ESB Aligns Sustainable Procurement Processes through full ISO20400 Evaluation

ESB has been Ireland’s foremost energy company since it was established in 1927, operating across the entire electricity market, including generation, transmission, distribution, and supply.

ESB is committed to leading the transition to a reliable, affordable, net zero energy future, driven by an unwavering commitment to power society forward. These commitments are clearly illustrated in “Driven to Make a Difference: Net Zero by 2040.” Additionally, ESB must adhere to sustainability directives such as the European Commission’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).

With annual procurement spend of €1.6bn, ESB recognise embedding sustainability into their procurement activity, and subsequently their supply chains, is key to achieving their ESG strategy objectives, including Net Zero by 2040, achieving best value across all procurement activities, and ensuring compliance to the stringent requirements of CSRD and CSDDD.

To support their commitment to sustainable procurement, ESB engaged Action Sustainability to evaluate their procurement activities across all business units in alignment with the ISO 20400:2017 Sustainable procurement Guidance standard; this collaboration aimed to thoroughly assess and improve ESB’s procurement practices, ensuring every decision aligns with their sustainability objectives and compliance requirements.

Action Sustainability began the evaluation process with a comprehensive desktop review of ESB’s documentation, including policies, strategies, category management procedures, and recent tender exercises. This initial phase provided valuable insights into ESB’s current sustainable procurement practices.

Following the review, Action Sustainability conducted a series of one-on-one interviews with key personnel from each ESB business unit. These interviews involved employees at various levels and roles, all integral to the procurement cycle—from identifying business needs to decommissioning. Structured around the key elements of the ISO 20400 standard—Fundamentals, Policy & Strategy, Enablers, and Process—the interviews aimed to assess how well ESB’s sustainability objectives were integrated into their procurement activities. This thorough approach enabled Action Sustainability to identify strengths and pinpoint opportunities for improvement.

The insights gathered from these exercises were instrumental in the subsequent analysis and development of targeted recommendations to enhance ESB’s sustainable procurement practices.

The evaluation outcomes yielded valuable insights for ESB, offering clear direction on areas where efficiencies can be gained. From this analysis emerged an action plan delineating specific activity, timelines, and the associated complexities essential for advancing towards sustainability goals.

Furthermore, the insights gleaned promise to strengthen supplier relationships through enhanced performance and contract management. This proactive approach not only ensures compliance with sustainability directives but also fosters a culture of collaboration and innovation within the supply chain.

The benefits of these actions extend far beyond mere compliance, positioning ESB as a trailblazer in sustainable procurement; as ESB implements the actions outlined in their action plan and gathers insights from this process, they will pave the way for navigating the complexities of sustainability and procurement, driving significant change within ESB and establishing them as pioneers in sustainable procurement practices.