Sustainable Procurement

Barometer 2024
Transforming Procurement Into a Strategic
Sustainability & Resilience Partner
Foreword........................................................... 3 Engaging Suppliers on Sustainability.............. 20 Supplier Perception and Engagement.....32

Executive Summary........................................5 Integration of ESG Indicators Summary of Obstacles and Challenges...35

Into Procurement...................................................22
Introduction.....................................................8 Best Practices and Formula for Success..39
Internal Stakeholder Engagement....................24
The Evolving Landscape Unlocking Value Through
of Sustainable Procurement ................................. 9 Engaging Executive Stakeholders Across Sustainable Procurement....................................40
Business Functions.................................................26
Sustainable Procurement Leaders .................... 11 Conclusion and Outlook..............................43
The Ingredients
for Stakeholder Engagement............................. 27
The State of Sustainable Procurement: Methodology and Survey Participation...45
Study Findings.............................................. 12
Sustainable Procurement Benefits
and Reporting............................................... 28 Contributors...................................................47
Drivers of Sustainable Procurement..................13
Benefits......................................................................29
Sustainability Focus Areas....................................17
Commitments and Public Reporting................31
Extent of Deployment: Transparency
and Visibility............................................................. 19

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Foreword
As leaders in an ever-evolving In the realm of sustainable procurement, we have
witnessed a transformative shift. It is no longer seen
global business landscape, we are at as a peripheral activity but as a central strategy
a pivotal juncture where the principles integral to operational excellence and competitive
advantage. This shift is not just about mitigating
of sustainability intersect with core risks or adhering to regulatory demands; it’s about
business strategies. Our insights have recognizing the immense potential of sustainable
shown that sustainable procurement practices in driving innovation, efficiency
and ultimately, profitability.
is not merely a compliance necessity but
a strategic lever for long-term business Financial prudence and sustainability are not
mutually exclusive. Integrating sustainable practices
resilience and growth. into procurement can lead to significant cost
savings, enhanced brand reputation and improved
stakeholder relationships. We have seen firsthand
the benefits of aligning procurement with broader
ESG goals – it’s a strategy that pays dividends not just
in terms of compliance but also in fostering a resilient
and agile value chain.

Looking to the future, we need to be mindful of the role

emerging technologies and anticipated regulatory
changes will play in shaping the procurement
landscape. The potential of AI and blockchain
to enhance transparency and efficiency in our supply
chains is clear. Staying ahead of these trends is not
just about maintaining relevance; it’s about leading
the charge in defining what sustainable procurement
means in a rapidly changing world.

/ Foreword
3 48
Sustainability in procurement is as much about
seizing opportunities as it is about overcoming
challenges. It is an ongoing process of learning,
adapting and innovating. As we continue to navigate
these waters, our focus remains steadfast
on embedding sustainability into the very fabric
of procurement strategies.

As you delve into the insights and experiences

shared in this report, we encourage you to reflect
on the strategic role of procurement within your own
organizations. Embrace the opportunity to redefine
its scope and impact, and consider how it can
be transformed into a key driver of sustainable growth
and innovation in your business.

On this journey toward sustainable procurement,

we are not just reshaping our value chains; we
are reshaping the future of business itself.

Pierre-François Thaler Matias Pollmann-Larsen

Co-CEO Global Sustainable Value Chain Lead
at EcoVadis at Accenture

/ Foreword 
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Executive Summary
The primary obstacles slowing the adoption of best practices
Today’s chief procurement officers (CPOs)
needed to deliver on the sustainable procurement agenda are:
Key Findings
have an unprecedented opportunity

70%
to leverage sustainability to place 1. Lack of ongoing C-suite engagement and buy-in:
procurement at the heart of the corporate Making and expanding the business case to champion
responsible procurement initiatives and allocate resources
More than
agenda. By using sustainability as a catalyst, remains a persistent challenge for organizations. This of programs say “delivering on corporate sustainability
CPOs can transform their procurement is hindering the development of more integrated goals and commitments” is a top procurement driver.
procurement programs.
function from one focused on cost,
efficiency and risk avoidance to a strategic
partner capable of building enterprise
2. Immature sustainability skills and capabilities:
Organizations need to build and maintain a workforce
capable of executing responsible procurement strategies.
Less than 50%
resilience, achieving corporate sustainability Because procurement teams have not traditionally focused of mainstream programs use integrated ESG data
goals and driving value creation. on sustainability, new skills and capabilities are needed to “operationally inform” or “strategically engage”
to enable them to better embed it in their practices. their executive stakeholders.
This year’s Barometer surveyed nearly 600 buyers
and more than 1,000 suppliers to gain unique 3. Low ESG integration into the procurement tech stack:
insights into the state of sustainable procurement
– the challenges and opportunities – and explore
what “Sustainable Procurement Leaders” (roughly
The vast majority of organizations are still struggling
to integrate sustainability data into advanced procurement
technologies. Digitally embedding sustainability insights
Only 50%
the top 10% of programs surveyed) are doing into engagement, monitoring and analytics tools is key of companies have visibility into more than half
to accelerate their transformation. While the findings not only for responding to evolving ESG regulations but of their Tier 1 suppliers – just a quarter have 50%+
show that momentum is building and progress also for developing the level of performance management visibility into Tier 2.
has been made since the last Barometer report in needed to build resilience across the value chain.
2021, significant challenges remain for both leading

50–60%
and mainstream programs. 4. Limited value chain visibility and engagement:
Only about half of all companies surveyed have visibility
into the sustainability practices of 50% or more of their Tier
Although
1 suppliers – this drops sharply in the sub-tiers. Mainstream integrate ESG data manually or digitally
programs have been slow to adopt key supplier engagement into procurement processes, only 30% of those
activities like corrective action plans, Scope 3 carbon integrations are reported as “Very”
reduction strategies, e-learning and innovation programs. or “Extremely effective.”
The adoption rate of these activities ranges from 23 to 46%.
/ Executive Summary
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Value chain decarbonization remains a high priority So what sustainable procurement best practices can Only
for both leading and mainstream programs. Nearly CPOs prioritize to scale and accelerate their path toward
90% of leaders report that Scope 3 reductions
and net-zero targets are a top-three driver of their
program, compared to 60% of non-leaders. However,
a sustainable value chain?

1. Cultivate executive sponsorship to drive internal

6% to 25%
our findings reveal that more companies are realizing stakeholder activation and mobilization. of programs digitally integrate ESG into
the imperative of expanding their program focus Ongoing and action-oriented stakeholder engagement procurement processes.
beyond carbon. Addressing social challenges in – underpinned by ESG data – is crucial for changing
the value chain – encompassing everything from behaviors and gaining buy-in for sustainable procurement
labor and human rights issues to diversity, equity initiatives. Leaders strategically engage their executive
and inclusion (DEI) – is now a top driver for more than
70% of mainstream programs and 80% of leaders.
Other environmental impacts like biodiversity, nature-
peers across Finance, Sustainability, Operations,
and Risk and Compliance with the results and outputs
of their programs. This helps facilitate collaboration
9%
based solutions and circularity are emerging priorities capable of driving change and expanding the budget of leaders’ programs are driven by cost reduction
for roughly a third of all surveyed organizations. for new initiatives. (vs. 26% for non-leaders).

2. Engage suppliers and industry partners more actively

to accelerate the adoption of sustainable practices. Programs with “high integration” are

3 to 4 times
Through transparent and open communication with
suppliers, organizations can foster collaboration
that jointly delivers on the sustainability agenda. This
can be done through, for example, carbon reduction
programs, training and development, and industry co- more likely to have “strategic-level
innovation programs. engagement” with C-suite stakeholders than
those with “low integration.”

