Procurement has moved from focusing primarily on costs to becoming a strategic value creator, where sustainability is a central part. Success requires control of data, the right software, and sustainability work that integrates with the entire procurement process.
Software that makes sustainability data available in every decision increases the opportunities to act correctly without extra effort. By starting small, focusing on the right categories and working together, organizations can quickly achieve tangible results and build a more sustainable purchasing operation.
In this article, based on a webinar on sustainable procurement (Swedish) we held together with Ignite Procurement, we discuss procurement as a key piece of the sustainability puzzle and show how you can get started today!
From being a function that focused on the lowest possible price, procurement is now a strategic player with the ability to create value far beyond costs. It is about contributing to the company's goals, financial as well as sustainable.
And the pressure is coming from all sides. New requirements for ESG reporting, sustainability targets from management and the board, expectations from customers and employees - all point to the same thing: sustainability is no longer something that can be treated as a sideline. It is a prerequisite to be included at all.
But despite this, many organizations still work in silos. Procurement and Sustainability live separate lives, with different goals, tools and language. This means that important insights never meet.
Instead, when they share the same spend and supplier data, have common KPIs and a common language, the results are clear: lower costs, clear risk control and measurable climate and social impacts.
Working data-driven may sound obvious. Yet many companies lack the right conditions to act on facts. To make sustainable purchasing decisions, you need to know what you are actually buying, from whom and at what cost.
It starts with control. Bringing all spend and supplier data together in one system not only provides a better overview, it lays the foundation for everything from automation to sustainability reporting.
When the data is in place, it creates the opportunity for real transparency. You can see your purchasing patterns, detect off-contract purchases, track suppliers' climate impact and identify social risks. You can start prioritizing, setting requirements and following up - not based on feelings, but on facts.
If sustainability is to have an impact on procurement, it must start in the strategy. Linking procurement targets to the company's overall sustainability agenda, for example through a double materiality assessment, makes it clear where procurement makes the biggest difference. This could be about reducing emissions in heavy categories like steel, or taking social responsibility in high-risk regions. The point is to adapt, not generalize.
But no strategy works in practice without cooperation. Going all the way requires close relationships with suppliers, where sustainability is a shared agenda rather than a requirement from one side. When you develop solutions together, build incentives and follow up - that's when strategy turns from ambition to reality.
Successful sustainable procurement requires that every single day-to-day decision is aligned with the strategy. To make this happen, employees need the right support - at the right time. This applies both to major procurements and to the small, everyday purchases that take place every day throughout the organization.
Software plays a crucial role here. When data on, for example, climate impact, supplier risk and contract status becomes part of the actual procurement flow, the possibility of making sustainable decisions increases without requiring extra effort from the user.
For this to work, data on risk, climate impact and contractual compliance must be available at the point of decision-making. Whether it's selecting a particular supplier, approving a cost or procuring a new category. It should be easy to get it right. That's why it's also important to steer all purchases towards contracted suppliers and products that you have evaluated and approved from a sustainability perspective. You can do this by integrating sustainability into your purchasing policy and then using support such as a purchasing system to ensure compliance.
When strategy, data and operational decisions are linked, sustainability takes hold and becomes a natural part of every purchase.
Making procurement more sustainable doesn't have to be a multi-year project. On the contrary, there are simple steps you can take today to start building structure, insights and impact:
Regulatory requirements may take time. But expectations are rising all the time. Customers, employees and investors are looking for companies that take responsibility.
Organizations that integrate sustainability into procurement now will be stronger. Not through one-off actions or promises, but by making better decisions every day. Decisions based on insight, engagement and collaboration.