McKinsey Passes Emission Targets With Strategic Procurement

As businesses transition towards a low-carbon economy, procurement teams are increasingly recognised as critical drivers of sustainability action. For professional services firms that rely heavily on international travel and global connections, this presents a unique challenge – and opportunity.

Global management consultancy McKinsey & Company has announced it has surpassed its 2025 emission-reduction goals, after setting climate targets in 2020. The achievement could signal a shift in how procurement departments approach sustainability purchasing across service-based industries.

McKinsey reduced its Scope 1 and 2 emissions by 70% compared to 2019 levels, far beyond its 25% target. For Scope 3, meanwhile, McKinsey reduced its travel emissions per employee by 50% – compared to a 35% target.

These achievements are the starting point for McKinsey's bigger goal of reaching net zero by 2050, the company says. The firm previously committed to shifting its offset strategy to 100% carbon removals by 2030, leveraging both nature-based and technology-driven solutions to address emissions that are more complex to mitigate.

Procurement's role in travel decarbonisation

Since most of McKinsey's emissions come from travel, the company had to rethink how procurement teams handle travel bookings and supplier relationships. Instead of always travelling, the team now travels only when needed. By hiring more local staff and using more hybrid meetings, McKinsey reduced long trips while staying close to clients.

"Travel remains essential to our business model. The focus, therefore, is not on eliminating travel altogether, but on making it more intentional and sustainable," says Isabelle Schuhmann, Global Director of Environmental Sustainability at McKinsey.

"Finding the right balance between being with our clients and colleagues and sustainability considerations is essential for this change to stick."

To support this change, McKinsey's procurement function added a real-time carbon fee at the time of travel booking and encouraged greener travel options. This procurement-led intervention could demonstrate how purchasing teams can influence behaviour while maintaining business requirements.

Sustainable aviation fuel procurement strategies

A key part of McKinsey's procurement strategy is to increase the use of sustainable aviation fuel (SAF) through making long-term supplier commitments. This purchasing approach could signal how procurement departments can support emerging markets by demonstrating demand through forward contracts.

The strategic commitment to SAF represents a significant shift in aviation procurement practices. By entering into long-term agreements, procurement teams can provide suppliers with the demand certainty needed to scale production and drive down costs over time.

The company also switched to 100% renewable electricity worldwide through strategic energy procurement, reaching this goal earlier than planned. Today, 67% of McKinsey's offices are Leadership in Energy and Environmental Design (LEED)-certified or equivalent, with local teams working to reduce waste and increase solar power use.

McKinsey has been recognised in Sustainability Magazine's Top 250 World's Most Sustainable Companies rankings. These procurement decisions – from renewable energy contracts to sustainable building certifications – could illustrate how purchasing departments can drive environmental performance through supplier selection and long-term agreements.

Carbon credit purchasing approaches

McKinsey's procurement team recognises that cutting its own emissions is not enough to reach its 2050 goal. The company is also helping develop new climate solutions through strategic purchasing decisions. This includes buying a mix of carbon credits, using both nature-based and new-technology options, and making long-term purchase commitments to demonstrate demand.

"As we support clients in their own net-zero journeys, it is critical for us to walk the talk and truly understand the complexities and nuances first hand," says Hemant Ahlawat, Senior Partner who co-leads McKinsey Sustainability.

"Our research shows that global net zero will rely on market-based mechanisms such as carbon removal and sustainable materials such as SAF, which is why we are investing today to support their scale-up."

This procurement-driven approach – using purchasing power to support nascent technologies and markets – could highlight how strategic sourcing decisions extend beyond immediate organisational needs to support broader market development. By committing to purchase carbon credits from emerging technology providers, procurement teams can help de-risk investments and accelerate innovation in climate solutions.

McKinsey highlighted key successes that could help other procurement teams on their own sustainability journey. It found that progress is cumulative – acknowledging near-term wins can build momentum toward long-term decarbonisation goals.

Sustainable procurement measures should be tailored to industry-specific needs – in McKinsey's case, balancing travel procurement with aviation innovation.

Finally, uncertainty is inevitable. Procurement leaders should move their businesses forward even if technologies or supplier capabilities are yet to be fully established.