Monday, May 14, 2012

CIPS Sustainable Procurement Tool

Chartered Institute of Purchasing & Supply (CIPS) has introduced a tool to help organizations maximize the benefits of sustainable procurement. The CIPS sustainability review tool enables businesses to measure the sustainability of their supply chain, which can account for up to 50% of a company's carbon footprint, and for suppliers to demonstrate this to customers. The new tool is a response to increasing demand from businesses for help to benchmark their purchasing performance and progress towards putting sustainable procurement at the heart of their organizations.

Designed to be completed on an annual basis, the tool is an updated version of the Mayor of London's green procurement code, which has already helped organizations reduce spending on utilities, services and supplies by between 30-40%, in addition to reducing overall emissions, water usage and waste. 
The Chartered Institute of Purchasing & Supply has announced the launch of its Sustainability Review tool, to help organisations reap the full benefits of sustainable procurement.

Sustainable procurement not only helps minimise the impact of business on the environment, but also benefits any organisation’s reputation and the wider economy. Demand for ‘greener’ products is forcing change across the supply chain and suppliers need to adapt to maintain and win new business.

With over 50 percent of an average company’s carbon emissions typically coming from its supply chain, businesses keen to be more sustainable need to focus on what their suppliers are doing as well as what they do themselves.

The CIPS Sustainability Review tool enables businesses to measure the sustainability of their supply chain and for suppliers to demonstrate this to customers. The new tool is a response to increasing demand from businesses for help to benchmark their purchasing performance and progress towards putting sustainable procurement at the heart of their organisations.

Through a detailed audited analysis of responses to a series of survey questions, the organisation’s procurement can be rated at Gold, Silver, Bronze or entry-level standard across aspects of environmental, social and economic policy and procedure. At the end of the review, a comprehensive report is provided and an auditor will provide advice on what is required to maintain or improve results.

Designed to be completed on an annual basis, the CIPS Sustainability Review tool also helps to support BS8903 Procurement Sustainability guidance standard and its application in the real world.

Organisations that have signed up to the Mayor of London’s Green Procurement Code have been successful in reducing spending on utilities, services and supplies by between 30-40%, in addition to reducing overall emissions, water usage and waste. The CIPS Sustainability Review tool is an updated version of this Code, with additional socio-economic aspects to help organisations across the UK and abroad.

A recent survey by CIPS in the UK showed 55% of businesses now have a sustainability policy with pressure from public sector customers and stakeholders the most popular reason for introducing them (37%).

One in five (20%) respondents said that the most important driver was the need to conserve natural resources to cut costs. However, whilst a significant proportion say they are seeking to source finished goods, raw materials and business services sustainably, 44 % say that they do not measure the impact of sustainable procurement.

More than one in ten (11%) companies feel that poor planning and lack of corporate buy-in is hampering their company’s sustainability strategy for the future.

David Noble, Chief Executive of the Chartered Institute of Purchasing & Supply said: “Our members are increasingly aware of the benefits of sustainable procurement, not only to meet regulations, but as a strategic contributor in planning for future innovation and profit, following the lead of trail-blazers such as Unliever, Vodafone, and M&S.

“However, demonstrating the cost-benefits of fully-integrated sustainability within the business, and furthermore across industries and the economy as a whole is hard to do due to the complex nature of business itself and the uncertain environment in which they are increasingly operating. This tool will help by not only measuring the effectiveness of sustainable procurement programmes but also help develop a framework for improvements.”

For more information click here.

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1 comment:

Anonymous said...

Tools are great but the other ingredient is knowledge and skill. Sustainability training courses is something to consider to remain current.