Table of Contents

1.0         Introduction
1.1         Background of the report
1.2         Introduction on the Sustainable Development Goal (SDGs)
2.0         Justification on the adoption of Sustainable development goal (SDGs) in sustainable procurement
2.1         Sustainable development goal (SDGs 13)
2.2         Necessity of Sustainable development goal (SDGs 13)
2.3         Sustainable procurement
2.4         Necessity of Sustainable Procurement
a)      Issue of Global warming
b)      Public Awareness
2.5         Evaluation of SDG framework in sustainable procurement strategy
3.0         Benefits of sustainable procurement
3.1         Environment protection
3.2         Customer Awareness
3.3         Increase in efficiency of Procurement activities
3.4         Increase in Standard of Living
3.5         Social Welfare
4.0         Summary
5.0         Conclusion
6.0         References

1.0     Introduction and  Background of the report of how the SDG 13 can be used as a framework for sustainable procurement strategy

The aim of this report is to provide deep insights regarding the framework of sustainable procurement strategy and how SDG₁₃ can be used as a framework for sustainable procurement strategy. SDG essentially represent a framework which address the full scope of sustainability topics and actors. In this report the SDG framework is evaluated to define how SDG₁₃ can become framework for Sustainable procurement strategy. The report also includes the justification if adopting SDG’s framework in procurement strategy and the benefit which the sustainable procurement provides. Overall, the report provides a critical analysis of the SDG framework and sustainable procurement strategy.

1.1       Introduction on the Sustainable Development Goal (SDGs)

The sustainable development goals are established to promoted sustainability and provide benefit to the society. Sustainable development goals provide framework which include various sustainable topics. The framework has gain global acceptance due to its effectiveness and popularity. There are total 17 sustainable development goals which have approximately 169 targets [1].

The SGGs can be divided into five categories based on functions: resources, environment, education, economy, and governance (see Figure 2)

Figure 2: Function wise five categories of SDGs.

-          Frist Category: Resource

This category of the sustainable goals focusses on various resources which are necessary for the society. The aim of these goals is to reduce world hunger and provide clean drinking water to the society which is a basic necessity. The global warming issue in recent decades have increased up to lot of extent and many countries are now focusing on clean and green initiatives for energy generation Resource goals include: food, water, and energy (SDGs 2, 6, and 7) [2].

-          Second Category: Environment

This category focus on various ecosystems, climates and natural capital. It is important to protect the climate by focusing on environment protection. Through controlling carbon emission, the climate of different regions can be protected. This category of the SDGs not only focus on the living beings that are living on land but also on the living beings which live under water. The natural capital such as forests and wildlife come under this category of SDG’s and the aim of this SGD is to protect the wild life for future generations. In the past many species have come near extinctions and facing serious issues. These goals allow the society to control pollution so that the natural habitat of various species can be protected efficiently. Climate, oceans, and land (SDGs 13, 14, and 15) are the main SDGs that highlight environmental issues. Water also could be considered part of the environment, and the food goal (SDG 2) includes a target on sustainable agriculture. In terms of trade-offs, resource extraction often causes GHG emissions and other forms of pollution [1].

-          Third Category: Education of how the SDG13 can be used as a framework for sustainable procurement strategy

The sustainable goals which come under this category are established to improve the quality of education and health. The education & health practices are designed in such a way that the environment won’t have any negative effect. Nowadays the hospital waste is disposed in such a way that it won’t harm the environment moreover the schools and educational institutions are now using solar panels and other renewable energy sources for meeting their energy needs. The overall aim of these SDGs is to provide maximum benefit to society. Efforts to promote these goals (SDGs 3 and 4) will directly contribute to most or all of the other SDGs [2].

-          Fourth Category: Economy of how the SDG13 can be used as a framework for sustainable procurement strategy

The fourth Category of the SDG’s is related to the economy. There are many businesses and organizations that are operating around the world which become the reason of various economic activities. The goal of this SDG is to utilize the resources in such a way that the environment won’t get harm and the people get their product in more useful and beneficial way. Today the customers also become quite aware and purchase goods of those organizations which are focusing on environment protection and corporate social responsibility. Transformation of the economy towards sustainable consumption and production (SCP) (SDG 12) will thus be a key to achieving the SDGs as a whole [3].

