Sustainable IT Procurement. A case of Network and Telecommunications (N&T) Services Sourcing
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Volvo Group, being an industry leader in sustainability, has developed a sustainability strategy that
considers the climate, resources and people. The targets set within their sustainability strategy follow
the Paris agreement requirements and UN sustainability development goals. Further, Volvo Group
aims to generate 50% of their revenue through providing sustainable transportation as a service, for
which IT purchasing is critical. Thus, Volvo Group believes it is necessary to investigate their present
sustainable IT procurement strategies and to develop them. This study considers Network and
Telecommunications (N&T) services as an initial step towards sustainable IT procurement.
The objective of the thesis is to develop sustainable procurement strategies in sourcing N&T services.
To achieve this objective, critical sustainability risks within the N&T industry and their mitigation are
investigated, based on which recommendations are suggested to the case company. Internal interviews
with case company employees and external interviews with three N&T service suppliers were conducted
to achieve the objective. The suppliers interviewed in the study are part of the case company’s supply
base. The internal interviews helped the authors in understanding the current sustainable N&T services
sourcing strategies, whereas the external interviews facilitated an understanding of the N&T industry
sustainability risks and the mitigation approaches pursued by the suppliers. In addition to the
interviews, internal documents and annual sustainability reports of the interviewed suppliers were
reviewed.
A review of the present sustainability strategies in sourcing of N&T services showed that these
strategies assess only the risks that are associated with automotive purchasing. Further, the study
identified critical sustainability risks associated with the operations of telecommunication operators
(TCO) and their supply chains. The main sustainability risks posed by a TCO ́s operations are energy
consumption and large amounts of electrical and electronic waste. The literature review highlighted
the importance of assessing the sustainability risks within the supply chain of the suppliers, especially
when sourcing services. In this regard, a TCO ́s supply chain poses sustainability risks related to human
rights, and potential use of hazardous materials and conflict minerals within the products sourced. Since the current strategies of responsible sourcing at the case company are not addressing the specific
risks of the N&T industry, a questionnaire addressing these specific sustainability risks is devised by
the authors. The sustainability questionnaire can play a critical role in future sustainable sourcing
decisions
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Sustainable Sourcing, Sustainability Risks, Risk Mitigation, Network and Telecommunications (N&T), Telecommunications Sustainability Questionnaire, IT Purchasing, Telecommunication Operators (TCOs)