SUSTAINABILITY
“ Data collection and transparency are paramount, impacting supplier selection and contract terms,” Aniththa explains.“ These changes drive a move towards responsible sourcing and risk mitigation.”
Procurement teams must now evaluate suppliers not only on traditional metrics of price, quality and delivery, but also on their environmental credentials and improvement trajectories.
Take for example, Microsoft, which has called upon its suppliers to reduce emissions in order to make itself more sustainable.
Melanie Nakagawa, Microsoft’ s Chief Sustainability Officer, emphasises the importance of this supplier collaboration:“ Nearly 75 % of Microsoft’ s Scope 3 emissions come from purchased goods and services( things like raw materials or office supplies) and capital goods( buildings or vehicles).
“ This is an important reminder that our suppliers play a pivotal role in helping us reach our goal of carbon negative by 2030.”
“ One of the biggest challenges in addressing Scope 3 emissions is the lack of consistent, accurate data from suppliers”
FANG CHANG CHIEF PRODUCT OFFICER FOR PROCUREMENT, SAP
The technology foundation for change Digital solutions are increasingly bridging the gap between measurement and action. Platforms that integrate with existing procurement systems enable real-time tracking of emissions data alongside traditional metrics, such as cost and quality.
This integration represents a fundamental change in how procurement decisions are made, embedding sustainability considerations into everyday operational workflows.
Fang believes“ technologies that connect procurement activities directly with emissions data, such as through digital supplier networks or productlevel carbon tracking, are foundational. These tools capture emissions information at the point of transaction, linking it to purchasing decisions and turning sustainability from a reporting task into part of daily operations”.
The sophistication of these systems has advanced considerably in recent years. Modern platforms can now track emissions at the product level, linking specific purchases to their carbon impact and enabling procurement teams to make informed tradeoffs between suppliers based on comprehensive sustainability profiles.
This granular visibility extends to often-overlooked categories such as business travel, where solutions can capture Scope 3 emissions data that contributes to a more complete organisational footprint.
110 September 2025