1. How does supplier diversity strengthen sustainability in procurement?
By sourcing from a wider network of vendors—including small, minority-owned, and local businesses—companies can reduce supply chain risk, improve local economic impact, and foster innovation in sustainable sourcing. This approach supports ESG commitments while improving supply chain agility.
2. What are Scope 3 emissions, and why do they matter?
Scope 3 emissions are indirect emissions from a company’s value chain, including transportation, supplier operations, and waste. They often account for around 90% of a company’s total greenhouse gas emissions, making them a critical target for sustainability strategies.
3. What regulations are shaping sustainability compliance?
The EU Corporate Sustainability Reporting Directive (CSRD) and the U.S. SEC’s 2024 climate disclosure rule both require companies to report greenhouse gas emissions following the GHG Protocol. These regulations hold companies accountable not just for their own operations but for the actions of their suppliers and subcontractors.
4. How can procurement leaders improve reverse logistics for sustainability?
By embedding reverse logistics requirements into RFPs and contracts, focusing on repair and reuse over disposal, and investing in automation, procurement teams can reduce waste and transportation emissions. This supports a circular economy and can improve profitability.
5. Why are real-time supplier risk models replacing annual reviews?
Annual reviews miss fast-developing ESG risks. Continuous monitoring with enriched supplier data allows companies to detect sustainability breaches early, avoid regulatory penalties, and address problems before they escalate—an approach credited by companies like Apple in reducing emissions.For more insights from Matthew Buckingham, Senior Vice President of Business Development at Focal Point, and other industry experts, please read the full article on Supply & Demand Chain Executive: Supplier Diversity as Strategic Sustainability: Rethinking Resilience in the Supply Chain.
