Building block 3 Strategic business case CPOs are increasingly expected to integrate sustainability into procurement. Yet translating these expectations into a compelling business case remains a persistent challenge. While sustainability is gaining visibility in boardrooms, investment decisions are still driven largely by cost and short- term financial metrics. Procurement teams often face pressure to justify premiums, where they exist, for green alternatives in markets where customers are unwilling to pay more. As one CPO put it, “Every decision must be cost-neutral or backed by a strong business case.” The benefits of sustainability – such as resilience, innovation and brand equity – are real, but hard to quantify. Without consistent data or shared evaluation frameworks, these intangible benefits often carry less weight than immediate cost savings. And where customers are willing to pay “green premiums”, procurement leaders may find themselves caught between ambitious sustainability goals and commercial teams hesitant to pass higher costs to customers. Internal alignment becomes particularly difficult when responsibility for absorbing additional costs is unclear, a recurring challenge for organizations without centralized funding mechanisms. Who will communicate across the value chain about the green advances? Approval processes also remain a hurdle. Even in companies ambitious for sustainability, procurement decisions must often pass through conventional capital expenditure or investment committees that prioritize return on investment (ROI), internal rate of return (IRR) and a short payback period. Unless companies deliberately embed sustainability into these processes, green options too often lose out. Despite these challenges, leading companies have developed robust approaches to framing green procurement as a strategic investment. They blend rigorous financial modelling with sustainability logic to influence both internal and external decision-makers. Our job in procurement is to provide options with a lower environmental impact, present clear business cases and support decision-making. Alfa Laval Green Procurement Playbook: The CPO’s Guide to Delivering Value for Business and Planet 26

Green Procurement Playbook 2025