Amazon Business is a Business Reporter client
Procurement teams are under pressure to make more sustainable purchasing decisions – and new tech means they can now take advantage of smart business buying.
Sustainable sourcing is becoming increasingly important in how businesses procure goods and services, as the drive towards reducing carbon emissions and adopting more responsible business practices heats up.
According to Amazon Business’s 2025 State of Procurement report, 62 per cent of decision-makers – and 67 per cent of leaders – now rank improving sustainability in procurement as very important, and 15 per cent and 13 per cent respectively see this as a top-three priority.
This is now starting to impact how organisations assess and monitor suppliers. More than a third (34 per cent) now look at sustainable practices such as energy or packaging when evaluating potential providers. This makes it the fifth most common assessment method, behind quality, cost, on-time delivery and supply continuity or stability.
Of those businesses which have mandated goals for certified sellers – which accounts for four in five respondents – the most common metric on which to assess suppliers is sustainable practices, chosen by 61 per cent. Other goals in the survey include purchasing from local, small, diversity-owned and socially/economically disadvantaged businesses.
But achieving progress in this area is proving difficult. Environmental, social and governance (ESG) and corporate social responsibility (CSR) mandates are seen as the biggest external challenge to procurement operations for leaders, with 43 per cent pointing to this. This has increased by 8 per cent from a year ago, and now ranks ahead of other metrics such as unexpected economic changes, rising costs and suppliers that are unable to support digital needs. Decision-makers also see it as a challenge, with 37 per cent pointing to this – second only to rising costs.
“More executives are seeing the business case for sustainability, but cost is a significant hurdle,” says Antwaun Griffin, General Manager of Socially Responsible Purchasing at Amazon Business. “But it’s clear that there’s a stronger commitment to sustainable sourcing, driven by both internal goals and external pressures for better corporate responsibility.”
The good news is that sustainability initiatives can also help organisations to cut costs, particularly during periods of disruption to supply chains, as has been seen in recent years with the disruption to the Suez Canal and broader global political uncertainty. “To strike that balance, it takes some smart planning and using new technologies, making sure that sustainability efforts also boost the organisation’s bottom line,” says Griffin.
Technical support
E-procurement tools are vital to achieving the right mix of sustainable procurement and saving money. “By centralising purchasing processes, these tools boost transparency and efficiency,” explains Griffin. “They help keep an eye on supplier practices and streamline the procurement workflow, making it easier to take informed decisions that align with sustainability goals.”
The data analytics and reporting potential of such tools can help procurement teams make better decisions, including on where sustainability can be improved. “By quickly processing large amounts of data, these tools give procurement professionals the insights they need to optimise supply chains and manage spending better,” says Griffin. Automating data collection and analysis also allows teams to save valuable time and focus on more strategic tasks instead of getting bogged down in routine data management, he adds.
Such tools can even help teams anticipate future requirements, through the use of predictive analytics and trend analysis, which can help meet cost savings targets and sustainability goals. “This proactive approach not only makes operations smoother but also helps meet cost-saving and sustainability goals,” says Griffin.
When used effectively, they can also help build better relationships with suppliers. “With all that detailed data, organisations can get a clearer picture of supplier performance, negotiate better deals and team up on initiatives that create value for everyone, such as sustainability projects or product innovation,” adds Griffin.
Employee benefits
There are other benefits that stem from this, too. “Having such insights leads to more engaged teams,” he says. “When team members have access to comprehensive data, they can make smarter decisions, streamline processes and spot areas for improvement. This turns procurement into a proactive approach where teams contribute to strategy development instead of just handling transactions.”
Procurement staff also want to work for organisations that can enhance their sustainability credentials, and demonstrate this. “This boosts the team’s visibility and impact, making their work feel even more meaningful,” he says. “When procurement professionals can see how their efforts contribute to the organisation’s success, it really enhances job satisfaction and commitment.”
Amazon Business can help procurement teams meet their sustainability objectives as well as save costs, through its Guided Buying tool available with Business Prime. This allows procurement professionals to specify the use of preferred suppliers that have been assessed against particular criteria. These can include sustainability and environmental standards, small businesses or those that are owned by certain groups, such as former military personnel or women.
“Guided Buying makes it easy for users to find preferred suppliers and compliant products, making sure sustainability criteria are part of their purchasing decisions,” explains Griffin. “It simplifies the buying process by showcasing eco-friendly options and enforcing procurement policies.”
