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Amazon Business helps financial services firms achieve their ESG goals through procurement
Many businesses have established ESG goals to improve their corporate stewardship, bolster their brands and win customer loyalty, but without reliable procurement data, those good intentions often run into roadblocks.
The 2024 State of Procurement Report from Amazon Business illustrates the challenges of responsible procurement. The survey found that 81% of respondents have internal or external mandates to purchase from different types of certified sellers, such as environmentally conscious companies, small businesses or local vendors.
Even among companies with no such mandates, four in 10 said ESG factors influence their procurement decisions.
Taking action on those priorities can be difficult, however. According to the Amazon Business report, 85% of respondents have difficulty sourcing suppliers that follow sustainable business practices, preventing companies from setting and achieving sustainability goals.
But maximizing the impact of business purchases doesn’t have to be complicated. Amazon Business makes it easy for procurement departments and individual employees across distributed locations to buy office supplies from preferred vendors. Businesses also can produce detailed reports to track the percentage of their spending that counts toward ESG objectives.
Companies can steer purchases toward products made with recycled materials, for example, or encourage employees to buy pre-owned electronics. Amazon Business has partnered with government agencies, nonprofits and independent laboratories to offer more than 50 environmental certifications.
With trusted third parties signing off on those certifications, companies can have confidence that they’re purchasing responsibly.
Amazon has taken the lead in developing several of those Climate Pledge Friendly certifications. Products meeting the Compact By Design designation, for instance, have reduced water and/or air in the product or packaging, making transportation more efficient. Similarly, products meeting the Plant-Based Fiber Blended certification are made with at least 50% plant-based content and with fewer harmful chemicals.
Promoting products with Climate Pledge Friendly certifications aligns with Amazon’s broader goal of becoming carbon neutral across all of its businesses by 2040.
With hundreds of thousands of vendors selling products at business-only prices on Amazon Business, customers won’t overpay for breakroom supplies, office supplies and computer accessories. The website also enables supervisors to approve any purchase above a certain amount, giving them tighter control over spending.
Amazon Business can help companies to support local vendors, a key consideration for banks, credit unions, wealth advisories, insurers and other firms that serve local business communities. Customers also can diversify their pool of vendors by seeking out small businesses and those owned by women, racial minorities, veterans or the disabled.
Without a centralized hub for procurement, companies typically have no way of measuring the environmental or social impact of their purchases. Employees who buy supplies through their own online accounts or at retail stores and then submit receipts for reimbursement may not be purchasing from preferred vendors, preventing companies from achieving their ESG goals.
Companies also may be missing out on opportunities to support local businesses and nurture relationships with potential clients.
“By tracking their purchases over time, companies can increase the percentage of their spending that benefits local businesses, and in talking with financial services firms, that’s top of mind for them,” said Bailee Moylan, customer advisor at Amazon Business. “Amazon has everything you could possibly need.”
Learn more about smart business buying solutions for your organization by visiting Amazon Business.
