Category: Sustainable business

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  • Sustainable Sourcing: 7 Powerful Ways to Turn Your Next Tender into a Sustainability Win

    Sustainable Sourcing: 7 Powerful Ways to Turn Your Next Tender into a Sustainability Win

    Beyond the Usual Priorities in Tenders

    Sustainable sourcing is no longer optional—it’s a strategic advantage. When companies launch sourcing projects, they typically focus on cost, risk, delivery timelines, and supplier reliability. But today’s business environment demands more. Every tender is now an opportunity to drive sustainability—both environmental and social.

    With growing pressure from consumers, investors, and regulators, sourcing isn’t just about savings. It’s a lever for long-term value, resilience, and positive impact.

    Here’s how to embed sustainability into every step of the sourcing process.

    1. Defining the Needs: Set the Right Foundation

    Sustainable sourcing starts by asking the right questions:
    • What environmental or social impacts does this purchase have?
    • Can we reduce quantities or opt for recycled or low-carbon alternatives?
    • Are there opportunities to align this tender with our sustainability goals (e.g., circular economy, carbon neutrality)?

    Tips for Success:

    • Involve departments like sustainability, operations, and product development from the start.
    • Clearly define how this sourcing activity supports company-wide goals.
    • Share early drafts with suppliers to understand feasibility and spark input.

    Example: For packaging, require recycled content, recyclability, and local sourcing.

    2. Market Research: Find the Right Partners

    Go beyond price when exploring the supplier market. Look for those who can deliver both performance and sustainability.

    What to Look For:

    • Certifications (e.g., ISO 14001, B Corp, Fair Trade)
    • Repairable, recyclable, or low-impact product design
    • Evidence of carbon reduction, water stewardship, or waste minimization

    Tip: Ask suppliers for innovation ideas or examples of recent sustainability improvements.

    Example: For electronics, seek repairable designs and track record in reducing e-waste.

    3. Drafting the RFP: Make Sustainability Core

    Your Request for Proposal should reflect your sustainability ambition.

    What to Include:

    • Specific requirements (e.g., recycled content, energy use, labor standards)
    • Requests for sustainability performance data (e.g., carbon footprint, lifecycle analysis)
    • Scoring criteria that give sustainability real weight—not just a footnote

    Encourage Innovation: Include a section for “alternative sustainable proposals”—allowing suppliers to suggest better or greener options.

    Example Clauses:

    1. Minimum % of sustainable materials
    2. Carbon reduction commitments
    3. Waste reduction and take-back programs

    4. Evaluation and Selection: Think Long-Term

    Choose suppliers based on total value—not just price.

    Evaluate Based On:

    • Lifecycle costs, including energy use and end-of-life disposal
    • Compliance with EU regulations (e.g., CSRD, Taxonomy)
    • Carbon footprint, water use, and overall environmental metrics

    Example: For transport, prioritize providers with low-emission fleets or alternative fuels.

    5. Negotiating Contracts: Lock In Accountability

    Once selected, the contract should reflect your sustainability expectations.

    Clauses to Include:

    • Periodic reporting on sustainability KPIs
    • Penalties for non-compliance or bonuses for overperformance
    • Continuous improvement targets across contract duration

    6. Monitoring and Collaboration: Keep It Going

    Sustainability doesn’t end when the contract is signed. It requires consistent review and dialogue.

    Key Actions:

    • Schedule performance check-ins with sustainability metrics
    • Conduct site visits or audits
    • Partner on joint initiatives (e.g., waste reduction, product redesign)

    Example: For packaging, track % of recycled content used year over year.

    7. Ask Your Suppliers — It Pays Off

    Leaving space in your tender for alternative proposals can lead to unexpected sustainability wins.

    Why?

    • Suppliers bring deep market and technical knowledge
    • Co-creation increases commitment and performance
    • You might discover lower-impact or more cost-effective solutions

    Real Examples:

    • Unilever adopted post-consumer recycled plastic after a supplier proposed it
    • IKEA improved textile dyeing practices based on supplier innovation

    Turn Every Tender Into a Sustainability Win

    Sourcing is no longer just a function of cost control—it’s an opportunity to drive systemic change.

    Start small. Add one sustainability clause. Invite one supplier suggestion. Score one RFP with emissions in mind.

    Because what you source is how your business shows up in the world.

    Let each tender bring you closer to your sustainability goals—while building more resilient, future-ready supply chains.

    Ready to Act?

    Sustainable sourcing doesn’t require a total overhaul—just the willingness to start. Whether you’re updating your next tender or reviewing supplier performance, small changes can drive big impact.

    📌 Need support embedding sustainability into your sourcing strategy?
    📩 Reach out or explore more resources on The Procurementor to start making every tender a sustainability win.