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Applying Procurement Portfolio Modelling in Organizational Sustainability Strategies

Overview

As we approach the final decade in our quest to achieve the 2030 Sustainable Development Goals (SDGs), the importance of procurement has transformed from a cost management tool to a vital ally in advancing organizational sustainability, resilience, and innovation. Drawing on influential frameworks such as the UN Guiding Principles, the UN Global Compact, and the comprehensive SDG Agenda 2030, an increasing volume of national and international legislation is being enacted to propel net-zero objectives and encourage sustainable corporate sourcing practices. Consequently, sustainable procurement has evolved from a mere "nice-tohave" attribute to an indispensable "need-to-have" component, now viewed as a strategic prerequisite for attaining organizational goals. Given the significant role procurement plays in most organizational operations, it is essential to align organizational objectives with the integration of sustainability throughout the procurement function.

This paper presents the innovative Sustainability-weighted Procurement Portfolio Model (PPM), which employs a category-specific classification system to map and prioritize sustainability exposure within procurement portfolios. The methodology aims to guide organizations in crafting sustainable procurement strategies, conducting supplier due diligence assessments, and developing a framework to align the integration of sustainability across the procurement portfolio with organizational sustainability targets. The model is tailored to expedite the implementation of sustainable public procurement and empower public procurement practitioners to proactively work towards SDG 12.7.

Applicable to governments or sub-national entities, the sustainability-weighted model can be utilized to align with national sustainable development priorities and serve as a benchmark tool for SDG 12.7.1, which measures the number of countries implementing Sustainable Public Procurement (SPP) action plans. This approach aids countries in determining the high-priority categories to be incorporated into their action plans, for which they will establish specific sustainable procurement guidelines. Consequently, this model enhances the efficacy of sustainable procurement policies and contributes to the collective pursuit of a more sustainable future.

A Sustainability-weighted Procurement Portfolio Model (PPM) Approach

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