Sustainability in Procurement

Sustainability is reshaping procurement – but incentives lag behind. This new publication sheds light onto how sustainability is being integrated into procurement.

Developing and strengthening procurement processes and practices is an essential element in companies’ efforts to ensure sustainability of their business activities.

Despite positive trends in strengthening companies’ commitment to sustainable business globally, recent studies and research still show remarkable sustainability gaps in companies’ supply chain management.

The purpose of this report, conducted by UN Global Compact Finland and FIANT Consulting, is to provide insights on the status, strengths, challenges, and opportunities on sustainability in procurement, and thereby stimulate discussions among companies, other stakeholders and wider audience on this important topic.

What we found

Sustainability is reshaping procurement – but incentives lag behind

Understanding on business benefits is still vague

Increasing integration into procurement processes

Strong cooperation with suppliers and cross-functional cooperation within companies is essential

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Methodology

The report presents the main findings of an assessment and analysis conducted with UN Global Compact Finland’s member organizations on how sustainability is integrated into their procurement policies, processes, decision-making, and performance monitoring.

Data was collected through 16 semi-structured key informant interviews with UN Global Compact Finland’s representatives working on sustainability issues in their company procurement, and an online survey sent to all UN Global Compact Finland’s member companies and to members of LOGY (Suomen Osto- ja Logistiikkayhdistys LOGY ry).

The initial findings were validated and enriched in a participatory workshop involving six companies.

Why now?

Sustainable procurement is quickly becoming a business necessity. Growing expectations from investors, financiers, B2B-customers, and legislation are increasing the pressure on companies to integrate sustainability throughout their value chains. Strong sustainability performance in procurement is likely to become an important requirement for market access, financing, and business partnerships.

Companies that develop their procurement practices today will be better prepared for future expectations and better positioned to reap the benefits of sustainable procurement.

This publication comes at a timely moment. We hope it helps companies assess their current practices, identify development opportunities, and build a stronger case for investing in sustainable procurement in the future.

Sustainable Procurement Implementation Framework

This UNGC framework was developed for procurement officers and teams to help translate their most material sustainability priorities into implementation.

Academy: Understanding Responsible Procurement and Shared Responsibility

This first webinar of the Responsible Procurement series offers an introduction to sustainable procurement, outlines the relevant EU legal requirements as well as international standards, and closes by defining the shared responsibilities of buyers and suppliers in advancing HREDD.

CEO Study 2025 by UN Global Compact & Accenture

Today, 88 per cent of CEOs believe the business case for sustainability is stronger than it was five years ago. This shift in executive mindset is happening as CEOs face geopolitical shifts, economic and profitability pressures and regulatory and reporting complexities.

Any questions?

UN Global Compact Finland's Linda Piirto (Lead, Supply Chains & Governance) is happy to answer any questions you may have.

+358 50 4112575
linda.piirto@globalcompact.fi