Why include suppliers in your sustainable procurement strategy?

Corporate Social Responsibility (CSR) is no longer a simple option, it is now part of stakeholder expectations, growing obligations, and global environmental and social challenges.

All businesses are concerned and have their role to play in facing these global challenges.

To have a real impact, it is not enough to focus on your own activities; you need to broaden your vision to cover your entire value chain. A large part of the social, environmental and ethical impacts associated with your activities are found upstream or downstream, in your value chain.

Engaging your suppliers in this dynamic is therefore an essential lever for implementing your responsible purchasing strategy and maximize your CSR efforts.

Through this article, we will present to you the major advantages of including your value chain in your responsible purchasing approach. On the program:

• Definition of a responsible purchasing strategy,
• Meet regulatory requirements,
• Refine your carbon balance for a better low-carbon strategy,
• Control your risks,
• Building lasting relationships with its suppliers.

It is impossible to carry out an ambitious CSR approach without including a key link in your organization: your value chain, and more particularly your suppliers.

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What is a responsible purchasing strategy?

A responsible purchasing strategy makes it possible to structure and organize your purchasing decisions so that they take into account social, environmental and ethical criteria, in addition to the usual economic criteria (cost, quality or deadlines).

In concrete terms, this involves several key actions:

• Define goals clear: for example, reducing the carbon footprint associated with purchases, promoting local suppliers or encouraging the purchase of eco-responsible products.
• Integrate CSR criteria in the supplier selection process, such as their waste management, their respect for human rights or their transparency on ethical practices.
• Evaluate and support its suppliers in a process of continuous improvement so that they make progress on these topics.
• Prioritize certain types of purchases: for example, recycled materials, renewable energies or certified products (Fair Trade, ISO 14001, etc.).

Setting up a responsible purchasing strategy makes it possible to use purchasing leverage to support sustainable practices. This not only allows meet your CSR objectives, but also to create value in the long term.

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The advantages of including suppliers in your responsible purchasing strategy

Responding to growing regulatory requirements

Regulations like the CSRD (Corporate Sustainability Reporting Directive) or the CS3D (Corporate Sustainability Due Diligence Directive) require companies to monitor, control and improve the CSR impact of their value chain. It is no longer just a question of goodwill, you have a legal responsibility to be vigilant with respect to the social, environmental and ethical practices of your suppliers.

The CSRD is a European directive which requires businesses to publish detailed reports on their impact on sustainability It replaces the Non-Financial Reporting Directive (NFRD) and extends the application criteria, 50,000 businesses are concerned in Europe. The CSRD requires including information on their value chain, in particular Scope 3 emissions (those generated by suppliers).

La CS3D, for its part, requires large companies to duty of care across their entire value chain, especially with regard to human rights, environmental impacts and ethics.

By engaging your value chain in your CSR approach, you:

• Anticipate current and future regulatory obligations,
• Reduce the legal and financial risks associated with non-compliance,
• Give extra credibility to your sustainability reports.

Refine your Scope 3 emissions calculations

A corporate carbon footprint is a tool that measures the greenhouse gas (GHG) emissions generated by its activities. It makes it possible to identify the main sources of emissions in order to reduce them.

The shows are classified in Three scopes :

• Scope 1 : Direct emissions, such as those of company vehicles or facilities.
• Scope 2 : Indirect emissions related to the energy consumed, such as electricity or heating.
• Scope 3 : Broader indirect emissions, linked to the value chain (suppliers, transport, use of products, etc.).

Scope 3, which includes indirect emissions related to your supply chain, can represent up to 70% of your company's total emissions

By working hand in hand with your suppliers to accurately estimate their greenhouse gas (GHG) emissions, you can refine your own calculations and identify concrete levers to reduce your carbon footprint.

Without their commitment, even your company's most ambitious efforts will fall short, as the majority of emissions come from your value chain.

For example, Schneider Electric actively involves its suppliers in its CSR approach by supporting them in reducing their emissions. Through its “Zero Carbon Project” program, the company is helping 1,000 of its main suppliers achieve decarbonization goals, which directly contributes to reducing its own Scope 3.

Managing risks in your value chain

Each link in your value chain is a strategic lever, but also a potential source of risks. By collaborating with more mature suppliers on CSR issues, you reduce threats such as:

• Social risks: exploitation of workers, child labour, accidents.
• Environmental risks: pollution, destruction of ecosystems.
• Ethical risks: corruption, fraud, money laundering.

A responsible supply chain is also more resilient in the face of global crises and disruptions, which becomes a competitive advantage.

Take, for example, Carrefour, which was confronted with ethical risks related to its value chain. The company has been involved in scandals concerning fraud over the quality of certain products in its supplies. This not only tarnished its image, but also highlighted the need to strengthen control practices over its suppliers to avoid these risks. Carrefour has since integrated responsible purchasing practices to improve the traceability and transparency of its supply chain.

Building lasting relationships with your suppliers

Adopting the position of a partner rather than a simple contractor changes the dynamic with your suppliers. These relationships based on trust and long term reinforce:

• The resilience of your supply chain in an uncertain context.
• Joint innovation, because committed suppliers invest more to meet your expectations.
• Mutual fidelity, essential for building a sustainable CSR strategy.

Involving your suppliers in your responsible purchasing process creates a virtuous circle, where everyone benefits from collective efforts.

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Conclusion

Adopting a responsible purchasing approach is not only a lever for meeting regulatory requirements or improving your carbon footprint, it is a great way to strategic opportunity. By engaging your suppliers in this dynamic, you are strengthening the resilience of your supply chain, reduce your risks and build lasting relationships based on trust and innovation.

Responsible purchasing makes it possible to transform your CSR commitments into concrete actions throughout your value chain. By fully integrating them into your strategy, you are sending a strong signal: that of a proactive company, ready to meet the environmental and social challenges of today and tomorrow.