To financially justify the ESG sourcing strategy, the organization needs to demonstrate how it can create value for itself and its stakeholders by integrating environmental, social, and governance (ESG) criteria into its procurement decisions. The value creation can be measured in terms of:

• Cost savings: By reducing waste, energy consumption, emissions, and risks, the organization can lower its operational and compliance costs, as well as negotiate better prices and terms with its suppliers.
• Revenue growth: By enhancing its reputation, customer loyalty, innovation, and market access, the organization can increase its sales and profits, as well as gain competitive advantage and differentiation.
• Risk management: By mitigating the potential negative impacts of ESG issues on its supply chain, such as disruptions, disputes, fines, sanctions, or boycotts, the organization can protect its brand, assets, and stakeholders, as well as comply with the relevant laws and regulations.
• Stakeholder engagement: By communicating and collaborating with its internal and external stakeholders, such as employees, customers, investors, regulators, NGOs, and communities, the organization can improve its transparency, accountability, and trust, as well as align its interests and values.

An organization should use appropriate methods and tools, such as cost-benefit analysis, return on investment, life cycle assessment, and balanced scorecard, to estimate and communicate the financial value of the ESG sourcing strategy. Moreover, the organization should monitor and evaluate the performance and progress of the strategy, and report and disclose the results and impacts to its stakeholders.  Join us in this webinar to understand how to get started on this journey!

Meet the speakers: 

Jim Bergman is the CEO of Commercial Officers Group, an advisory and training firm focused on establishing high-yield contracting for a global client base and across multiple sectors. He has over thirty years of “in the trenches” experience in commercial contracting, initially as a contract attorney, with an emphasis on collaborative and strategic models. During his career, Mr. Bergman has trained and led contract development and negotiation teams, as well as managed commercial relationship portfolios worth over US$1 billion. He has developed contracting processes for a number of Fortune 500 companies, ranging from business process outsourcing, IT, engineering/construction, logistics and capital equipment. His efforts have led to value generation of well over US$500 million. Mr. Bergman is also currently serving as an Adjunct Lecturer at University of Tennessee. He also holds an MBA and Masters degree in History.