SUPPLIER MANAGEMENT
Sustainable sourcing remains a key lever for procurement operations, enabling teams to lead their organisations’ efforts to operate more responsibly.
By embedding sustainability into sourcing decisions, procurement can drive long-term business success and resilience while reducing environmental impact through lower carbon emissions, conserving resources and minimising waste – all of which is critical to addressing climate change and wider ecological challenges.
It also supports fair labour practices, upholds human rights and prioritises community wellbeing, while improving efficiency, lowering operating costs and mitigating risks linked to resource scarcity, legal compliance and reputational damage.
Published in early 2025, The United Nations’ 2024 Future of Sustainable Trade report charts a course for transforming supply chain operations to support sustainable development goals. The report confronts systemic issues within global value chains, paying particular attention to developing nations facing economic and environmental vulnerabilities, while promoting both risk management and inclusive practices.
Gone are the days of procurement being a one-dimensional, cost-driven function. It has evolved into a strategic driver of sustainability.
The FoST report identifies key actions for procurement teams to mitigate risks and promote sustainable trade:
64 %
of executives cite“ supplier diversification ratio” as the top metric / KPI of supply chain resilience
( Capgemini Research Institute: New-generation supply chain)
• 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.
92 January 2026