How Procurement can Help hit Net Zero by 2050
As organisations aim to align with the Paris Agreement's goal of achieving net zero by 2050, the procurement sector finds itself at the forefront of adopting sustainable practices.
The agreement seeks to keep global warming below 1.5Ā°C, preventing irreversible damage to the planet's ecosystem.
In this context, procurement executives must work closely with Chief Sustainability Officers (CSOs) to ensure that supply chains are both resilient and compliant with sustainability targets.
The Forbes Research 2025 State of Sustainability Survey, which included over 1,100 global executives from companies with at least US$500m in revenue, revealed that 79% of companies now have a CSO.
This highlights the increasing need for procurement leaders to integrate sustainability more deeply into their operational strategies.
The growing influence of CSOs
Findings suggest that as the importance of the CSO role grows, more executives-including those in procurement-are collaborating with CSOs.
The survey found that 43% of leaders will work with their CSO, which represents more than double the previous year's figure.
Funding for sustainability initiatives is also expected to rise, with 93% of CSOs anticipating increased budgets within the next year.
With 31% of CSOs now steering their organisation's sustainability strategy and over three-quarters indicating that sustainability governance is central to long-term business planning, procurement executives have a pivotal role to play.
By balancing regulatory compliance with broader sustainability goals, they can ensure that their procurement strategies reflect organisational commitments to sustainability.
Procurement's strategic partnership with CSOs
Procurement's success in fostering sustainable practices within an organisation closely aligns with the influence of CSOs.
According to EY's Global Risk Survey, 66% of boards acknowledge that resilience is closely tied to environmental sustainability.
CSOs are therefore crucial in legitimising and supporting these sustainability measures within the procurement sector.
The integration between procurement and sustainability strategies is necessary to overcome challenges, such as discrepancies between sustainability reports and financial projections.
As EY notes, CSOs are instrumental in advocating for and executing an organisationās sustainability path by introducing innovative solutions and fostering partnerships that align with environmental goals.
As Renaud Breyer, Partner and Sustainability Leader at EY Luxembourg, says: āMore and more firms are systematically setting aside time in board meetings to discuss ESG matters and are also seeking external insights by collaborating with sustainability partners.ā
This approach highlights the opportunity for procurement leaders to play a strategic role in sustainability discussions and actions.
Exemplary leadership in procurement and sustainability
Chief Sustainability Officers leading initiatives can substantially influence procurement practices towards net zero goals. For instance, at PepsiCo, Jim Andrew has been pivotal in driving the sustainability strategy.
He has spearheaded PepsiCoās pep+ transformation, achieving a 33% reduction in Scope 1 and 2 emissions since 2015.
In a similar vein, Kate Brandt at Google has directed the use of 100% renewable energy and maintained carbon neutrality, illustrating how procurement practices can align with corporate sustainability goals.
Her leadership underscores the importance of a cohesive strategy that blends procurement with sustainability.
Melanie Nakagawa of Microsoft plans to make the company carbon negative by 2030, aiming to eliminate all historical carbon emissions by 2050.
Her focus on leveraging data and technology showcases how procurement can lead by example, using innovation to achieve comprehensive sustainability outcomes.
These examples demonstrate that where procurement and sustainability strategies converge, significant results can be achieved.
By prioritising collaboration with CSOs, procurement leaders not only enhance the resilience and sustainability of their supply chains but position their organisations at the forefront of climate action.
āOur ambitious 2030 targets to become carbon negative, water positive, zero waste and to protect biodiversity require continued innovation across every aspect of our operations and weāre committed to sharing what we learn along the way,ā Melanie says.
