Sustainable Sourcing

Sustainable Sourcing

Sustainable sourcing, also known as responsible sourcing, is a procurement process that prioritizes environmental, social and economic factors when selecting suppliers and products. It involves choosing products and services that are produced and delivered in a way that respects environmental limits and social equity. Here are some key principles involved in sustainable sourcing:

1. Environmental Stewardship: This is about sourcing goods and services produced in a manner that minimizes harm to the environment. For instance, it might involve choosing suppliers who reduce waste, lower carbon emissions, increase energy efficiency, conserve water and protect biodiversity in their operations.
2. Social Equity: Sustainable sourcing also takes into account the social implications of a product’s lifecycle. This could mean ensuring fair labor practices, respecting human rights, promoting diversity and inclusion and contributing positively to local communities.
3. Economic Prosperity: While cost is a crucial aspect of sourcing decisions, sustainable sourcing involves considering the broader economic impact of purchasing decisions. This can include promoting fair trade, supporting small-scale producers and contributing to local economic development.
4. Supply Chain Transparency: Sustainable sourcing also involves increasing transparency and traceability within supply chains. This can help to ensure that suppliers are upholding their commitments to sustainable and responsible business practices.

By adopting sustainable sourcing practices, companies can reduce their environmental impact, improve their social responsibility and enhance their reputation. This can help them to meet the growing demand from consumers for sustainably sourced products, comply with regulatory requirements and manage risks in their supply chain.