Procurement is Evolving - and Sustainability is a Core Value

Originally posted November 2023. Updated January 2025.

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Procurement is evolving from a focus on cost reduction to one that emphasizes strategic value. This shift is driven not only by environmental concerns but also by the recognition that sustainability can significantly enhance profits and economic success. Over the past two decades, the role of procurement has become increasingly important, and this trend is expected to continue.

With 98% of S&P 500 companies publicly committing to sustainability and impact reduction goals¹, it's clear that the next phase of procurement will focus on sustainability. In addition to traditional metrics such as price, quality, and delivery time, sustainability must now be prioritized. This change is crucial because a company's reputation, risk exposure, and profitability are all at stake.

The stakes for the next evolutionary step in the procurement profession are clear and could not be higher: save the world without sacrificing price, quality, or delivery time. This means procurement professionals across the globe need to integrate sustainability as a decision-making factor when awarding contracts, negotiating terms, and collaborating with suppliers.

Our collective livelihood and the health of our planet depend on embracing sustainability as a core value alongside cost, quality, and on-time delivery.

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A New Global Paradigm

Sustainability is becoming a core value of modern, expanding businesses. Kloopify’s founder, Daniela Osio, was fortunate to start her career working with Shelley Stewart, a pioneer and reference for Chief Procurement Officers (CPOs) worldwide and one of the business leaders who elevated this function to the strategic level and the C-suite caliber it has today².

Over the last 20 years, supply chains have been shaped by globalization, inspired by Toyota’s “just-in-time” and “zero-inventory” principles. These approaches required precise coordination with global suppliers and service providers, optimizing efficiency across international networks.

However, COVID-19 disrupted these systems, exposing their fragility and vulnerability to geopolitical, economic, and environmental pressures. New U.S. trade policies and changing global dynamics signal the end of the era of globalization as we have known it As companies move toward more localized and resilient supply chains, procurement professionals have a unique opportunity to align these shifts with sustainability priorities, redefining the supply chain landscape for the better.

In the last 20 years, supply chains have become globalized, and the whole World has adopted a “just-in-time” and “zero-inventory” policy started by Toyota and the Toyota Production System. This required close coordination and logistics with global suppliers and service providers. COVID arrived, and it changed all that. We can all see how strategic, geopolitical, and sustainability shortcomings of current supply chains affect everyone on the planet.

Beyond Reporting: A Sustainability Mindset

As sustainability becomes a core value rather than an optional extra, procurement departments must achieve significantly higher levels of due diligence, tracking it with the same rigor as price, quality, and on-time delivery.

Sustainability isn’t just about issuing static company-level carbon footprint reports or completing lengthy sustainability questionnaires like EcoVadis. It’s about shared core values, measuring the environmental performance of suppliers and customers, and using these insights to drive measurable improvements. 

On one hand, regulations like the Corporate Sustainability Reporting Directive (CSRD) in the EU require businesses to disclose detailed environmental and social impact data. While the ESG label may seem new, the underlying principles are timeless. It's not merely about following trends; it's about building resilient and responsible businesses that can endure over time. 

Procurement teams are tasked with navigating this complex landscape, ensuring that suppliers meet stringent sustainability standards while aligning with broader corporate goals. The ultimate goal is to measure and track sustainability with the same care and attention as traditional procurement metrics.

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The Role of Data and Practical Progress

To advance this process, we need high-quality, granular data to support decision-making. Procurement teams must apply the MAYA³ principle: “Most Advanced. Yet Acceptable.” This approach balances innovation with practical implementation, guiding people and organizations toward their zones of proximal development. In sustainability, this means empowering individuals to take incremental steps they can embrace independently, driving ownership of their goals.

Introducing supplier-specific data, advancing expertise, and avoiding decision paralysis are key to this journey. AI-driven platforms like Kloopify are revolutionizing procurement by providing real-time, SKU-level sustainability data, enabling informed decisions without sacrificing traditional metrics. These tools empower procurement professionals to hold suppliers accountable and track progress effectively, making sustainability actionable rather than aspirational.

Building Momentum

The cascading effect of sustainable procurement impacts trillions of dollars in transactions, investments in green and resource-efficient processes, the financial future of companies, the livelihoods of millions, and the health of our planet.

Recent trends and studies indicate that companies with robust sustainability programs are likely to report significant cost savings, reduced risks, and enhanced competitive advantages. By aligning ambition with practical progress, balancing future goals with current capabilities, and embedding sustainability into procurement processes, we can ensure long-term success. 

This is the vision behind Kloopify: a climate action platform designed by procurement professionals for procurement professionals. Together, we can create a more sustainable and resilient global economy—one purchase at a time.

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¹ S&P 500 ESG Reporting and Assurance Analysis, CAQ, June 2024

² Straight to the Bottom Line. JRoss Publishing. 2006 by Rudzki, Smock, Katzorke, Stewart

³ The  MAYA  Principle: Design for the Future, but Balance it with Your Users’ Present