Top 10: Sustainable Procurement Strategies

Procurement teams are increasingly tasked with responsibilities that extend beyond securing the best deals. They now play a pivotal role in advancing corporate sustainability goals, particularly in addressing Scope 3 emissions. These emissions, which account for most of a company's carbon footprint, highlight the critical importance of procurement in driving meaningful environmental progress.
In response to this growing responsibility, Scope 3 Magazine examines the top 10 sustainable procurement strategies that companies are adopting to tackle Scope 3 emissions effectively.
10 | Integration of sustainability in contracts
- Company: Microsoft
- Founded: 1975
- Employees: 228,000
- CPO: Michael J. Simms
- Revenue: US$211.92bn
Including sustainability clauses in supplier agreements is becoming standard practice. These clauses embed legally binding commitments like emission reduction targets. The clauses align supplier activities with corporate sustainability goals, supported by regular reviews and compliance checks to ensure accountability.
Microsoft exemplifies the approach, requiring suppliers to cut emissions by 55% across Scope 1, 2 and 3 from a 2019 baseline. The mandate highlights Microsoft's dedication to driving sustainability across its supply chain, setting a benchmark for corporate environmental responsibility.
9 | Incorporate circular economy principles
- Company: IKEA
- Founded: 1943
- Employees: 155,000
- Director of Procurement: Lisa McCullagh
- Revenue: US$51.5bn
Adopting circular economy principles significantly reduces Scope 3 emissions by prioritising recyclable materials, lowering dependence on raw resources and minimising waste across extraction, processing and disposal. These efforts not only cut emissions but also unlock cost savings and innovative business opportunities.
IKEA highlights the approach with its goal to use only renewable or recycled materials by 2030. The company collaborates with suppliers to advance circular design and recycling innovations, reinforcing its commitment to sustainability and long-term environmental impact.
8 | Implement incentive programmes
- Company: Walmart
- Founded: 1962
- Employees: 2.1 million
- Executive Vice President of Sourcing: Andrea Albright
- Revenue: US$648bn
Incentives are crucial in driving participation and stronger rewards motivate businesses to engage more effectively. The approach fosters mutual benefits, reducing Scope 3 emissions while advancing a circular economy.
Walmart's Project Gigaton mirrors the strategy, incentivising suppliers to lower emissions through preferential treatment and growth opportunities. Launched in 2017, the initiative targets reducing one billion metric tons of greenhouse gases from Walmart's global supply chain by 2030, aligning with the goals of the Paris Agreement.
7 | Supply chain transparency
- Company: Unilever
- Founded: 1929
- Employees: 128,000
- CPO: Willem Uijen
- Revenue: US$64.5bn
Enhancing supply chain transparency is critical for addressing emissions. Technologies like advanced tracking systems, blockchain and AI-powered analytics enable organisations to identify hotspots, monitor progress and make informed decisions. Accurate reporting builds stakeholder trust and ensures regulatory compliance.
Unilever leverages these technologies to develop data-driven strategies for reducing Scope 3 emissions. Its digital initiatives include virtual simulations that optimise product design and efficiency, allowing rapid testing of formulations tailored to regional needs while advancing sustainability goals.
6 | Supplier carbon management programmes
- Company: Apple
- Founded: 1976
- Employees: 161,000
- Director, Human Rights and Responsible Sourcing: Alyssa Newman
- Revenue: US$383bn
Implementing a robust supplier carbon management program is vital for reducing Scope 3 emissions. The programs equip suppliers with tools, training and support to effectively measure, report and lower greenhouse gas emissions.
Apple demonstrates the strategy by providing emissions calculation software and hosting best practice workshops. Partnering with the US-China Green Fund, Apple has invested US$100m in energy efficiency projects.
Over 70 suppliers have committed to 100% renewable energy, avoiding an estimated 14.3 million metric tons of CO₂e annually.
5 | Sustainable procurement policies
- Company: Patagonia
- Founded: 1973
- Employees: 3,000
- Director of Sourcing and Production at Patagonia: Francisco (Paco) Luna Vilalta
- Revenue: US$209.1m
Adopting sustainable procurement policies is a powerful strategy for reducing Scope 3 emissions. Companies can drive greener supply chain practices by prioritising suppliers with strong environmental credentials and embedding sustainability into vendor selection. Regular policy reviews ensure alignment with evolving standards, fostering continuous improvement.
Patagonia's approach illustrates responsible purchasing practices, open dialogues on environmental and social issues and leadership involvement in supplier evaluations. Its commitment to sustainability sets a benchmark, inspiring broader change across the apparel industry.
4 | Set clear targets
- Company: Nestlé
- Founded: 1866
- Employees: 270,000
- CPO: Patricia Stroup
- Revenue: US$107.4bn
Establishing clear Scope 3 reduction targets is vital for driving impactful changes in supply chain emissions. The targets should align with global climate goals while considering an organisation's capacity. Companies cultivate a sense of urgency and shared commitment by communicating targets to suppliers early.
Nestlé exhibits the approach with validated Scope 3 reduction goals through the Science Based Targets initiative (SBTi), aiming for net-zero emissions by 2050. Additionally, the company seeks to source 20% of raw materials from regenerative agriculture by 2025.
3 | Supplier engagement and collaboration
- Company: Danone
- Founded: 1919
- Employees: 100,000
- CPO: Jean-Yves Krummenacher
- Revenue: US$29.9bn
Collaboration with suppliers can result in shared sustainability targets, best practices and co-developed innovative solutions. Danone's Partner for Growth initiative demonstrates the focus on emerging science, technology and sustainability to enhance existing relationships while forming new partnerships with startups, corporations and academic institutions.
Through regular supplier forums and joint innovation projects, Danone taps into its supply chain's expertise to address emission-related challenges. The cooperative approach boosts resilience and accelerates progress in packaging recycling and methane reduction, driving substantial environmental impact throughout its operations and supply network.
2 | Mandate net-zero commitments
- Company: Google
- Founded: 1998
- Employees: 182,500
- Vice President, Global Procurement & Chief Procurement Officer: Jennifer Moceri
- Revenue: US$305.6bn
Mandating net-zero commitments is a powerful strategy for achieving significant Scope 3 emissions reductions. By leveraging its purchasing power, an organisation can create a ripple effect, encouraging sustainability across its supply chain and inspiring suppliers to prioritise emissions reduction. The strategy involves clearly communicating the net-zero requirement, explaining its rationale and benefits and providing a timeline for suppliers to develop their plans. Support is crucial, as each supplier has unique capabilities.
Google has adopted the approach of mandating net-zero commitments from key suppliers. Through its Renewable Energy Addendum, the company requires its largest hardware manufacturers to match 100% renewable energy by 2029.
1 | Prioritise suppliers based on climate performance
- Company: L'Oréal
- Founded: 1909
- Employees: 88,000
- Global CPO: Régine Lucas
Organisations can significantly reduce indirect emissions by prioritising suppliers with strong climate performance while fostering the widespread adoption of sustainable practices across their supply chains.
Regular evaluations, such as third-party audits or standardised reporting, are vital for tracking climate performance. By incorporating climate performance scores into supplier selection, companies can create a tiered system that rewards top performers with more business opportunities and preferential terms.
L'Oréal portrays the approach with its comprehensive supplier assessment framework, which includes climate metrics and sustainability-linked financing. In 2023, it assessed 965 suppliers, with 301 strategic suppliers achieving an average score of 63/100, demonstrating an ongoing commitment to sustainability.
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