For years, procurement was only seen as playing a minor role in corporate sustainability. Today, that perception is changing, and fast. In reality, procurement is amongst the most powerful drivers of emissions reduction across supply chains.
As sustainability regulations tighten and customers demand greener supply chains, decarbonisation is no longer optional – it’s a business imperative. Procurement leaders are uniquely positioned to drive change, yet their influence can be overlooked. With Scope 3 emissions – which include indirect emissions from suppliers, logistics, and end consumers – 26 times higher than a company’s direct operational emissions, even small procurement decisions can have a significant impact.
For businesses looking to stay competitive, cut costs, and meet ambitious sustainability targets, now is the time to empower procurement teams to lead the charge.
Sustainable procurement starts with smarter supplier choices
Every supplier decision influences a company’s carbon footprint. For instance, opting for a local supplier over an overseas one can reduce transport-related emissions, while switching to low-carbon materials or sourcing from vendors with verified emissions data can significantly cut environmental impact.
Beyond environmental benefits, sustainability is now a competitive advantage. Customers, investors and regulators are demanding greater transparency on a product’s carbon footprint. However, understanding a product’s true impact requires visibility into emissions at every stage of the supply chain. As part of their own decarbonisation efforts, many companies now ask suppliers to disclose carbon emissions data. Those that fail to do so risk losing contracts and missing out on new business opportunities.
For procurement teams, sustainability is no longer a ‘nice to have’ – it’s a critical factor in supplier selection. Businesses that foster strong relationships with sustainable suppliers will be best positioned for future success.
Tracking emissions data doesn’t have to be complex or costly
One of the biggest misconceptions about emissions tracking is that it’s costly and resource intensive. While comprehensive emissions data is the goal, businesses don’t need perfection to get started – what matters is taking the first step.
There are several practical ways for companies to begin tracking Scope 3 emissions. A spend-based approach estimates emissions based on financial spend across different categories. It’s quick and accessible, though less precise, making it a useful starting point. Another method is average data, which relies on industry-wide emissions benchmarks. While broad, it provides a simple way to gauge a company’s footprint.
For more accuracy, businesses can adopt a hybrid approach, combining primary data (specific to the business) with secondary data (industry averages) for a refined estimate. The most precise method is using supplier-specific data, which involves using real emissions figures from suppliers – enhancing accuracy tracking and supply chain transparency.
The decarbonisation journey may seem daunting, but what matters is getting started. Start by establishing a baseline, even an estimate of emissions can help identify where the biggest impacts lie. Next, procurement teams can map where suppliers fit within these priorities and consider how best to engage them. Some may already have robust data; others may need guidance and support. Small steps create momentum, and as data collection improves, procurement teams can refine their sustainability strategies and drive more targeted, collaborative progress.
Collaboration is the key to greener supply chains
Suppliers are increasingly willing to provide sustainability data and adopt greener practices – especially when their customers demand it. To maximise impact, businesses should segment suppliers based on their emissions maturity and capabilities. High-maturity suppliers can provide verified data across Scopes 1, 2, and 3, along with product carbon footprints (PCF). Medium-maturity suppliers might need additional support to implement data standards. Finally, low-maturity suppliers, such as those new to emissions tracking, often benefit from educational resources, tailored training sessions or incremental steps towards transparency.
Rather than expecting perfection from day one, businesses should focus on collaborative progress. Providing suppliers with training, resources and clear sustainability expectations helps drive meaningful change across the supply chain. Even small actions – like asking for emissions data or aligning on sustainability goals – can shift industry norms and create lasting impact.
The business case for sustainable procurement
Sustainability in procurement isn’t just about compliance – it drives real business value. First, sustainable suppliers often provide energy-efficient or waste-reducing solutions that help lower costs. Second, as more companies prioritise emissions reduction, they seek suppliers who do the same, opening new business opportunities. Third, a strong sustainability commitment enhances reputation, attracting both customers and investors who favour responsible businesses. Finally, proactively cutting emissions helps companies stay ahead of evolving regulations, ensuring long-term resilience. Sustainable procurement isn’t just an environmental responsibility – it’s a strategic advantage.
Closing remarks
The belief that procurement teams are secondary players in corporate decarbonisation is a myth. In reality, they hold the key to real, scalable change. By embedding sustainability into supplier selection, gathering emissions data, and taking proactive steps towards greener supply chains, businesses can reduce their carbon footprint, cut costs, and gain a competitive edge. The journey to decarbonisation starts with procurement – and the time to act is now.
