ESG Brochure

Powering Procurement’s Strategic Value

Actionable Insights to Drive ESG and Non-Financial Performance

THE PROBLEM:

While savings remains a key objective for Procurement organizations, there is a growing need to play a more active role in helping the business achieve its goals and to benchmark and track key metrics for Environmental, Social and Governance (ESG) and non-financial performance.

Procurement teams need an easy solution to help them quickly establish baselines in various ESG metrics, including carbon footprint and diverse spend, and to identify and act on opportunities as well as ultimately measure outcomes that are not based purely on financial targets, such as:

• CO2/Greenhouse Gas/Scope 3 Emissions

• Water Consumption

• Supplier Diversity

• Spend Compliance

• Supplier Risk Management

• Ethical Sourcing

Pressure to Support ESG and Non-Financial Goals is Increasing

“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

Spend Intelligence and Performance Management to Support ESG and Strategic Goals

SpendHQ’s solutions help companies rapidly turn spend insights into new procurement initiatives that achieve contribution that is both financial (cost savings) and non-financial (carbon footprint reduction, increase in diverse spend).

By linking our Spend Intelligence and Procurement Performance Management in a single platform, procurement teams can continuously optimize their planning-to-execution cycle by identifying opportunities, immediately converting relevant opportunities into projects, and then monitoring financial and non-financial strategic outcomes.

SPEND INTELLIGENCE:

You utilize our proven AI-enabled process to consolidate and classify at least 97% of your enterprise spend into a central view. From there, you gain:

Supplier Diversity Insights & Benchmarks - 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. Automatically leverage third-party diversity data from sources including Supplier.io.

Supplier Diversity Data Enrichment - To know your baseline, you need to know which suppliers have diversity classifications. Existing supplier data can be automatically enriched to indicate those who carry designations of any 13 standard diverse supplier categories.

Emissions Spend Intelligence - Get a more accurate view of estimated Scope 3 emissions output across your supplier value chain to more easily target areas for reduction.

PROCUREMENT PERFORMANCE MANAGEMENT:

You achieve a centralized, transparent hub for all procurement initiatives for prioritizing, tracking, and measuring impact. Your team gains:

Supplier Diversity and Sustainability Project Visibility – Easily identify and track the progress and outcomes of all procurement projects with diversity, environmental or other non-financial performance goals to provide transparency to the business.

ESG Custom Unit of Measurement – Define other calculations of value beyond savings goals that include measurements for attributes such as CO2 emissions, water consumption, and waste output, to track projects and increase visibility in final reporting.

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.

Accelerate and Confirm Achievement

Identify opportunities, establish goals, track progress, and repeat!

SpendHQ enables companies to identify opportunities via spend intelligence and then turn them into new procurement projects to achieve strategic objectives.

Key Benefits

Business

• Comply with regulations and applicable laws

• Manage investor demands and public expectations

• Minimize business risks

• Control costs

Ecological

• Reduce pollution, carbon emissions, and energy consumption.

Social

• Spread awareness about climate issues

• Eliminate unfair and unjust labor practices

Internal Stakeholders

• Improve collaborative decision making to drive alignment

• Develop and communicate a procurement roadmap to meet strategic goals

• Gain the visibility and data access that you require at your fingertips

Procurement’s Clear Opportunity to Lead

“Regulations will put a slew of to-dos on businesses’ plates, but the burden of those tasks will be placed on spend and procurement teams.” (Source: Spend Matters, What the upcoming tsunami means for spend teams, January 31, 2023

Four out of five leaders see sustainability as helping their organization to optimize and reduce costs.*

83% say their sustainability program activities directly created both short- and long-term value for their organization*

*Source: 2022 Gartner Sustainability Opportunities, Risks and Technologies Survey

info@spendhq.com