Developing Sustainable Supply Chains With Green Procurement

The way procurement teams operate has shifted significantly, particularly as climate volatility has demonstrated the need to act.

Embedding sustainability into procurement operations is no longer an added bonus; it could be a strategic necessity when building a competitive business.

Leaders in sustainable development spearheaded this conversation on the Sustainable Supply Chains panel at Procurement and Supply Chain LIVE: The Net Zero Summit, exploring how procurement functions are adapting to meet these evolving demands.

Procurement responds to market shifts

Ongoing turbulence in recent years has shaped how procurement teams operate today. What was once seen as an added bonus for companies could now be a necessity – businesses that do not have clear sustainability initiatives embedded in their procurement operations risk losing customers and supply chain resilience.

As climate events have become more destructive and regular, procurement teams are needing to reduce emissions, support local communities and demonstrate they are acting as eco-consciously as possible. This is met by increasing consumer demand for clearly-labelled sustainable produce.

According to a 2025 Euromonitor Voice of the Consumer report, around 25% of consumers are classed as 'Zero Wasters' – consumers who focus on recycling, repairing, circularity or waste reduction. The report also finds that around 25% of consumers are willing to pay more for products that are overt about their fair labour practices, sustainable impact and certifications.

The way procurement functions operate is changing, blending sustainability and resilience with financial and reputational gains. Companies that fail to adapt to these changing demands are more likely to miss out.

Supplier collaboration drives results

According to Deloitte's 2025 Global CPO Survey, 61% of procurement leaders are prioritising enhancing supplier collaboration to mitigate growing geopolitical volatility. Through open and trusted collaboration, rigid chains become agile and resilient.

Undertaking a collaborative approach across the supply chain could build stronger operations through transparency. Through this, procurement leaders can see where suppliers can help them, or vice versa, in an attempt to strengthen operations or boost sustainability capabilities.

"At SAP, we've got a very ambitious net zero by 2030 target," explains Stephanie Taviner, Value Chain Sustainability Lead at SAP.

"So working with our supply chain is a key lever for us to deliver against our goals. It's also part of our long term incentive plan for our board, and that then trickles down all throughout the organisation.

"We want to take a collaborative approach. Some of our suppliers are lacking the maturity, especially in terms of restricted data and what we're able to give. But then also, there's a lot of suppliers which are mature. They're on their journeys as well to decarbonise them, so we're thinking about how can we collaborate together?"

Local sourcing strategies gain traction

As supply chains have become more global than ever, previous strategies that demonstrated resilience have shifted to meet demand. This previous sustainability was sacrificed, with companies beginning to source from overseas rather than focus on local produce.

Now, with global uncertainties proving that fragmented supply chains are a risk, some procurement organisations are looking for a more localised approach to sourcing. Rather than chasing a global impact, many leaders are finding resilience closer to home, opting for a much tighter supply chain with a preference for localisation.

This helps procurement teams across their emissions and risk mitigation at once – if a company's products or produce has a shorter distance to travel from source to consumer, it has lower emissions across its logistics.

"We're a food service company and I think Scope 3 makes up about 99% of our emissions," explains Kevin Watson, Sustainability Director at Levy UK&I.

"It's like getting a UK supply chain roundabout of our meat, rewriting the menu. It's not changing the future, but actually going back to where we were in 2011 for seasonal sourcing, and also using all the kind of the green, colourful vegetables in the summertime, and then at the winter time, going on to the root vegetables."

Through smart sourcing choices and meaningful supplier collaboration, procurement teams are able to see sustainability benefits throughout their supply chains, reducing emissions and seeing risk mitigation at once. The organisations that fail to do so may not unlock their full value potential, risking falling behind their competitors.