/ Executive Summary
6 48
3. Integrate sustainability criteria and KPIs into That said, building a sustainable procurement program
end-to-end procurement activities – from capable of enhancing resilience and consistently
source to pay. This means procurement decisions delivering sustainable value across your organization
are informed by ESG requirements not only at does not happen overnight. The most successful
the source and supplier selection level but also procurement teams invest in advanced tools to gain
through ongoing supplier relationship and risk visibility and deepen ESG engagement, integrate
management. Our findings show that programs the resulting KPIs broadly across P2P processes, align
with a high level of integration engage their team skills and incentives to outputs and leverage
suppliers more effectively. technology and data analytics to showcase their
success within the company. Over time, this helps
4. Enhance responsible procurement data secure additional support from business stakeholders
and technology capabilities by placing and enables further expansion. As companies repeat
sustainability data at the core of procurement. this internal process and deepen supplier engagement,
Organizations should look to gain a 360⁰ view they scale their potential for value creation.
of supplier sustainability performance, with data
that can be packaged into insights to drive end-to-
end procurement decision-making.

/ Executive Summary
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Introduction

/ Introduction
8 48
The Evolving Landscape of Sustainable Procurement Who did we survey
in this year’s Barometer?
Over the past few years, a unique confluence However, a significant number of companies are still in

592 1,087
the early stages of integrating sustainability practices
of forces has been reshaping the global into their procurement function. In many cases,
business landscape. The Sustainable CEO-led initiatives may not have fully trickled down
Procurement Barometer, published biennially to procurement or the function lacks the capabilities
needed to effectively implement them. Financing these purchasing suppliers
since 2007 and co-developed this year initiatives also remains a significant challenge for many. organizations
by EcoVadis and Accenture, benchmarks
sustainable procurement practices across Many companies are still merely attempting
to incrementally improve existing frameworks by,
industries and explores how they adapt
to this changing landscape. Based on online
surveys of both buyers and suppliers, followed
for example, amplifying their compliance or risk
management measures to enhance supplier transparency.
While these efforts are a step in the right direction, they
65 16%
often fail to deliver the same benefits as a more integrated countries United States
by selected interviews, the report highlights and comprehensive approach. represented 12% United Kingdom
10% France
trends around procurement priorities,
As the supply chain regulatory landscape continues 9% Germany
sustainability monitoring tools, supplier 5% India
to evolve, with reporting becoming increasingly stringent
engagement and internal process integration. and focused on actions rather than commitments, 48% Others
companies will need to evolve too. The latest study

10
The aftermath of the pandemic, combined with a series from Ivalua and Procurious underscores this shift,
of geo-economic crises and the ever-increasing revealing that 66% of procurement teams now see
focus on ESG regulations, has propelled sustainable new sustainability expectations and regulations
procurement to the forefront of the CEO agenda. as a significant source of pressure. This ranks above even sectors Top five sectors:
Accenture’s earlier study with the United Nations disruptions and shortages.
covered 28% Industrial
Global Compact showed that more than half (54%)
16% Communications
of CEOs are “strengthening visibility into the social
& media
impacts of their supply chain” and CEOs are also
focused on “encouraging their suppliers to adopt 10% Technology
sustainable behaviors,” with 33% of companies now 9% Chemicals
incentivizing ESG outcomes for their supply chain. 8% Retail

/ Introduction
/ The Evolving Landscape of Sustainable Procurement 9 48
The EU’s Corporate Sustainability Reporting Directive, For many companies, this transformation is reflected
Corporate Sustainability Due Diligence Directive in the evolving role of the procurement function,
and Carbon Border Adjustment Mechanism are just which is now gaining even more prominence within
a few of the regulations increasing scrutiny around the C-suite. The function is no longer just a means
how organizations manage their value chains to manage costs and ensure compliance. Instead,
and mitigate the risks and impacts that lie within it is increasingly being recognized as a strategic
them. With some regulations set to impose fines lever for value creation. As CEOs critically assess
for breaches, compliance is also a significant financial and recalibrate their value chains in this new
consideration for procurement teams. era, sustainability cannot be an afterthought:
It must be viewed as the foundation of an effective
But even though companies are recognizing procurement program.
the need to fully integrate sustainability into their
core procurement strategies, this report shows
that the magnitude of change required is still immense.
To remain competitive and profitable in a low-carbon
and more equitable future, companies cannot merely
modify their existing strategies; they must undergo
a holistic transformation.

Of course, the responsibility is not solely

on the shoulders of large organizations. Suppliers must
also undertake transformative actions – but without
strong incentives, their uptake of sustainable practices
may remain slow.

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Sustainable Procurement Leaders What do the Sustainable Procurement Leaders in our study have in common?

As in previous editions, this year’s Barometer

includes a special focus on Sustainable
Procurement Leaders. These organizations
are characterized by the advanced maturity Supplier Engagement Integration Transparency
These companies boast They have incorporated These companies have
of their sustainable procurement programs, which
extensive engagement with sustainability criteria visibility into at least 75%
meet criteria encompassing wide-ranging aspects their strategic and high-risk into at least four of eight of their Tier 1 suppliers, 50-
of sustainable value chain management. Roughly suppliers, using at least two procurement processes, with 75% of Tier 2 and 5-50%
of eight specified sustainable a minimum of one process of Tier 3. This indicates a deep
10% of the companies we surveyed met our collaboration activities. This being digitally integrated. This understanding and extensive
leadership criteria. indicates a proactive approach indicates that sustainability monitoring of sustainability
to ensuring that sustainability is not an add-on – practices throughout
is a shared priority throughout it is increasingly integrated into their value chain.
their value chain. their procurement strategy.

Leadership Buy-In Data Accuracy

The CFO and the CSO at These companies do
these companies are at least not rank data accuracy
strategically engaged. as one of their top-three
organizational challenges,
indicating a relatively high
level of confidence in
the data underpinning their
sustainability measures.

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/ Sustainable Procurement Leaders 11 48
The State of Sustainable
Procurement: Study Findings

/ The State of Sustainable Procurement: Study Findings

12 48
Drivers of Sustainable Procurement
Delivering on corporate sustainability goals tops the agenda as companies shift from
viewing procurement as a cost center to a value creator.

We have seen a compelling shift in procurement “Reducing risks and building resilience” is still a priority
priorities since our last Barometer report. The primary for many, although only 53% of respondents identified
focus of most sustainable procurement programs in it as a top-three driver, compared to 68% in 2021.
our 2021 study was risk reduction. While this is still an With the previous Barometer study taking place
important driver, companies are now placing greater amid the COVID-19 pandemic, many companies
emphasis on leveraging procurement to deliver were hyper-focused on reducing risks and boosting
on their corporate sustainability goals. More than 70% resilience – often at the expense of broader
of the companies we surveyed cited it as a top-three sustainability initiatives.
driver of their program – up from 63% in 2021.
The focus on cost reduction, which was at 36% in 2021,
This is indicative of a broader trend where companies, has now dropped to 25%, suggesting a significant
having publicly committed to net zero and other shift toward value-creation approaches. Insights from
sustainability targets, are recognizing the critical the Fortune Global 500 fifth annual report confirm
role of their value chain in achieving these goals. this pattern, showing that corporate sustainability
Accenture’s latest Destination Net Zero report found goals are becoming more ambitious and widespread.
that the share of companies with public targets This often comes with other pressures, whether from
continues to grow, with 37% of the world’s largest a given industry, regional laws or a company’s internal
organizations now being committed to net zero. At culture and leadership.
the same time, it also shows that impactful action
on these commitments is lagging.

