Accenture: How Procurement Can Achieve Emissions Reduction

As regulatory pressures intensify and stakeholder expectations rise, procurement teams are being thrust to the forefront of corporate decarbonisation efforts.

However, many organisations still struggle to translate sustainability ambitions into actionable supplier engagement strategies.

Matias Pollmann-Larsen, Global Sustainable Value Chain Lead at Accenture's Supply Chain & Operations Practice, is all too familiar with the realities of decarbonising upstream supply chains.

With regulatory frameworks like CSRD, CSDDD and CBAM reshaping procurement mandates, Matias explains that supply chain emissions often dwarf direct operational footprints.

Here, Matias shares practical insights on building supplier capabilities, embedding sustainability into procurement processes and balancing enablement with accountability.

What are the biggest misconceptions you see about decarbonising upstream supply chains?  

The biggest strategic mistake is seeing supply chain decarbonisation as a cost rather than a business opportunity. Most companies overlook the value case, delaying action and missing competitive advantage. 

Operationally, a common belief is that supply chain decarbonisation is not as relevant as your own operational emission; that it's a data collection challenge and that suppliers are already equipped and actively implementing decarbonisation initiatives. The reality is far more complex. Upstream supply chain emissions often exceed a company’s direct operational emissions several times over and tackling it requires a fundamental shift in how procurement engages with suppliers and drives environmental outcomes.  

Decarbonisation is a multi-year journey. It starts with responsible procurement, ensuring clear communication of expectations to suppliers, scalable support programmes to build their capabilities and robust engagement models underpinned by technology and AI to gather and validate supplier data from public and proprietary sources.  

Companies must embed decarbonisation into source-to-pay and supplier management processes to make it a business-as-usual activity, backed by leadership sponsorship and procurement team upskilling.  

Fragmented supplier data must become a single source of truth, with verifiable emissions at company and product levels – essential for compliance and green market access. Success hinges on a well-coordinated strategy that combines supplier enablement, internal alignment and data-driven decision making at scale. 

Which regulatory changes are having the most impact on clients’ procurement strategies?  

The Corporate Sustainability Reporting Directive (CSRD) is driving a shift in procurement strategies toward data-led supplier management. Teams must embed ESG metrics into sourcing decisions, prioritise suppliers with verifiable sustainability credentials and adopt digital tools to track performance. Procurement is moving from transactional buying to strategic supplier oversight — segmenting partners by ESG risk, integrating screening into onboarding and launching targeted improvement plans where gaps are found.  

The Corporate Sustainability Due Diligence Directive (CSDDD) demands a deeper transformation. Procurement must build end-to-end supply chain visibility, at times going beyond Tier 1 to assess environmental and human rights risks across tiers. Strategies will evolve to include risk-based due diligence programs, enforceable ESG clauses in contracts and clearly defined escalation processes for non-compliance. Continuous monitoring, audits and third-party tools will become standard.  

The EU Deforestation Regulation (EUDR) requires procurement teams to ensure strict supplier due diligence, traceability and compliance. They must collect precise origin data (GPS coordinates), verify legal and deforestation-free sourcing and maintain continuous risk monitoring. Procurement processes must embed EUDR clauses, enhance supply chain transparency beyond Tier 1 suppliers and coordinate with legal, logistics and IT teams to manage documentation and reporting. 

The Carbon Border Adjustment Mechanism (CBAM) will transform procurement teams’ work by requiring them to assess and collect precise carbon emissions data from non-EU suppliers for imports of carbon-intensive goods. Procurement must manage increased reporting obligations starting 2024, engage suppliers to verify emissions and integrate these data into purchasing decisions. From 2026, teams will also handle costs related to CBAM certificates, impacting product pricing and budgeting.   

Procurement is no longer just about cost, service and quality; it’s now central to delivering regulatory compliance and protecting the business from ESG-related legal and reputational risk.  

How can organisations effectively support and incentivise their suppliers (especially SMEs) to reduce carbon footprints?  

Effective decarbonisation starts with understanding where each supplier – especially SMEs – is on their journey, then tailoring support accordingly. Many small suppliers lack the resources or expertise to act, so support must be practical, collaborative and outcome focused. Experience shows that hands-on workshops help with target-setting and decarbonisation roadmap development and implementation support drives far more impact than generic e-learning. 

Incentives also play a critical role. Suppliers are more likely to act when they see clear business benefits, especially financial ones. Companies should show how carbon reduction leads to cost savings that stay with the supplier. Early incentives like preferential payment terms, access to larger contracts or supplier recognition can spur action. 

However, support must be balanced with clear expectations. Over time, incentives may give way to consequences – such as reduced opportunities or disqualification – for those not making progress and even tighter use of carbon pricing to quantifiably compare performance vs. peers. This mix of enablement with accountability is key to lasting impact.  

In your experience, what KPIs best capture procurement’s contribution to overall emissions reductions?  

Procurement’s role in reducing emissions is best captured through KPIs that reflect not just ambition, but action and influence. Outcome KPIs measure tangible progress like the percentage of spend with suppliers that have set SBTi-approved targets or GHG emissions reduced per USD spent. These metrics tie procurement decisions directly to climate performance, showing whether spend is being shifted toward lower-carbon partners. Tracking year-over-year supplier carbon intensity also highlights improvements in the emissions efficiency of the supply base.  

Process KPIs reveal how embedded decarbonisation is in everyday sourcing. For example, the number of RFXs where emissions performance influenced award decisions or the value of contracts with decarbonisation clauses, indicates whether climate considerations are systematically shaping commercial outcomes. These KPIs ensure procurement moves beyond collecting data to actively driving accountability and change through its processes.  

Finally, supplier engagement KPIs track readiness and collaboration. The percentage of suppliers providing primary emissions data suitable for incorporation into an organisation’s Scope 3 reporting. High supplier response rates and data confidence scores build trust in the data and the relationships behind it. 

Together, these KPIs measure procurement’s ability to not only spend wisely but to steer the value chain toward meaningful emissions reduction. 

In your experience, what KPIs best capture procurement’s contribution to overall emissions reductions?  

Procurement plays a pivotal role in shaping a company’s decarbonisation trajectory and that contribution must be measured through outcomes. Outcome KPIs assess the real-world emissions impact of procurement choices. Tracking the percentage of spend with suppliers, actively reducing GHG emissions across Scopes 1, 2 and upstream Scope 3, is a powerful signal of strategic alignment.  

Similarly, monitoring emissions reduced per USD spent reveals procurement’s efficiency in driving down carbon while spending wisely. These KPIs go beyond intent; they quantify impact. Other metrics like year-on-year changes in supplier carbon intensity can add further granularity.  

Process KPIs shed light on how embedded emissions reduction is within sourcing decisions. The number of RFXs where decarbonisation influenced outcomes and the value of contracts containing emissions-reduction clauses are key indicators that sustainability is not just an add-on, but a core commercial criterion. By tracking these process indicators, companies can measure whether ESG principles are truly shaping procurement workflows and supplier accountability.  

Finally, supplier engagement KPIs capture how effectively procurement is influencing the supply base. The percentage of suppliers (or spend) providing emissions data suitable for Scope 3 accounting and those with SBTi-approved targets are critical to understanding and managing value chain emissions. Broader metrics like supplier response rates and data confidence scores help assess relationship depth and data quality, the essential foundations for long-term decarbonisation success.