-          Fifth Category of how the SDG13 can be used as a framework for sustainable procurement strategy:

The last and fifth category of the Sustainable development goals is the governance. The governance SDG focus on justice and peace of the society so that people can live a happy and peace full life without any difficulty. The aim of this SDG is to promote strong institutions who work independently and work for the benefit and welfare of the society. In many countries people face various issues in the society which include problems like crime rate. If the authorities are going to use SDG framework such problems can be mitigated and the people can live a peaceful life. In this category SDG 16 is included [3].

2.0     Justification on the adoption of Sustainable development goal (SDGs) in sustainable procurement

 The Monitoring framework for SDG thirteen – “Take pressing action to combat temperature change and its impacts” – is formed of 5 targets and eight indicators. SDG thirteen encompasses:

·         Capability building to strengthen disaster resilience and adaptation (SDG thirteen.1)

·         Integration temperature change measures into general policies, ways and coming up with (SDG thirteen.2)

·         up awareness on temperature change adaptation and mitigation (SDG thirteen.3

·          Mobilizing the $100 billion monetary commitment created as a part of the UNFCCC (United Nations Framework Convention on Climate Change) (SDG thirteen. A)

·         Raising capability for the foremost vulnerable countries and teams, as well as the Lower river countries and tiny island states, and women, youth, local, and marginalized communities (SDG thirteen. B) (Palmer, 2013).

Figure 3: The monitoring framework for SDG₁₃.

2.1       Necessity of Sustainable development goal (SDGs 13) of how the SDG13 can be used as a framework for sustainable procurement strategy

As discussed earlier the Sustainable development goals work as a framework to perform various activities in such a way through which the society gets maximum benefit without harming the environment. The framework of SDGs includes five categories which are Environment, Resources, Economy, Governance and Education. All these goals are connected with each other to fulfill the social objectives. Social objective is relayed to reduce poverty, improve quality of health-related services and enhancing the level of education. Overall aim the SDG framework is to provide benefit to the people of the society and enhance their standard of living [4].

The goals are designed to incorporate various strategies to protect the environment and work in such a way that leads to achievement of sustainable goals. Whether they are organizations or other institutions the SDGs will allow them to perform various activities according to the SDG framework and improve their overall performance, profitability and efficiency. Through implementation of SDG strategies, the organization get the opportunity to sustain in the long run and enhance its sales. It is obvious that the customers focus on such products which sold by those companies which are renowned for their green initiatives.

2.3       Sustainable procurement of how the SDG 13 can be used as a framework for sustainable procurement strategy

Sustainable procurement is a process in which different organizations achieve their goals by providing maximum benefit to the society with the best value for money (VFM). The organizations who follow sustainable procurement not only focus on the profitability of the organization but also focus to provide maximum benefit to society and the economy of specific country. By keeping the benefit of society and economy in mind the sustainable procurement strategies are designed in such a way that the environment does not face any harm. Focusing on environment protection is usually the main priority of sustainable procurement. The procurement strategies are highly important for any organization or business and organization who implement sustainable procurement strategies experience positive impact in business.       

2.4       Necessity of Sustainable Procurement of how the SDG 13 can be used as a framework for sustainable procurement strategy

Sustainable procurement means turning risks into opportunities. Company facing many risks today face today are located in the procurement functions. One of the risks is Reputation (corporate image) risk which refers to both environmental and social issues. Another risk is strategy risk which mean not to manage its procurement strategy properly.

Over the years it has become necessary for the organization to focus on sustainable approaches. The organizations who does not focus on environment protection face severe consequences and in the end the organization face loss and sometimes the organization unable to continue their activities in the long run. The sustainable procurement strategies not only improve the efficiency of the organization but also improve the economy as well. When the society gets maximum benefit the reputation of the business increase which ultimately results as a success of the business. The following points discuss the necessity of the sustainable procurement:

a)      Issue of Global warming of how the SDG 13 can be used as a framework for sustainable procurement strategy

The global warming has increased over the past many decades. The issue has become a serious concern for many countries and many countries have made policies to control the global warming by controlling carbon emission and reducing carbon foot prints. The strategies such as sustainable procurement allow the organization to reduce their carbon foot print by protecting the environment and utilizing the resources effectively. The sustainable procurement focus on economy, society and environment. The society include the people who purchase the product of the corporation and when they are going to realize that organization do care about them than the sales will dramatically increase [5]

Figure 4: Sustainable Procurement & Supply Chain

a)      Public Awareness

As discussed earlier the customer over the years have become aware about the environment protection. The customers in recent years know the importance of the environment protection and social responsibility. Therefore, they purchase the products from such organization who do focus on environment protection and provide benefit to the society from various ways. The organizations or businesses today know that if they are not going to focus on benefit of the society than they unable to attract the attention of the customers. The revenues of the organization only increase when they customers are going to be satisfied.

