Drive ESG and Non-Financial Performance with Data Enrichment, Insights, and Reporting
Procurement leadership and their teams are key to achieving strategic business commitments, benchmarking, reducing risk, and ensuring compliance.
Procurement’s Opportunity: Elevate Total Value Contribution
There is a growing need for procurement to play a more active role in helping the business achieve goals for Environmental, Social, and Governance (ESG) progress and non-financial performance, including:
- C02/Greenhouse Gas/Scope 3 Emissions
- Water Consumption
- Supplier Diversity
- Spend Compliance
- Supplier Risk Management
- Ethical Sourcing
Positive business results await those who advance. For example, Gartner’s 2022 Sustainability Opportunities, Risks and Technologies Survey revealed that 83% say their sustainability programs directly created both short- and long-term value.
The challenge is determining the roadmap and solutions to get an accurate performance baseline, identify and act on opportunities, and measure contributions.
Apply Spend Intelligence and Performance Management to Support ESG and Strategic Goals
SpendHQ’s solutions help companies rapidly turn spend insights into new procurement initiatives focused on your desired strategic goals, whether cost savings, ESG, or other KPIs. Using our Spend Intelligence and Procurement Performance Management, procurement teams continuously optimize their planning-to-execution cycle by identifying opportunities and then monitoring financial and non-financial strategic outcomes.
Spend Intelligence to Speed Your Assessment, Opportunities, and Targets
Start by Getting Your Data in Great Shape
You utilize SpendHQ’s proven AI-enabled process to centralize, consolidate. and classify at least 97% (typically 99%) of your enterprise spend into the right taxonomy based on best practices embedded in our solution.
Know Your Supplier Diversity Baseline
Your consolidated supplier data in SpendHQ is automatically enriched to identify suppliers in any 13 standard diversity categories. Then, you can access, monitor, and easily report on total spend with diverse suppliers – in aggregate, at the category or subcategory level, by region. or through other filters.
Estimate Greenhouse Gas Emissions
You can get a more accurate view of estimated Scope 3 emissions output across your supplier value chain, helping you more easily identify spend areas that present clear opportunities to target reductions.
A Performance Management Hub to Prioritize ESG Initiatives, Track Goals, and Measure Results
Gain Centralized Project Visibility
Easily identify and proactively track the progress and outcomes of all procurement projects with diversity, environmental, or other non-financial performance goals to provide transparency to the business.
Configure Value Reporting Using a Custom Unit of Measurement
Define other calculations of value beyond savings goals, by determining how you want to measure for attributes such as CO2 emissions, water consumption, and waste output. This helps everyone get aligned on performance KPIs and improves reporting.
Enrich Data for Supplier Risk Management
Improve supplier risk assessments for procurement projects utilizing insights from sources including Dun & Bradstreet, Credit Safe, Ecovadis, E-Attestations, and more thanks to pre-built application connectors.
The Need to Support ESG and Non-Financial Goals Will Continue to Increase
A number of dynamics are converging and requiring more involvement from Procurement. New public policy regulations, investor trends and accountability requirements, consumer demand, and even organizational pressures all play a role.
“With more than half of the average enterprise’s ESG footprint resting with suppliers, the CPO is on the front lines in the fight to create a more sustainable value chain.”
-Ardent Partners, Procurement 2023 Big Trends and Predictions
Key Benefits Gained with Spend Insights and Performance Oversight:
Business: Comply with regulations and applicable laws. Communicate with clarity to investors and the public. Minimize business risks. Control costs. Improve supply chain resiliency.
Ecological: Reduce pollution, carbon emissions, water consumptions, energy consumption, and more.
Social: Eliminate unfair and unjust labor practices. Improve safety across the supply chain. Reduce exposure to geopolitical conflicts.
Internal Stakeholders: Improve collaborative decision making to drive alignment. Develop and communicate a procurement roadmap to meet strategic goals.