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Respecting the Environment along the Supply Chain

Organizations can no longer afford to turn a blind eye to the environmental impact and performance of their suppliers.

 
PRLog - Oct. 7, 2011 - Which Way to Green Procurement?

Organizations have taken different paths along the way to Green Procurement (GP), with some developing their own standards and tools to assess performance along the supply chain. Other organizations have also looked to the European Union and public policy for guidance on their own procurement strategies.

Green Procurement refers to the means by which companies assess and interact with suppliers with regard to environmental performance. There are two general approaches to GP, which companies have sometimes combined.

Green Procurement: Method One

A product based approach is one where a company focuses on a key product or service and follows its path along the supply chain, assessing its environmental impact along the way. The credentials of suppliers are assessed as well as the product or service itself. This is known as the raw material supply assessment and is used when an organization prefers to understand the impact of a specific product or product range for the purposes of marketing or other corporate strategies. This strategy enables a supplier’s processes to be thoroughly analyzed.

Green Procurement: Method Two

The management based approach is one where a company analyzes and evaluates its management practices and assesses the risk the corporation faces from its suppliers with regard to their compliance with legal and other environmental standards. No corporation wishes any risk to be posed to its brand name and associated environmental claims or credentials. Therefore an organization may seek to know if a supplier has procedures and policies in place that conform to the organization standard as well as the legal requirements of the market. This method has been utilized where complex supply chains and large numbers are the rule – suppliers are profiled and assessed with regard to corporate management policy.


Green Procurement for You

When deciding on a Green Procurement strategy it is important to assess your aims and goals and what Green Procurement means to your organization and what criteria relating to Green Procurement will satisfy the requirements of you and your customers.

Supporting Green Procurement Strategy

There is no one right way to obtain Green Procurement (http://www.sustainability.sgs.com/consumergoods/green-pur...) – rather, there are differing tools and strategies by which suppliers can be assessed, whether the assessment is to help improve performance or assess risk. Tools for the assessment of suppliers include measures such as carbon footprinting, product or service life cycle assessment, following a product’s route along the supply chain, systems certification and the training of suppliers to meet external standards that have been developed, such as ISO14001, and so on.

To get the Green Procurement results you want, a proper understanding of key areas and criteria that the business wants to focus on is vital. Tools to obtain Green Procurement need to be selected with careful consideration.

The Best Support in Green Procurement Strategies

SGS has experts that can help develop Green Procurement strategies at a local level, as well as implement training and awareness programs for both buyers and suppliers. Experts in sustainability (http://www.sustainability.sgs.com) assist organizations along every step of the way in the assessment of suppliers and the supply chain, with significant impact areas identified through full product analysis at every point along the life cycle.

For more information on how SGS can support your Green Procurement initiative, please contact:

SGS Consumer Testing Services
Ian Allard
Sustainability Consultant at SGS United Kingdom Limited
Saunders House, 52-53 The Mall
Ealing, London W5 3TA United Kingdom

t: +44 0203 008 7860
E-mail: cts.media@sgs.com
Website: http://www.sustainability.sgs.com

SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With 67'000 employees, SGS operates a network of over 1'250 offices and laboratories around the world.

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SGS Consumer Testing Services ensures the quality and safety of every kind of consumer products, from textiles, electronics and furniture to food and automotive.
For more information, please visit: http://www.sgs.com/cts

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Phone:+44 0203 008 7860
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City/Town:Ealing - London - United Kingdom
Industry:Consumer
Tags:sgs, green procurement, green procurement method, green procurement strategy, sustainability
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