Sustainable Procurement Statistics — 18 Key Figures of 2022
Sustainable procurement statistics is a topic that many procurement professionals should know. Of course, this subject is timely as many companies continue to commit to a sustainable process of their company.
This article will guide you through the latest sustainable procurement statistics available in 2022. We will discuss some topics that will enable companies to achieve sustainability in their procurement and supply chain.
After reading this article, you will have a great insight into sustainable procurement statistics. Thus, allowing you to know what are the things that will make the shift to sustainability possible.
SustainableProcurement Statistics: What Does it Mean?
The COVID-19 pandemic is still present even though many countries have started to vaccinate their citizens. Additionally, the ongoing war between Ukraine and Russia, high inflation among countries, high carbon emissions, and shortages of supplies are what the supply chain is facing right now.
However, many companies are committing to switch to a sustainable supply chain and procurement to counter these factors. This is due to the fact that sustainability in the process of companies can lessen the effects that are brought by these factors.
Although the commitment of some companies is still in its early stages, their willingness to have sustainable objectives and goals is visible in order to help the environment and society recover.
Automation in Sustainable Procurement
Shifting from a sustainable procurement means integrating new technologies that consume less energy to make the procurement processes efficient while considering the health of the environment and society.
Through automation, businesses can go on a paperless process. According to a study, businesses produce 21 million tons of paper waste each year. Thus, automation saves paper and makes it easier for everyone to access information through their system.
Automation can also make manufacturers reduce their energy consumption. Automation can decrease heating requirements and reduce cycle times. Additionally, it can lower the amount of energy that is needed for operation. Thus, lowering the carbon emissions of manufacturing companies by using less energy.
Net-ZeroCommitments by Companies
Multinational companies like Unilever have committed to a net-zero operation. Through Unilever’s action plan, it has set a clear pathway to have zero emissions in its operation by 2030 and net zero emissions across its value chain by 2039.
Although many multinational companies like Unilever are switching to a sustainable procurement and supply chain, many small to midsize companies are just starting to hear about sustainability.
The growing alliance of countries, cities, companies and other institutions are pledging to get to net-zero emissions. More than 70 countries, which includes the largest polluters — the United States, China, and European Union — have a zero net target that covers about 79% of global emissions.
According to Antonino Guterres, the United Nations Secretary-General, they need commitments that will deliver a reduction of emissions by 45% by 2030 to reach net zero emissions by mid-century.
The rising prices due to shortages deepen the challenge for those who are not able to pay for food in normal times. Acute hunger is driven by three things which are conflicts, climatic shocks, and economic and social fallouts due to the pandemic.
The economic fallout from the COVID-19 pandemic has shocked the world economy as incomes are severely struck by job losses. Additionally, inflation has ramped up due to supply chain disruptions.
The current food crisis is about affordability. Food is available but it is beyond the reach of millions of people. Sustainable procurement aims that all actors in the supply chain must have a dignified price. Thus, everyone can afford to buy their needed products, especially food for people.
18Key Sustainable Procurement Statistics for 2022
1. McKinsey Sustainability has shown that the usual consumer company’s supply chain is responsible for more than 80% of carbon emissions.
2. A study conducted by the Stanford Graduate School of Business has found that corporate sustainability goals have switched to the top executive agenda. 63% of top executives are now saying that having sustainable objectives and goals are important.
3. Only 48% of suppliers believe that the companies they have partnered with are engaged in sustainability goals and foster sustainable practices with their relationship.
4. 61% of procurement leaders say that social issues will be prioritized in the next two or three years.
5. 69% of respondent companies consider sustainability performance when sourcing for new suppliers.
6. According to research by Hackett, 92% of their respondent companies are expected to have sustainable procurement programs in each category by 2023.
7. Research by Hackett also shows that 40% of sustainable procurement strategies currently are aligned with the ESG strategy of the organization.
8. A study by the World Economic Forum found that sustainable projects can decrease costs by 9 to 16%, improve brand value by 15 to 30%, and increase the revenue of companies by 5 to 20%.
9. The top 3 greenhouse gas emitters, namely the United States, The European Union, and China, contribute 16 times the emissions of the bottom 100 countries.
10. A study showed that sustainability appeared to be one of the procurement’s top 10 issues for the first time ever.
11. 63% of corporate respondents report that sustainable procurement initiatives help them to endure the COVID-19 pandemic.
12. Over 71% of supplier respondents have said that sustainable procurement helps them to mitigate the effects of the COVID-19 pandemic.
13. 48% of the respondents have believed that sustainability will have a positive financial impact on their business.
14. 47% of mid-sized companies expect that a sustainable approach will help them improve operational efficiency and lower their costs.
15. Sustainability commitments and investments increased for 93% of corporate respondents.
16. Over 46% of suppliers have revealed that sustainability is only important to their customers on paper but is not reflected in the way they work together.
17. The procurement activities of governments around the world contribute to 15% of global greenhouse gas emissions.
18. According to a study by CMA, 40% of firms that are claiming to be committed to sustainability may be misleading.
+ What are sustainable procurement statistics?
Sustainable procurement statistics are data about the status of sustainability initiatives of every institution in the world.
+ What is sustainable procurement?
Sustainable procurement refers to the adoption of environmental, social, and governmental factors while also considering the price and quality of materials that an organization will acquire.
+ What is the importance of sustainability in procurement?
Sustainability in procurement is important as it helps organizations by improving their finances and processes against a range of challenges that can disrupt the supply chain.
+ What is net zero?
Net zero refers to greenhouse gasses going into the atmosphere being balanced out by the removal of it from the atmosphere.
+ How automation can help sustainable procurement initiatives?
Automation eliminates the need for paper-based procurement processes which helps reduce carbon footprints.
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