The role of procurement is transforming.
Once seen as a function that’s driven by cost, delivery, and efficiency, procurement is now being asked to tackle one of the most pressing challenges of our time: sustainability.
While cost management remains critical – especially when faced with cost pressure and inflation – procurement teams must now also integrate sustainability into their decision-making processes.
This shift isn’t just a trend. It’s being mandated by new legislation like the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and Norway’s Transparency Act (Åpenhetsloven).
These regulations are set to transform the way companies operate, placing the supply chain at the heart of sustainability efforts.
The reason for this is clear.
Research shows that supply chains contribute to 60% of global emissions and 50-70% of a company’s operating costs (EY Supply Chain Sustainability Report 2022). As procurement drives supply chain decisions, it holds the key to driving sustainability.
At the same time, workforce and consumer behavior are evolving. 71% of employees prefer to work for companies that are environmentally sustainable (IBM Institute for Business Value).
43% of global consumers want to buy from organizations that benefit society, even if their products cost more (EY Future Consumer Index).
Procurement is uniquely positioned to bring these elements together, making it a catalyst for meaningful change.
But this transformation isn’t easy.
Many companies are still in the early stages of integrating sustainability into their procurement processes. Too often, procurement and sustainability teams operate in silos, preventing the cross-functional collaboration that’s needed for success.
It’s a journey that requires new skills, new technologies, and new ways to collaborate.
Some are leading the charge, while others are still figuring out how to balance sustainability with traditional procurement objectives.
In this report, we explore the following and more:
How companies are adapting to this shift The challenges they face in balancing cost alongside sustainability What actions they’re taking What the future holds for procurement and sustainability teams navigating this new landscape Together with EY, we’ve gathered insights to share the state of sustainable procurement, showing how procurement and sustainability can come together and evolve from a cost center to a powerful driver for sustainability.
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