Connecting category, supplier, and procurement development with sustainable procurement strategies brings clarity and trust to the end customers. More than half of a company’s ESG footprint lies with suppliers. Find out how Cirtuo can help your organization’s sustainable procurement initiatives.

What is sustainable procurement?

Sustainable procurement is a very relevant topic in procurement. Organizations, particularly procurement professionals, are under increasing pressure to improve environmental, social, and governance (ESG) performance. In addition, big businesses and their stakeholders increasingly expect it from them. Elevating the role of sustainable procurement is crucially important and necessary in responding to these pressures. What the industry sees is that Chief Procurement Officers (CPOs) have now been tasked to lead the transformation of the function in a world where sustainable procurement is becoming the norm and not the exception.

Connecting category, supplier, and procurement development with sustainable procurement strategies brings clarity and trust to the end customers. Talking and walking sustainability is making the procurement function a key contributor internally and a force for a better world. The time is now to start reducing environmental impact, promoting supply chain diversity, and respecting people’s fundamental rights.

Setting company ESG targets

that are high-impact, fair trade, people and environmentally friendly.

Managing supplier relationships

by keeping track of your supplier's ESG initiatives.

Risk management

to protect your organization's reputation and ESG compliance.

Maintaining a healthy work environment

to attract top talent where people are treated as they deserve to be.

What are the benefits of sustainable procurement?

Reduced risk and bolster reputation

Engaging with suppliers that employ bad practices such as the use of child labour or knowingly causing excessive pollution can create a financial blowback on the organization.

Decreased costs

Sustainable suppliers can reduce an organisation’s costs by reducing waste and energy costs.

Revenue growth

Consumers are actively seeking out ethical and sustainable products that are sourced and produced by sustainable organizations. These customers are often willing to pay a little bit more to know the product or service is sustainable and ethically sourced.


Developing a sustainable procurement plan is one way to future-proof the organization against a potential shortage in supply. ESG initiatives can also help protect against changes in social factors such as the availability of technology, economic factors like fluctuations of currency rates, and environmental effects such as climate change.

Does sustainable procurement matter?

Sustainable procurement does matter, and  a comprehensive sustainable sourcing strategy can significantly improve an organization’s ESG rating. Potentially, this can improve access to capital, sharpen competitive advantage, and increase shareholder and stakeholder value while attracting next-generation “conscious talent” to the procurement function. Overall, the strategic business case for sustainable procurement is straightforward, and investing in a sustainable supply chain will create and protect long-term value for an organization and its shareholders.

Sustainable procurement is the future, but its execution is left to individual decisions and tactical approaches. Striking a balance between sustainability and cost efficiency goals will be challenging for many companies and countries. Like a “procurement strategy,” “sustainable procurement” is a must have for organization’s that want to do business in the era of ESG.

Discover Cirtuo Guided Strategy Creation™

Everything you need for strategic procurement in a digital format. Cirtuo procurement software can help your organization address the most important challenges in procurement.

No matter what phase of procurement transformation you’re in, Cirtuo AI-powered category management software that automates category strategy creation can get you there faster.

Introducing the solution for faster decision-making, leading to greater business impact and value delivery.

Cirtuo Guided Strategy Creation™ helps you take control and strategically manage your suppliers to increase their performance, improve relationships, mitigate supply risks and drive collaboration.

Supported by AI-based strategies, Cirtuo Guided Strategy Creation™ i recommends the best possible strategic options that fast-track your organization’s supplier management goals.

Cirtuo’s Procurement Development software helps you understand your procurement stakeholders’ missions and goals and help them achieve internal targets.

Enable next-level analysis of procurement organizations, accelerate strategy creation, track initiative management, and find new ways to realize results.

Take full control over procurement’s core

Book your Cirtuo Guided Strategy Creation™ demo today.