Compliance with external supply chain ESG

regulations remains a primary driver but declined
from 68% to 59% in 2024. As more companies
integrate a compliance lens into their everyday
business and procurement processes, we may see this
trend continue.

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/ Drivers of Sustainable Procurement 13 48
Comparing companies’ sustainable procurement There is a clear shift toward embedding sustainability
visions and ambitions with the past edition into core business operations. More and more
of the Barometer reveals an encouraging trend. companies are adopting a transformative approach
Sustainable procurement programs are increasingly that seeks to balance immediate compliance
focusing on strategic objectives that extend beyond and risk management with long-term value creation
the goals of traditional cost-centric models. and innovation.

What are the top drivers and desired outcomes of your sustainable procurement program?
Comparison of the top three program drivers identified by survey respondents in 2024 versus 2021 (n=592).

2024 2021
71%

68%
68%
63%

59%

53%

43%

36%
25%

N/A

N/A
N/A

13%
13%
Delivering Complying Reducing risks Delivering on Reducing costs Attracting and Fostering
on corporate with external and building product/service developing innovation in the
sustainability goals supply chain resilience goals, revenue talent* supply base*
and commitments ESG regulations targets, brand
(due diligence, differentiation*
reporting, etc.)

*Questions not included in the 2021 edition of the Sustainable Procurement Barometer.

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Drivers of Sustainable Procurement: A Glance at the Leaders

Leaders have a sharper focus on using procurement to reduce risk, build resilience and achieve broader sustainability goals.

A notable 86% of leaders are focused on aligning Top drivers and desired outcomes of a sustainable procurement program:
their procurement strategies with broader corporate Leaders vs. non-leaders
sustainability goals, compared to 70% of non-leaders.
Respondents were asked to identify the top three drivers of their sustainable
Only 9% of leaders identified cost savings as a top-
procurement program in 2024 (n=592).
three driver versus a quarter of all other companies.
This underscores both a maturation in sustainable
Leaders (n=43) Non-leaders (n=549)
procurement practices and a shift among leaders
from a narrow focus on cost reduction toward
Delivering on corporate 86%
a more holistic one. sustainability goals and
commitments 70%
It also reflects the evolving role of procurement in
Complying with external 67%
not just driving compliance and risk mitigation, but supply chain ESG regulations
fostering a culture of innovation and long-term value (due diligence, reporting, etc.) 59%
creation that encompasses both financial and non-
financial goals. The emphasis on making strides toward Reducing risks and building 72%
more ambitious corporate sustainability goals reflects resilience 52%
an elevated vision for procurement that champions
strategic, sustainable growth over mere cost efficiencies. Supporting growth (delivering on 40%
product/ service goals, revenue
targets, brand differentiation) 43%
However, this positive observation comes with a caveat:
Achieving corporate sustainability goals is essential Fostering innovation in the
14%
but not the sole factor in building the momentum supply base 13%
needed for value creation. Companies must also ensure
they do not get so singularly focused on these goals 9%
that they overlook broader opportunities. Transitioning Reducing costs
26%
to comprehensive value creation – encompassing
both financial and non-financial aspects – requires 7%
foundational capabilities, such as visibility, ESG Attracting and developing
talent 13%
skills and data.

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Sustainable Procurement Program Age vs. Best Practice Adoption:
Newer Programs Overtaking Older Ones

Sustainable procurement programs, irrespective This trend not only serves as encouragement
of their age, are increasingly focusing on strategic for organizations embarking on their sustainable
objectives beyond those of traditional cost-centric procurement journey but also acts as a wake-up call
models. However, our findings show that “newer” for long-standing programs experiencing stagnation.
sustainable procurement programs are adopting best It is a clear indication that emerging programs
practices, such as sustainability-related target setting, developed with sustainability at their core from
at a rate equal to or even greater than programs the outset are poised to overtake more established
seven years or older. These newer initiatives often ones that have been slow to evolve.
exceed the adoption levels of programs between four
and six years old.

Best practice adoption by sustainable procurement program age

Less than 1 year 1 to 3 years 4 to 6 years 7 to 10 years More than 10 years

39% 40%
38%
35% 35%
31% 31% 30%
28% 28% 27% 27%
25%
21% 21% 20%
16%
13%
9% 8%

Risk mapping Guidelines on best Targets are set for buyers/ Industry initiatives for
sustainable purchasing category managers supply chain sustainability
practices per commodity

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Sustainability Focus Areas
Supplier workforce practices and decarbonization remain the focus of most companies’
sustainable procurement programs – but the focus is broadening.

Supplier workforce practices are at the forefront Supplier diversity is recognized by 25% of respondents,
of ESG issues shaping sustainable procurement indicating a growing expectation for procurement
strategy over the coming two to three years, with 70% strategies to contribute to broader social goals, such
of respondents identifying them as a significant factor. as eliminating human rights abuse and promoting
This aligns with a growing awareness around the need DEI. This focus area is becoming more prominent
to take action on labor and human rights throughout as organizations seek to build resilience
global value chains, as well as an increasingly stringent and innovation within their value chains by diversifying
due diligence landscape. their supply base.

A focus on net zero and Scope 3 emissions Overall, these findings suggest that while
tops the environmental agenda, with 63% decarbonization remains a cornerstone of sustainable
of respondents identifying them as key drivers procurement, there is a clear broadening
of their strategy. This underscores the continued of focus. Organizations are facing growing
emphasis on decarbonization as a priority. However, pressure – from governments, investors, consumers
as the regulatory landscape continues to evolve and other stakeholders – to develop comprehensive
and expectations around other sustainability areas procurement strategies that address a broad spectrum
grow, we expect other issues to gain prominence. of sustainability issues.
For instance, non-carbon environmental impacts,
such as water use and waste management, are now in
the top three focus areas for a third of respondents.

Circularity was identified as a leading issue by 31%

of companies. This reflects the growing importance
of more sustainable resource use and a move away
from the traditional linear economy.

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Sustainability Focus Areas: A Glance at the Leaders

Leaders are shaping their short-term procurement strategy around carbon and supplier workforce practices.

Leaders are placing much more emphasis What are the most significant ESG issues shaping your sustainable procurement
on “net zero and Scope 3 emissions,” with strategy over the next 2-3 years?
86% acknowledging it as a top-three driver
Respondents were asked to identify the top three ESG issues shaping their short-
compared to 60% of non-leaders. However, while
term strategy (n=443).
this gap highlights leaders’ heightened focus
on decarbonization, a study by Accenture found
Leaders (n=43) Non-leaders (n=400)
that just 7% of companies across global value chains
are on track to meet their carbon reduction targets. Social/supplier workforce practices‚
81%
(human‚ rights, child labor, employee
This points to the scope of the challenges that lie health and safety, anti-racism, non- 69%
ahead, even for companies with a relatively mature ).discriminaton, etc
sustainable procurement program.
86%
Net zero and Scope 3
carbon emissions 60%
“Social/supplier workforce practices” are also
receiving more attention from leaders. More than
80% are prioritizing them in their short-term strategy, Ethical business practices 53%
(anti-bribery, anti-corruption, carbon
compared to 69% of non-leaders. This shows a robust offset credibility, etc.) 56%
commitment to the social pillar of ESG and a broader
conception of value that includes human rights Non-carbon environmental impacts 26%
and worker safety as key performance indicators. (water, biodiversity, other waste
or pollution, product use/end of life, etc.) 33%

Overall, the findings suggest that leaders are deeply Circularity (allocating spend to support a 23%
aware of the strategic and long-term imperatives business model of sharing, leasing, reusing
repairing, refurbishing and recycling) 32%
of ESG issues. However, they too are met with
widespread challenges – for example in achieving
Supplier diversity 23%
net-zero goals – necessitating a holistic approach (allocating spend to support
to sustainability. diverse-owned suppliers) 25%

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Extent of Deployment: Transparency and Visibility
Overall supply chain ESG visibility remains low, as does the adoption of risk and hotspot mapping.

