Green Procurement Playbook 2025

Frame the full value of sustainability Best-in-class organizations go beyond conventional ROI models to capture the multidimensional value of green procurement.8 Figure 5 illustrates a holistic value map that leading CPOs should use to structure business cases across four dimensions: cost reduction, revenue generation, indirect value creation and risk mitigation. This framework enables companies to position sustainability benefits alongside, rather than in opposition to, traditional metrics. Holistic value map for green procurement FIGURE 5 Notes: 1. EU CBAM = European Union’s Carbon Border Adjustment Mechanism; CSDDD = Corporate Sustainability Due Diligence Directive. 2. See source in endnote.9 Source: Kearney, 2025. Green Procurement Playbook: The CPO’s Guide to Delivering Value for Business and Planet 27— Operational cost savings : Achieve savings through reduced waste, energy consumption and optimized resour ce use. — Emissions compliance costs : Reduce or avoid carbon taxes, permit costs and other emissions-r elated regulatory fees. — Preferred financing terms : Gain lower interest rates or favourable terms on loans specifically for sustainable investments. — Leverage incentives : Access green subsidies, tax credits and rebates for sustainable sour cing investments.— Sales of existing products: Increase sales through differentiated offerings that meet customer demand. — New offerings: Develop products and services that cater to the growing demand for sustainable solutions. — Premium pricing : Charge a premium for certified or eco-labelled products, due to higher willingness to pay. — Product innovation : Differentiate by adopting emerging tech, securing patents and forging co- innovation partnerships. — Market access: Meet sustainability requir ements to retain or expand access to regulated markets (e.g. EU CBAM, CSDDD).1— Enhanced brand loyalty : Enhance brand reputation and loyalty among customers who prioritize sustainability . — Enhanced employer brand : Attract and retain talent seeking purposeful, sustainable employers. — Improved investor relations : Attract sustainability investors and potentially improve ratings and valuation.2 — Positive PR and media coverage: Gain recognition for genuine sustainability efforts, enhancing brand equity . — Meeting internal and external commitments: Deliver on sustainability goals and meet stakeholder expectations.— Regulatory changes: Proactively adapt to evolving rules, avoiding fines, penalties and compliance costs. — Secure supply chain access : Diversify suppliers, reducing reliance on high-risk sour ces, strengthening ethical partnerships. — Reputational risk mitigation : Avoid negative press and backlash from unsustainable or unethical supply chain practices. — Reduced litigation risk: Minimize likelihood of lawsuits related to envir onmental damage in the supply chain. — Climate change resilience : Reduce disruption risk through low-exposur e sour cing and resilient practices.Cost reduction Revenue generation Indirect value creation Risk mitigation