Sustainable Procurement Report — Your Ultimate Guide in 2024

Sustainable Procurement Report is a comprehensive analysis of how organizations are changing their procurement approach to provide a sustainable future. 

It serves as a guide to the changing landscape of sustainable procurement in this world where sustainability is no longer a choice but a necessity. 

This article will explain what a sustainable procurement report is, its significance, and how to create your own one. It will also tackle the companies/websites you can go to to check the latest report on sustainable procurement. 

Knowing what are the latest reports about sustainable procurement is crucial, especially in this era where everyone is becoming an “earth-friendly consumer.”

Furthermore, I have created a free-to-download editable Sustainable Procurement Strategy template. It’s a PowerPoint file that can help you with your sustainability initiatives. I even created a video where I’ll explain how you can use this template.

What is a Sustainable Procurement Report?

A sustainable procurement report is a document that shows an organization’s efforts, progress, and impact in integrating sustainable practices into its procurement processes. 

Typically, it includes information about sustainable sourcing, supplier engagements, environmental considerations, social responsibility, as well as ethical practices within the procurement function. 

The sustainable procurement report promotes transparency to customers, investors, and the public – about how an organization is acting on its commitment to sustainability. It also promotes accountability and increases trust and credibility for the organization in terms of its social and environmental responsibilities. 

Importance of Sustainable Procurement Report

A sustainable procurement report provides a comprehensive overview of an organization’s dedication to sustainable practices in procurement. 

For instance, the Sustainable Procurement 2024 of Procurement Tactics revealed that 63.16% of organizations believe that prioritizing sustainability in procurement practices is vital. This emphasizes how crucial sustainable procurement practices play across industries. 

The report helps organizations identify and mitigate potential risks associated with their supply chains by evaluating suppliers’ environmental and social performance, thereby minimizing the negative impacts of their operations on the planet and society.

Moreover, companies use this to communicate their effort in supporting fair labor practices, reducing carbon emissions, and promoting sustainable sourcing materials. 

Additionally, it aids organizations in setting and achieving sustainability goals by analyzing current practices and identifying areas for improvement.

Lastly, a comprehensive Sustainable Procurement Report fosters transparency allowing stakeholders to make informed decisions, and reinforces the organization’s credibility which can be instrumental in building trust with investors, and customers.

Overall, the sustainable procurement report is a key instrument that not only helps organizations manage risks and showcase CRS initiatives but also fosters a culture of continuous improvement, aligning the organization with evolving global expectations for responsible and sustainable business practices.

How to Create Your Own Sustainable Procurement Report? 

Creating your report can help your organization effectively communicate its commitment to sustainable procurement practices. 

Here are 5 steps to create your sustainable procurement report:

1.  Define The Scope and Purpose

When creating your sustainable procurement report, the first thing you must do is define the scope and its purpose. 

Start by clearly outlining the purpose of the report and what you aim to achieve with it. Also, identify the issues and areas of sustainable procurement you want to focus on. 

Doing this will help you to have a more structured report and help you to effectively communicate your message and achieve desired results.

2. Gather and Analyze Your Data

Once you are done defining the scope and purpose of your report, you can now start gathering the data/information you need. 

You can do this by:

• Collecting relevant data on your procurement activities. This may include information on suppliers, products, or services procured, and ESG impact;
• Utilizing internal records, and supplier assessments; 
• Conducting thorough research on the sustainable procurement best practices, trends, and challenges;
• Conducting surveys and interviews within or outside your organization to gather specific insights;
• Collecting relevant sources such as other industry reports, case studies, and academic studies. 

Before going to the next step, make sure that all of the information/data you gathered is accurate, reliable, and consistent with the scope and purpose you outline in Step 1. 

Analyze it to provide meaningful insights and interpretations.

3. Organize Your Report Structure

Now that you have gathered and analyzed all of the data, it’s time to organize your report structure. Organizing your report structure is crucial, as it ensures that your readers can digest the content efficiently. 

You can structure your report according to the scope and purpose you outlined. Divide it into sections like introduction, methodology, findings, recommendations, and conclusions. This will make the report look organized and well-structured. 