Findings around the level of ESG transparency How much ESG visibility do you have into the first three tiers of your value chain? Use of risk and hotspot mapping:
and visibility into the first three value chain Leaders vs. non-leaders (n=549)
Respondents identified the percentage of suppliers they have visibility into at
tiers reveal a concerning trend. Only about half
each tier. For example, 27% of companies have visibility into 75%+ of their Tier 1
of companies have visibility into more than 50%
suppliers (n=369).
of their Tier 1 suppliers, with only 27% having visibility
into more than 75% of suppliers.
0-5% of suppliers 5-50% of suppliers 50-75% of suppliers 75%+ of suppliers 78%

For Tier 2, only about a fifth of the companies 63%

surveyed have visibility into 50% or more of their
suppliers’ sustainability practices. This figure drops 50%
47%
to 15% for Tier 3 suppliers.

30% 29%
This shows that overall visibility into supplier 27%
23% 22%
sustainability practices is relatively low. While 20%
15% 6% 6%
a growing number of companies have strong 9%
oversight of their value chain when it comes to ESG,
many are still struggling to gain sufficient Tier 1 Tier 1 Tier 2 Tier 3 Leaders Non-
transparency. leaders

However, these low levels of visibility are not

surprising given the average level of risk and hotspot
mapping, which is 78% for leaders but only 47%
for other companies.

Cost remains an issue, but supply chain data is increasingly becoming

the most difficult and urgent need to drive improvement. We need
greater visibility over supplier performance in Tier 2, 3 and beyond.
Agriculture company based in the UK
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Engaging Suppliers on To look at how companies are working
with suppliers on sustainability,
The first three are considered
measurement tools that support risk
For mainstream programs (i.e.
non-leaders), fewer than half
Sustainability the Barometer quantified the uptake avoidance and value preservation, are engaging suppliers in these
of seven supplier engagement while the latter four are strategic activities, compared to most or nearly
activities fundamental to sustainable enablers for capacity building, all leaders. The difference is even
Leaders are much more procurement: supplier self- improvement and, ultimately, value more pronounced for strategic/
likely to engage their declarations (SAQs), third-party creation. Companies tend to undertake performance-enabling activities.
supplier sustainability databases these types of activities once their
suppliers on sustainability
and ratings, onsite audits, corrective program has begun to mature.
through both assessment action plans, greenhouse gas (GHG)
and strategic activities. reduction programs, ESG supplier
training programs and innovation/
preferred supplier programs.

Proportion of leaders vs. non-leaders using various activities to engage their strategic or high-risk suppliers (or both) on sustainability (n=592)
Both strategic and high-risk suppliers High-risk suppliers Key/strategic suppliers

28% 14%
14% 26%
5% 37%
0% 21% 16% 44%
16% 2%
7%
26% 16% 17% 2%
65% 67% 15% 22%
4% 7% 53% 53% 13% 9%
44% 9% 9% 42% 4% 4% 37% 3%
23% 23% 17% 20% 16% 13% 11%

Leaders Non- Leaders Non- Leaders Non- Leaders Non- Leaders Non- Leaders Non- Leaders Non-
leaders leaders leaders leaders leaders leaders leaders

Supplier self-declarations Third-party supplier Onsite audits Corrective action Decarbonization Supplier ESG Innovation and
of sustainability practices sustainability databases and plans programs training and preferred supplier
(SAQs) ratings e-learning programs programs

Assessment and measurement activities Strategic/performance enablers for value creation, capacity building,
that support risk avoidance and value preservation improvement and mitigation

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/ Engaging Suppliers on Sustainability 20 48
The proportion of leaders targeting key and high-risk Average number of strategic engagement
suppliers through measurement tools and activities activities by assessment type (n=592)
is about 1.9 times greater than for other companies.
For example, nearly all leaders employ “supplier self- Companies using SAQs but Companies using a combination
declarations” and 80% use third-party databases/ not third-party sustainability of SAQs and sustainability
ratings to assess supplier performance. In contrast, databases/ratings databases/ratings
these figures drop to 55% and 45% respectively
among non-leaders.
2.8
2.5
This difference is more pronounced as engagement
deepens with the strategic mitigation
and improvement activities critical for value creation:
GHG emission reductions, corrective action plans, 1.5
1.3
training and e-learning, and innovation programs.
The adoption rate of these activities by leaders is 2
to 2.3 times higher than that of other companies.

For “all other spend” – beyond just strategic or high-

risk suppliers – we see an even greater difference
Key/strategic suppliers All other spend
in the adoption rate of ESG engagement activities
by leaders versus the typical company.

Additional analysis shows that companies using

third-party sustainability databases (ESG ratings
or scorecards) in combination with SAQs conduct
more of the strategic activities: Up to an average
of 2.8 activities (out of four) by programs that use
a combination of third-party ESG ratings and SAQs,
versus those who do not use third-party ESG ratings.

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Integration of ESG Indicators Into Procurement
Only 6-25% of most programs (non-leaders) are digitally integrating ESG data into
their procurement processes.

Procurement processes are essential touchpoints in a procurement system – remains relatively low
the commercial relationship for measuring, managing for all processes. Spend analytics has the highest
and improving supplier performance. How broadly level of digital integration at 25%, followed closely
and effectively procurement teams incorporate ESG by ordering systems and catalogs at 24%.
metrics into their processes determines sustainability
visibility and influences procurement decisions like Similar to the ESG engagement activities in
signing or renewing contracts with more sustainable the previous section, we can classify these
suppliers. It also has a bearing on performance integration points according to how they support
improvement as these relationships mature. However, and accelerate the path to sustainable value
digital integration of ESG data – via an Application creation across a spectrum of activities – from
Programming Interface (API) that connects with transactional to strategic.

How effectively are you integrating ESG data into your procurement processes?
Respondents were asked whether they have digitally or manually integrated ESG data into the following
practices (n=380).
Manually integrated Digitally integrated (e.g., via an API)

14% 9%
16% 13%
53% 25% 13%
44% 47%
24% 41% 40% 6%

27%
22%
18%

Sourcing/ Ordering Risk Criteria in Contracting of Spend Supplier Criteria for

selecting new systems and management RFP/RFx suppliers analytics relationship supplier
suppliers catalogs tenders management incentive/
recognition
programs

/ The State of Sustainable Procurement: Study Findings

/ Integration of ESG Indicators Into Procurement 22 48
 Comparison of the share of leaders versus non-leaders reporting “extremely effective” or “very effective”
Leaders are more effectively integrating ESG integration into their procurement processes (n=380)
ESG data into their transactional
Leaders Non-leaders
and strategic processes.

