Written by Marijn Overvest | Reviewed by Sjoed Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

12. 58% of Global Organization Monitor Suppliers’ Sustainability Performance

As part of supplier relationship management (SRM), companies also assess their suppliers whether their sustainability goals align with one another. PR Newswire reports that more than half of surveyed global companies commit to monitoring their suppliers’ sustainability performance. 

Thus, it paints a vivid picture that the 2023 penetrative reach of sustainability in procurement processes acts as a testimony to the trend of businesses expanding their commitment to sustainability beyond their operational and organizational boundaries. 

13. In 2023, the AI Market is Valued at $136 Billion and Expected to Expand at 37.3% by 2023

The growing demand for artificial intelligence technologies, especially in economies and the business industry will need to be met with standards for responsible AI practices in procurement. 

Furthermore, the figures reported by the World Economic Forum serve as a basis for how much companies will invest in AI and machine learning technologies to streamline procurement processes and optimize business operations. Moreover, such advancements will help them protect their businesses from potential risks related to intellectual property, data, and privacy. 

14. AI Use for Environmental Purposes Can Contribute Up to $5.2 Trillion to the Global Economy by 2030

Aside from streamlining procurement processes and overall business operations, artificial intelligence can help provide insights into how businesses can positively impact the environment. 

Moreover, PwC reports that AI and machine learning can reduce greenhouse gas (GHG) emissions by 4%. With that, AI for environmental purposes can also contribute up to $5.2 trillion to the global economy by 2030.

With these figures, it can be noted that sustainability does a lot more than save the planet, but also brings a lot of value to the global economy.

15. 48% of Global Companies Experience Pressure to Embrace Greener Procurement Processes in 2023

Amidst environmental sustainability concerns, 48% of companies globally face pressure to adopt eco-conscious practices in their supply chains. Moreover, the world pushes the business industry for greener operations, emphasizing reduced carbon emissions, responsible sourcing, and increased use of alternative fuels in shipping.

Thus, the top 3 areas that businesses report prioritizing for supply chain sustainability are electrification at 40%, natural resource management at 29%, and water usage and the transition to renewables at 27%. These initiatives bring the business industry closer to its goal of going 100% sustainable.

16. IBM Shows that 54% of All Consumers are Willing to Pay More for Products from Companies that are Socially Responsible

As part of their 2023 report about sustainability, IBM shows a figure of 54% of all global consumers are willing to pay more for products from companies that are considered socially and environmentally responsible. They place an impressive value on positive impact to the society which not only shows how ready they are to shoulder premium costs but also reflect their concern for the world.

Thus, this also mirrors an impactful insight for other consumers to follow. A sustainable procurement process and overall supply chain illustrate the benefits of shifting to environmentally-conscious business models.

17. Transitioning to Sustainable Practices Globally can Lead to $26 Trillion in Savings by 2030

The United Nations Report on Climate Action states that it is not just a budget buster or an economy wrecker. In reality, shifting to a greener economy could yield a direct economic gain of $26 trillion by 2030 compared with traditional business operations. 

To expound on this further, adopting sustainable practices in the business industry can generate more income than usual because although investing upfront can cost more, they are actually less costly than business-as-usual in the long run. In addition, this shift can also produce over 65 million new low-carbon job opportunities.

18. As of 2023, the Transport Sector Accounts for 15% of Total Greenhouse Gas Emissions – the 4th Largest Source of Global Emissions

In the same report made by the UN, after the power, industry, and agriculture-forestry-land use sectors, the fourth largest source of global emissions is greenhouse gas; and 14% of it is composed of the transport sector.

So, sustainable procurement practices and the adoption of decarbonizing in the transport sector which includes various transformative measures like electromobility, alternative fuels for shipping and aviation, advanced biofuels, ammonia, synthetic fuels, and demand and efficiency strategies.

19. Sustainability-Focused S&P 500 Companies have 18% Higher Returns on Investment

The Standard & Poor’s or the S&P 500 Index, a market capitalization-weighted index of 50 leading publicly traded companies in the US, has almost a hundred percent of companies publishing a sustainability report starting from 2020. Moreover, in their most recent report, results showed that sustainability-focused S&P 500 companies have a bigger number of ROIs reaching up to 18%. Furthermore, this figure, is an eye-opener for most (if not all) global businesses to shift to a more sustainable approach in their business operations. 

