Globally, supply chains account for up to 90% of an organisation’s environmental impacts in many sectors, including manufacturing, construction and consumer goods. This places procurement teams at the centre of corporate sustainability performance. Decisions around supplier selection, materials sourcing, contract structures and performance metrics now directly influence a company’s carbon emissions, biodiversity impacts, water use and social outcomes. To address this, it’s highly recommended that companies have an effective sustainable procurement strategy in place.
The Evolution of Sustainable Procurement
Historically, procurement functions focused heavily on price, availability and supplier reliability. While these factors remain important, they are no longer sufficient. Sustainability considerations now also shape procurement decisions across multiple dimensions, including:
- Environmental performance and carbon intensity
- Resource efficiency and circularity
- Human rights and labour standards
- Local economic contribution and supplier diversity
This shift reflects broader changes in how organisations define value. Sustainable procurement is increasingly recognised as a driver of long-term cost stability, risk reduction and brand credibility.
Regulatory and market drivers
Several external factors contribute to the adoption of sustainable procurement:
- Regulatory pressure: Policies such as the Corporate Sustainability Reporting Directive (CSRD), Supply Chain Due Diligence laws and public procurement requirements are pushing organisations to demonstrate supply chain responsibility.
- Investor expectations: Environmental, social and governance performance is now a material consideration for investors, with supply chain risks under close scrutiny.
- Customer demand: Business-to-business and consumer markets increasingly favour suppliers with credible sustainability credentials.
As a result, sustainable procurement in 2026 is becoming a baseline expectation rather than a differentiator.
Defining Sustainable Procurement in 2026
Sustainable procurement refers to the integration of environmental, social and economic considerations into purchasing decisions throughout the supply chain. It aims to deliver value not only to the organisation, but also to society and the environment. In practical terms, sustainable procurement involves:
- Evaluating life cycle impacts of goods and services
- Engaging suppliers on sustainability performance
- Embedding sustainability criteria into tenders and contracts
- Monitoring and improving supplier performance over time
A robust sustainable procurement strategy ensures that sustainability in procurement is systematic, measurable and aligned with corporate objectives.
Why 2026 is a tipping point
The year 2026 marks a convergence of regulatory deadlines, reporting maturity and market expectations. Many organisations will be required to disclose Scope 3 emissions, supply chain risks and sustainability impacts with greater accuracy and transparency. Without structured procurement systems in place, these requirements become difficult and costly to meet. This is why understanding sustainable procurement in 2026 requires early planning, capability building and leadership commitment.
The Business Case for Sustainable Procurement
Risk management and resilience
Supply chain disruptions linked to climate change, geopolitical instability and resource scarcity are increasing. Sustainable procurement helps organisations:
- Identify high-risk suppliers and materials
- Diversify sourcing strategies
- Improve supply chain transparency
- Build stronger, more collaborative supplier relationships
These actions reduce exposure to operational and reputational risk.
Cost efficiency and long-term savings
While sustainable options are sometimes perceived as more expensive, evidence suggests the opposite over the long term. Organisations that embed sustainability into procurement can achieve cost reductions through improved resource efficiency and waste reduction. Sustainable manufacturing practices, when supported by procurement policies, often lead to lower energy use, reduced material losses and more stable pricing.
Innovation and competitive advantage
Procurement teams that engage suppliers on sustainability often unlock innovation opportunities. These include:
- Low-carbon materials and processes
- Circular economy solutions
- Product redesign and material substitution
In many sectors, sustainability performance is now a prerequisite for winning contracts, particularly in public and regulated markets.
Learn More: Benefits of Sustainable Procurement | Tunley Environmental
ISO 20400: The Foundation of Sustainable Procurement
ISO 20400 is the international guidance standard for sustainable procurement. Unlike certifiable management system standards, it provides a flexible framework that organisations can adapt to their size, sector and maturity. ISO 20400 Sustainable Procurement outlines principles, core subjects and practical actions to embed sustainability into procurement governance and operations.
Key principles include:
- Accountability
- Transparency
- Ethical behaviour
- Respect for human rights
Why ISO 20400 matters in 2026
As regulatory and stakeholder expectations increase, ISO 20400 offers a credible reference point for demonstrating good practice. Aligning procurement processes with ISO 20400 sustainable procurement guidance helps organisations:
- Establish a clear sustainable procurement policy
- Align procurement with corporate sustainability objectives
- Improve supplier engagement and performance
- Support regulatory compliance and reporting
For organisations navigating sustainable procurement in 2026, ISO 20400 provides structure without imposing unnecessary complexity.
Building a Sustainable Procurement Strategy
Step 1: Establish governance and leadership
Effective sustainable procurement starts with leadership commitment. Senior management must set clear expectations and provide resources to support implementation.
This includes:
- Defining procurement’s role in corporate sustainability
- Assigning accountability and ownership
- Integrating sustainability into procurement governance
Step 2: Develop a sustainable procurement policy
A sustainable procurement policy translates high-level commitments into actionable guidance. It should:
- Align with corporate sustainability goals
- Reference relevant standards such as ISO 20400
- Define priority impact areas
- Set minimum supplier expectations
The policy acts as a foundation for consistent decision-making across the organisation.
Step 3: Embed sustainability into procurement processes
To move beyond policy, sustainability must be integrated into day-to-day procurement activities, including:
- Supplier pre-qualification and selection
- Tender evaluation criteria
- Contractual requirements
- Performance monitoring and review
This is a critical component of maintaining sustainable procurement in 2026 over the long term.
The Bottom Line
As sustainability expectations continue to rise, procurement will remain a critical driver of organisational impact and resilience. Sustainable procurement in 2026 represents a shift from reactive compliance to proactive value creation. Organisations that invest in governance, data, supplier engagement and alignment with ISO 20400 will be better positioned to manage risk, meet regulatory requirements and support corporate sustainability ambitions. Ultimately, embracing and maintaining sustainable procurement in 2026 will be about building supply chains that are resilient, transparent and fit for the future.