The fragility of supply chains has never been more evident than in the face of climate-related disasters. When hurricanes Helene and Milton swept across the southern U.S. last fall, they disrupted the flow of vital goods like medical supplies, produce, and quartz—a material critical for semiconductors and solar panels. By 2026, these events could cost suppliers a staggering $1.26 trillion, according to CDP’s Global Supply Chain Report. For procurement leaders, the message is clear: sustainability is no longer a “nice to have”—it is the foundation of resilience and long-term success.
Sustainability as Strategy
Building a resilient supply chain isn’t just about managing risks—it’s about leveraging sustainability as a strategic advantage. The Deloitte 2024 Sustainability Action Report found that nearly all companies have made progress toward sustainability goals, and consumer sentiment reinforces the urgency. More than three-quarters of consumers say they would stop supporting businesses that fail to prioritize environmental stewardship. For investors, ESG metrics are even more influential, with 89% factoring them into decision-making. Yet, sustainability isn’t just a matter of optics—it’s good business. Resilient supply chains mitigate the impact of extreme weather, regulatory shifts, and societal pressures while driving innovation and cost efficiencies. The path forward lies in integrating sustainability across procurement functions, starting with a proactive and data-driven approach.
Understanding and Measuring Sustainability
The first step toward a sustainable supply chain is asking the right questions of your suppliers. Procurement leaders need to explore whether their partners have measurable policies for sustainable practices, whether they track their carbon footprint, and whether renewable energy is part of their operations. It is also critical to understand how suppliers assess their climate risks, from physical risks like wildfires and hurricanes to transitional risks like changes in carbon legislation. These conversations help to establish transparency and align suppliers’ actions with your corporate sustainability goals.
The next step is to develop systems to measure and analyze supplier sustainability metrics. Internal audits, supplier scorecards, and third-party assessments can provide insights into how well suppliers are meeting environmental, social, and governance objectives. For smaller suppliers, who may lack the resources to collect and report data, tools such as greenhouse gas (GHG) accounting software can provide affordable and reliable estimates of carbon footprints and other key metrics. The goal is to ensure that sustainability becomes measurable, trackable, and actionable across the entire supply chain.
Collaboration as the Key to Resilience
True sustainability is achieved through collaboration, not exclusion. While some companies may choose to cut ties with suppliers that fail to meet ESG standards, the more effective approach is to work together to reduce the shared environmental impact. Joint strategies might include transitioning to renewable energy sources, minimizing waste, reducing travel for business operations, and co-investing in sustainable infrastructure. This collaborative approach not only reduces emissions but also strengthens partnerships, driving mutual value and innovation.
Leading companies are setting the tone with a mix of incentives and accountability measures. For instance, Salesforce requires its suppliers to adopt Science-Based Targets Initiative (SBTi) climate goals. Suppliers who fail to comply face a penalty upon contract renewal, but those who succeed gain long-term credibility and a stronger partnership. This balance of incentives and accountability fosters alignment between procurement and suppliers, ensuring progress toward shared sustainability objectives
Turning Sustainability Into Resilience
Sustainability in procurement isn’t just a checkbox—it’s a transformative opportunity to build a stronger, more adaptive supply chain. Embedding ESG principles into your procurement strategies helps secure long-term partnerships, enhances corporate reputation, and creates lasting value for all stakeholders.
As climate challenges intensify, procurement leaders have a choice: wait for disruption or lead the charge in building resilient, sustainable supply chains. The latter isn’t just the responsible choice—it’s the only choice for those who aim to thrive in a world where resilience defines success.