54%
Digging deeper, we can see that leaders report
significantly higher levels of effective ESG integration

43%
42%
into procurement processes. This is true across

41%
39%
the entire process spectrum. Leaders are roughly

35%

35%
32%

32%
twice as likely to effectively integrate ESG into

28%
27%
all transactional processes except for ordering

22%
19%
18%

18%

18%
systems and catalogs. On the strategic front, leaders
are excelling at integrating ESG into their spend
analytics and supplier relationship management – two
processes with significant improvement and value Sourcing/ Ordering systems Risk Criteria in RFP/ Contracting of Spend Supplier Criteria for
selecting new and catalogs management RFx tenders suppliers analytics relationship supplier incentive/
creation leverage. suppliers management recognition
programs
This level of integration with spend analytics – and its
reported effectiveness – is consistent with feedback
we received from interviews and open-text answers Transactional Strategic
highlighting the vital role it plays in internal stakeholder
activation. Combining ESG performance data with More transactional processes (such as sourcing, More strategic processes and touchpoints (such as
spend analytics provides insights that procurement ordering catalogs or tenders) are associated with supplier relationship management, analytics and
leaders can use to communicate the impact of their “baseline” ESG measurement activities like assessments incentive programs), where the integration of ESG
program to C-suite peers. Buyers and category and ratings. can create value by enabling risk mitigation, capacity
managers can also use this integrated spend building, improvement and internal stakeholder
data to gauge program progress at the portfolio/ activation.
team, category, product or business line level,
providing a foundation for target setting and further
stakeholder engagement.

/ The State of Sustainable Procurement: Study Findings

/ Integration of ESG Indicators Into Procurement 23 48
Internal Stakeholder Engagement
Procurement programs with high integration better activate internal stakeholders
and adopt best practices around supplier collaboration.

The activation and engagement of internal Programs reporting high integration levels have
stakeholders are essential components of any best practice adoption rates 1.7 to 2 times higher
program’s success. In the context of sustainable than those with lower integration. These best
procurement, the Barometer explores two key practices include establishing targets for buyers,
domains: 1) activating buyers/category managers; incorporating sustainability tags into purchasing
and 2) engaging executive stakeholders. It is clear catalogs and collaborating with suppliers on ESG
that engaging and activating buyers and category and innovation.
managers to take action on ESG insights in their daily
procurement activities aligns strongly with integration.

How does the level of procurement integration influence the adoption of best practices around
sustainability and supplier collaboration?
Targets are set for buyers/category managers on Sustainability tags in Supplier collaboration
supplier sustainability monitoring and performance buying catalogs and co-innovation programs
63%

50%

36%
32%
29%
20% 20%

7% 9%

Low integration Moderate integration High integration

(n=71) (n=118) (n=39)

/ The State of Sustainable Procurement: Study Findings

/ Internal Stakeholder Engagement 24 48
 Leaders are ensuring their organization has a core understanding of sustainability. Skills related to green
procurement strategies are increasingly important to all companies.

Companies understand the critical importance Comparison of the sustainability-related skills most valued by organizations over
of working closely with suppliers, not just in terms the past two years versus those most desired in the coming two years (n=418)
of transactional relationships, but in managing
and improving sustainability practices: Supplier
relationship management and engagement topped Most-valued skills over Most-desired skills in
the past two years the coming two years
the list of skills that procurement organizations Leaders Non-leaders
(respondents chose 3) (n=418) (n=375) (respondents chose 3)
valued the most over the past two years, with 61%
of respondents highlighting it.
58% Core understanding of sustainability/ 60%
ESG scope, materiality by category and
Looking at the most-desired skills in the coming 52% 51%
location, and risk analysis
years, leaders have identified a core understanding
of sustainability as their top priority, closely followed
by supplier relationship management. For non- 61% Supplier relationship management 56%
leaders, green procurement strategies have surged and engagement (corrective actions,
62% 50%
collaboration, etc.)
in importance, moving from fifth to third place.
The data reveals that leaders have prioritized green
procurement at a higher rate than the average 35% Green procurement strategies 53%
company over the past two years. (segmentation, lifecycle/environmental
23% 52%
impact assessment, etc.)

This trend extends to ESG data analysis and reporting

skills, which 40% of leaders (versus 22% of others) 40% 37%
ESG data analysis and reporting
valued in their top three over the past two years. 22% 38%
Roughly the same percentage of leaders and non-
leaders alike are now emphasizing this skill. This aligns
with other findings showing that digital integration 40% Compliance and regulation expertise 23%
of ESG data into spend analytics is becoming a top 38% (including anti-corruption/anti-bribery) 20%
priority for all companies.

/ The State of Sustainable Procurement: Study Findings

/ Internal Stakeholder Engagement 25 48
Engaging Executive Stakeholders Across Business Functions
Technology and data remain key elements at every stage of the engagement process that builds executive
stakeholder buy-in.

Building and scaling a successful sustainable How effectively are leaders and non-leaders engaging and activating their internal
procurement program hinges on engaging stakeholders? (n=371)
and mobilizing relevant stakeholders within
the organization. In today’s world, effective
engagement requires the ability to credibly Strategically engaged: Supplier-specific Operationally informed: Some data is N: Non-leaders L: Leaders
data is available across stakeholder channels available to stakeholders and used to steer
present data-backed outputs across a wide range and frequently used in decision-making. decision-making.
of procurement challenges, from risk mitigation
to resilience building. Some are going even further
by demonstrating how their sustainability efforts
are enhancing brand value, driving revenue growth
and reducing total cost of ownership. With this
heightened data visibility, leaders can also build 51% 35% 40%
58%
stronger cases for transitioning toward circular 37%
30%
and low-carbon business models. 19%
19% 16%
27%
As these companies refine their approach, they 14% 13% 13% 7%
are increasingly relying on advanced technology 51% 47%
and tools, including deeper digital integrations. These 42% 42% 42%
21%
42%
35% 33%
26% 32%
integrations provide the data analytics and reporting 24% 27% 27%
companies need to highlight their achievements
and build credibility. This credibility attracts additional
N L N L N L N L N L N L N L
support from stakeholders, enabling further growth.
The cycle can then be repeated, uncovering new CSO (Chief Finance/CFO/ Product/Service Marketing & Sales HR/Talent Risk & Operations
opportunities for value creation with each iteration. Sustainability/ Investor Relations Design Management Compliance/
Climate Officer) Reporting

/ The State of Sustainable Procurement: Study Findings

/ Engaging Executive Stakeholders Across Business Functions 26 48
The Ingredients for The cross-correlation between “integration of ESG into procurement
processes” and “internal stakeholder engagement” shows a clear pattern:
Stakeholder Engagement Companies with a high degree of ESG integration are more likely to have
“strategically engaged” stakeholders, the highest level of engagement.
This indicates that integrating ESG considerations into procurement is not
Companies with a higher degree only a prerequisite for stakeholder engagement but also a strong enabler
of ESG integration have more of more strategic engagement.
strategically engaged stakeholders.

n=371) Correlation of ESG integration with achieving a “strategic“ level of stakeholder engagement(

High integration Moderate integration Low integration

43%
39%

28% 27%
25% 24% 26%
24%

17% 18%

13% 12%
9% 10% 10%
7% 7% 8% 8% 7% 6%

CSO Finance/ Product/ Marketing & Sales HR/ Risk Operations

(Chief CFO/Investor Service Design Talent & Compliance/
Sustainability/ Relations Management Reporting
Climate

/ The State of Sustainable Procurement: Study Findings

/ The Ingredients for Stakeholder Engagement 27 48
Sustainable Procurement
Benefits and Reporting

/ Sustainable Procurement Benefits and Reporting

28 48
 Benefits
Risk mitigation remains a top benefit of sustainable procurement, but with effective
internal engagement, the advantages reach much further.

