A whopping 86% of CPOs say they play a role in their company’s sustainability decision-making, according to the 2024 ProcureCon CPO Survey, conducted by World Business Research.
In the above conversation, Shannon Kirk, solution advisory leader for procurement at Icertis, explains how AI, especially AI applied to contracts, is assisting in these efforts.
“A lot of organizations have realized that procurement and their supply contracts are an easy and fundamental way to meet these ESG goals, making sure they're doing business with the type of suppliers that will help them support these ESG goals and that can provide that information,” Kirk shares.
Kirk notes that AI helps procurement teams track and report on ESG compliance more efficiently, creating compliance reports required by regulators, investors, and other stakeholders. This technology allows procurement professionals to focus on strategic tasks while maintaining leadership in ESG initiatives.
For example, one major European manufacturer aiming for carbon neutrality by 2050 is using AI to analyze their contracts to better understand how suppliers impact their carbon footprint.
“They are able to gain the transparency down the full extent of their value chain and the impact that each, not only them but their suppliers, are having on that goal,” Kirk shares. “This will allow them to demonstrate compliance to the EU regulations and corporate sustainability requirements that they have in place without any strain or additional work for internal resources.”
By automating the tracking and reporting processes, organizations can better manage their supply chains, ensure compliance, and ultimately drive sustainability initiatives forward without additional strain on resources.
To learn more, access the full ProcureCon CPO report here.
REPORT
See how today’s CPOs are meeting new expectations around sustainability and supply chain performance by transforming how they do business. In this year’s ProcureCon CPO Survey, WBR Insights explores how procurement leaders are stepping up to this moment by leveraging emerging technologies and reimagined processes.