2.5     Evaluation of SDG framework in sustainable procurement strategy

At present, companies actually face a lot of risk and a significant portion of such risks is related to nothing more but just the supply chain and are referred to the strategy along with the organizational mage or reputation. First of all, deficits and other issues linked with the supply chain can harm the image of a corporation badly. Both environmental and social issues are referred by it; BP is a renowned example in which inefficient handling damaged the reputation of an organization. Although every issue linked with the supply chain can damage the company, the biggest and densest is the reputational damage as it harms many sectors of the company. Other than decreases profits, new talents can also be discouraged from applying for a seat.

The second one concerns the strategic risk with the improper management of supply chain. In the strategy, if important upcoming resources’ scarcities for the operations of a company are not managed properly, economic viability is endangered with the lack of preparation of upcoming rate rises [6].

Sustainable procurement can be implemented for tackling such risks and drawbacks. Standards can be set by them and suppliers require follow such elements. In the supply chain, the integration of sustainability criteria is included in it. Meanwhile, the reduction of risks takes place. For sure, crisis and accidents can be solved quickly with a solid system of supplier environment which reduces operational threats and risks. With a well working environment and social dialogue, the chances of production disruption and strikes are lesser. The management of reputation risk is efficient with the respect of human rights. Meanwhile from many opportunities, companies can take the advantage: high customer satisfaction, new products, and innovation, more trust, collaboration and so on [7].

With the use of SDGs, strategy of sustainable procurement can be tuned. A framework addressing full scope of sustainable actors and topic is represented by SDGs. With the population and global acceptance of this framework, its strength can be determined; therefore with the use of this framework for communications regarding CSR refer to lowering the stakeholders’ threshold for backing and understanding a CSR strategy of a company with the involvement of a strategy concerning sustainable procurement [8].

Global Reporting Initiative has issued an SDG Compass for giving an overview regarding the connection of targets with businesses. Through value chain’s high-level mapping, organizations are able to spot themes which are likely to be impacted. Lastly, the simplification of product portfolio, technologies, and core competencies should be clear regarding negative and positive influences [9]. The participation of external stakeholders is involved in the mapping process due to which value along with view’s points is added to the process. In order to know to place and density of impacts, interacting with suppliers is highly important. For sure, supply chain is involved in such cases as the area which is impacted. For instance, potential risks will be avoided by any retailer which is connected with production like safety and occupational health are related to consumption of high resources and machine. In order to do such, suppliers can be asked by companies about risks in reviews of the business, website’s quick analysis, and resorting to risk databases [10].

For reflecting priorities and adopting relative indicators, time-bound aims which are measureable should be set by companies after the process of mapping. The relation among effects of stakeholders and activities of the company is expressed by such indicators. Moreover, the data related to it should be collected. Prioritization of the indicators takes place relying on likelihood, severity, and magnitude of potential and current negative effects. Actual actions are needed to be reflected by indicators related to supply chain: products with sustainable features, efficient re-audits’ share, corrective action plan’s share of suppliers, supplier audits’ share, and suppliers’ share at risk [11].

With these preconditions, an organization is able to induce sourcing practices and sustainability. For implementing requirements of the company, procurement management’s active leadership is very important when it comes to the supply chain. In setting the strategy of sustainable procurement, the creation of value’s shared understanding helps a lot. Considering such perception, communication to procurement department is quite necessary to the organization. Moving on, it connects with the supplier as well. Into the reviews of supplier performance, the sustainability goals’ integration is a best practice as well.

For the demonstration of credibility, constant reporting of progress is very important. The communication of results with buyers and suppliers is also necessary. For ensuring transparency, public communication of such results is significant. For sure, customers might also wish to know about the elements of upstream supply chain. Concerning this, the use of GRI or CDP reporting standards is recommended [12].