Risk mitigation is the primary benefit Companies with higher levels of ESG integration
that organizations in our study are realizing through are seeing a notable increase in the benefits and value
their sustainable procurement programs, identified they derive from their sustainable procurement
by 77% of leaders and 57% of other companies. efforts. This trend is especially significant in terms
Furthermore, increased value chain resilience of “increasing sales revenue,” where there is a 70%
– an attribute increasingly important in a volatile higher incidence of reported benefits among
economic landscape – was cited as a key benefit respondents with high integration compared
by roughly 38% of companies across the board. to those with low integration. When it comes
to the development of “new, innovative sustainable
Sustainable procurement practices are yielding products,” those with high integration report a 75%
cost savings for 37% of leaders and 30% of other increase in benefits over counterparts with lower
companies. A third of leaders – versus 29% of non- integration levels.
leaders – report that their program is enabling them
to develop innovative and sustainable products
and services. This suggests that sustainability
is increasingly becoming a key driver of innovation
and differentiation in the marketplace.

Furthermore, improvements in procurement metrics,

such as spend under management and stronger
supplier relationships, are noted by 35% of leaders.
In contrast, only 28% of other companies report
similar improvements, indicating a correlation
between sustainable procurement and operational
performance enhancements.

/ Sustainable Procurement Benefits and Reporting

/ Benefits 29 48
 What benefits has your organization derived from its sustainable procurement program? (n=366)
Leaders (n=43) Non-leaders (n=323)

77%
Mitigating risks
57%

37%
Increasing resilience
38%

37%
Saving costs
30%

New, innovative, sustainable products and services 37%

that enable access to new categories, price
premiums from differentiation, etc. 29%

Improving procurement metrics, such as spend 35%

under management, quality, on-time delivery,
realized savings and stronger supplier relationships 28%

Increasing sales revenue due to improved 26%

reputation and/or customer requirements 25%

Improved ranking in sustainable 26%

financial indices 20%

Improvements in procurement 9%
department talent retention/acquisition
and productivity 17%

The benefits become even more pronounced This inclusive approach to sharing sustainable
when the results of sustainable procurement procurement outcomes has a direct correlation
are communicated beyond traditional risk with increased sales revenue and the introduction
and compliance stakeholders. By engaging a wider of innovative products and services, underscoring
audience across various organizational functions – like the value of broad-based stakeholder engagement
finance, sales and marketing, product/service design in amplifying the impact of sustainable
and HR/talent management – companies are realizing procurement practices.
significant advantages.

/ Sustainable Procurement Benefits and Reporting

/ Benefits 30 48
 Commitments and Public Reporting
More leaders report on sustainability KPIs and commitments versus other companies,
but practices are likely to evolve as regulations tighten.

Examining current practices in supply chain As the regulatory landscape tightens, many companies
sustainability monitoring and reporting reveals will need to adapt their approach and practices.
that nearly half of non-leaders and 70% of leaders The growing emphasis on transparent target setting
include supply chain sustainability data and KPIs in and stricter reporting suggests that companies
their annual sustainability reports. More than half operating at basic or intermediate levels of compliance
of leaders report this data to aggregated platforms, should improve their systems, data granularity
compared with 38% of other companies. The majority and overall responsiveness to regulations. Future
of leaders and 34% of other companies have publicly sustainability strategies will likely require a shift toward
communicated net-zero value chain targets, which more advanced monitoring and reporting practices
reflects a proactive approach in line with global – akin to those currently employed by 13% of leaders
decarbonization trends. – to meet the demands of a stricter regulatory
environment and stakeholder expectations.

How are companies monitoring and reporting on their value chain commitments/targets? (n=363)
Leaders (n=43) Non-leaders (n=320)

We include supply chain 70%

sustainability data/KPIs in our
annual sustainability reports 45%

We report supply chain sustainability 56%

data/KPIs to aggregated platforms 38%

56%
We have published net-zero supply
chain targets/commitments 34%

33%
Regulatory disclosures
25%

19%
Other external reporting
17%

/ Sustainable Procurement Benefits and Reporting

/ Commitments and Public Reporting 31 48
Supplier Perception
and Engagement

/ Supplier Perception and Engagement

32 48
The supplier survey is instrumental in However, a similar proportion (46%) view buyers’
sustainability efforts as “important only on paper” and
understanding suppliers’ motivations 3% believe it is just “not a priority” for their customers.
and perceptions around sustainability. This near fifty-fifty split highlights a significant
The insights gathered reveal the factors discrepancy between buyers who are perceived as
true sustainability partners versus those whose efforts
that drive suppliers to engage in sustainable appear to be purely for compliance or perception
practices and how they view their customers’ purposes.
commitment to sustainability.
Supplier perception: How would you characterize
The data reflects a significant divide in suppliers’ your customers’ commitment to sustainability?
perceptions of their buyers’ sustainability (n=1,087)
commitment. Nearly half of respondents acknowledge
that buyers place sustainability at the forefront,
actively engaging with suppliers and integrating 46% 45%
sustainability into their commercial relationships.

This group feels recognized and incentivized to 7%

enhance their sustainability practices, indicating a 3%
genuine, action-oriented commitment from buyers.
Sustainability Sustainability We are the Sustainability is
is important to is top of mind ones driving not one of their
them on paper, and they sustainability priorities
but it is not actively partner
integrated into with us, link
our relationship sustainability to
with them our commercial
relationship,
and engage
and incentivize
us to improve
practices

/ Supplier Perception and Engagement

33 48
When it comes to the strategies that buyers use The survey also sheds light on the most effective
to encourage their suppliers to take action on strategies that customers could adopt to further
sustainability, contract compliance is the most encourage supplier participation in sustainability.
common (cited by 56% of respondents). This Offering incentives for improved sustainability
contractual approach plays a foundational role in performance is the most desired approach, with 45%
formalizing sustainability commitments. Collaboration of suppliers advocating for it. This indicates a strong
on sustainability strategies, noted by 45% of suppliers, belief in the power of tangible rewards and benefits to
is another important encouragement tactic. drive sustainable actions. The dissemination of best
Furthermore, 37% of suppliers are incentivized by practices through case studies is another top strategy,
performance targets, suggesting that having clear, with respondents seeing significant value in learning
quantifiable goals is crucial for advancing sustainability from successful examples. Additionally, the definition
within value chains. of metrics and goals, as highlighted by 41% of suppliers,
emphasizes the need for clear benchmarks to aim for
and measure progress against.

Supplier perspective: What strategies do your customers use to encourage your participation in their
sustainability initiatives? (n=1,087)

Compliance through contract terms 56%

Collaboration on sustainability 45%

improvement strategies

Sustainability performance targets 37%

Education around sustainable practices 37%

Onsite audits 31%

None of the above 7%

/ Supplier Perception and Engagement

34 48
Summary of Obstacles
and Challenges

/ Summary of Obstacles and Challenges

35 48
Sustainable procurement obstacles span the key touchpoints of internal and external
stakeholders, systems and data.

The practices and limitations observed The key challenges we identified through
across the programs we surveyed highlight our analysis and interviews with select survey
respondents include:
significant differences in the maturity
of sustainable procurement strategies. In Inadequate visibility into upstream supply chain
terms of strategic ambition, the top three ESG risks and performance: This lack of visibility
often keeps procurement from prioritizing
drivers and desired outcomes were the same the right engagement investments. Roughly half
for both cohorts, with “delivering on corporate of all companies have visibility into the sustainability
practices of 50% or more of their Tier 1 suppliers – only
sustainability goals” at the top. Leaders 27% have visibility into 75%+ of their suppliers. Going
put slightly more emphasis on “building deeper, half of companies have visibility into fewer than
resilience” over “compliance with regulations.” 5% of their Tier 2 suppliers. About a fifth of companies
have visibility into more than 50% of Tier 2 – this drops
Mainstream programs place more emphasis to 15% for Tier 3.
on traditional goals like cost reduction, cited
by 25%, compared to 9% for leaders. Despite Supplier engagement and collaboration practices
are too limited: Fewer than 50% of mainstream
these differences in strategy, there are shared programs engage suppliers with assessments
challenges that all companies continue to face or audits, and an even lower proportion engage in
the four strategic activities that are instrumental
– even the leaders. to improving performance and building a foundation
for value creation: corrective or improvement action
plans, GHG/carbon emissions reduction programs,
e-learning and training, and innovation programs.

