Responsible Procurement: Leading the Way to a Sustainable Tomorrow (Management for Professionals)

Foreword
Preface
	Procurement: The Front line of Corporate Sustainability
	A Sustainable Business Starts from the Top
	Who This Book Is for
	You Are Not Alone
	Bibliography
Acknowledgements
About the Book
	How to Read This Book
	Overview of Terminology
		There Is Only One Future
		The Triple Bottom Line
		Corporate Governance Versus Corporate Social Responsibility
		The Greenhouse Gas Protocol
		The 17 Sustainable Development Goals
		Our Understanding of Sustainability
Contents
About the Authors
Abbreviations
Part I: Setting the Scene
	1: The Challenge of Our Lifetime
		1.1 The Environmental Challenges: Less Hot Air, Fewer Emissions, More Action
			Controversial Wordplay: Out Versus Down
			A Big Step Forward on Fossil Fuels
			The Climate Challenge Is Very Real, and It Is Here
			A Sustainable and Green Recovery Is Called for
		1.2 The Social Challenges: Advancing Sustainable Development Through Human Rights
			Holding Companies to Account
			Doing the Right Thing Is Not as Easy as It Seems
			Workers´ Rights: Getting Better but Far from Good
		1.3 Governmental Versus Corporate Responsibility: Do the Right Thing
			Legal Versus Moral Imperatives
			Increased Legislation Is on the Horizon
			Climate Change Grabs the Headlines, but Human Rights Are Not Forgotten
			More Stringent Reporting
			Carbon Emissions Outside Europe Are Part of the Clean Up
			Corporate Sustainability Responsibility: Going Above and Beyond Compliance
			Collaboration, Not Competition, Is the Way Forward
			Sustainable Business Practices Are Finally Gathering Momentum
			Consumers Want to Save the World
			Investors Demand Sustainable Returns
			It Is Time to Act Now!
		References
	2: Make a Difference
		2.1 Common Excuses
		2.2 Time to Shine for Procurement
			A New Dawn for Procurement
			Now Is the Time to Act
			Consumers: Letting Their Fingers Do the Talking
			Regulations: Do It Our Way or Not at All
			Sustainability-Based Litigation Is on the Rise
			Investors Beware
			Capital Markets Reflect Corporate Sustainability Trends
			The Five World Federation of Exchanges (WFE) Sustainability Principles
			Employee Expectations: Do the Right Thing
			Sustainable Business Cannot Be Ignored
			A Resilient Future Rests on the Shoulders of Procurement
			New Purpose for Procurement
		2.3 Sustainability Framework for Procurement
			Sustainability on Top of the Management Agenda
			The Why, What, and How of a Sustainability Transformation
			Start with Why to Define the Purpose
			Answer the What to Define Ambition Levels and Strategy
			End with How to Make Sustainability Tangible
			The Operating Model
			Categories
			People and Transformation
		References
Part II: From Ambition to Impact
	3: Develop Purpose, Ambition Level, and Strategy
		3.1 Defining a Meaningful Purpose
			Having a Purpose Is Key to Success
			Sustainability: An Integral Part of Company Purpose
			Purpose-Driven Companies Outperform Their Peers
			How to Define Company Purpose
			Purpose and Sustainability Are the Keys to Success
		3.2 Set Ambition Level
			Two Approaches to Becoming More a More Sustainable Business
		3.3 Assess Current Situation
			The Journey to Sustainable Procurement Starts with Understanding the Current Situation
			Organizational Readiness for Sustainability
				Strategy and targets
			Materiality Assessment: The Key Topics of Sustainability for Your Company
				The Benefits of a Materiality Assessment
			Assessing Category Risks
			How Sustainable Are Your Suppliers?
		3.4 Develop Targets, Strategy, and Roadmap
			Strategy and Objectives
			Define the Scope of Sustainability
			Set Long-Term Targets and Work on the Strategy
			Develop Actions and Measures to Deliver on the Targets
			Align Measures with SDGs
			Set KPIs to Measure Progress and Success
			Derive a Roadmap
			Seek Support for Implementation
		References
	4: Anchor Sustainability into the Operating Model
		4.1 Design Organization and Governance
			Organization and Compliance
			Sustainability Roles within Procurement
			Category Managers: The Front Line of Sustainability
			What Are Typical Tasks of the Overall Sustainability Team?
			What Are the Tasks of the Sustainability Champions Who Work in Procurement?
			Mandate and Governance Bodies
		4.2 Amend Processes and Decision-Making
			Procurement Processes
			Plan-to-Strategy or Category Management
			Source-to-Contract or Sourcing, Negotiation, and Awarding Process
			Supplier Management
			Innovative Pilot Project Drives Transparency along the Supply Chain
			Together for Sustainability: Creating Standards in Chemical Suppliers
			Sustainability Risk Management
			The Supply Chain Act: Another Valuable Export from Germany?
