How Triple Bottom Line Helps Make Procurement Sustainable
For procurement leaders, determining where to prioritise efforts in sustainability strategies can present a challenge.
As organisations strive to meet both financial and environmental goals, a structured framework becomes paramount.
The triple bottom line has been embraced by some of the largest companies to establish essential guidelines for sustainability, simultaneously enhancing profitability.
The essence of the triple bottom line
Originated by John Elkington in the 1990s, the Triple Bottom Line proposes that businesses should evaluate their performance based on three key dimensions: People, Profit and Planet.
This framework offers procurement teams a roadmap to foster sustainable practices without compromising financial growth.
The inclusion of fair hiring, environmental conservation and carbon footprint reduction are key components that procurement executives should embed into their strategic planning.
According to the European Investment Bank, aligning procurement processes with these values not only supports compliance with emerging regulations but also enhances community relations and brand reputation.
The World Economic Forum emphasises the importance of embedding ethical responsibilities within business models, leading procurement departments to develop strategies that align with both corporate social responsibility and market demands.
Procurement's role in implementing the triple bottom line
The triple bottom line serves as a critical guide for procurement specialists aiming to enhance sustainability initiatives.
As per the Corporate Governance Institute, integrating these values into procurement metrics fosters comprehensive strategies that appeal to both consumers and investors.
By supporting the shift towards sustainability and social inclusion, procurement leaders can directly influence a company's competitiveness and market positioning.
Furthermore, procurement initiatives that successfully leverage the triple bottom line can transparently communicate corporate health, responsibility and stakeholder engagement, which are increasingly vital attributes for sustainability-focused consumers.
Gelsomina Vigliotti, Vice President of the European Investment Bank, says: “Throughout the decades, the EIB Group expanded its business beyond the European Union, funded a subsidiary dedicated to financing small and medium enterprises, the European Investment Fund and decided to dedicate 50% of its activity to the fight against climate change... More missions. More purpose.”
Leading companies adopting triple bottom line approaches
Prominent corporations such as Apple, Unilever and Amazon incorporate the triple bottom line into their procurement strategies to achieve sustainability and profitability.
Apple
The tech giant is championing innovative technologies alongside reducing its carbon footprint, a testament to its commitment to renewable energy and sustainable packaging.
Through its procurement processes, Apple encourages suppliers to adhere to sustainability standards, thus contributing to global reforestation efforts and community development.
Lisa Jackson, Apple’s Vice President of Environment, Policy and Social Initiatives says: “The Restore Fund is an innovative investment approach that generates real, measurable benefits for the planet, while aiming to generate a financial return.”
Unilever
This global company integrates longer-term sustainability into its procurement strategy by focusing on key areas such as climate, nature, plastics and livelihoods.
By supporting sustainable farming and improving supplier wage conditions, Unilever enhances its value chain resilience.
Rebecca Marmot, Unilever’s Chief Sustainability Officer, notes: “We've made strong strategic choices about where to focus and have made encouraging early progress against our goals.”
Amazon
Aiming for net-zero by 2040, Amazon leverages procurement to reduce food waste and enhance sourcing practices.
The company’s Climate Pledge brings together suppliers and industry leaders to foster collaborative climate action, aligning procurement efforts with renewable energy targets and improvement in supplier conditions.
Kara Hurst, Amazon’s Chief Sustainability Officer, asserts: “Amazon isn’t just the top corporate purchaser of solar and wind, we’re also prioritising projects in the locations where they can have the biggest impact on curbing emissions and improving the local environment.”
