Represents the proportion of total procurement spend directed toward products and services that meet sustainability criteria.
What it Measures ?
What percent of our buying supports eco-friendly or ethical practices.
Relevant StakeHolders
ESG Teams, Sustainability Officers, Procurement Heads
Why it Matters ?
Improves sustainability in procurement processes.
In-depth Use Case / Real-world Example
A manufacturing company aiming to reduce its environmental footprint tracks how much of its spending goes toward sustainable suppliers or eco-friendly products. For instance, sourcing recycled materials or working with suppliers that have strong environmental practices. If 40% of the company’s total spend is on sustainable products, the Sustainable Procurement Percentage is 40%. This metric helps the company align procurement with sustainability goals and regulatory compliance.
Sample Formula
(Sustainable Spend / Total Spend) * 100