			Selecting Suppliers Based on Risk
			Getting the Right Balance
			Setting Standards
		4.3 Leverage Tools and Technologies
			Sustainability Tools and Platforms
				Key Findings: Sustainability Tools as an Enabler of Sustainability-A Market Analysis
			So Many Options Make Choosing Difficult
			Practical Implications: Tips on Choosing the Right Tool for the Job
			Setting Standards
			A Giant Leap in the Right Direction
			Practical Example of a Tool Landscape
			It´s Time to Make the Smart Choice
		4.4 Enhance Networks and Collaboration
			Standards and Guidelines: Pointing Businesses in the Right Direction
			Alliances Highlighting Overarching Trends
			Networking Platforms
			Suppliers: A Valuable Sustainability Resource within Easy Reach
			Sustainability Ambassadors Right under your Nose
			Activist Organizations: The Checks and Balances of Wrong-Doing
			The Icing on the Cake: Bringing Private Businesses and Non-profit Organizations Together to Boost Environmental and Societal C...
				Partnering with NGOs: The Four Keys to Success
		References
	5: Set Category Work and Suppliers in Motion
		5.1 Design Sustainable Levers
			The Road to a Circular Tomorrow
			Circular Economy: Big Brands Setting an Example for Others to Follow
			Key Levers for a Circular Economy
			Green Lever Workshops
			Start Thinking in Circles
		5.2 Foster Cross-Functional Collaboration: Sustainability Is a Shared Responsibility
			Secure Top-Level Commitment
			Engage Stakeholders and Form Working Groups
			Cross-Functional Collaboration Is Key
			Employee Motivation in Procurement Teams and beyond
		5.3 Unleash the Power of Suppliers and Partners
			Awareness and Transparency
			Being an Ambassador for Suppliers
			Securing Action and Implementation
			Pushing Relentlessly
			Celebrating and Repeating
		References
	6: Create a Movement and Drive Transformation
		6.1 The Future of Leadership: Context, Challenges, and Necessary Skills
			The Challenge of Transformation
			Aspects that Call for Leadership Change
			The Economic Value of Leadership and What Drives us
			Personal Value System as a Compass for Leadership Behavior
			What Skills Do Leaders Need to Successfully Drive Change in a Volatile World?
			7 Steps to Meet your Goals
				Communication and Transformation Checklist
		6.2 Engage and Empower Leaders
			How to Become an Inspiring Leader and a Role Model
			Even the Best Leaders cannot Do it Alone
		6.3 Excursion: Inner Development Goals Offer a New Approach to Old Problems
			Are we Able to Defeat the Biggest Challenges Facing us Today?
			Collaboration Can Build a Better World
			We Need an Updated Human Operating System
			An Urgent Shift of Perspective from the Private Sector
			Structural Changes Are Long Overdue
			Relate to each Other, and the World
		6.4 Leadership and Learning to Make a Difference
		References
	7: Outlook 2030 and Conclusion
	8: Sustainability in Action: Interviews with Experts
		8.1 Peter Carlsson, Co-Founder and Chief Executive Officer, Northvolt
			About Northvolt
			About Peter Carlsson
			Sustainability in Action
		8.2 Nils Eichberger, Vice President of Procurement, LBBW (Landesbank Baden-Württemberg)
			About LBBW
			About Nils Eichberger
			Sustainability in Action
		8.3 Sakuto Goda, Principal, Nomura Research Institute
			About NRI
			About Sakuto Goda
			Sustainability in action
		8.4 Nina Göntgen-Voss, Director of Sustainability, Forto
			About Forto
			About Nina Göntgen-Voss
			Sustainability in action
		8.5 Fredrik Gustafsson, Senior Manager of Sustainability Transformation, Cordial AB
			About Cordial AB
			About Fredrik Gustafsson
			Sustainability in action
		8.6 Thomas Janvier, Vice President of Procurement, INNIO
			About INNIO
			About Thomas Janvier
			Sustainability in Action
		8.7 Simon Juul Toft, Lead Specialist: Green Procurement, Ørsted
			About Ørsted
			About Simon Juul Toft
			Sustainability in action
		8.8 Henrik Larsen, Chief Procurement Officer, A. P. Møller-Mærsk
			About A. P. Møller-Mærsk
			About Henrik Larsen
			Sustainability in action
		8.9 Chaojun Li, Global Head of Sustainability, WS Audiology
			About WS Audiology
			About Chaojun Li
			Sustainability in Action
		8.10 Dr. María Mendiluce, Chief Executive Officer, We Mean Business Coalition
			About the We Mean Business Coalition
			About Dr. María Mendiluce
			Sustainability in Action
		8.11 Markus Strangmüller, Corporate Development and Sustainability Manager, Siemens
			About Siemens
			About Markus Strangmueller
			Sustainability in Action
		8.12 Thomas Udesen, Chief Procurement Officer, Bayer, and Co-founder of SPP (Sustainable Procurement Pledge)
			About Bayer and The Sustainable Procurement Pledge
			About Thomas Udesen
			Sustainability in Action
Appendix