Written by Marijn Overvest | Reviewed by Sjoerd Goedhart
Fact Checked by Ruud Emonds | Our editorial policy

The Need For Sustainable Transformation

We cannot deny the fact that how businesses operate severely affects the environment. Thus, many are adopting sustainability to reduce their negative impacts nowadays. 

With sustainable transformation, companies commit to integrating environmental, social, and economic aspects in their procurement process. 

Additionally, governments worldwide are introducing regulations and policies to promote sustainability and reduce environmental impact. To limit non-compliance, businesses must now integrate sustainability within their business operations. If not, they are putting themselves at a high risk of being penalized, and worse, imprisonment. 

Companies seen as socially and environmentally responsible attract more customers and retain loyal employees. A strong commitment to sustainability can help build a positive brand reputation and increase brand value.

Furthermore, sustainable procurement practices can help companies reduce costs through increased efficiency and reduced waste. Thus, achieving sustainability while increasing profitability. 

Benefits of Sustainable Transformation

1. Retain employees

A business that respects the environment and people generates pride and a sense of responsibility in the organization. Thus, employees will feel that they are improving the world where they live while also being compensated well. 

2. Improve customer relationships

Many customers are pushing for sustainability nowadays. Many consumers have stopped purchasing from businesses linked to issues regarding their negative impacts on the environment and violation of human rights. 

Thus, many companies are pressured to aim for sustainability as consumers are now conscious of their responsibility to the environment. 

3. Reduce costs and risks

By transforming your procurement process towards sustainability, you can reduce costs and risks by efficiently using your resources. Additionally, you can reduce your carbon footprint and the cost of your energy usage by investing in renewable energy resources and energy-efficient equipment.

Integrating Sustainable Procurement Change

Once you have created a sustainable procurement strategy, you must now answer the most important question: how to integrate sustainable procurement change in procurement?
For you to transform your procurement, you must first know that the integration of sustainable procurement means changing and believing that you can make a difference. 

You can tackle change with either a big bang or in small steps! Change starts with awareness and increasing knowledge of yourself and your environment. 

You have to make conscious choices. What risk do we run as an organization? How important is sustainability to me and my customers? What is my network or competition doing? What should I do to maintain my market position? Who makes the final decision? What can sustainability cost?

Now you have made these choices, accept the consequences. Promote your policy and strategy and live by it to be an example. Communicate the sustainability policy and strategy internally but also externally, so that your suppliers also know what you stand for as an organization. After all, you don’t change alone, but together!

For change management and implementation, you need leaders with a warm heart for sustainability. Many theories have been developed to support you in change management, increasing support, and implementing cultural change.

An example of the theory that supports change in management is Kotter’s theory. Kotter’s theory is the most well-known. It is also the most commonly used to implement a change in a controlled way in an organization. A characteristic of Kotter’s theory is that organizations recognize a great need or urgency for change. 

Do you want to learn more about how you can implement sustainable transformation in your procurement process? Then look no further. Our Sustainable Procurement Course will guide you step-by-step to efficiently integrate sustainability into your procurement process. Enroll now!

Conclusion

Embracing sustainable transformation in procurement is not just a necessity but a strategic imperative in the modern business landscape. This article has delved into the concept of sustainable transformation, shedding light on its significance, principles, and the need for organizations to adapt. It has also outlined the benefits of sustainable practices and provided valuable tips on integrating sustainable procurement change.