A new joint study from international management consultancy Sourcing Champions and Valuedesk explores how procurement’s role is growing in the net zero transition and why implementations are being impeded.
The research paper, titled ‘Market Study to Net Zero’ saw over 100 procurement leaders and professionals questioned across Europe during Q2 of 2023.
The results reveal that 93% of procurement professionals agree that sustainability is a top priority, with companies rating their net zero performance as above average.
Despite this, only 50% of those surveyed had set themselves a net zero target that encompasses Scope 3 emissions. Of those that had identified a target, 32% aim to achieve full net zero status by 2030.
Interestingly, the findings demonstrate that companies who do not have a net zero target perceive more pronounced challenges in setting ambitious reduction targets, lack of stakeholder engagement and limited awareness among stakeholders.
Companies both with and without set targets were quizzed about the challenges they face, with respondents pointing to limited data, complex supply chains and limited control over supplier emissions.
The report goes on to explain that companies may find themselves in a “state of paralysis” due to lack of necessary data and experience, which renders them unable to advance towards their net zero goals.
Consequently, it suggests that those who initiate their net zero journey by prioritising carbon reduction strategies in procurement and across the entire organisation, even when complete data visibility is lacking, will be at the forefront.
The study reveals that another challenge that inhibits progress can be attributed to companies prioritising price and delivery reliability over sustainability considerations when selecting a supplier.
Meanwhile, when it comes to methods and tools, large companies are tending to use more diverse methods to establish their targets, while smaller companies (who may require additional support if they want to achieve targets) use only some methods which points to less resources, expertise and personnel availability.
Of those self-assessed as ‘excelling in net zero’, the report attributes this to better control over stakeholder engagement, stakeholder awareness and financial factors, thus providing aspects to focus on for enhancing net zero progress.
Researchers conclude the report by emphasising that it’s crucial to “get started as time is ticking”, which may mean establishing an ambitious vision to act as a catalyst while accepting imperfections along the way.
