ESG initiatives in services sourcing

The role of environmental, social, governance (ESG) initiatives in sourcing

Responsible sourcing and supplier diversity are two leading opportunities for thriving ESG initiatives, and they’re easier to access than you think. As we enter a new sustainable age, organizations all over the world are shifting their strategies to be sustainable, and they are finding success. Everest Group’s forward-thinking guidance helps sourcing and procurement teams with what they need to know to discover new business opportunities and work toward a better future.

Sourcing teams are in a unique position to make a significant impact on a company’s sustainability and ESG initiatives. Procurement and sourcing teams live where internal business units and the external ecosystem of suppliers and third parties meet, making them instrumental in aligning sustainability objectives with supplier selection and management.

Supplier diversity

Forward-looking sourcing and procurement teams are creating ways to include ESG initiatives across their services spend – turning commitments into actions. They are finding value by challenging traditional service sourcing processes with options like supplier diversity. A diverse supplier portfolio allows sourcing professionals to ensure greater inclusivity and a stronger supplier base, leading to increased cost savings, enhanced innovation, improved customer satisfaction and corporate social responsibility, and alignment with government policies.

Everest Group helps supply leaders find the right diverse suppliers and services categories, accelerating their learnings and adoption of sustainability practices.

When it comes to supplier strategy, enterprises are ramping up their ESG initiatives to meet standards within the workplace, find business opportunities, and reach new talent.

Although many enterprises have already implemented Scope 1 and 2 objectives, and set them in motion, enterprises are also focusing on Scope 3, or the indirect emissions associated with their value chain.

Scope 3 influences sourcing and procurement by shaping supplier selection criteria and setting emission reduction targets. This focus involves actively seeking out suppliers who are committed to adopting more sustainable business processes, and the sustainability objectives of suppliers’ suppliers. Enterprises are also integrating sustainability performance benchmarks into supplier evaluations to ensure the integrity of their Scope 3 goals.

Sourcing leaders can look to service providers to help them achieve their Scope 3 goals. Service providers’ expertise and resources enable enterprises to effectively measure, manage, and mitigate Scope 3 emissions. They serve as valuable partners in driving ESG initiatives forward.