Private and public sector organizations with sustainability goals are being held to a higher standard of proof, and procurement is no exception. Therefore, lowering the risk for false claims, greenwash and bluewash is essential.
Purchasers have long been asked to rely on self declarations, but new standards for transparency and accountability are forcing them to go deeper. New procurement guidelines, internal targets from management, and expectations from stakeholders all add up to increased responsibility for accurate impact reporting connected to procurement. This means balancing several priorities at once: cost reductions, product performance, supplier assessments, social impacts, reparability, upgradability, and reusability are some examples.
The risk associated with relying on unverified sustainability claims is real. In some cases, we have observed that factories declaring a 60 hour work-week have in fact shown to have working hours well above 80 hours. In other cases, audits in factories claiming to provide adequate emergency exits, reveal some exits are locked or blocked. We’ve also discovered inaccurate battery life information stated in product specifications for notebook computers. When subject to independent tests, the capacity has been shown to be significantly lower than what the brand owner declares. Clearly, when a purchaser is asked to trust these claims and declarations, the risks are significant, and may impact both the organization’s brand and bottom line.
In IT procurement, this means that suppliers must also have proven high social and environmental standards connected to the sourced product. Stakeholders demand assurance that purchases do not contribute to labor law violations in the supply chain, such as child labor, or negative environmental impacts. IT procurement organizations today are expected to be strategic and prove that they promote sustainability and mitigate risks.