A study by contract intelligence firm Icertis has found that about 86% of procurement directors in the US and Canada play a vital role in influencing sustainability decisions within their companies.
The survey, which focused on chief procurement officers (CPOs) across various sectors including manufacturing, pharmaceuticals, aerospace, automotive, and others, revealed a shift in the responsibilities of procurement directors.
This change is evident in areas such as internal processes, technology implementation, and sustainability, where artificial intelligence is progressively becoming more significant, the study found.
Prioritise ESG targets
The survey revealed that 46% of respondents expressed their intention to ‘prioritise’ ESG and sustainability goals in 2024, while 43% are enhancing capabilities to extract and interpret ESG metrics from data, utilising AI for this purpose.
Additional findings from the study indicate that nearly half (46%) of CPOs now exert higher-level influence on decision-making in their firms compared to two years ago. Furthermore, over half of them are placing a priority on cost reduction, and 46% are concentrating on the proactive mitigation of supply chain risks.
In the past 12 months, 44% of CPOs have spearheaded AI adoption efforts in their businesses, and more than a quarter (27%) are advocating for enhanced CLM capabilities.
‘Regulatory landscape’
“As the global regulatory landscape undergoes dynamic changes and businesses grapple with challenges like supply chain disruptions, inflation, ESG audits, and market volatility, the expectations of CPOs have never been higher,” commented Bernadette Bulacan, chief evangelist at Icertis.
“This is a pivotal moment for procurement leaders to assert their influence, steering the organisation and shaping business-critical initiatives with AI technology, particularly in contract management.”
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