5.31 Procurement oversight must align with sustainability and digital governance goals

[mgifford]

In pulling in ideas from @jannekalliola's book, this also came up as a potential SC of value.

5.31 Procurement oversight must align with sustainability and digital governance goals.

Description

Procurement must be governed by documented business policies that align with the organization’s environmental and strategic goals. Oversight processes should ensure that procurement decisions support long-term sustainability, rather than prioritizing short-term cost or convenience. Clear accountability and review mechanisms are needed to evaluate procurement outcomes over time.

How to test

Review business and procurement policies. Confirm that sustainability criteria are embedded into oversight structures (e.g., procurement review boards, steering committees). Evaluate whether contract sign-off or vendor selection includes sustainability metrics or ESG compliance.

Why it’s important

Procurement decisions lock in environmental, technical, and financial impacts for years. Business-level governance ensures these choices are accountable and forward-looking, helping avoid vendor lock-in, unmaintainable systems, or emissions-intensive services.

Examples

• A steering committee includes sustainability performance as a procurement success metric.
• Procurement thresholds require environmental review for digital contracts exceeding a defined budget.
• An organization rejects a vendor due to lack of emissions transparency or accessibility compliance.
• ESG requirements are evaluated alongside cost and timeline in procurement scoring rubrics.

[airbr]

Procurement decisions lock in environmental, technical, and financial impacts for years. Business-level governance ensures these choices are accountable and forward-looking, helping avoid vendor lock-in, unmaintainable systems, or emissions-intensive services.

Very true! good writing here