How the UN is Mandating Sustainable Sourcing in Global Trade

International trade and sustainability are becoming inseparably linked, with supply chains at the centre of this transformation. From climate change to deforestation and human rights issues, global procurement must now navigate these challenges while driving positive change.

The United Nations (UN) 2024 Future of Sustainable Trade (FOST) report provides a roadmap for reshaping supply chain practices to align with sustainable development goals (SDGs).

By addressing risks and fostering inclusivity, the report targets systemic challenges in global value chains (GVCs), particularly for developing countries vulnerable to economic and environmental pressures.

For decades, voluntary sustainability standards (VSS) guided procurement practices, offering frameworks for ethical sourcing and compliance with international agreements like those set by the International Labour Organisation (ILO).

However, as the FOST report reveals, these standards are no longer sufficient. A shift to mandatory due diligence regulations, such as the EU’s Deforestation-free Products Regulation (EUDR), is fundamentally changing how procurement operates.

EUDR requires stringent geolocation and traceability data for products such as cocoa, coffee and palm oil. While this helps combat deforestation, it poses challenges for small producers in high-risk regions, such as Peru, who struggle to meet these requirements.

These regulatory demands risk excluding marginalised groups, including smallholders and indigenous communities, from international markets.

The report warns that this exclusion could deepen inequalities within supply chains. Procurement professionals must adapt by integrating these regulations into their operations while ensuring inclusivity remains a priority.

Transforming procurement into a strategic function

Procurement, traditionally seen as a cost-driven function, is evolving into a strategic driver of sustainability. The FOST report identifies key actions for procurement teams to mitigate risks and promote sustainable trade:

• Traceability systems: Blockchain technology is highlighted as a critical tool for enhancing transparency. By providing real-time data on product origins and compliance, blockchain helps organisations ensure accountability across their supply chains.
• Capacity building: Supporting suppliers in high-risk regions is essential. Procurement teams can invest in training and resources to help these suppliers meet regulatory standards, ensuring they are not excluded from global trade.
• Circular economy integration: A shift to circular economy principles — recycling and reusing materials — is crucial. This reduces waste, optimises resource use and fosters innovation, aligning procurement practices with long-term sustainability goals.

“Without the means to invest in sustainable development and transform their energy and food systems, developing countries are falling even further behind,” UN Secretary-General António Guterres emphasises.

Phased compliance timelines and regional adaptations are proposed as practical solutions to address this imbalance, giving small producers the flexibility to meet new standards without being overwhelmed.

Biodiversity, oceans and procurement’s future

The FOST report also highlights the interconnectedness of biodiversity, ocean conservation and trade. Biodiversity offers vast potential for sustainable economic growth, particularly through products derived from nature that respect both ecological and community needs.

The UN’s BioTrade Initiative, implemented in nearly 100 countries, aligns biodiversity trade with global agreements such as the Convention on Biological Diversity.

Oceans, facilitating 80% of global trade, play a critical role in the economy. The UN highlights the importance of sustainable marine resource management to balance trade, livelihoods and climate regulation.

Procurement professionals have an opportunity to drive this change by prioritising sustainably sourced marine products and minimising marine pollution through supply chain decisions.

UNCTAD, the UN’s trade development arm, advances the circular economy by promoting waste-to-value opportunities and innovative business models.

These initiatives encourage procurement teams to focus on reducing waste and fostering partnerships that drive sustainability at every stage of the supply chain.

A call for global cooperation

The FOST report concludes with a clear message: sustainable trade governance demands global collaboration.

Procurement professionals are uniquely positioned to act as catalysts for this transformation. By aligning their operations with both voluntary and regulatory standards, they can ensure fair value distribution across supply chains, support vulnerable economies and address pressing environmental challenges.

“A two-track world of haves and have-nots holds clear and obvious dangers for every country," Guterres adds. 

We urgently need to rebuild global cooperation and find the solutions to our current crises in multilateral action."

Sustainable procurement is no longer just about compliance; it is an opportunity to shape a more equitable and environmentally responsible global trade system.

By embracing innovation, inclusivity and strategic investments, procurement can help secure a future where trade supports economic growth, environmental preservation and social progress.

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