Procurement, finance, sustainability: tackling the climate crisis together 

At the CIPS Sustainable Procurement & Supply Summit at the end of 2024, I was asked whether business was moving quickly enough to tackle ESG challenges. My answer could only be “no”. 
 
Emissions are still rising. Biodiversity is still falling. And the 1.5°C cap on global warming we committed to in The Paris Agreement is now officially out of reach. But the forecasted 3°C rise in our global temperature represents nothing short of catastrophe for us all. To put it in tangible terms, it means certain food shortages and starvation, mass migration, war and societal breakdown.

Every fraction of a degree of global warming is worth fighting for if we are to avoid the worst effects. To do that, we need to tackle three areas that account for a staggering 80% of our polluting emissions: energy, transport and food.   

Business is the only part of our society capable of moving fast enough to tackle these issues. But business is not doing enough. For businesses to be a more radical force for good, we must keep ESG at the top of the agenda. Having led sustainability functions, I know how difficult that is. 
 
We don’t need incremental change; we need radical action. In my last role as senior vice president for corporate sustainability, I had two key partners at executive level to drive ESG action and keep it on the agenda: one was the chief finance officer, and the other was the global head of supply chain and procurement. I found this a powerful triumvirate. Based on those experiences, this is how you can start today:

1. Become climate literate 

Businesses need to become climate and nature literate. That means CPOs and their teams must be well educated and play a role in upskilling the whole organisation, ideally moving to a point where every leader sees sustainability as part of their job.  
 
For example, the principles of circularity should be embedded in the product development process and supply chain instead of an afterthought. Procurement managers need to see every purchase as a way of driving the climate and nature agenda forward.  
 
CIPS can really help with that. We have incorporated sustainability into our training courses – it is a core part of the offering now and this focus will only intensify. 

2. Activate hearts as well as minds

Business leaders need an emotional reaction, as well as economic response, to the climate crisis we’re experiencing. It’s much easier to achieve this in an organisation where purpose – having a positive impact on the environment and society – is considered equal to profit, or is even more important.

3. Incentivise people

If your organisation is not expressly purpose-led, then there is real benefit in setting sustainability targets, and incorporating achievement of milestones towards those targets into incentive schemes. You get what you measure and reward. 

4. Focus your attention 

Companies must focus attention where they can have the biggest impact on the environment and tackle that. Look to your supply chain – your biggest emissions are likely in Scope 3 rather than emissions generated from your own operations. Your biggest impact on nature is also likely to be in your supply chain.

5. Make ESG a core strategy 

ESG needs to become core to business strategy, governance and reporting, allowing CPOs and CSOs to work in partnership.

6. Collaborate, collaborate, collaborate

You need allies. Real results cannot be delivered by one company alone. So many of the necessary changes are systemic and must be solved without competition. A collective effort is needed cross-functionally within organisation, across sectors and throughout supply chains.

7. Properly resource your teams

A wise CSO once warned that “the earth will burn down while we are filling out ESG surveys.” To avoid fulfilling this prophecy, we need to adequately resource procurement and sustainability teams.

8. Get expert advice 

Those driving the ESG agenda must be supported by expertise throughout the organisation at all levels – cross-functional governance is critically important, sustainability targets cannot be delivered by the procurement and/or sustainability teams working in isolation.

9. Demand a seat at the table 

The person leading your organisation’s ESG response must have a seat at the table. Whether it be the CSO or CPO, they need to be part of the strategic and capital allocation discussions and have interaction with shareholder stakeholders. There is a huge need for courageous leadership.

10. Advocate for regulation 

We need the right regulatory playing field. Businesses should be advocating for tougher environmental regulation and carbon taxes that then apply to all in the sector, rather than using their lobbying efforts to delay or dilute the regulation that is so needed.