The essential green skills for procurement leaders

We know three-quarters of procurement leaders are facing growing pressure to address urgent environmental, social and government (ESG) issues within their organisations, thanks to our CIPS Global State of Procurement & Supply 2024 report. But what skills do you need? And how can you develop them?

‘Green skills’ is a developing term that describes the capabilities needed to develop and support a sustainable economy. Its use is growing and influencing how we define both green jobs and jobs with a sustainability focus. ‘Green management skills’ or ‘green leadership skills’ are related terms that are gaining similar traction but are yet to be widely adopted.

For procurement professionals, it’s about making the case for change, identifying the key skills required throughout the organisation and leading by example. 

The case for green skills

Sustainability is no longer optional. Governments and consumers are supporting, if not demanding, that organisations act to implement sustainable practices. Apart from the moral imperative, the dangers of not acting are clear: firms risk reputational damage if they are found to be sourcing from suppliers who use forbidden materials or poor waste disposal practices, for example. And they face legal action if they do not meet the minimum legal requirements. 

But the benefits outweigh the costs. Sustainable practices can save energy and money, enhance customer loyalty, and encourage innovation. Increasingly, sustainability policies are helping to attract and retain staff. 

Procurement leaders are in a critical position to institute change to help future-proof companies’ long-term objectives.

What are the skills?

Procurement leaders need to be sustainability literate, understand the terms and language, know what it means and how they impact organisations. But the responsibility doesn't just sit with those at the top. Procurement leaders have a duty to share knowledge and pass on skills and behaviour that supports greener ways of working to their team. Professionals likewise need to be comfortable having sustainability conversations with suppliers and internal stakeholders. Of course, simply being aware of terms and regulations isn’t enough – it’s also about understanding how they can be measured. 

In terms of skills, there are many. Procurement leaders need to be able to evaluate suppliers’ green credentials, understand the lifecycles of materials in the supply chain, and grasp the principles of the circular economy and how it can apply to procurement. It’s about reducing carbon footprints and knowing what that means in practice. But also compliance and certification, minimising waste, increasing energy efficiency and formulating green policies.

Some green skills are specialist, some technical, but many will become commonplace if they are not already. Increasingly, they are a requirement for executives aiming for senior leadership roles.

Much of it is familiar, but the green emphasis is key. Around 80% of the people who will make up the workforce of 2030 are already in employment today. And more are coming through every year. So, if companies are going to build their capabilities for the future, now is the time to act.

How to develop your green leadership skills?

Organisations play a critical role in creating a sustainable future. To achieve this, they need procurement and supply teams equipped with the right knowledge and expertise. The CIPS Sustainable Procurement Skills training course is designed to embed sustainability into your procurement planning and strategies, ensuring long-term sustainable value.

Skills taught include:

• Holistic sustainability, such as how to apply sustainable objectives at each stage of the procurement cycle.
• How to strategically align with the UN’s Sustainable Development Goals.
• Leadership and how to embed and encourage a culture of sustainability through effective leadership.
• Innovative models, such as lifecycle costing and circular economy principles.
• Supplier incentives or encouraging them to operate within a circular economy.
• Risk management, such as identifying and avoiding unintended consequences of sustainability efforts.
• Inclusive practices, such as promoting accessibility, inclusivity, and supplier diversity to enable a sustainable supply chain.
• And future planning: developing strategic plans for a more sustainable future.

In addition to this, the MCIPS professional designation, which represents the global and professional standard within the procurement and supply profession, also covers sustainability issues.

The bottom line

Procurement leaders can and should be at the vanguard of today and tomorrow’s sustainability challenges. With the right skills, role-modelling of good behaviour, and getting management and staff buy-in, they can make a difference within and beyond their companies.