines

Interview: David Moran on ESG-Initiatives

In this interview, David Moran explains how companies organize ESG initiatives in a targeted manner, the role of management in this process, and how to convince suppliers of the new course.

Studies

Sustainable Procurement Survey 2022

Sustainability is the order of the day to protect our earth and climate. Procurement plays a central role in all areas of the ESG agenda. Share your assessment with us!

Focus papers

The Supply Chain Act: Transparent Relationships

The development towards LkSG conformity always starts within the own company.