Sustainability assessment for procurement
Sustainability assessment helps to make the most suitable decision for the project
Have you ever thought about how huge impact an organization or a company has on the world’s development by its procurement measures? The impact may be detrimental to the world’s sustainable development, or supporting it, depending on one’s supply chains.
Severe environmental concerns may take place, unfair trade is possible, natural resources may be threatened or social acceptance of some parties may be questionable for various reasons. Moreover, the organization or the company responsible for the purchased items may not even be aware of all this. It may, for example, be investing its resources in R&D and other areas looking for sustainable solutions and, on the other hand, not paying enough attention to how its supply chains affect the world’s development on some parts of the world. Sustainability is always a matter of choice in the journey to the right direction in today’s world.
AFRY’s systematic evaluating procedure for procurement decisions
Since there are many things to be taken into account when assessing the sustainability performance and related improvement potential, AFRY has developed a systematic procedure for evaluating different options when making procurement decisions.
We provide professional help for organizations to make the best possible choices in the procurement. This can be a separate service or a part of an investment project in an agreed scale.
We do not evaluate only the suppliers at the company level, but we evaluate the options at the equipment level from a life-cycle point of view.
To prosper over time, every company must not deliver financial performance but also show how it makes a positive contribution to society.
- By Larry Fink, CEO of BlackRock *)
*) Reference: Sense & Sustainability, ‘Sustainability: Why Should Business Care?’, March 28, 2019 at [referred on March 1, 2021] https://www.senseandsustainability.net/2019/03/28/sustainability-why-business-should-care/
AFRY’s advanced sustainability assessment for procurement offers comprehensive evaluation of potential suppliers with selected sustainability criteria from economic, environment and social aspects of the sustainability. Compared to a standard procurement related technical evaluation, the sustainability assessment gives broader perspective when making investments.
Challenges in evaluating sustainability of products and services?
Choosing suppliers and making investments are an essential part of a project. When choosing a potential supplier, evaluation is often made based only on economic and technical factors.
Evaluating the sustainability of products and services can be challenging. In order to choose the most sustainable options, it is important to evaluate the sustainability of the products or services from a life-cycle perspective.
Decision-making based on sustainability criteria and performance
Advanced sustainability assessment for procurement helps to make a decision based on sustainability criteria with a variety of different aspects. The sustainability performance of the potential suppliers is evaluated.
Criteria can be customized to emphasize the values and criteria that have high importance to the client. Our sustainability assessment tool gives an added value to a standard technical comparison and evaluation of the tenders.
Procurement phase sustainability assessment helps to make the most suitable decision for the project
Once the required procurement has been defined, the client-specific approach is applied to the sustainability evaluation of parallel options. Starting from raw materials, finishing to the disposal of the product, including all the steps in between.
A questionnaire is sent to suppliers together with the technical enquiry. After receiving the data, the options are rated based on the answers on their current status and willingness to develop their sustainability performance.
Together with technical comparison, the sustainability assessment gives a comprehensive view that helps to make the most suitable and sustainable decision for the project.
Helping our clients to achieve their sustainability goals
AFRY has a long history of designing sustainable solutions for future generations. We have offered technical consulting in projects for decades, including technical negotiations with suppliers and evaluating their suitability to the project with technical comparisons.
When adding sustainability assessment to the technical review, our professionals can help in evaluating the suppliers and their offering more thoroughly to make sure their sustainability performance is in line with our clients’ sustainability goals.
Sustainability is the core of our business and we want to help our clients achieve their sustainability goals.
AFRY’s advanced sustainability assessment for procurement considers all the steps from raw materials to product disposal. Below is an example of included assessment criteria.