By Christoph Pelizaeus and Dr. Max Jungmann

Procurement is one of the key levers for transforming healthcare institutions towards more sustainable business practices. As healthcare organizations strive to balance cost efficiency with environmental and social responsibility, integrating sustainability into procurement practices has become imperative. Here are five key strategies to guide your organization towards sustainable procurement:

1. Develop a Holistic Sustainability Program: Establishing a comprehensive sustainability program lays the groundwork for embedding sustainability into procurement processes. This program should encompass a range of initiatives, including conducting a materiality analysis, setting clear sustainability objectives, defining measurable targets, and implementing action plans to achieve desired outcomes. By taking a holistic approach to sustainability, organizations can address environmental, social, and economic considerations throughout the procurement lifecycle. While businesses are increasingly confronted with sustainability regulation, such as the EU Corporate Sustainability Due Diligence Directive (CSDDD) or the EU Corporate Sustainability Reporting Directive (CSRD), a holistic sustainability program not only helps to comply with governmental requirements, but also to unleash the sustainability potential of an organization.
   

2. Appoint Dedicated Sustainability Leads with a Clear Mandate: Designating sustainability champions within the procurement team is essential for driving sustainability initiatives forward. These individuals serve as advocates for sustainability, spearheading efforts to integrate sustainable practices into procurement activities. By appointing dedicated sustainability leads, organizations can ensure that sustainability remains a priority and receives the attention it deserves within the procurement function. For them to effectively integrate sustainability into procurement practices, however, they need a clear mandate and budget, which is where the respective policies come into play.
   

3. Formulate a Robust Sustainable Procurement Policy: Crafting a robust sustainable procurement policy provides a clear framework for guiding procurement decisions and actions. This policy should articulate the organization's commitment to sustainability, outline specific sustainability criteria for supplier selection and evaluation, and establish procedures for monitoring and reporting sustainability performance. By formalizing sustainability principles in a policy document, organizations can provide clarity and direction to procurement stakeholders. This is particularly important for specific decisions for or against certain suppliers and products, which again sets incentives for manufacturers to develop more sustainable alternatives.
   

4. Integrate Supplier Code of Conducts into Contracts: Embedding sustainability expectations into supplier relationships is crucial for promoting responsible sourcing practices. Integrating Supplier Code of Conducts into procurement contracts communicates the organization's sustainability requirements and holds suppliers accountable for ethical, environmental, and social performance. By incorporating sustainability criteria into contractual agreements, organizations can foster a culture of sustainability throughout the supply chain.
   

5. Enhance Transparency in the Supply Chain: Promoting transparency and traceability in the supply chain is essential for identifying and addressing sustainability risks and opportunities. This helps organizations to comply with recent regulation, such as the CSDD, and strengthen their own sustainability programs. Implementing systems and processes to track and monitor supply chain activities allows organizations to gain visibility into supplier practices, identify areas for improvement, and drive continuous sustainability improvements. By enhancing transparency, organizations can build trust with stakeholders and demonstrate their commitment to responsible procurement practices.

In conclusion, sustainable procurement is a multifaceted endeavor that requires a strategic and concerted effort. By developing a holistic sustainability program, appointing dedicated sustainability leads, formulating a robust sustainable procurement policy, integrating Supplier Code of Conducts into contracts, and enhancing transparency in the supply chain, healthcare organizations can pave the way for a more sustainable future.