Sustainable procurement has been bubbling under the surface for a while.
In a world driven by environmental challenges and a surge of social responsibility, the importance of purchasing goods and services more sustainably has become a hot topic. Over the past decade, sustainable procurement has been viewed as a key tool for companies seeking to embrace positive change within the supply chain.
Meeting global objectives
The transition to a more sustainability-driven way of working is in part down to the Paris Agreement which is a legally binding international treaty on climate change. Adopted by 196 parties at the UN Climate Change Conference in Paris in December 2015, the mission is to unite countries and stakeholders for people, planet and prosperity. Climate action sits among 17 Sustainable Development Goals with the aim by 2030 to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature to increase 1.5°C above pre-industrial levels. With just five years until that target is realised, time is quickly running out and it is impossible to achieve alone.
However, with so much expectation, many companies can feel overwhelmed by the scale of the task at hand. However, a shift in sustainability goals doesn’t happen overnight. It requires strategic thought and a shift in mindset. Any sustainability journey cannot be achieved alone; it requires buy-in from the senior team and alignment with suppliers. This is where training and upskilling the workforce come in to ensure everyone within the organisation embraces a culture of sustainability and works towards the same goal.
Sustainable procurement isn’t just based on price. It also involves choosing suppliers who value sustainable practices, such as reducing carbon emissions, eliminating waste, and promoting ethical labour conditions. Sustainable procurement seeks to maximise long-term value while minimising negative environmental and social impacts. It considers factors such as lifecycle assessment, circular practices, and collaboration with suppliers to advance innovation. By introducing sustainable procurement, companies can embrace a more sustainable future while still meeting their business goals and targets.
How can sustainable procurement impact the world?
But is sustainable procurement alone enough to save the planet? Mat Langley, Strategic Adviser at Emitwise, believes there are clear pathways to actionable insights. “Absolutely, sustainable procurement can save the planet,” explains Langley.
“The concept of sustainability in procurement has been around a long time, doing more with less. Now there are a number of additional concepts such as circular procurement, value chain analysis, supply chain resilience, transparency and regulations helping push toward sourcing and category managers taking a broader view and innovation opportunities across the value chain. And while it’s still a challenge to get data and monitor progress, there are clear pathways to actionable insights, ongoing monitoring and supplier engagement and collaboration. Procurement teams are no longer settling for mediocre technologies and poor data but driving towards creating market differentiation offerings – like CBRE’s Net Zero Supply Chain product or Apple’s lower carbon iPhone 16 – and competitive advantages.”
Pushing ESG
When it comes to ESG (Environmental, Social and Governance), Keith Hausmann, Chief Customer Officer at Globality, believes a lot of focus tends to go on the first two pillars and sometimes the governance angle gets forgotten about. “Deloitte is saying that ESG safeguards businesses from future risks and focuses on sustainability, while PwC has found embedding ESG into strategy, operations, and reporting in a transparent manner builds trust across multiple stakeholder groups. I absolutely agree—but feel that while a lot of focus tends to go on the ‘E’ (Environmental) and the ‘S’ (Societal), responsible companies also need to never neglect the ‘G’ in ESG: Governance.
“What I have in mind here is the problem of not just your Scope 3 reporting commitments across your supply chain, but ultimately ensuring all processes in procurement are fair, transparent, measurable and unbiased,” explains Hausmann. “Even without ethical, Net Zero, or other ESG-related considerations, a well-governed company should always only be one that spends its money through a fair, transparent, analytical, auditable process that ensures decisions are made using evidence, data, appropriate options and considerations, etc. Today, unfortunately, many companies do not do this. Much of the spending occurs without a competitive, transparent process that ensures a diverse array of options, market dynamics and fairness. One would argue that if this was being done, societal and environmental considerations would always take precedence, on the basis of a well-governed process.”
Transforming the sustainable game
While Steve Haskew, Group Director of Sustainability and Growth at Circular Computing, affirms sustainable procurement has the potential to be a “genuine game-changer” in addressing global environmental challenges. “It is the ultimate ‘quick win’ for businesses and CPOs, but the biggest battle can be overcoming entrenched attitudes both from manufacturers and end users,” he tells us. “It will be difficult to change the behaviour of OEMs to encourage them to shift their product design, so sustainability is their North Star, and new IT is ultimately built to have a second life. When businesses start to prioritise the importance of a sustainable supply chain and invest in circular products such as remanufactured laptops, however, businesses and governments can force the issue as well as significantly reduce carbon footprints, resource depletion, and e-waste.”
