Responsible Sourcing: A Road Map Toward Achieving ESG Goals in Supply Chain & Procurement

When thinking about sustainability, environmental impact isn’t the only factor. To meet broader ESG goals, businesses must also prioritize social responsibility and equity.

The “social” aspect of ESG includes human rights, labor standards, diversity and inclusion, community impact and more. While companies focus on internal operations when addressing social responsibility, they must also scrutinize their supply chains to ensure social sustainability. Procurement practices impact people and communities, so embedding social considerations in procurement and supply chain is crucial to any ESG strategy.

Essential steps to reduce scope 3 emissions

Benefits of Responsible Sourcing

Embedding social responsibility into procurement and supply chain practices is crucial for businesses, offering multifaceted benefits. It ensures regulatory compliance, meets investor and consumer ethical expectations, satisfies employees' desire for purpose-driven work, supports local economic development, provides access to diverse perspectives and resources, and aligns with UN Sustainable Development Goals, ultimately driving positive social impact and improved business outcomes.

Socially Responsible Sourcing for Procurement Leaders

There are three key ways to promote social responsibility, all of which GEP excels at, as demonstrated by our proven track record.

Supplier Diversity and Inclusion

This includes increasing spend with, and supporting the development of, suppliers that are owned by those with disadvantaged backgrounds, women and minorities. Procurement can assess its strategic suppliers’ diversity and inclusion practices and either partner to advance them or elect to work with suppliers that prioritize social sustainability.

Responsible Sourcing

This starts with establishing both a supplier code of conduct and a responsible sourcing policy, which sets standards that suppliers must follow. Companies can then monitor and audit their suppliers to ensure they are meeting these standards.

Supplier Community Impact

Companies further along on their social sustainability journey can proactively partner with suppliers to create a positive community impact. This may range from building programs that align a supplier’s financial growth with social sustainability to supporting community economic development to more philanthropic pursuits like working with suppliers on educational initiatives or infrastructure projects.

Our Track Record

A global life sciences company partnered with GEP to optimize buying channels and create an eMarketplace to increase the use of diverse suppliers as well as to capture Tier 2 diverse supplier spend in order to maximize its supplier diversity program outcomes.
GEP partnered with a global consumer goods company to develop a comprehensive supplier code of conduct and responsible sourcing policy based on the client’s ESG requirements, risks and industry best practices.
A leading waste and water management company partnered with GEP to develop an implementation road map for a supplier diversity program, which included procurement organizational and operational model frameworks, category strategies, technology and tracking/reporting.
GEP was selected by one of the world’s leading CPG companies to drive a social inclusion initiative within its supplier base, increasing the hiring of employees from underprivileged communities and exceeding the company’s target of 500 FTEs.