How Can Companies Truly Integrate Sustainable Procurement?
A white paper from Pagabo, one of the UK's leading public procurement specialists, has found scepticism within the public sector procurement community regarding the ability of meeting the UK's 2035 decarbonisation goals.
Speaking with 176 public sector workers across the UK, the white paper looks at how the sector is working towards the net zero targets, and how procurement can help with its journey.
At COP29, Prime Minister, Sir Keir Starmer, made a prominent announcement that the UK would pursue an 81% reduction in carbon emissions by 2035.
Yet the research indicates that only one in four (25%) public sector stakeholders consider this target attainable within the specified period. A larger proportion (37%) believe the UK requires a more feasible timeline, while 28% doubt the target can be accomplished altogether.
Mixed progress across public sector organisations
54% of public sector stakeholders hold moderate to high confidence that their organisation has achieved substantial decarbonisation progress throughout 2024/25.
38% report limited or no confidence in their progress – particularly within the central government, education and social housing sectors, and across Northern Ireland and northern England – indicating that some organisations may be at risk of lagging behind their decarbonisation commitments.
Within the Autumn Budget, the UK government unveiled multiple environmental initiatives – including the Public Sector Decarbonisation Scheme and Warm Homes Plan – aimed at elevating sustainability and net zero as priorities.
Yet despite these measures, 54% of public sector stakeholders maintain that the government's efforts remain insufficient to fulfil the UK's net zero pledges – a sentiment particularly strong among local government, social housing and education sectors.
Social value monitoring gaps persist
The Procurement Act 2023 positions sustainability as fundamental to achieving meaningful social value. 23% have not yet established consistent or structured tracking and monitoring of social value, while 22% remain uncertain whether such procedures exist.
Without appropriate oversight mechanisms, organisations cannot verify effective social value delivery or identify improvement opportunities.
Despite these gaps, 55% confirmed their organisation monitors social value through various methods – software tools (21%), Excel spreadsheets (20%) or traditional paper-based systems (14%).
78% have started incorporating sustainability considerations into procurement decision-making for products and services. For 12%, however, sustainability remains secondary – partly due to numerous competing demands.
The research indicates that concerns about 'higher upfront costs' (64%) are preventing organisations from fully embracing sustainable procurement. Other significant obstacles include 'limited time and resources' (59%), 'lack of knowledge about sustainability practices in procurement' (41%), and challenges related to SME adoption of 'sustainable and social value practices and policies' (36%).
For public sector organisations to truly integrate sustainable procurement – especially those facing resource and budget pressures – third-party assistance may prove essential. Partnerships with external stakeholders could be crucial for reducing time and resource demands whilst providing the expertise and experience that organisations urgently require.
Writing in the whitepaper, Tom Retallick, Senior Decarbonisation Framework Manager at Pagabo, says: "At Pagabo, we recognise that turning this ambition into action demands more than policy. It requires robust, flexible, and expertly guided procurement pathways that empower progress at pace.
"We will continue to invest in research, stakeholder engagement, and the development of procurement solutions that support the journey to Net Zero in a practical, transparent and impactful way."
You can find the full whitepaper here