 20. Business Can Make a Major Impact and Account for 60% of Emissions Cut by 2030

According to Environmental Sustainability, an island of plastic with approximately 1.5 million square kilometers is floating in the Pacific Ocean. More than that, the world is actually on pace to produce at least 27 billion tons of solid waste by 2050 due to a business environment that prioritizes fast and rapid production and turnover of products for bigger and maximum profits.

In addition, mismanaged CO2 emissions are also projected to increase temperature of two degrees Celsius by 2050 which will, in turn, cause sea levels to rise and catastrophic weather events to increase. To make it worse, another study discovered that as small as 100 companies globally are responsible for an alarming rate of 71% of global emissions. 

However, as per the Paris Climate Accord, the business industry can actually account for 60% of emissions cuts by 2030 and avoid major environmental consequences should they adopt and shift to more sustainable practices.

21. 94% of CPOs Claim that Their Senior Leadership Team and CEOs are Interested in Sustainable Procurement Practices

Sustainability in procurement processes has become an integral part of successful business operations. What is currently seen as an extra step when dealing with suppliers and purchasing resources, will ultimately become a non-negotiable measure for all companies and their respective supply chains.

Moreover, in Supplier Day’s case study, it was revealed that 94% of the CPOs they surveyed claim that their senior leadership teams and CEOs have taken a keen interest in practicing sustainable procurement processes.

Sustainable Procurement Statistics: What Does it Mean?

The COVID-19 pandemic is still present even though many countries have started to vaccinate their citizens. Additionally, the ongoing war between Ukraine and Russia, high inflation among countries, high carbon emissions, and shortages of supplies are what the supply chain is facing right now. 

However, many companies are committing to switch to a sustainable supply chain and procurement to counter these factors. This is due to the fact that sustainability in the process of companies can lessen the effects that are brought by these factors.

Although the commitment of some companies is still in its early stages, their willingness to have sustainable objectives and goals is visible in order to help the environment and society recover.

Automation in Sustainable Procurement

Shifting from a sustainable procurement means integrating new technologies that consume less energy to make the procurement processes efficient while considering the health of the environment and society. 

Through automation, businesses can go on a paperless process. According to a study, businesses produce 21 million tons of paper waste each year. Thus, automation saves paper and makes it easier for everyone to access information through their system.

Automation can also make manufacturers reduce their energy consumption. Automation can decrease heating requirements and reduce cycle times. Additionally, it can lower the amount of energy that is needed for operation. Thus, lowering the carbon emissions of manufacturing companies by using less energy.

Net-Zero Commitments by Companies

Multinational companies like Unilever have committed to a net-zero operation. Through Unilever’s action plan,  it has set a clear pathway to have zero emissions in its operation by 2030 and net zero emissions across its value chain by 2039. 

Although many multinational companies like Unilever are switching to a sustainable procurement and supply chain, many small to midsize companies are just starting to hear about sustainability.

The growing alliance of countries, cities, companies and other institutions are pledging to get to net-zero emissions. More than 70 countries, which includes the largest polluters — the United States, China, and European Union — have a zero net target that covers about 79% of global emissions. 

According to Antonino Guterres, the United Nations Secretary-General, they need commitments that will deliver a reduction of emissions by 45% by 2030 to reach net zero emissions by mid-century.

Shortages and Inflation 

The rising prices due to shortages deepen the challenge for those who are not able to pay for food in normal times. Acute hunger is driven by three things which are conflicts, climatic shocks, and economic and social fallouts due to the pandemic. 

The economic fallout from the COVID-19 pandemic has shocked the world economy as incomes are severely struck by job losses. Additionally, inflation has ramped up due to supply chain disruptions.

The current food crisis is about affordability. Food is available but it is beyond the reach of millions of people. Sustainable procurement aims that all actors in the supply chain must have a dignified price. Thus, everyone can afford to buy their needed products, especially food for people.

Conclusion

In 2024, sustainable procurement is a global trend, with 51% of businesses adopting eco-friendly policies. Companies benefit from reduced costs (5-10%) and increased brand value (15-30%). Notably, 90% of procurement experts seek carbon-neutral suppliers. However, only 2% of Chinese firms prioritize sustainability.

Automation aids in paperless processes, reducing waste. Despite challenges like geopolitical conflicts and inflation, businesses commit to net-zero operations and join global alliances. Sustainability isn’t just a trend; it’s a crucial step toward a resilient and equitable future.