Is Green Procurement Serious? Questioning Internal True and False Intentions - Roundtable Discussion between SANYO Electric and Green Purchasing Network (September 2006)

Is Green Procurement Serious? Questioning Internal True and False Intentions - Roundtable Discussion between SANYO Electric and Green Purchasing Network (September 2006)

In 2006, "environmental management" and "corporate social responsibility (CSR)" became the focus of attention for Japanese companies as part of their strategies. With the Kyoto Protocol coming into effect and international commitments to reduce greenhouse gas emissions, many companies were ostensibly "environmentally conscious" and "green procurement," but in reality they were struggling between cost and efficiency.

It was against this backdrop that this roundtable discussion was held between environmental representatives from SANYO Electric and those from the Green Purchasing Network (GPN). Here, they candidly discuss the gap between "ideals" and "reality" within the company that they face when implementing green procurement. In contrast to the high ideals set forth by the Environmental Division, the procurement department, which is in charge of practical matters, has no choice but to give priority to the realities of cost, delivery time, and negotiations with suppliers. As a result, a situation in which "the ideals and the actual work site are at odds within the company" has become the norm.

In this round-table discussion, the participants discussed, with episodes from actual workplaces, such cases as "the procurement side rejects environmentally friendly parts as 'too expensive' even if they are selected," and "green purchasing standards are left ambiguous within the company. In response, GPN representatives proposed mechanisms such as "environmental labels" and "product evaluation databases" to support procurement decisions, and stressed the importance of sharing information and standards.

Particularly impressive was the consensus reached that understanding and support from top management and company-wide communication were essential for green procurement not to end up as a "pause for external evaluation. At the time, CSR was still often regarded as "the work of a separate department," but this roundtable discussion symbolizes the budding awareness that CSR and environmental issues are issues that affect the competitiveness of the entire company.

This exchange vividly conveys the "transitional reality" of Japanese companies' environmental responses in the mid-2000s, highlighting not only superficial environmental policies but also how serious the contradictions and trial-and-error within companies were. The book is rich in suggestions for contemporary ESG management, as it shows the attitude of corporate people trying to move one step forward in the struggle between ideals and reality, even when reread today.