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CSR in procurement

Integrate CSR principles into sustainable procurement practices

Integrate CSR principles

The role of CSR in procurement

  • What is CSR ?

     

    Corporate Social Responsibility (CSR) refers to a company’s commitment to operating in an ethical, sustainable, and socially responsible manner. This means going beyond profitability to address environmental, social, and ethical concerns in business operations. CSR focuses on the long-term impact of a company’s activities on society, from reducing environmental footprints to supporting fair labour practices.

     

    Implementing an embedded CSR strategy at corporate level demonstrates an organization’s maturity and readiness to navigate modern business complexities. With future regulatory requirements making early adoption of CSR vital, being proactive ensures a smoother and more cost-effective transition to meeting ESG standards.

  • What is the difference between CSR and ESG?

    While CSR and ESG (Environmental, Social, and Governance) are closely related, they differ in scope and approach:

    • CSR is more of a broad philosophy or framework guiding a company’s ethical behaviour.
    • ESG, on the other hand, is a set of measurable criteria used by investors to assess a company’s environmental sustainability, social responsibility, and governance practices.

     

    The growing importance of ESG is driven by emerging regulatory trends, notably the Corporate Sustainability Reporting Directive (CSRD), which is transforming ESG from a « nice to have » to a critical business requirement.​​​ The CSRD, set to take effect in 2024, will initially apply to larger companies and gradually extend to all businesses in Belgium. This directive mandates that organizations report on their environmental, social, and governance practices, ensuring transparency and accountability.

     

    CSR plays a vital role in achieving ESG goals because it provides the strategic framework that guides the company’s efforts in sustainability, ethical labor practices, and governance. Without a robust CSR strategy, it would be challenging for companies to meet the specific ESG criteria investors and regulators expect.

     

    Therefore, CSR acts as the foundation, while ESG represents the measurable outcome, ensuring that companies not only commit to responsible practices but also deliver transparent, quantifiable results.

  • Why should companies focus on procurement for their CSR goals?

    Procurement is one of the most impactful areas a company can target when striving to meet its CSR goals. Since procurement involves managing relationships with suppliers and sourcing materials, it directly affects the environmental and social footprint of the business. By prioritizing sustainable procurement practices, companies can ensure that their entire supply chain aligns with their CSR objectives, from reducing carbon emissions to upholding fair labour standards.

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    Focusing on procurement allows businesses to address key areas such as resource consumption, supplier ethics, and waste management, which are often the largest contributors to a company’s overall sustainability impact. By embedding CSR criteria into procurement decisions, companies can influence not only their own operations but also encourage their suppliers to adopt responsible practices, creating a ripple effect that extends across the entire supply chain. This makes procurement a strategic starting point for embedding CSR into the heart of a business.

  • How can Altesia help you embed CSR in procurement?

     

    Altesia, with its training and certification in sustainable procurement, integrates CSR principles into procurement practices, thereby extending accountability across the entire supply chain.

     

    We guide businesses to ensure they lead in sustainable practices. Our approach to CSR not only prepares companies for ESG reporting but also positions them as leaders in sustainability. With future regulatory requirements making early adoption of CSR vital, being proactive ensures a smoother and more cost-effective transition to meeting ESG standards.

Benefits of integrating CSR principles into procurement

  • Boosting brand power A strong reputation for sustainability helps attract and retain talent, investors, and customers. Consumers prefer green brands, shareholders value ESG and CSR factors, and employees seek companies that prioritize people and the environment.
  • Staying ahead of regulations While not all companies are currently required to report on CSR, the trend is moving towards more stringent legal requirements. Large public entities in the EU, for example, already face specific ESG reporting obligations, and this is expected to expand.
  • Cutting costs Integrating CSR into Procurement can substantially optimize costs. By using technical levers to reduce carbon footprint, monitoring suppliers’ energy and water usage, and, and improving production processes efficiency, companies can lower their environmental impact and operational costs.
  • Build a future-proof planet and business There simply is no place for companies nor clients on a dead planet! By making our environment sustainable, and reflecting on your social impact, you will also ensure the sustainability of your business.

How we help you

Altesia leans on a team of consultants, trained and certified in sustainable procurement, becoming catalysts for change rather than mere technical advisors.

 

We help our clients integrating CSR dimensions into their procurement process to achieve quantifiable and manageable results through the following steps:

  • 01

    Define the state of play

    We start with a thorough assessment of your current procurement practices, identifying areas where CSR principles can be integrated.

  • 02

    Determine actions

    We outline specific actions to enhance sustainability, focusing on sourcing criteria that include selection and exclusion based on commodity-specific requirements.

  • 03

    Evaluate results

    We continuously evaluate the outcomes, ensuring that the implemented changes lead to measurable improvements.

  • 04

    Train your staff

    We help you elevating you procurement team’s CSR capabilities to support your company’s goals.

Key deliverables of our CSR Procurement support

Implementing CSR strategies with Altesia ensures that your Procurement department effectively contributes to generic CSR goals of your company. Potential outcomes of a collaboration include:

 

  • Decarbonizing supply chains:
    Our procurement consultants assist clients in reducing carbon footprints across their supply chains, aligning with global sustainability goals.

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  • Supplier scorecards:
    We help clients identify and calculate carbon impact and other ESG criteria within supplier scorecards. This results in a comprehensive CSR assessment of suppliers during portfolio evaluations.

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  • Certification support:
    We guide clients through the process of obtaining certifications with our third-party partner, Ecovadis, enhancing their commitment to sustainable practices.

Let’s discuss your CSR procurement goals

What we don’t do

❌ No greenwashing:

We do not engage in or support greenwashing practices, such as purchasing green certificates from distant sources merely for image purposes. We are committed to ensuring that our efforts in sustainable procurement lead to real, measurable improvements, rather than just boosting our clients’ image.

 

❌ No compensation strategies:
Our goal is to improve processes, not to offset shortcomings. We focus on making meaningful changes rather than relying on compensation strategies.

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