How HubSpot Advocates Sustainable Procurement for SMBs

HubSpot is known for its powerful digital tools that help small businesses succeed, but it also leads the way in making sustainability accessible to all.

Yogesh Chauhan, HubSpot’s Senior Director of Sustainability, delves into the company’s efforts to align its procurement and supply chain strategies with sustainable practices while supporting small and medium-sized businesses (SMBs) to navigate the complex world of ESG commitments.

HubSpot’s sustainability approach is rooted in consumer behaviour, which not only shapes its services but also influences its ESG strategy.

"A company like HubSpot can only change consumer behaviour to some extent," Yogesh says. "You can only be one or half a step ahead—10 steps ahead and you lose everyone."

Sustainability often means higher upfront costs, particularly for businesses producing innovative goods such as organic or ethically-sourced products.

A recent HubSpot study highlights shifting consumer expectations, with nearly 60% prioritising zero-waste packaging, ethical supply chains and reduced carbon emissions. Yet, affordability remains a barrier.

Yogesh emphasises that consumers today demand transparency, with 32% trusting brands that openly communicate their ESG practices.

Moreover, more than half of consumers support penalties for companies failing to meet ESG standards.

"Brands can't fake it anymore," he notes. "Consumers see through greenwashing and genuine ESG commitment is now a must for trust and business success."

Helping SMBs navigate sustainability

SMBs, which form the core of HubSpot’s clientele, face distinct challenges in integrating sustainability.

Many lack the resources or expertise to tackle tasks like calculating greenhouse gas (GHG) emissions or setting science-based targets. For small teams without a dedicated sustainability officer, this can be overwhelming.

“There’s a real opportunity to democratise access to sustainability know-how and tools for SMBs,” Yogesh explains.

He highlights the daunting nature of tasks such as navigating Scope 1, Scope 2 and Scope 3 emissions. 

To simplify these challenges, HubSpot provides resources that guide businesses in calculating their carbon footprints and developing GHG inventories.

It also encourages SMBs to pursue sustainability at their own pace.

“Our goal isn’t to exclude businesses without a sustainability roadmap but to be a source of guidance and support for those looking to improve,” he adds.

Sustainable supply chain innovation

Sustainability in supply chains is central to HubSpot’s efforts, with more than 90% of its carbon emissions stemming from its procurement processes rather than its operational activities. To address this, the company incorporates sustainability criteria into its procurement decisions.

“If a supplier wants to do business with us and the contract value is significant, we require them to show their sustainability roadmap and commitments to decarbonisation,” Yogesh explains.

However, HubSpot doesn’t approach this as enforcement but as an opportunity to educate and support suppliers and clients in adopting greener practices. By setting sustainability expectations while fostering collaboration, the company aims to lead by example.

He also highlights the importance of innovation in supply chain sustainability. He advocates for creative solutions, such as biodegradable or dissolvable plastics, to reduce environmental impact.

Reflecting on the challenges of regulating plastic use, he notes, “For me, it’s all about innovation. Can we innovate a solution to plastic pollution, rather than relying solely on regulation?”

Yogesh cites the energy sector as a model for progress. Companies such as Octopus Energy in the UK have shown that sustainability doesn’t have to come at a higher cost, making green energy accessible to a broader audience.

The road ahead

Looking forward, Yogesh remains optimistic despite challenges such as the politicisation of ESG.

He envisions sustainability as an opportunity to improve both business performance and community wellbeing: “Sustainability is a win-win. Who doesn’t want to reduce business costs through efficiency or live in cleaner, quieter communities?”

HubSpot’s plans to expand its social impact programme and continue empowering entrepreneurs demonstrate its commitment to these ideals.

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