Incorporating Sustainability into Indirect Procurement: The Audit Approach

Abstract

This study investigates how to integrate sustainability into indirect procurement and develop an efficient sustainability audit process. Using a qualitative approach, the research analyzes relevant articles, reports, and regulations from various countries. In today's business environment, incorporating sustainability into procurement is essential for enhancing corporate responsibility and efficiency. The study highlights the importance of audits in identifying and mitigating environmental and social risks in indirect procurement. Comprehensive audit procedures, including supplier evaluations, compliance checks, and performance monitoring, are crucial for promoting sustainable procurement practices. The findings show that a well-structured audit approach ensures adherence to sustainability standards, promotes transparency, and fosters continuous improvement in the supply chain. The paper concludes with recommendations for effective audit strategies to achieve sustainable indirect procurement. Global economic development varies, and corporate governance sets rules to ensure transparency and security for investors. Non-financial reporting is increasingly important, with companies evaluated on social and financial metrics, leading to more sustainability reports following GRI standards.

Keywords

• sustainability
• esg (environmental
• social
• governance)
• indirect procurement
• supply chain
• sustainability audit