2Sustain

Two things jumped out at me while I was reviewing the results of A.T. Kearney’s recently released 2008 Assessment of Excellence in Procurement (AEP) study.

First, the study found that procurement leaders are placing a high priority on risk management. Whether they’re using internal risk mitigation strategies or mega-trend analysis, AEP leaders seem to agree that supply risk and performance management are becoming increasingly critical in today’s complex global supply chains.

Second, this latest A. T. Kearney analysis also shows that sustainability has emerged as a hallmark of procurement excellence. A whopping 89% of AEP leaders have procurement sustainability plans in place; many have comprehensive sustainability programs that are integrated into their overall corporate strategy.

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Earlier this week, A. T. Kearney, Inc. released a study titled “Green Winners: The Performance of Sustainability-Focused Companies in the Financial Crisis.” If you’re still of the mindset that there is a fundamental conflict between sustainability and the bottom line, I encourage you to read this analysis. It shows that even in this tough economic climate, companies with a commitment to sustainability tend to outperform their peers.

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Degraded ecosystems. Climate change. Population growth. Increased consumption levels. These mounting pressures on natural resources are bound to drive higher costs along corporate supply chains in the future. However, have you ever wondered about the financial relevance of those higher costs? And, five or ten years from now, whom do you think will be bearing those costs –society or corporations?

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