Building sustainable foundations for future

The construction industry is a major polluter, but sustainable procurement can help. By considering environmental and social factors throughout the supply chain, companies can reduce their impact and become more competitive, says SAM ACHAMPONG* of the Chartered Institute of Procurement Supply CIPS).

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AT a time when the way businesses operate is being scrutinised more than ever, it is crucial that construction companies look at how they can build solid foundations to develop sustainable and ethical frameworks from which to operate.

Currently, 40 per cent of global carbon emissions are generated by the built environment, which is indirectly responsible for 25 per cent of all greenhouse-gas emissions. Hence, chief procurement officers (CPOs) will play a key role in helping companies decarbonise and improve profitability. Construction procurement teams are entering a new era, and need to rehaul policies to ensure that their carbon footprint can be reduced.

So, what is sustainable procurement and why is it important for businesses to transition to more sustainable operations? Sustainable procurement supports the green goals of an organisation and optimises the environmental, social, and economic impacts over the life cycle of the product or service. Some typical sustainable procurement practices include compliance with environmental laws and targets, the removal of hazardous/forbidden materials and waste in the supply chain, as well as thorough vetting of suppliers for fair labour practices.

For the construction industry, sustainable procurement encourages the use of materials and equipment that have minimal environmental impact, and ways to reduce carbon emissions, water usage and waste generation should be explored. Procurement plays a crucial role in construction, typically accounting for 40 to 70 per cent of a company's total spending, and industry executives see the function as a trusted business partner. Sourcing recycled and terials helps to renewable maconserve natural resources, mitigates the depletion of finite resources and promotes responsible consumption. This is key in the construction industry's efforts to reduce the negative impact it has on the environment.