ESG targets are yet to be implemented at almost three out of 10 businesses, a survey of attendees at PASA’s Sustainable Procurement and ESG Today revealed.
A live poll put to the audience by Coupa during the two-day conference on November 15-16 asked “Who currently works for an organisation with ESG Targets?” A total of 28% of respondents answered ‘no’ to the question compared with 72% who answered ‘yes’.
A further question “Who has already exceeded their ESG targets?” returned ‘no’ answers from 88% of respondents.
“ESG is coming top of funnel,” Coupa’s Account Executive Charles Glenn said.
“The challenge we’re seeing technology has not been put in place with ESG front of mind.
“How are you meant to drive positive ESG impact without having the right tools in place.”
Charles said community sentiment is holding businesses to account for a higher standard.
In quoting figures from PWC:
- 64% of customers are willing to pay more for sustainable products
- Nearly 40% of millennials have taken a job because of a company’s sustainability mission
- 68% of investors use ESG ratings and scores in their investment decisions.
This drive for ESG was energised, if not kick-started, by the publication of ISO 20:400 standard for Sustainable Procurement (April 2017). This framed ‘sustainable procurement’ in a much wider context and built a momentum across a wide agenda.
Coupa surveyed 800 customers that highlighted ESG objectives most important to them.
On top was improving energy efficiency, with 94% responding with it as of most importance.
Nicola Nation, CEO The Ākina Foundation, was the first keynote for the conference, PASA’s last for the 2022 calendar.
Nicola explained why procurement can be far more than the sum of parts. When used as an instrument of policy, Nicola explained procurement can achieve a lot from the supplier side.