Speaker: Matias Pollmann-Larsen, Global Lead for Sustainable Value Chain at Accenture, hosted by Fergal Byrne, Executive Producer, The Sustainability Agenda
The Sustainable Value Chains podcast series features senior sustainability experts and executives who explore a wide range of environmental, labor and human rights, ethics, and sustainable procurement issues and look at how companies can develop more sustainable value chains.
Available on: Spotify | Apple Podcasts
Sustainable procurement is rapidly evolving into a strategic force for business growth and competitiveness. Once perceived primarily as a tool for protecting brand reputation and mitigating risk, it is now seen as an engine for innovation, resilience and measurable value creation. As organizations grapple with tighter regulations, shifting customer expectations, and the need for traceable, low-carbon supply chains, procurement leaders find themselves at the heart of this transformation.
The Evolving Role of Procurement
Procurement has traditionally focused on cost reduction, compliance and safeguarding against potential disruptions. However, the current business climate demands a broader perspective. Today, procurement teams are tasked not only with ensuring quality and affordability but also with embedding ethical, environmental and social considerations into every purchasing decision. This shift reflects a growing understanding that the impact of supply chains extends far beyond immediate financial metrics – and that success ultimately hinges on transparent, responsible sourcing.
Recent research highlights this transformation in tangible ways. According to the latest Sustainable Procurement Barometer, a majority of large organizations have begun systematically integrating sustainability into their procurement frameworks. This study – spanning hundreds of buyer companies and over a thousand suppliers – demonstrates how environmental, social and governance (ESG) factors are becoming core drivers of decision-making. While most programs still face hurdles such as siloed data systems and limited supply chain visibility, the momentum for change continues to grow.
The Visibility Challenge
A major stumbling block in the journey toward sustainable procurement is the lack of visibility into multi-tier supply chains. Many companies have thousands of suppliers, and reliable data typically stops at Tier 1, leaving Tier 2 and beyond largely uncharted. This obscurity makes it difficult to pinpoint carbon hotspots, identify labor risks, or track the origin of raw materials. Bridging this information gap is critical: when organizations have a granular understanding of their supply network, they are better equipped to implement targeted improvements, measure performance, and report on progress to stakeholders.
Collaboration with Suppliers
Effective supplier engagement is central to any successful sustainability initiative. Suppliers vary widely in their readiness and resources for implementing ethical or environmental improvements. In some cases, training and capacity-building efforts are needed; in others, shared investments in new technologies or processes can yield major gains for both parties. Segmenting suppliers based on materiality – focusing on those with the greatest impact on emissions or the highest risk for human rights violations – can ensure that limited resources are directed where they matter most. True collaboration goes beyond policing compliance; it fosters open communication, knowledge-sharing, and joint problem-solving.
Data as an Enabler
The importance of digital transformation in procurement cannot be overstated. Centralized platforms that consolidate ESG metrics, automate supplier assessments, and generate real-time analytics are becoming indispensable for modern procurement teams. Scalable digital solutions make it possible to handle large volumes of data, compare performance across suppliers, and identify trends or anomalies that might otherwise be overlooked. When seamlessly integrated into day-to-day workflows, these tools can enhance resilience, expedite decision-making, and pave the way for continuous improvement. Emerging technologies such as machine learning and generative AI are likely to accelerate these capabilities, offering even deeper insights into complex supply chains.
Looking Ahead
As sustainability becomes integral to procurement, leadership support is essential. Targets and benchmarks should be backed by clear business cases and measurable outcomes. Procurement strategies that link ESG goals to bottom-line results tend to garner lasting commitment from executives, employees, and investors. Over time, organizations that maintain a holistic approach – merging robust data, supplier collaboration, and regulatory readiness – are best positioned to remain resilient and relevant in a rapidly changing marketplace.
What emerges is a vivid picture of procurement’s expanding influence. By embracing sustainability as a pillar of value creation, businesses not only mitigate risk but also unlock new forms of innovation and competitive differentiation. As this trend gains momentum, procurement leaders will play a pivotal role in shaping the future of responsible and prosperous enterprise.
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