Use subheadings to break the texts for better readability. Additionally, you can also use visual aids such as charts, graphs, tables, photos, or infographics to illustrate your data. 

4. Write the Content

The next step is writing the content. When writing your sustainable procurement report, avoid using jargon or technical terms. As much as possible, use simple and concise language for the readers to easier understand the information you convey.

As for the content of your report, you can include key components such as the overview of sustainable procurement, the current data and statistics, best practices, challenges, and benefits. 

You can also put real-world examples that highlight the successful implementation of sustainable procurement strategies. Then finish the report by summarizing key findings and actionable recommendations that will urge the readers to implement and contribute to a more sustainable future. 

5. Finalize and Share

The last and final step is to finalize and share your report. Make sure to conduct a thorough review and proofreading to ensure that the report is well-structured, consistent from the start-up to the end, and free of errors. 

Consider seeking internal or external validation or certification to enhance the report’s credibility. Once you are done finalizing everything, you are now ready to go to share the report with everyone. 

Publish the report to your company’s website, social media, and press releases to reach a wider audience. You can also consider printing or presenting it at relevant conferences or events. 

The Latest Reports on Sustainable Procurement

Below are the latest reports on sustainable procurement: 

1. Procurement Tactics 

Procurement Tactics is an online institution that provides education to procurement professionals. 

The latest report of Procurement Tactics is the Sustainable Procurement Report 2024. This report highlights the challenges, and benefits of implementing sustainable procurement practices in the organization. 

Overall, the report serves as a comprehensive guide for professionals seeking to understand the trends, challenges, and opportunities in sustainable procurement practices. 

2. EcoVadis

EcoVadis is a company that provides businesses sustainability ratings, focusing on evaluating and improving corporate social responsibility (CSR) performances around the world. 

EcoVadis released the 2023 Sustainable Procurement Barometer. The report offers insights to guide strategy during complex times. 

It aims to help procurement teams overcome the interconnected challenges of environmental, social, and governance (ESG) matters, digital, and compliance. 

3. Amazon Business 

Amazon business is a B2B marketplace that offers a wide selection of products at a competitive price. 

Their report entitled, “2024 Global State of Procurement Report,” addresses the current situation of B2B procurement and also identifies the trends and challenges in sustainable procurement. 

It also tackles how businesses can use sustainable procurement to make a positive social and environmental impact while optimizing their procurement processes.

Examples of Sustainable Procurement in 2023

Below are the sustainable procurement practices approaches adopted by organizations in 2023:

1. Enhancing Procedures and Embracing ESG Goals

More targeted, far more detailed processes were developed by organizations, not just around sustainability, but broadly focused on Environmental, Social, and Governance (ESG) goals. 

This sort of broad, holistic approach shows a deeper integration of sustainability into procurement practices, representing a full commitment to responsible environmental and social operations.

2. Switching to Sustainable Products

Some organizations just made practical switches to sustainable products, such as using an eco-bag. 

Here, we can see exactly how companies can start down the path of making procurement decisions and tangibly changing their operations to include more environmentally friendly products and less waste.

3. Incorporating Sustainability in Tender Processes

Organizations introduced selection and award criteria focused on sustainability into their tender processes. 

By integrating sustainability considerations into procurement decision-making, organizations ensure that environmental and social factors are prioritized when selecting suppliers and awarding contracts, promoting sustainable practices throughout the supply chain.

4. Informed Decision-Making Through Supplier Information

Organizations gathered detailed information about suppliers’ environmental policies, carbon footprint, and ethical practices to make more informed procurement decisions. 

This emphasis on transparency and information indicates the growing importance of the sustainability performance of suppliers in driving sustainable procurement practices and the promotion of responsible sourcing.

5. Supplier Engagement Program for Sustainable Practices

Some organizations implemented supplier engagement programs focused on promoting sustainable practices among their suppliers. 

By collaborating with suppliers to enhance sustainability performance and compliance, organizations can drive positive environmental and social impacts across their supply chains, fostering a culture of sustainability and responsible business practices.

