What is Corporate Green Procurement Policies?
Corporate Green Procurement Policies refer to the strategic approach taken by corporations to purchase goods and services that cause minimal environmental impact. The primary goal is to stimulate sustainable consumption and production by focusing on specific areas like energy efficiency, reducing waste, and promoting the use of recycled materials.
How does it work?
Green procurement policies work by setting specific guidelines and criteria for purchasing decisions within a corporation. These can include factors like the environmental impact of producing the goods, the energy efficiency of the product, the life-cycle costs, and whether the product is made from recycled materials. Once these policies are put in place, they are integrated into the procurement process and become a consideration in all purchasing decisions. This not only affects the corporation’s direct purchases but can also influence their suppliers and encourage them to adopt more sustainable practices.
Real-World Impact
One example of a company with a strong green procurement policy is IKEA. They have a specific policy to only purchase wood from suppliers that are Forest Stewardship Council (FSC) certified, which ensures the wood is sourced from sustainably managed forests. This has had a significant impact on their supply chain, pushing many of their suppliers to become FSC certified and leading to more sustainable management of forests globally.
How to Get Started
To start implementing a green procurement policy, a corporation first needs to understand its current procurement practices and identify areas where more sustainable options could be used. This might involve conducting a full procurement audit. After these areas have been identified, the corporation can then set specific guidelines or criteria that need to be met for all future purchases. This could be as simple as preferring products made from recycled materials or as complex as requiring all suppliers to have specific environmental certifications.
Get the Empress Edge
Understanding and implementing Corporate Green Procurement Policies can lead to significant benefits for a corporation. It can help to reduce a company’s environmental footprint, improve its reputation, and could even lead to cost savings in the long term. More than this, however, green procurement policies are a key part of the global shift towards more sustainable business practices. Corporations that adopt these policies are not only improving their own sustainability but are also contributing to a larger, global effort to create a more sustainable economy.