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Green procurement 'drives value'


18/07/2007 14:23 
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Environmentally aware procurement practices can work to effectively drive value while simultaneously improving purchasing practices and effecting tangible cost savings, despite being a relatively new development.

Research carried out by BrainNet has found that while companies are aware of environmental factors, few are letting this awareness affect their purchasing and procurement practices.

Experts speculate that green procurement could have a strong positive impact upon a business's carbon footprint due to the fact that between 50 and 70 per cent of overall costs are believed to originate from the process of purchasing and purchasing orders.

"More than half of all processes between companies and their commercial, ecological and economic environment are purchasing-related," Sven T Marlinghaus of BrainNet told Supply and Demand Chain Executive.

"Greater focus must therefore be placed on the environment when it comes to purchasing."

The Mayor of London launched a green procurement code in 2001, seeking to set out best practice for environmentally aware procurement among London businesses.

 
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