Charting a Sustainable Course: Transforming MRO Procurement for Tomorrow's Needs

Regulations and Policies Poised to Influence Corporate Sustainability

The potential regulations and policies poised to influence corporate sustainability plans include:

1. Mandatory climate-related disclosures:

   In the US and globally, the push for mandatory Greenhouse Gas (GHG) emissions disclosures is expected to continue to gain steam in 2024 at federal and state levels. In the EU, key disclosures include the EU’s Corporate Sustainability Reporting Directive (CSRD) and the EU’s Corporate Sustainability Due Diligence Directive (CSDDD).

2. Nature-related assessments:

   Last September, the Task Force for Nature-related Financial Disclosures (TNFD) released its final recommendations to enable companies to assess, disclose and manage nature-related risks and impacts, ensuring data comparability among companies.

3. ESG-related enforcement:

   In the US, Environmental, Social and Governance (ESG)-related enforcement is likely to remain a focal point in 2024, with particular attention on greenwashing lawsuits and government enforcement at both federal and state levels.

4. Shareholders and customers:

   Activist shareholders and customers now demand that companies adopt a sustainability-focused approach, not only for the products they manufacture but also throughout their supply chains.

Elements of a Sustainable MRO Procurement Strategy

WNS Procurement sees clear opportunities to implement a sustainability program within the MRO category. We would recommend a sustainability strategy for MRO that includes these elements:

• Procurement leads the effort.

  Procurement can spearhead the adoption and implementation of sustainability trends by partnering with suppliers committed to sustainable practices and emphasizing the benefits of these practices in discussions with stakeholders.

• Involve stakeholders from the beginning.

  The MRO category typically encompasses a wide range of products and services along with numerous stakeholders. Stakeholders often prioritize maintaining production lines over sustainability. Procurement should start by demonstrating “what’s in it for them” and how sustainability’s positive effects ripple through the organization and beyond.

• Start small.

  Start with small wins, such as cleaning and reusable protective gloves, then gradually progress to more complex projects like installing sensors for preventive maintenance. These types of small approaches will build positive sentiment and momentum with stakeholders, helping convince them to support more ambitious initiatives in the future.

• Engage vendors early in the process.

  It's crucial to involve suppliers from the outset by communicating the organization’s strategy and expectations, sharing its targets and best practices to demonstrate their commitment to sustainability.

• Partner with vendors who prioritize sustainability.

  While not all vendors focus on sustainable products or services, many MRO vendors are increasingly embracing a sustainable approach.

• Ask vendors for their sustainability certifications.

  Commonly recognized Canadian and North American MRO product certifications include:

  • CSA Sustainable Forest Management (paper products)

  • Forest Stewardship Council (paper products)

  • ECOLOGO® by Underwriters Laboratories (sealants, disinfectants, hand cleaners, etc.)

  • GREENGUARD by Underwriters Laboratories (adhesives, sealants, etc.)

  • ENERGY STAR® (HVAC, lighting)

  • USDA BioPreferred (lubricants, building materials).

These industry certifications can offer assurance that a third party has thoroughly assessed and confirmed the manufacturer’s sustainability claims and its environmental benefits. An easily identifiable certification mark on a product’s packaging can help categorize it.

Sustainable MRO Procurement Trends

Once you’ve put your sustainability plans in place, examine the various MRO components sold by your partner vendors. Here are some of the sustainability trends we observe specific to MRO components resold by MRO vendors:

• Electrical supplies:

  Overstocking is often associated with electrical supplies due to the vast product range and tracking difficulties. Optimizing the inventory management process can significantly reduce waste from obsolete items. Additionally, replacing equipment and components with more energy-efficient alternatives is a widespread measure for both sustainability and cost savings.

• Fasteners:

  Sustainability in the fasteners category relies on the raw materials used for production, such as recycled steel or other metals, minimizing the need for new resources. Durability is also a factor; for example, galvanized fasteners coated with a layer of zinc can last for decades.

• Personal Protective Equipment (PPE):

  While safety is paramount, the environmental impact of single-use items like face masks and gloves cannot be ignored. Sustainability efforts should extend beyond eco-friendly raw materials to include the use and disposal of PPE. Reusable options can help reduce waste and pollution.

• Uniform laundry:

  The uniform laundry industry is transitioning to more eco-friendly practices, such as green detergents and investing in energy-efficient washing machines. Air-drying uniforms whenever possible also contributes to sustainability.

• Pneumatics:

  Using pneumatics for industrial applications and air-powered tools represents a greener alternative to other forms of energy, including hydraulic, electric or petroleum derivatives. Smart pneumatics systems optimize energy consumption by monitoring airflow and ensuring machines operate at optimum pressure.

• Industrial gases:

  Major players in the industrial gases sector are investing in research and development for decarbonization, leading to more eco-friendly operations. Progress has been made in on-site gas production, with improved systems becoming more energy efficient.

• Maintenance services:

  Leveraging technology in maintenance services can lead to real sustainability gains. Smart systems, such as internet-connected sensors and augmented reality, optimize energy consumption while increasing asset lifespan.