Benefits of Implementing Sustainable Procurement Practices

Below are the following benefits highlighted in the Sustainable Procurement Report 2024 of Procurement Tactics regarding the implementation of organizations of sustainability in their procurement processes: 

1. Resource Efficiency

Shifting to sustainable procurement and sourcing practices means better resource efficiency within organizations. 

By choosing suppliers and products that prioritize sustainable materials and design, companies can reduce waste, and optimize the use of resources to reduce environmental impact and pollution. 

That doesn’t just help preserve natural resources, but it also makes operations much more efficient and less costly in the long run. 

2. Carbon Footprint Reduction

Implementation of sustainable procurement practices allows organizations to reduce their carbon footprint which has been a greatest contributor to climate change. 

This significant effort not only supports the global sustainability goals but also shows how organizations can have a very real impact in achieving those goals.

3. Cost Management

Sustainable procurement practices also offer cost management benefits. By implementing it, organizations can develop strategies to reduce costs, improve efficiency, and drive savings across their supply chain. This will both benefit the organization and the environment in the long run. 

4. Marketing 

Consumers and clients are becoming aware of the environmental situations that affect their buying decisions. Implementing sustainable procurement practices can have a positive impact on the marketing and sales results of your organization. 

It can attract these environmentally conscious customers, increase your brand reputation, as well as boost customer loyalty. 

Additionally, sustainable procurement practices save money, help the environment, and create marketing stories that resonate with socially responsible consumers, thereby driving business growth and giving you an edge over competitors.

Challenges in Implementing Sustainable Procurement Practices

If there’s a benefit, there are also challenges in the implementation of sustainable procurement practices that organizations may encounter. The following are the challenges based on the said sustainable procurement report: 

1. Supplier Compliance

Making sure that suppliers are compliant with sustainable practices is a major struggle for organizations. It can be difficult to track and verify whether or not suppliers comply with sustainability requirements, especially across a variety of different supply chains. 

One way that organizations can address this struggle and ensure that their suppliers are meeting the highest sustainability standards is to establish supplier management systems that are effective and adhere to such collaboration strategies throughout their procurement processes.

2. Stakeholders Engagement

Engaging with and getting buy-in from different stakeholders, including internal teams, external partners, and suppliers is critical to the successful implementation of sustainable procurement practices. 

Building awareness, creating alignment, and fostering collaboration among stakeholders to align their interests with sustainability goals can be difficult but is essential for driving sustainable procurement initiatives forward.

3. Awareness Among Business Units

Creating awareness and understanding about sustainable procurement practices within the organization can also be challenging. Some departments may have different levels of expertise or commitment towards sustainability. 

For instance, If some of these departments are new to procurement, you need to get them up to speed on procurement first, and then educate them on sustainable procurement.

This creates additional complexity in that it requires ongoing education and communication across business units to ensure that the sustainable procurement approach is implemented consistently within the organization.

4. Securing Buy-In

Securing buy-in for sustainable procurement practices, particularly at higher management levels, can be a critical challenge. 

Demonstrating the long-term value and benefits of sustainable procurement, including cost savings, risk mitigation, and reputation enhancement, is essential to securing the support of key decision-makers and leadership for your sustainable initiatives.

5. Geographical Limitations

When sourcing products and services, there may be geographical constraints that impact an organization’s ability to expand its sustainable procurement options. One such constraint is geography. 

Securing goods or services — particularly in certain regions or countries — from suppliers that meet social and/or environmental standards may be difficult. 

Developing comprehensive strategies at both the global and local levels to address geographical limitations and expand the ethical supplier base is critical when advancing sustainable procurement practices

Conclusion

The Sustainable Procurement Report serves as a vital compass for organizations navigating the complex landscape of sustainable practices.

From defining the concept to offering practical guidance on creating reports, this resource empowers organizations to communicate their commitment to sustainability effectively.

Highlighting real-world examples and the latest reports, it underscores the importance of integrating sustainability into procurement processes.

Despite challenges like supplier compliance and stakeholder engagement, the benefits of sustainable procurement are clear: resource efficiency, carbon footprint reduction, cost management, and enhanced brand reputation.

As organizations strive to meet global sustainability goals, the Sustainable Procurement Report emerges as a key tool for driving positive change and fostering responsible business practices.