/ Summary of Obstacles and Challenges

36 48
Integration of ESG data into procurement processes Organizational skill deficits: Developing talent
and touchpoints is not broad, deep or effective with critical ESG knowledge and skills is essential
enough: On the transactional end, 63% fail to integrate to implementing sustainable procurement in
ESG criteria into risk management systems, and 65% practice. Leaders have been emphasizing green
are lacking integration into RFx systems where, procurement skills and ESG for a few years – the rest
for example, the results of assessments or ratings of the respondents are now catching up.
can be used as weighted criteria in decision-making. From another perspective, 43% of suppliers in our
Perhaps more critically, there is a clear deficiency in survey believe that their customers’ commitments
the integration of ESG into more strategic activities to sustainability are “important to them only
like supplier relationship management processes, with on paper.” This suggests a gap in trust, perception
only 34% of companies currently doing so. That means or consistency around the prioritization of ESG across
that two-thirds of all companies surveyed are missing all channels of interactions in the buyer-supplier
the opportunity to leverage this vital commercial commercial relationship. This finding echoes gaps
engagement process for continuous performance and inconsistencies in the visibility, engagement,
improvement, which is fundamental for sustained integration, digitization and talent development
value creation over time. Lastly, mainstream programs processes noted above.
report that only 30% of their integrations are “very
or extremely effective.” Securing ongoing C-suite engagement and buy-in
to support the sustainable procurement business
Missed opportunities to leverage data case is a persistent challenge: Fewer than 50%
and technology: Digital technology can act of mainstream (non-leader) programs “strategically
as a catalyst for sustainable procurement, as many engage” or “operationally inform” their executive peers
companies grapple with making data usable in in Sustainability, Risk and Compliance or Operations
procurement functions. “Digital integration” refers with the outputs and results of their program. This
to plugging ESG KPIs and insights directly into figure drops to less than 40% for CFO/Finance,
procurement software (e.g., passing data directly Product/Service Design and Marketing & Sales.
via an API to procure-to-pay suites or standalone Interestingly, this is an ongoing challenge: When
systems) for the processes noted above. It can put asked to rank “critical factors needed to accelerate
ESG data directly into the dashboards and supplier their programs,” leaders ranked “broader/deeper buy-
profiles that buyers use daily, accelerating decision- in and alignment from other business stakeholders”
making and facilitating analysis and insights. Despite much higher than any other factor. This underscores
these benefits, digital integration remains low across that building an effective sustainable procurement
all processes. Spend analytics is the process with program requires ongoing and effective engagement
the highest level of digital integration – adopted with executive stakeholders.
by 25% of companies. At the low end of integration
are supplier relationship management (8%)
and RFx systems (6%).

/ Summary of Obstacles and Challenges

37 48
Critical factors necessary for accelerating sustainable procurement and value chain outcomes within
the organization (ranked by importance)
Respondents were asked to rank each factor on a scale from 1 to 7 (with 7 being the most critical)(n=359).

Leaders (n=43) Non-leaders (n=352)

Broader/deeper buy-in and alignment 5.3

from other organizational stakeholders
4.3

4.2
More internal resources/specialized skills
4.5

Technology and tools to collect supplier 4.2

sustainability data and integrate it into
procurement processes 4.3

4.2
Stronger CEO/board sponsorship
4.1

Improving the supplier engagement rate and 3.6

overcoming supplier resistance or “survey fatigue”
3.5

Stronger business case/concerns around costs 3.4

(e.g., sustainable procurement program costs,
supplied goods and services) 3.3

3.1
Reliable data sources and insights
4.1

/ Summary of Obstacles and Challenges

38 48
Best Practices and Formula
for Success

/ Best Practices and Formula for Success

39 48
Unlocking Value Through Sustainable Procurement
Building a sustainable procurement program capable Engage suppliers more deeply to accelerate
of enhancing resilience and consistently delivering the adoption of sustainable practices: Crucial
sustainable value across your organization does not for advancing an organization’s sustainable supply
happen overnight. The most successful procurement chain program, supplier engagement must go beyond
teams invest in advanced tools to gain visibility mere disclosure and assessment. It should encompass
and deepen ESG engagement, integrate the resulting collaboration on improvement and capacity building,
KPIs broadly across P2P processes, align team skills foster a shared commitment to sustainability goals,
and incentives to outputs and leverage technology promote enhanced and enriched transparency
and data analytics to showcase their success within and encourage innovation in sustainable practices.
the company. This helps secure additional support
from the business stakeholders and enables further Almost twice the proportion of programs
expansion. As companies repeat this internal process that use third-party ESG ratings combined with
and deepen their supplier engagement, they scale other disclosure tools follow through with strategic
their value-creation potential. engagement activities with an average of 2.8 vs.1.5
activities by those that do not combine those tools.
Cultivate C-suite executive sponsorship to drive These deeper activities (corrective action, carbon
internal stakeholder activation and mobilization: reduction, e-learning or innovation programs) drive
Ongoing and action-oriented stakeholder supplier ESG improvement and produce richer
engagement – underpinned by ESG data – data and insights.
is crucial for changing behaviors and gaining buy-in
for sustainable procurement initiatives. Over 80% Deeply integrate supplier sustainability data into
of leaders strategically engage or operationally inform your end-to-end procurement approach: Unlocking
their executive peers across Finance, Sustainability, the value of supplier ESG engagement efforts
Operations, and Risk and Compliance with and the associated data throughout the procurement
the results and outputs of their programs. This level and supplier relationship workflow is crucial for CPOs
of engagement helps expand the budget and facilitate and C-suite executives aiming to advance their
collaboration capable of driving change. sustainable value chain initiatives. Integrating ESG
with a robust technological approach can not only
improve integration by automating transactional
processes like sourcing and tenders but is also
vital to extending this to strategic elements such
as spend analytics.

/ Best Practices and Formula for Success

/ Unlocking Value Through Sustainable Procurement 40 48
This extension enables real-time data insights Incorporate sustainability into job descriptions,
and integration with supplier relationship promotions and compensation for roles such
management systems, fostering ongoing as buyers, category managers, supplier relationship
improvement, collaboration and innovation with managers and risk and compliance positions. This
suppliers. This approach enhances the effectiveness approach provides incentives for these individuals
and efficiency of sustainability efforts, accelerating to adopt a more strategic approach to sustainability.
mutual value creation.
Use new tools and technologies to boost N-tier
Enhance ESG technology and digital capabilities transparency and gain an understanding of supplier
to ensure reporting and improvement programs sustainability impacts and opportunities:
are built on a solid foundation: Reliable and accurate Transparency provides a comprehensive view
data plays a pivotal role in propelling an organization’s of the supplier footprint, highlighting both growth
sustainable procurement program forward. opportunities and potential pitfalls. This can
It facilitates informed decision-making, precise be achieved through methods like predictive risk
tracking of sustainability metrics and the identification mapping and prioritizing investments in building
of areas for improvement, ultimately driving more transparency, including supplier-specific disclosure
effective and impactful sustainability initiatives. and analysis. More than 70% of leaders are using risk
It is also essential for building and maintaining and hotspot mapping tools to prioritize engagements,
a solid business case to ensure continued C-suite compared to just 47% of non-leaders.
stakeholder support.
Crucial for advancing an organization’s sustainable
Invest in people and maintain regular engagement supply chain program, N-tier transparency enables
with internal stakeholders to integrate sustainability leaders to identify risks, inform engagement
into everyday business processes: A skilled strategies and guide investments in responsible
and motivated workforce is vital for implementing sourcing practices.
and managing sustainability initiatives, ensuring
compliance and driving continuous improvement.
Their expertise and commitment are crucial factors
for the success of a sustainable supply chain program.

