Beyond Product - The Importance of Sustainable Procurement
Sustainability is of growing importance for businesses across every industry, says Category Director, Gaelle Vivian. With significant impacts on soil health, carbon emissions, water usage, packaging and waste management, the food and beverage sector is in sharp focus as government, customers, employees and investors demand that companies take action to reduce their environmental impact and support social responsibility.
Tip of the iceberg
When it comes to procurement, the focus is often on sourcing sustainable products - items made with non-plastic packaging or recycled materials, using renewable energy, or designed for a circular economy. This is no doubt an important part of sustainable procurement, but it's just the beginning.
Truly sustainable procurement requires looking beyond the products themselves to the entire supply chain. This means building long-term, collaborative relationships with suppliers that are focused on shared sustainability goals. It means understanding the environmental and social impacts of the procurement process itself, from transportation emissions, water usage and the impact on soil to the treatment of workers.
Sustainable procurement must look beyond the product to support the supplier’s continued business success, for everyone’s benefit.
Change is coming
The recent EGALIM laws in France are an example of how governments are now stepping in to actively drive this type of holistic approach. These laws mandate that large food service companies source a minimum percentage of their products from sustainable, local and organic producers. The goal is to not just swap out products, but to fundamentally reshape supply chain relationships to be fairer.
Not only does EGALIM tackle the products used by food and beverage companies themselves, but it also looks at payment terms, fair tariffs for growers and general contractual terms. Food and packaging waste are also covered, with plastic containers being banned for in-store consumption and establishments producing over 3000 meals a day being obliged to create relationships to distribute leftover food to worthy causes.
So why can't more companies take this approach without being forced by law? The barriers are often organisational - procurement is siloed, there's a lack of cross-functional coordination, or sustainability is seen as someone else's problem. But the reality is that sustainable procurement is an essential part of any comprehensive sustainability strategy.
Competitive advantage
Leading companies are already acting, working closely with suppliers to reduce emissions, support environmentally friendly agricultural practices, improve working conditions, and build resilient supply chains. They're finding that sustainable procurement isn't a cost centre, but a strategic driver of competitive advantage, brand reputation, and long-term business success.
It's time for all companies to elevate sustainable procurement beyond just greener products. The future of business - and the planet - depends on it.
Tagged as: Industry News
Share this post: