Sustainable Procurement Statistics — 18 Key Figures of 2023
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 2023. 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 2023
1. The United Nations has called for the end of greenwashing and corporate inaction as its High-Level Expert Group On the Net Zero Emissions Commitments of Non-State Entities launched their Integrity Matters Report at COP27 in November.
2. According to Alex Saric, the chief marketing officer at procurement software provider Ivalua, 2023 is the year that words must turn to action on sustainability and it starts with assessing suppliers and improving visibility into tier-one and sub-tier suppliers to ensure unsustainable practices do not slip through the net.
3. Research by McKinsey shows that procurement leaders who take bold action can make a decisive difference in sustainability.
4. In the same research, strong ESG credentials drive down costs by 5 to 10% as companies focus on operational efficiency and waste reduction.
5. ESG performers enjoy faster growth and higher valuations than other players in their industry by 10 to 20%.
6. President Biden has signed an executive order that encompasses some bold and ambitious commitments including 1100% carbon-free electricity production by 2030 and net-zero emissions from federal procurement no later than 2050.
7. About 70% of surveyed executives say demonstrating their corporate ESG commitments was a high business-critical priority for their organization’s senior leadership.
8. In 2023, the International Sustainability Standards Board (ISSB) is expected to release global sustainability standards.
9. Deloitte projected that ESG-mandated assets will increase up to $96 trillion in 2025 which will make up more than half of all global assets under professional management.
10. According to a report by Amazon Business, 70% were not aware of what socially-responsible purchasing guidelines are existing within their organization.
11. In the same report, Just 14% of 5,000 employees across France, Italy, Germany, Spain, and the UK who responded to the survey said they felt confident about making more sustainable purchases on behalf of their business.
12. In the report, 25% of surveyed employees said strong guidelines were the most common factor in helping stakeholders make responsible purchasing decisions.
13. We now have a 50% chance of exceeding the Paris Agreement’s 1.5°C warming limit before we even reach 2030.
14. CBRE’s new report revealed that approximately 72% of companies surveyed have defined sustainability commitments while 88% of respondents use scorecards with key performance indicators (KPIs) to hold suppliers accountable for their ESG performance.
15. China’s “dual carbon” goal has created a new wave of sustainability practices, with Chinese state-owned enterprises (SOE) continuing to play a leading role as crucial market players.
16. The total ESG fund assets under management are projected to grow from $40 trillion at the end of 2022 to more than $50 trillion by 2025.
17. In the same report, 93% of companies acknowledge the material risks posed by climate change.
18. Given the emerging AI-related regulations, further integration of AI into business processes, and the dangers of technological bias and the spread of misinformation, stakeholder demands for responsible AI use will continue through 2023.
+ 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.
For Procurement Professionals
Want to close better deals? Prepare fast and achieve deal results you have been dreaming of? This course is a perfect fit for ambitious procurement & sourcing professionals. Enroll now and equip yourself with the full range of skills needed to master the art of the deal.
"Very useful course, many actionable strategies"