What makes procurement sustainable? An expert from Grant Thornton explains

By: Trademagazin Date: 2023. 11. 06. 11:44

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The purchasing area and the purchasers are under increasing pressure in order to integrate sustainability criteria into purchases, support the transition to a circular economy, and the company’s carbon neutrality goals. How is this possible while sustainability/ESG experts are also talking about constantly changing regulations and emerging practices? Furthermore, do business expectations often conflict with sustainability aspects, or at least significant extra expenditure is required to coordinate the two requirements? Dr. András Balásfalvi-Kiss, head of the ESG division of the international business and tax consulting firm Grant Thornton, provides guidance in this regard.

Dr. Balásfalvi-Kiss András

As a result of the unexpected events of the past few years, the evaluation and reconsidered management of the supply chain has become one of the priority issues for most company management. The organizations have not yet recovered from the events caused by the pandemic, which shocked the supply chains, but the Ukrainian conflict, the energy crisis, and the closure of the Suez Canal have already followed. Business decision-makers, purchasers, and category managers had to take previously unknown aspects into account in order to make the procurement process sustainable from a business perspective.

“The problems are amplified by the fact that in the past period, business partners have become distant from each other in many cases, the involvement of suppliers takes place without on-site visits and audits, and virtual relationships between customers and suppliers are common. On the other hand, if it turns out that a supplier violates human rights, does not comply with labor or IT security regulations, the company is exposed to an increasingly significant reputational, strategic and financial risk”

highlights dr. András Balásfalvi-Kiss, head of the ESG division of international business and tax consulting firm Grant Thornton