CIPS and IntegrityNext: The State of Sustainable Procurement
IntegrityNext and the Chartered Institute of Procurement & Supply (CIPS) have partnered to produce a report examining the progress being made in sustainable procurement.
What was once perceived as a regulation demand has become an advancement strategy, with companies increasingly seeing the business benefits of going green.
In The State of Sustainable Procurement 2025, IntegrityNext and CIPS look at how these organisations are bidding to achieve sustainability goals in their procurement processes and throughout their supply chains.
The procurement study
IntegrityNext is a global leader in supply chain sustainability software, helping companies to automate their sustainable operations at scale, making thorough, meaningful change in the process.
The firm has helped more than 500 customers and two million suppliers across 190 countries and territories, simplifying ESG compliance to transform transparency and sustainability throughout supply chains.
Its latest research, carried out alongside CIPS, gathers insights from procurement and supply chain professionals working across a range of industries
While concluding that ESG is becoming increasingly embedded in supplier management, the study also highlights where lingering challenges lie.
Nick Heine, Co-Founder and CCO of IntegrityNext says: “Procurement has reached a new stage of maturity when it comes to sustainability. Most organisations are no longer debating the ‘if’ – they are focusing on the ‘how’.
"This shift marks the beginning of a more strategic phase, where ESG is systematically embedded and positioned to deliver measurable impact.”
Building resilience with sustainable procurement
The research finds that sustainable procurement has become a major focus over the past 12 months, with only 8% of firms declaring that they do not examine supplier sustainability throughout their lifecycle.
What was once a half-hearted tick-box is now a core element of procurement, offering businesses resilience and long-term value creation.
Implementation of ESG in supplier management is partially motivated by brand protection, resilience and innovation, the study finds.
Though companies are seeing the impact of ESG implementation, including greater transparency, stronger supplier relationships and diminished ESG risks, some are concerned about the financial impact of making these changes.
Despite this, 90% of businesses are planning to expand on their sustainability efforts by investing in digital tools and training, while embedding ESG policies alongside suppliers.
More than two-thirds (70%) of companies surveyed have already implemented sustainability initiatives in procurement, with 78% saying business growth is a main driver of sustainable procurement, rather than mere regulation.
Nick adds: “Regulation may be the trigger, but strategy is becoming the driver. Companies realise that sustainable procurement strengthens their reputation, makes them more resilient, and creates efficiencies – benefits that go well beyond compliance.”
Most companies who have embedded sustainable procurement activities have seen a positive impact in their risk mitigation.
- 5% - yes, significantly
- 27% - yes, to some degree
- 22% - not yet, but it is anticipated
- 25% - no measurable impact
- 21% - we don't track it
Barriers to progress
Though most companies are eager and willing to implement sustainable procurement, half of the surveyed leaders reported difficulties in measuring the impact of their initiatives.
This makes it more difficult to demonstrate genuine outcomes which can then be used to further these initiatives.
“The biggest barrier we see is not the willingness to act, but the ability to measure and prove impact," Nick goes on. "Without reliable data and clear metrics, companies struggle to turn ambition into accountability – and to build the internal momentum needed for real change."
Due to limited budges, unreliable supplier ESG data and a lack of expertise, measuring impact remains an issue to progress.
Nick concludes: “The next chapter for procurement is about scale and depth. Companies are ready to professionalise their approach – investing in skills, systems and collaboration to turn sustainability from a regulatory requirement into a lasting competitive advantage.”
The survey shows the top three priorities are:
- Staff training and upskilling
- Embedding ESG criteria across supplier lifecycle
- Developing impact measurement frameworks
To achieve this, many organisations are furthering investments into people and digital resources, with a focus on traceability.
In order to unlock long-lasting and resilient benefits from sustainable procurement, companies must be willing to invest in the appropriate digital tools.