Thus, by 202670% of sourcing, purchasing and supplier management managers will have environmental protection performance objectives linked to their functions. This momentum comes in response to new demands and market values, detailed in an earlier report by the analyst, which notably identified sustainability as a business priority for companies in 2023, with an increase in investments in the field. So, vendors are focusing on these resource protection initiatives in order to stay competitive.
Companies can tailor their performance initiatives to environmental and sustainability goals
Companies today prioritize initiatives related to the environment and sustainable development, because of the pressure exerted by their stakeholders, but also to remain competitive with their competitors and convincing with their customers. Too often, these commitments are sidelined when leaders prioritize business performance over their environmental policies. However, the Gartner report reveals a transformation of the market, linked to the economic and climatic contexts. Business leaders are beginning to realize the value of these actions and the benefits they can bring.
As Gartner’s October report revealed, sustainability isn’t just a business prerogative, it’s tied to business success. This new approach invites leaders to integrate new perspectives and explore new ways of working and doing business. NOTmany now see these initiatives as an opportunity to encourage revenue growth and drive operational efficiency. In parallel, the January report identifies an emerging trend: organizations are beginning to realize that sustainability is everyone’s responsibility and that partnerships with the right entities are essential.
Companies with real environmental ambitions are aware of the repercussions that the choice of a supplier can have. Customers are indeed looking for sustainability goals and timelines that can be demonstrated, not false promises. Thus, the selection of a partner or a supplier will have an important role to play in the reputation, and therefore the success of the organization. Sustainable management of sourcing, contracts and performance has therefore become important. Thus, it will certainly be a sine qua non of the internal decision-making process. So if a customer’s and supplier’s commitments or goals don’t align with the new corporate values, they will look for others that will help them achieve their sustainability intentions.
Looking to the future, all structures should consider transformation and sustainability as a single goal. After 2026, every investment in technology and its impact on the environment will need to be carefully assessed. At a minimum, suppliers will have to demonstrate that their solutions can effectively facilitate business practices rooted in sustainable development. Leaders also need to think carefully about how to integrate their environmental and sustainability ambitions into their business plan and redefine the products or services that can help achieve these goals.