Essay On Sustainability In Procurement

Sustainability in Procurement

Introduction

Procurement or material sourcing is an integral part of a supply chain in any industry. Sustainability in supply chain deals with managing not only the economic, but also the social & environmental aspects of the whole process throughout the lifecycle of the goods & services involved.

Traditionally, most organizations adopt sustainability measures for their operations to adhere to prevalent regulations, both legal & contractual. But in the present day world, with dwindling resources & increased public awareness about sustainability, more & more companies are opting to improve environmental, social & economic performance through adopting sustainability in a comprehensive manner.1 In a global study by Accenture involving CEO’s of leading companies of the world, 63% of CEOs expect sustainability to transform their industry within five years—and 76% believe that embedding

Private Sector

According to UNODC 2013 report, at the global level, public procurement spending accounts for about 15% of the world’s GDP. In India, estimates of public procurement vary between 20% of GDP2 to 30% of GDP.5 An example can be taken as the UK Government. UK spends approximately £150 billion per annum (13% of GDP) across a range of sectors. It employs 6 million people, consumes 7,000 Gigawatt hours of electricity, 1,000 million gallons of water, £3 billion of food and spends £4.5 billion on waste handling.6

Taking into account the massive size of public spending in India as well as the world, the public sector can be a driving force towards sustainable production and consumption and can create environmental and economic benefits for all stakeholders. This is especially true since the regulations in the public sector follow a top-down approach & can be closely monitored by the national governments, leading to a comprehensive implementation. Governments have huge purchasing power & the necessary will to implement massive