Environmental

Factors
Affecting Sustainable procurement
 Environmental
Factors
• External
• Internal

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 Triple Bottom Line (TBL)
TBL focuses corporations not just on the
economical values they serve but also on the
environmental values they might serve or destroy.

Seven Drivers:
» Markets
» Values
» Transparency
» Life-cycle Technology
» Partnerships
» Time
» Corporate Governance
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 Triple Bottom Line (TBL) for Purchasing
Economic
Value for money
Effective capital purchasing
Achieving budgetary targets
Sustainable pricing
Social Environmental
Sustainable supplier development
Risk Management
Adherence to legislation and standards
Diversity within the purchasing team
Working conditions Responsible use of resources
Fair remuneration Responsible waste management
Staff retention Reduced pollutions and emissions
Work/life balance Energy conservation
Supplier relationships Environmental processes and materials
Supplier diversity Responsible packaging
Direct sourcing
Local sourcing
Corporate citizenship
Responsible sourcing and contract management
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 External Factors
The PESTLE model
» Political Factors
• Agenda
• Other local policies
• Workforce structure
» Ethical Factors
• Working conditions & Practices
• Corruption & Fair trade
» Social Factors
• Availability of skills
• Corporate citizenship
• Societal values
» Technological Factors
• Communication & Innovation
» Environmental Factors
• Energy & Waste reduction management
• Global Climate Change
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 Standards

» ISO 14001 International Organization of

Standardization Environmental Management
System (EMS) Standard
» SA 8000 Social Accountability Standard
» ISO 14020-24 Environmental Labeling Standard
• Type 1: Awarded by third party
• Type 2: Declaration made without third party
• Type 3: Quantified declaration made against pre-set
indicators of life –cycle assessments

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 Internal Factors

Internal Strategies, Policies, Procedures

and Attitudes to Sustainable Procurement
» Organizational Strategies, policies and procedures
» CSR Policy
» Corporate Governance
» Internal Stakeholders positions and attitudes
» People development Skills

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 Risk Management
And Internal Availability of Sustainable Resources
» Risk management in purchasing focuses on
• Financial stability of suppliers
• Ensuring continuity of supply
• Safety and security of inventory
• Protecting against extraordinary price increases
• Avoiding unexpected quality failures

» Internal Availability of sustainable resources

• Capacity and capability of processes
• Skills and competencies
• Product and service designs
• Ability of supply chain to harness necessary skills
• Levels of diversity within supply chain
• Encouragement and development of socially and
environmentally responsibles

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 Sustainable Procurement
Its Relationship with brand reputation & Performance
Improvement

» Effects on Brand reputation,

• Sustainable procurement boosts brand value
• With the new trend of environment consciousness, it raises
brand reputation
• Sustainable resources are also very efficient, hence the
popularity
• Supports from regulation groups and green activists
• Ignoring sustainability issues might bring upon mass
dissatisfaction from all stakeholders
» Effects on Performance Improvement
• Private Sectors: Energy efficient, Less pollution, security
of supplies, differentiation etc.
• Public Sector: Diversity performances, Re-use, re-cycle
and waste management targets
• Third Sectors: Increase the appeal to funding organizations
and individuals, differentiation and encourage volunteers
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