The Sustainable Procurement Disclosure Index (SPDI), developed by supply chain experts at RMIT University, has revealed that only 11% of the ASX 200 listed companies provided comprehensive disclosures about the sustainability of their sourcing practices in 2022. This index assesses companies based on the sustainability of their economic, social, and environmental sourcing practices.
Lead researcher Professor Charles Lau, said there are no established standards to assess sustainable procurement practices for Australian companies, which means they're less inclined to disclose how sustainable their procurement practices are.
Regardless of industry, the study found that companies tended to disclose more information on governance and environmental aspects, while revealing less about economic and social aspects. "Some reasons companies don't report extensively on the economic and social aspects of their sustainable procurement practices may include reputational concerns, commercial secrecy, resource constraints, complex supply chains, or lack of standards or industry norms, to name a few," Lau said.
Contrary to a common belief, the level of disclosure was not significantly correlated with the size of the company, indicating that larger corporations did not necessarily disclose more or less than smaller companies.
Sectors assessed in the new index include consumer discretionary and staples, energy, financial services, healthcare, IT, real estate and more.
While sustainability reports are not currently mandatory in Australia, some believe it is not far away from becoming legislated. In anticipation of this, Procurement Australia invites procurement professionals to our 2024 Conference. Centred around three pillars: Sustainable, Ethical, & Social Procurement, Transforming procurement practices, and Future procurement, you can connect with like-minded individuals and delve into discussions on reporting and supply chain mapping. To get your tickets, head to the Conference homepage.
Source: https://www.miragenews.com/asx-200-firms-sustainable-sourcing-practices-1183770