Tech investment
Haskew adds that while procurement alone cannot save the planet, a commitment to sustainable tech investment by larger organisations will put pressure on OEMs to change their mindset or risk losing customers and market share. He adds, “A great example was the Irish government, which last year agreed to a deal that can provide up to 60,000 remanufactured laptops across the Irish public sector – about 12% of the country’s laptop market.”
Daniel Usifoh, Co-founder Axiom Sustainability Software and Sustainable Procurement Specialist, agrees with Haskew that sustainable procurement alone will not save the planet. However, Usifoh explains that sustainable procurement is a powerful lever for change – creating incentives that align environmental goals with business success. “Sustainable procurement can help to drive real change by creating demand for more sustainable products and services, incentivising businesses to put environmental responsibility first,” he tells us. “This shift in priorities influences the market, helping push innovation and raising sustainability standards across industries.
“Studies have found that companies adopting sustainable procurement practices reduced their carbon gas emissions by up to 22%. By focusing on sustainability, procurement teams drive real, systemic change – conserving resources, reducing emissions and reducing waste throughout a product’s lifecycle.
“Beyond environmental benefits, sustainable procurement can offer real-world financial and reputational rewards. Companies gain cost savings through efficiency improvements and meet growing consumer and stakeholder expectations for responsible business practices.”
Overcoming barriers
Jarrod McAdoo, Director of Product at Ivalua, adds that while the procurement industry is taking significant steps to help reduce emissions with ambitious green targets, the harsh reality is that they are not on pace to meet declared corporate sustainability goals. “This shortfall will become clear ahead of new legislation, such as the Corporate Sustainability Reporting Directive (CSRD), which comes into effect in June 2026,” says McAdoo. “This directive will push organisations operating in the EU to increase corporate transparency and Scope 3 responsibility, and many companies may find themselves unprepared to fully meet the requirements.
“But, this realisation is not necessarily a bad thing for organisations. Previous goals may have been well intended but were based on limited information or real experience regarding the challenges. Now that organisations have started to progress in earnest on these initiatives, they are more informed and qualified to establish realistic goals and schedules. Empowered by this data and emboldened by their experience, organisations will be in a much better position to re-evaluate their goals and replace them with more accurate, achievable targets. With this realistic view, procurement teams might not be able to save the planet, but they will certainly be taking vital steps to do their part.”
Reducing carbon footprint
And Amy Worth, Director of Amazon Business, UK, explains that when it comes to companies reducing their environmental impact, businesses should firstly identify areas where they can make the most substantial impact. “With up to 90% of a company’s carbon footprint linked to its supply chain, sustainable procurement is certainly a good department to prioritise, and gives businesses an actionable jumping off point,” she tells us. “Aligning operations with sustainable ambitions can be a significant undertaking, and new processes can overwhelm teams. However, introducing new frameworks can be done gradually, by putting in place criteria that reduces the choice for buyers and helps to set a new universal standard for sustainable purchasing across the business.
“We are seeing momentum around tools for sourcing more environmentally friendly products, such as Amazon Business’ ‘Buy Local’ feature which highlights local sellers, allowing businesses to filter searches and steer them towards products or suppliers that align with sustainability goals.
“By utilising these tools, businesses can improve the sustainability of their supply chain, and in turn, reduce their environmental impact on a much larger scale. Simple, but strategic changes such as these are measurable and can also encourage senior buy-in, and in many cases demonstrate that sustainable procurement doesn’t have to impact the commercial priorities of the wider business.”
Sustainable drive
Looking ahead, sustainability within procurement is not going away. It matters. Today, companies recognise its prominence within the global supply chain. By integrating environmental, social and economic considerations into an organisation’s procurement practices, businesses and the procurement executives within them are helping to drive positive change and welcome a brighter future. But sustainability cannot be achieved alone and companies must avoid resting on their laurels. Sustainable procurement can hold the key to a greener, more economically and social prosperous society for now and in the future.
