Achieving sustainability in procurement can be a complex challenge, especially when balancing short-term needs with long-term environmental goals
Many organisations looking to reach Carbon Net Zero (CNZ) face challenges that can delay their progress.
The five common “tripwires” identified by the Sustainability team show some of the most significant mistakes organisations come across when transitioning to sustainable procurement practices.
Understanding and avoiding these pitfalls is essential to creating a strategy that meets immediate needs and ensures long-term sustainability.
Treating sustainability as a project
One of organisations’ most significant mistakes is viewing sustainability as a one-time project rather than an ongoing programme.
Often, sustainability is treated as a simple task, such as replacing a diesel vehicle fleet with electric vehicles (EVs).
Although it’s an important step, it needs to address the overall goal of reducing the carbon footprint of an organisation’s travel activities.
Organisations should consider the full range of actions required to decarbonise their operations.
This might include reducing the number of vehicles owned, ensuring infrastructure is in place for EV charging, or exploring alternative forms of transportation, such as e-bikes. A strategy considers the immediate solution and how each part of the system interacts and supports the overall goal.
Not engaging with the marketplace early enough
Another common downfall is not engaging with the marketplace early in the process.
The pace of change in sustainability technologies and solutions is fast, and innovations are always emerging. Organisations can’t afford to wait until they’re ready to procure before exploring what’s available.
Suppliers can offer insights into the latest technologies, helping to avoid unrealistic expectations or overly ambitious goals. Early engagement also allows organisations to identify any gaps in market capacity, making sure that there is sufficient supply to meet demand.
This approach helps align procurement strategies with what is possible in the marketplace, reducing the risk of having no bidders or receiving short proposals.
Focusing only on day 1 costs
It’s easy to focus on minimising the initial costs of procurement.
However, this approach needs to pay attention to the significant long-term savings that can come from considering the total lifecycle of a product or service.
For example, while the upfront cost of a new piece of machinery may be higher, its energy efficiency might lead to lower operating costs over time.
Products that are easier to repair or have longer lifecycles may reduce the need for costly replacements. Organisations must adopt a lifecycle cost approach beyond the day-one price tag. This perspective ensures that sustainability efforts are cost-effective in the short term and deliver savings and value over time.
Not thinking about the future
Sustainability is not a static goal; it’s an evolving process.
Many procurement strategies fail because they lock organisations into long-term contracts or solutions without considering future needs or technological advances. The rapid pace of innovation in sustainability solutions means that what is considered best-in-class today may soon be obsolete.
For example, there may be better decisions than committing to a long-term lease on energy storage equipment in a fast-changing technological environment. Procurement strategies should be flexible enough to accommodate innovation and adapt to new developments. This ensures that organisations are not left behind as new, more efficient solutions become available.
Focusing on products over outcomes
Organisations often fall into the trap of focusing on specific sustainability products rather than the desired outcomes.
For example, buying solar panels or electric vehicles is a straightforward way to reduce carbon emissions. However, achieving net zero is not about purchasing certain products, but about optimising processes and making intentional decisions that lead to tangible environmental outcomes.
Sometimes, improving the efficiency of existing systems, such as upgrading heating and cooling systems, can provide better results than replacing them entirely.
Procurement strategies should focus on the desired outcomes (e.g., carbon reduction and energy efficiency) and allow suppliers to propose solutions that best meet those goals.
Navigating the path to sustainable procurement requires a shift in mindset, from focusing on short-term tasks and individual products to embracing a long-term, systems-oriented approach.
By avoiding these common tripwires, treating sustainability as a project instead of a programme, not engaging early with the market, fixating on initial costs, failing to plan for the future, and prioritising products over outcomes, organisations can build a procurement strategy that supports both their sustainability goals and their wider business objectives.
