In the latest HEC Benchmark we conducted, “Sustainable Procurement” was the #2 priority of Procurement Executives…just behing “Cost Reduction”. At the time where a lot of purchasing organisations are under pressure to deliver additional cost savings to their organisation, there is a risk that some will postpone or push back on their Sustainability Programs.
The latest Renault commercial reminds us that “Green” and “Low Cost” are not contradictory..quite the opposite. “Lower in CO2…Lower in €” and a nice visual reminds us that Cars Leasing and Fleet Management is one of the spend categories where Travel Managers have been able to leverage the environmental factor to reduce costs. In France companies are now taxed on the CO2 emissions of company cars, providing an additional incentive to provide lower costs / lower horsepower vehicles to their executives. But in several countries procurement executives are telling us that the “guilt” associated to high emission cars is helping them to drive compliance to their lower cost Travel policies.
By the way, Renault is also one of the automakers in Europe who has one of the most ambitious Sustainable Procurement program, and we have learnt that despite the economic slow down, and procuctions cuts they were facing, they had no intention to stop or delay this program. A good example for many companies.