Why Program Governance is Critical to Successful Sustainable Supply Chains

The world of procurement has changed drastically in the last 20 years, with sustainable procurement moving from an isolated procurement initiative to an organizational driver of brand protection, risk management, and innovation. For this reason it is important to have a strong program governance with c-level support and engagement both vertically and laterally across the organization.

Some best practices in program governance include: 

• Develop clear program plan with goals, expectations and responsibilities,
• Communicate expectations across the procurement organization quickly and clearly,
• Link sustainability performance expectations for suppliers to existing performance management frameworks,
•  CPO and Chief Sustainability Officer are active supporters of the program, with at least one other C-Level (CEO/CFO),
• Program fully integrated in the procurement procedures,
• Program led by a cross-functional Steering Committee, that meets regularly to review program goals and build strategy,
• Fully staffed sustainable procurement hierarchy led by PM is empowered to override procurement decisions with supplier representing a risk or mismatch to the sustainable procurement charter.