A lot of resources of earth are vulnerable as they are effects by human effects over several regions or countries. Due to it, countries produce deals and agreements through many efforts and attempts. Such agreements are signed and authenticated by government for preventing the damages or either managing the human activity’s impacts on the natural resources. In it, agreements are included which affect the elements such as air pollution, rivers, oceans, and climate. Sometimes such global agreements regarding the environment are binding legally and have authentic implications when steps are not followed. Sometimes, they are principles regarding conduct’s codes as well. A long history is ranging from such agreements with various global agreements existing in almost 1910 in Africa, America, and Europe. Kyoto Protocol is included in some of the renowned global agreements.

In the light of the above discussion and based on SDGs framework sustainable procurement practice can be best described with the help of the following Diagram-

Figure 5: Sustainable procurement practices.

3.0     Benefits of sustainable procurement

3.1       Environment protection of how the SDG 13 can be used as a framework for sustainable procurement strategy

For a decrement in greenhouse gas emissions, a major opportunity is offered by raising the share compromised of renewable energy in the mix. It can help the employment as well. If this mix is concerned and renewable share of 20% is moved, CO2 would be decreased by 450 million of tons by 2020. 17-25 billion Euros of value every year passing over 2020 can also be moved [13].

When it comes to storing carbon, forests are the most important means of storage and stores almost 34 billion tons. It is equivalent to almost CO2’s 125 billion tons. Degradation along with deforestation threatens the emissions together with losing many services regarding forest ecosystems like forest products, flood control, water supply and purification.

The target of committing to rising areas which are terrestrially protected to 17 percent while marine and territory protected areas to almost ten percent will be significant in increasing and maintaining services regarding the ecosystem which are actually the base of societies and economies. It also helps in adapting to the change in climate through the improvement of resilience of ecosystems.

To almost half of the neighborhood countries of Europe, agriculture actually provides 20 percent to 50 percent. It also suffers from degradation of land in many countries. Considering better agricultural practices and land management, the land quality which is improve might be able to offer an advantage of 13-25 billion Euros every year up to 2020 if yield losses’ half from degradation of land is reserved.

For transitioning to an economy which is green, the study’s results suggest some significant opportunities. It would develop high economic progress, more jobs, better health, and more social-being. Meanwhile, environmental risks are reduced such as climate change, eco-services, a higher water scarcity, and inappropriate management of waste [12].

3.2       Customer Awareness of how the SDG 13 can be used as a framework for sustainable procurement strategy

With the requirements of customers rising every single day, business are capable of providing better features and advanced technologies to consumers. While indulging in the passion of providing such better services, more and more companies are losing the ethics. Due to it, customers are unable to predict which one meets their expectations the best. In the process of offering the best products, companies are offering new products and replacing the older ones. It means the existence of waste which non-degradable. In such a case, customers are inclined towards service convenience rather than the impact on environment. Therefore, organizations are focusing more on the satisfaction of consumers. It means that companies are not manufacturing environment sustainable products. From both the sides, the amount of non-degradable waste is actually rising every passing second. The consequences are actually being produced for the young generations. It has impacted many individuals along with those who work for the betterment of society are taking producing more awareness in public regarding the non-degradable waste along with the hazards [9].

3.3       Increase in efficiency of Procurement activities of how the SDG 13 can be used as a framework for sustainable procurement strategy

By meeting these preconditions, an organization is actually capable of integrating sustainability into the practices of sourcing. When the supply chain is concerned, procurement management’s active leadership is actually the main player to the requirements of that specific company. An understanding of value creation helps a lot in anchoring the strategy of sustainable procurement. In such a case, communication of such requirements to the department of procurement is necessary. This is then connected with the suppliers.  A strong way involves the involvement of performance reviews with the sustainability goals [10].

Lastly, constant reports of progress are also important for the demonstration of credibility. Outcomes need to be connected with buyers and suppliers. It is again being told that ensuring the transparency requires making the results public. There are some times when customers wish to know the functions which are going on in the company. That is why it is quite important to communicate all the results with the public. Some other standards regarding the global recognition are suggested to be used when it comes to achieving compatibility among different companies and firms.

3.4       Increase in Standard of Living of how the SDG13 can be used as a framework for sustainable procurement strategy

When it comes to damages, they are evaluated in terms of economics. It has been done by economists of the environment and it has become quite obvious that in two ways, productivity can be raised by the companies. It can be done by output relative to the input or by decreasing the poor outcomes to good results. It can be determined easily by the study that standard of the living is raised by it.     

