More and more organisations, quite rightly, are factoring supply chains into their ESG strategies.
According to a report from McKinsey, two thirds of a typical company’s environment, social, and governance footprint lies with suppliers, meaning procurement leaders have a critical role to play in the success of sustainability initiatives.
These strategies are vital on a number of fronts. Aside from the positive environmental and social impact they facilitate, the business case for taking ESG seriously is compelling. Indeed, it is critical to securing investment capital, with 89% of investors considering ESG factors as part of their investment approach in 2022 (up from 84% in 2021).
Meanwhile, a PwC study finds that more than eight in 10 consumers believe companies should be actively shaping ESG best practices, while 86% of employees prefer to work for firms that care about these issues.
As one of the most prolific segments of supply chains, technology has long been a sector in focus on its environmental impact, with companies scrutinised for their green credentials, high energy usage and import strategies.
Today, as interest in ESG grows and a new generation of millennial and Gen Z purchasing decision makers emerges, that scrutiny is continuing to intensify. As a result, we are seeing a new collaborative working relationship form between purchaser and supplier, across the entire supply chain.
This is a highly important development, not least because ESG strategies are evolving to include a stronger focus on social value alongside the all-important environmental aspects.
Indeed, procurement professionals are increasingly turning to ethical sourcing as a business imperative and, once again, we can see these shifts occurring alongside evolving consumer mindsets.
According to a global study by OpenText, almost nine in 10 consumers would opt to acquire goods and services from companies with ethical sourcing strategies. In the UK, the proportion of consumers prioritising organisations with ethical sourcing policies has leapt from 69% pre-pandemic to 82% post-pandemic.
There’s no surprise then that during supplier-purchaser negotiations it is not uncommon to be asked for numerous social impact scores, and to be scored against them.
For a company like Corps Monitoring, there is only so much we can do to reduce our environmental impact – this is because we have constant energy requirements and must sustain a 24-hour operation for our clients to keep their premises safe. Nevertheless, schemes such as the introduction of solar power to make our energy usage more sustainable, as well as the introduction of EV charging points and our own Cycle To Work scheme to encourage our colleagues to make their commute greener, all make a positive contribution to reducing our carbon footprint.
However, what we do know is that our ESG strength lies in social value. As a certified Social Enterprise, Corps stands as one of the most ethical security firms in the UK due to its position as a Living Wage employer, provision of wellbeing resources and help for employees, and support for the underrepresented veterans community.
Through our procurement activities, we can also ensure we are fulfilling the environmental element of ESG. This is the huge upside of collaborative ethical procurement, as it allows the two companies to see how working together will boost various ESG impact scores and improve the results of both businesses during the bid process.
Team up with the right partners, and ESG strategies and outputs can be greatly enhanced.
Corps Monitoring is a division of Corps Security – the UK’s longest running security company. Corps Monitoring offer a range of technology solutions including CCTV Monitoring Services, CCTV Sensor Activated Monitoring, CCTV Live Surveillance, Fire Alarm Monitoring, Intruder Alarm Monitoring, Personal Protection Services, Key Holding, Call Centre Monitoring, Lone Worker Monitoring and more.