On the day the stock market lost a record $1.2 trillion in value, another trading exchange saw values of its stocks rise nearly 65%. A factor that could have implications for your company’s spend management and operating plans.

Under the Regional Greenhouse Gas Initiative (RGGI), a group of fossil-fuel burning power plants in 10 Northeastern states held the nation’s first-ever cap-and-trade greenhouse gas auction. The controversial program requires power producers in the region to buy credits to cover their carbon dioxide emissions, which are viewed as a key culprit behind global warming.

The belief is that the program will encourage the nation’s biggest polluters to adopt more fuel-efficient and eco-friendly supply and manufacturing approaches by instituting what constitutes a tax on carbon emissions above a certain threshold. Proceeds from the $40 million raised during the auction will be spent on renewable and energy-efficient technologies.

While regulators are still gauging the success and structure of the cap-and-trade program, the event portends coming legislation and policies that will drive your company to adopt environmentally and socially responsible business practices.

Said one senior procurement executive I met with at the Sourcing Interests Group (SIG) event in Las Vegas last week: “Over a year ago, we saw that sustainability was important to our customers. We also anticipated increased governmental legislation on the issue and we wanted to get out in front of it.” In fact, his team identified sustainable supply management as one of its top five strategies for the coming years.

Components of his company’s plan include assessing supplier’s socially and environmentally responsible practices during the sourcing process; measuring and controlling the carbon emissions of its corporate travel program; and improving its overall supplier diversity. His procurement team is also working with the company’s real estate group to retrofit existing facilities to be more energy efficient and eco-friendly.

To better understand prevailing pressures and strategies for sustainable supply, we have launched a study of how global spend management organizations are embracing social and environmentally responsible business practices. I encourage Supply Excellence readers to participate in this brief survey here.

All respondents will receive a copy of the study findings.