By 2002, the costs of pollution damage around 0.7-2.8% GDP were evaluated by Yale economists. Considering this two percent GDP benchmark, the GDP’s growth rates and the decline’s rates in air emissions ever since the year of 1970m it can be understood that quality of improved air’s contribution to productivity growth’s total factor, accurately evaluated it has been about the percent of 0.1 every single year. It historical trend is measured it is almost about 10 percent.

3.5       Social Welfare of how the SDG 13 can be used as a framework for sustainable procurement strategy

In the organization, it has been classified in the founding and important documents that wellbeing of people, economic welfare, quality of life, and increasing the standards of life compromise the regional cooperation’s aim. It needs including others as well, adoption of environment preservation and social protection policies. If the objective of above strategy is realized, it is actually the core objective of ECO and it needs a specific supportive and multi-faced policy for increasing the social welfare. Increasing the social welfare needs some specific objectives and that is what focusing on the sustainable procurement strategy ensures. With it, many sectors are improved and due to it, the overall betterment of social welfare takes place.

Such a policy regarding the social welfare and the environment shall be developed using regional policies and effective national along with the involvement of Countries which are Members in the decision making processes of ECO. The ECO relationship also needs to be strong and it can help a lot in improving the social welfare [14].

4.0     Summary of how the SDG 13 can be used as a framework for sustainable procurement strategy

If all the above discussion is summarized than it is evident that the Sustainable development goals work as a framework to perform various activities in such a way through which the society gets maximum benefit without harming the environment. The framework of SDGs include five categories which are Environment, Resources, Economy, Governance and Education. All these goals means are connected with each other to full fill the social objectives. Social objective are relayed to reduce poverty, improve quality of health related services and enhancing the level of education. The SDG framework’s overall aim is to provide benefit to the people of the society and enhance their standard of living. Based on the SDGs framework know as three pillars of sustainability (economic, environmental and social) Charted institute of procurement and supply (CIPS) introduce a comprehensive scoring schema for selecting supplier which is a significant tool for sustainable procurement.

 Figure 6: Sustainable procurement practices.

Over the years it has become necessary for the organization to focus on sustainable approaches. The organizations who does not focus on environment protection face severe consequences and in the end the organization face loss and sometimes the organization unable to continue their activities in the long run. The sustainable procurement strategies not only improve the efficiency of the organization but also improve the economy as well. When the society gets maximum benefit the reputation of the business increase which ultimately results as a success of the business. The following points discuss the necessity of the sustainable procurement.

Sustainable procurement can be implemented for tackling such risks and drawbacks. Standards can be set by them and suppliers require follow such elements. In the supply chain, the integration of sustainability criteria is included in it. Meanwhile, the reduction of risks takes place. For sure, crisis and accidents can be solved quickly with a solid system of supplier environment which reduces operational threats and risks. With a well working environment and social dialogue, the chances of production disruption and strikes are lesser. The management of reputation risk is efficient with the respect of human rights. Meanwhile from many opportunities, companies can take the advantage: high customer satisfaction, new products, innovation, more trust, collaboration and so on

With the requirements of customers rising every single day, business are capable of providing better features and advanced technologies to consumers. While indulging in the passion of providing such better services, more and more companies are losing the ethics. Due to it, customers are unable to predict which one meets their expectations the best. In the process of offering the best products, companies are offering new products and replacing the older ones. It means the existence of waste which non-degradable. In such a case, customers are inclined towards service convenience rather than the impact on environment. Therefore, organizations are focusing more on the satisfaction of consumers. It means that companies are not manufacturing environment sustainable products. From both the sides, the amount of non-degradable waste is actually rising every passing second. The consequences are actually being produced for the young generations.

5.0     Conclusion on how the SDG13 can be used as a framework for sustainable procurement strategy

It is concluded that the framework of SDGs includes five categories which are Environment, Resources, Economy, Governance and Education. All these goals are connected with each other to fulfill the social objectives. Social objective is relayed to reduce poverty, improve quality of health-related services and enhancing the level of education. Overall aim the SDG framework is to provide benefit to the people of the society and enhance their standard of living. When the procurement function become sustainable than it will definitely protect the environment & climate. The SDG 13 framework help the businesses to perform sustainable procurement efficiently

Figure 7: Sustainable procurement can achieve sustainable development goal

 6.0     References of how the SDG13 can be used as a framework for sustainable procurement strategy