The green procurement imperative1 For most companies, environmental impact does not start within their own walls – it begins in the supply chain. Procurement sits at the centre of a company’s environmental footprint. While emissions discussions often focus on operations or product use, most of the impact lies beyond an organization’s direct control. As Figure 1 below shows, in many sectors – such as transport, food and beverage, capital goods and construction – scope 3 emissions account for over 90% of the total.2 A significant share comes from upstream activities such as purchased goods and services – areas that procurement directly influences. These emissions are not marginal; they represent a critical opportunity for impact – and fall squarely within the CPO’s remit. That reality gives procurement a unique ability to contribute to goals on sustainability. Decisions about what to buy, how to source it and which suppliers to engage, will shape the company’s carbon footprint, material intensity and resource impact.3 Embedding environmental considerations into procurement can reduce the company’s risk, increase transparency and identify opportunities to do things differently – without compromising business outcomes.New tools, data and partnerships are making this shift feasible. Companies are beginning to adopt internal carbon pricing, introduce environmental criteria in sourcing and work closely with suppliers. Cross-functional collaboration, such as between procurement, sustainability and finance teams, builds the alignment needed to move from ambition to action. While execution is still uneven across industries, the path forward is increasingly clear. Green procurement also promotes innovation. By rethinking material choices, supply models and supplier relationships, companies can explore lower-impact alternatives and build more resilient supply networks. In a world of evolving regulation and growing stakeholder expectations, greener procurement can position companies for long-term success, where sustainability is not an afterthought but part of how value is created. Green Procurement Playbook: The CPO’s Guide to Delivering Value for Business and Planet 6

Green Procurement Playbook 2025