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Supply Chain Graphic of the Week: Three Steps to Sustainable Procurement


McKinsey Finds Many CPOs Unsure How to Get Started


Sept. 30, 2021


Procurement is clearly at the heart of sustainabilty strategies for most companies.


Why? Because the majority of a manufacturing or distrbution company's total supply chain CO2 emissions generally come from the operations of its supply network.


However, a recent article by some consultants from McKinsey cited reseach that found many chief procurement officers feel uncertain about how to lead CO2 reduction programs for its vendors.


McKinsey says it's not so hard, and offers three basihc steps, as illustrated below in a graphic from artcle.





Source: McKinsey


“As companies seek to reduce the negative environmental and social impact of their activities, they are discovering that many of the biggest risks and opportunities are found in the upstream supply chain,” McKinsey concludes, adding “That puts the procurement function at the front line of the transition to sustainable business models. Ambitious CPOs should act now to ensure they have the tools, data, and capabilities needed to support this shift.


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