This article was written by Ashwani Narang (Vice President and Country Head, Intelligent Spend Group SAP Indian Subcontinent) and published in partnership BloombergQuint Brand Studio.
Ambitious sustainability goals were a rising trend at the beginning of the new decade. Products with sustainability labels have gained increased popularity. At the same time, social media influencers voiced their support for ethical work practices as well as security for frontline supply chains workers. In the end, sustainable procurement became a priority for enterprise strategic agendas. New challenges emerged in 2020, after Covid-19 reshaped the world economy.
The pandemic’s impact on supply chains was severe. Many feared that the crisis might dampen investor enthusiasm for sustainable procurement practices. It did the opposite.
After a brief slump, sustainable procurement was rediscovered. In a Recent survey report by SAPThe Indian Institute of Materials Management (IIMM) conducted a survey that found that a majority of respondents ranked sustainability the top priority in procurement over the next two-years. A number of recent developments have led to this collective confidence in the ability to drive supply chain sustainability initiatives. Businesses around the globe suffered losses in the billions due to weather catastrophes in 2020. This brought climate change issues into the forefront of sustainability discussions.
Also, 2020 was a landmark year for the sustainability movement on the regulatory side. Organisations were encouraged to adopt a sustainability-oriented approach to procurement by new regulations. One example is the recent one. SEBI has published a circularIndia’s top 1000 largest companies by market capitalisation. This circular is a welcome departure from the old Business Responsibility Reporting (BRR), which had many gaps in reporting requirements. The BRSR will enable regulatory authorities to create a single source of sustainability information that investors, shareholders, as well as the public, can use.
Towards green procurementTechnology makes the difference
The future will likely see more green procurement investments, with 2021 providing greater momentum for sustainability targets. The pressure from stakeholders to meet sustainability targets is expected to grow. Companies must improve supply chain transparency in order to meet these demands. This includes disclosure of procurement activities and practices.
As Sustainable supply chainAs sustainability gains traction, more procurement professionals will need to be champions for sustainability. To drive progress, they will need more sustainable supply chains that are anti-fragile. Technology can help them make a difference.
Technology offers a way to empower and advance a company’s sustainability agenda. Technology such as AI, IoT cloud, robotics, and robotics are crucial to ensuring a sustainable supply-chain. They enable seamless data transfers, real-time supplier visibility and sustainability forecasts. Here are some examples of how technology could drive a sustainability revolution within procurement.
