Sustainable Procurement as a Supply Chain Sustainability Lever
Over the past few weeks, I have been having more conversations with companies that are trying to improve sustainability across their supply chains. In many cases, the starting point is not a report or a regulation. They want to get a handle on Scope 3 emissions and understand what is happening across their value chain, because they know this is where a large portion of their footprint and their sustainability risk often sits.
What is interesting is that these conversations tend to have two drivers happening at the same time. The first is internal where companies want better visibility over their supply chain impacts so they can identify hotspots, reduce emissions, and build more resilient operations. The second is external where many of these same companies are now being asked by their own customers, business partners, and lenders for climate related information. In other words, the sustainability questions are moving in both directions. Companies are requesting data from suppliers, while also being asked for data by their buyers.
Even if you are not a multinational hit by regulations, you are likely connected to one. And the information they need to report often depends on the information they can gather from you. And it is also why procurement functions matter so much.
The issue with trying to manage supply chain sustainability without procurement
Many organisations initially try to manage supply chain sustainability through the sustainability team alone. A questionnaire goes out, a request is sent, a spreadsheet is built, and a supplier is followed up etc. This can work for a short period, especially with a small supplier base and a relatively non-complex supply chain. But the more complex the supply chain, the less reliable this process is. Sustainability teams typically do not own supplier onboarding, supplier selection, contract renewal, or supplier relationship management. Procurement does. If procurement mechanisms are not designed to support sustainability objectives, supply chain sustainability tends to stay reactive and it often becomes something companies chase when a reporting deadline or a customer request arrives, rather than something they manage systematically.
It also leads to inconsistent requests. Different teams ask different questions and suppliers receive multiple versions of the same questionnaire. Data comes back in different formats and evidence is difficult to obtain. Ultimately, the organisation ends up spending time collecting information without building the system that would make the process efficient and repeatable.
Why procurement is the real operating system of supply chain sustainability
Procurement is the function that shapes what your supply chain looks like. It decides who you buy from, what you require from suppliers, and what you are willing to accept as a business. That means procurement is where supply chain sustainability becomes operational.
When procurement embeds sustainability criteria into decision making, several things can change and become much more efficient. Sustainability expectations become clear at onboarding rather than appearing later as a surprise. Data requests become consistent and proportionate and supplier risks become visible earlier. As a result, the organisation gains a structured way of improving supplier performance over time.
Procurement also has commercial levers that sustainability teams often do not. Procurement can shape contract language, tender scoring, supplier performance management, and renewal conditions. Those levers matter because supply chain sustainability is not only about data, it is about behaviour, incentives, and long term improvement. Business partners will want to continue business relationships. If your conditions are clear, they will react to maintain that relationship.
What climate related information is being requested most often
In many of the conversations I am having, climate related information is the most common starting point. It is measurable and it aligns directly with Scope 3 requirements and climate risk expectations.
Companies are often being asked, and are asking suppliers, for information such as Scope 1 and Scope 2 emissions, energy use, basic Scope 3 hotspots where feasible, reduction targets or commitments, and the policies and governance that support climate action. In many cases, suppliers are not expected to have perfect data immediately. But they are increasingly expected to show they are measuring, improving, engaging seriously and demonstrating climate commitments.
This is where a sustainable procurement approach can make a major difference. If you know what climate information you need from suppliers, you can define it clearly, request it consistently, and build a process for gradually improving quality and coverage year on year.
The role of procurement in identifying and managing supply chain ESG risks
Supply chain sustainability is not only about collecting emissions numbers, its is also about understanding risk. Climate-related risk includes physical disruption, transition risk, and carbon related cost exposure. But supply chain ESG risks can also include labour issues, ethics and compliance, modern slavery risk, data privacy, and governance weaknesses depending on sector and geography.
The organisations that manage this well tend to treat supplier sustainability information as part of risk management, not as a separate sustainability exercise. Procurement becomes the mechanism for screening risk at onboarding, monitoring risk over time, and escalating issues through governance pathways when needed. When this is done well, you reduce surprises and you avoid last minute scrambling for information. You are more confident in what you disclose and you build a more resilient supply chain overall.
What a sustainable procurement mechanism should achieve
A sustainable procurement policy and supporting tools should do a few key things. It should clarify the sustainability expectations the organisation has of suppliers in a way that is realistic and proportionate. It should help procurement teams assess suppliers consistently, using criteria that reflect what is material to the business. It should create a repeatable onboarding process that captures relevant sustainability information early. It should establish how suppliers are monitored and supported to improve over time. And it should provide a basis for making decisions when sustainability risks are significant, whether that means engagement, corrective action, or in some cases supplier change.
They way I see it
The big shift I am seeing right now is that supply chain sustainability is becoming a two way flow of expectations. Companies are being asked for climate information by their customers and partners (the companies that are obligated by regulations to collect this information), and companies needing climate information from their own suppliers in order to understand and reduce their own Scope 3 emissions. That creates pressure, but it also creates an opportunity.
The organisations that respond best are the ones that build the right procurement mechanisms so supply chain sustainability becomes part of how the business operates instead of something chased through spreadsheets and last minute questionnaires. When procurement is aligned with sustainability goals, you can identify risks earlier, manage them more effectively, strengthen supplier relationships, and build the visibility needed to drive meaningful Scope 3 progress.
