Blue Yonder: Procurement at Centre of Sustainability Efforts

Blue Yonder research shows most supply chain leaders are taking action on sustainability as pressure grows to cut environmental impact

Procurement functions are increasingly finding themselves at the centre of corporate sustainability efforts as organisations work to reduce their environmental impact across supply chains.

Research from Blue Yonder found that two-thirds of supply chain leaders are actively working to reduce the impact of their supply chains, a shift that places procurement teams in a pivotal position. The findings form part of the company's 2026 Supply Chain Compass: Spotlight on Sustainability, based on a survey of 678 senior supply chain professionals across North America and Europe.

Its key findings include:

• Two-thirds (66%) of leaders are actively working to reduce their supply chain's impact
• Nearly half (47%) of large enterprises have created dedicated sustainability teams
• More than half (56%) agree that supply chain operators bear responsibility to help solve problems like inflation and climate change
• Only one in five supply chain leaders say they are confident in achieving their sustainability objectives.

"Sustainability remains a priority, even in a year marked by immediate business risks like tariffs, disruption and inflation," says Saskia van Gendt, Chief Sustainability Officer for Blue Yonder.

"Right now, efforts are primarily focused on improving efficiency and productivity and making faster, better decisions, which can translate into less waste, more sustainable operations and cost savings.

"Sustainability is no longer a discrete objective, but a strategic element of mature, modern business plans."

Procurement's evolving sustainability remit

Rather than pursuing sustainability as a standalone initiative, many procurement and supply chain leaders are advancing goals through improvements in their operations.

More than a quarter (26%) say data and traceability are the primary actions needed to further sustainability efforts, placing procurement's supplier visibility capabilities at the forefront. Meanwhile, 33% identify forecasting technology as a sustainability opportunity, highlighting procurement's role in demand planning and inventory management.

That shift is also visible in how companies are organising. Nearly half of respondents (47%) say their companies have created dedicated sustainability teams, even as sustainability, in and of itself, becomes less likely to rank as a high priority.

Only 12% of supply chain leaders list sustainability among their top three strategic priorities, down from 24% in 2025.

In a year when 68% of leaders cite economic challenges like labour and inflation as top concerns, sustainability is now viewed as a shared, cross-functional strategy owned by dedicated teams, operations and logistics. For procurement functions, this could mean greater collaboration with sustainability teams while maintaining responsibility for supplier selection and relationship management.

Data visibility driving procurement decisions

Procurement teams have traditionally focused on cost reduction and speed. However, rising regulatory pressure, customer expectations and climate commitments are driving organisations to rethink how goods are sourced, produced and delivered.

Blue Yonder's findings highlight that action is already underway. Leaders are investing in initiatives that improve efficiency and productivity and enhance visibility across supplier networks. The shift is supported by growing adoption of digital tools, including artificial intelligence and data platforms that enable better measurement and decision making.

Supply chain leaders are much more likely to associate AI with operational gains than with sustainability outcomes. Respondents' top three operational benefits of AI were better planning and predictability (29%), better risk management (26%) and better, faster decision-making (23%).

By contrast, only 11% believe AI could deliver sustainability benefits and just 13% cite enhanced traceability as a key benefit of using AI.

This suggests that many leaders still view AI primarily through an operational lens, even though the capabilities they value most, including improved planning, faster decisions and better risk management, can also support sustainability by reducing waste and improving efficiency across the supply chain.

Procurement facing execution challenges

The research also points to a widening gap between ambition and execution. While many organisations are advancing sustainability programmes, challenges remain in scaling these efforts across complex global networks. Supply chains often extend across multiple tiers of suppliers, making it difficult for procurement teams to track environmental impact end to end.

This complexity is compounded by ongoing disruption. Geopolitical instability, fluctuating demand and operational risk continue to test supply chain resilience. These pressures are reinforcing the need for greater agility and more integrated planning within procurement functions.

One quarter (25%) of respondents said that current sustainability targets do not go far enough. Another 25% said the right sustainability initiatives will be disruptive to current processes. This underscores that leaders recognise both the urgency of the challenge and the operational change it can require.

In this context, sustainability and resilience are becoming closely linked for procurement teams. Organisations are recognising that more sustainable supply chains can also be more robust, with improved transparency and stronger supplier relationships helping to mitigate risk.