/ Best Practices and Formula for Success

/ Unlocking Value Through Sustainable Procurement 41 48
 A Global Real Estate Leader’s Agile Sustainable Procurement Strategy

It began in 2018 with the launch This data focus garnered internal visibility
CBRE’s success in of a new global procurement organization and credibility for the program, enabling its
and the appointment of a new technology integration into company governance areas
building a sustainable and operations lead. CBRE gained clarity such as sustainable financing. The improved
on data, devised a technology roadmap data was the foundation for CBRE to start
procurement program and established partnerships to inform its understanding its supply chain emissions,
sustainable procurement strategy. To achieve initially using spend based methodology
shows the power of an a truly integrated approach, the first step was and leveraging industry emission factors such
consolidating data from multiple finance as Environmentally Extended Input-Output
integrated approach focused and procurement systems into one central and World Input-Output.
location. This data journey spanned CBRE’s
on continuous improvement global presence and 65 regional disparate Understanding the importance of supply chain
regional sources.
that tackles the complexity emission reduction measurement to meet its
net zero commitments, CBRE implemented
of supply chains. The result is a consolidated data warehouse a project enabling suppliers with little to no
enabled by Snowflake and Tableau grasp of their own emissions to calculate them,
solutions, providing CBRE with the ability including across Scope 3. Seeing the potential
to disaggregate spend and procurement to provide transparency, accurate emissions
data, and enabling a focus on sustainable data and the ability to influence the commercial
procurement priorities. real estate supply chain, CBRE developed its
Net Zero Supply Chain product.
In 2019, CBRE partnered with EcoVadis
to overlay its suppliers’ use of sustainable This strategic move linked the programs
management practices onto global spend of supply chain data, supplier collaboration
and procurement data. This includes and education to revenue generation. CBRE
leveraging a dedicated Supplier Diversity transformed a scalable program into a strategic
Program to demonstrate both Tier 1 and Tier differentiator and enabled the funding of tools
2 supplier data. Both sustainable and diverse and training for suppliers, procurement
spend now have annual spend KPIs, mapped and sustainability staff globally.
against a multi-year growth program.

/ Best Practices and Formula for Success

/ Unlocking Value Through Sustainable Procurement 42 48
Conclusion and Outlook

/ Conclusion and Outlook

43 48
As the global community raises The gradual transformation of the procurement
function will also necessitate a foundational shift
the bar on sustainability, the definition across industries – from manufacturing to retail
of “sustainability leadership” is also to services – to ensure that ESG fundamentals are not
transforming. The journey is progressing only established but are digitally scalable. This entails
building a solid foundation of policies, processes
from a mere compliance and “do no and skillsets that resonate with the digital age.
harm” approach to one that strives for net
positive impact. Looking ahead, the challenges and opportunities
for procurement lie in bridging the gap between
rhetoric and reality. Companies must foster
Today’s Sustainable Procurement Leaders, though
a culture of sustainability that permeates all levels
ahead in many ways, are still constantly developing
of operations and decision-making. By doing so, they
and evolving. They are actively broadening their
can ensure that sustainability is not siloed in a given
focus across various ESG topics such as carbon,
department but becomes a ubiquitous and defining
labor and human rights, DEI, biodiversity and more.
element of an organization. The journey ahead will
This expansion is extending across different regions
demand consistent efforts, strategic alignment
and business units, encompassing more supplier types
and a commitment to adapt and grow in line with
and sizes, and reaching deeper into the value chain.
sustainable procurement principles. This approach
will ensure that the practices of today contribute
As businesses transform, sustainable practices will to shaping more equitable and sustainable value
become integral to business models, incorporated chains in the future.
not merely as a function but also as a core business
strategy. ESG standards will be ingrained in
product and service specifications, internal data
and technology systems, and will be a staple in
partnerships and customer interactions. They will also
be reflected in job descriptions and training and woven
into the fabric of targets and incentives – reaching
every aspect of the organization.

/ Conclusion and Outlook

44 48
Methodology and Survey
Participation

/ Methodology and Survey Participation

45 48
The Sustainable Procurement Barometer Buyer Survey
2023 study is based on two surveys conducted Revenue distribution of respondents Sectoral distribution of respondents
by EcoVadis: one for buyers and one
for suppliers. These were conducted through 51% <$500M 5% CG&S

online questionnaires followed by in-depth 10% >$500M - $999M 9% Chemicals

interviews with the selected participants. 29% $1B - $4.9B 16% Comms & Media
4% $5B - $15B 4% FS
The buyer survey saw 592 responses from companies
across the world and a wide range of industries. 6% > $15B 10% Technology
The supplier survey included 1,087 responses from 28% Industrial
a wide range of countries and industry categories.
7% Life Sciences
6% Natural Resources

Geographic distribution of respondents 2% Other

8% Retail
16% United States
3% Utilities
12% United Kingdom
10% France
9% Germany Supplier Survey
5% India
48% Others
Total respondents 1,087
Countries represented 73
Purchasing categories 150+
/ Methodology and Survey Participation
46 48
 EcoVadis: Accenture:
Contributors
Pierre-François Thaler Matias Pollmann-Larsen
We would like to thank all the 2024 Co-CEO Global Sustainable Value Chain Lead

Barometer team’s contributors for their vision,

leadership, intense collaboration and hard
work to bring this project to life. David McClintock Benjamin Oswin
Director, Content Marketing Global Responsible Procurement Lead
EcoVadis managed the survey and data
collection as well as the writing and design
of the report. Accenture performed data
Anna Kapica-Harward Tara Mikhael
collation, analysis, and findings exploration. Senior Editorial and Content Lead UKI Responsible Procurement Lead
The companies collaborated on all other
aspects, such as the initial research
hypotheses, survey questions, synthesis
Luke Hamilton Wilson Stephen Meyer
of findings into a narrative, and editing Senior Communications Associate Global Supply Chains & Operations Research Lead
and refinement of key recommendations.

Krzysztof Soński Deepak Tantry

Senior Art Director Global Supply Chains & Operations Research Manager

Gaytree Lallchand Ryan Wheatley

Communications Associate Sustainability Technology Analyst

Ajaykrishnan S.
Research Specialist
/ Contributors
47 48
About EcoVadis
Ecovadis About Accenture
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capabilities, together with our culture of shared success and
capabilities, together with our culture of shared success and
commitment to creating 360° value, enable us to help our clients
commitment to creating 360° value, enable us to help our clients
reinvent and build trusted, lasting relationships. We measure our
reinvent and build trusted, lasting relationships. We measure our
success by the 360° value we create for our clients, each other, our
success by the 360° value we create for our clients, each other, our
shareholders, partners and communities.
shareholders, partners and communities.
Visit us at [Link].
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