WEF: Procurement & Supply Chain Key to Sustainability

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In a new report from WEF, CPOs are spotlighted as future sustainability heroes
The World Economic Forum's latest report highlights CPOs as corporate sustainability heroes, emphasising the importance of cross-collaboration

Chief Procurement Officers (CPOs) are redefining corporate operations, according to the World Economic Forum (WEF).

Previously focused on efficiency and cost, their evolving role now centres on integrating sustainability into supply chains.

By fostering partnerships and championing innovation, CPOs are addressing critical challenges such as reducing carbon emissions and improving social equity.

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The WEF highlights that the procurement function has undergone a significant transformation over the past two decades.

Once viewed as a transactional operation, focused solely on achieving speed and cost reductions, it now plays a strategic role in aligning environmental and social priorities with corporate goals.

This shift, driven largely by the increasing importance of sustainability, requires procurement leaders to forge collaborative relationships with both internal teams and external suppliers. These partnerships are essential for tackling complex challenges such as reducing supply chain emissions and meeting ambitious environmental targets.

Björn Stenecker, Chief Procurement Officer at energy company Vattenfall, illustrates this evolution.

He explains that procurement is no longer about traditional buyer-supplier relationships but about fostering innovation through partnerships. For instance, Vattenfall works closely with steel manufacturers to create carbon-free materials, supporting its broader objective of cutting Scope 3 emissions – those tied to its supply chain.

Björn Stenecker, CPO at Vattenfall

While Vattenfall does not directly procure materials like steel, its approach ensures suppliers meet rigorous sustainability criteria. This proactive stance exemplifies the growing influence of CPOs in shaping supplier practices and contributing to overarching environmental goals.

Similarly, Bertrand Conqueret of Henkel highlights procurement's unique role, saying: "Procurement is leading sustainability into the upstream part of the value chain. No one else is doing it. It’s us."

Bertrand Conqueret, CPO at Henkel

Craig Reed, Vice President Global Procurement and CPO at Thermo Fisher Scientific, sees sustainability as integral to the legacy he wishes to leave.

"If I can leave a solid foundation that’s grounded in sustainability, the regulatory side of it, the social side of it… then I’ve done my part," he states.

Craig Reed, Vice President Global Procurement and CPO at Thermo Fisher Scientific

Broadening procurement’s impact

CPOs are uniquely positioned to tackle environmental and social challenges, according to WEF. By advocating for fair wages, ethical sourcing and supply chain transparency, procurement leaders can significantly enhance organisational equity and accountability.

These efforts often require buy-in from top leadership to ensure sustainability becomes a priority embedded within broader business strategies.

Björn emphasises the importance of aligning procurement with corporate CO2 reduction strategies, noting that supply chains frequently hold the most significant potential for environmental impact.

However, this requires a shift in focus from traditional cost-saving measures to building resilience, improving quality and driving business growth.

Collaboration emerges as a recurring theme. Procurement leaders must work closely with sustainability, technology and research teams to integrate sustainable practices throughout the supply chain. This cross-functional approach not only fosters innovation but also ensures sustainability efforts align with broader corporate objectives.

WEF supports this strategy, noting that sustainable procurement requires cooperation across departments and industries. It encourages leaders to share best practices and insights to collectively advance sustainability goals.

Lauren Richardson, CPO at Colgate-Palmolive

The only way to learn from other functions is by connecting with people.

It’s not about telling someone how you’ve done something and expecting them to follow.

It’s about understanding how they do their job, what makes them successful and finding ways to collaborate by integrating my capabilities with theirs.

Lauren Richardson, CPO at Colgate-Palmolive

Creating a legacy of innovation 

Sustainable procurement is about more than hitting immediate targets; it’s about shaping a future in which sustainable practices are the norm.

WEF stresses that today’s procurement leaders have a duty to instil a culture of collaboration and innovation, ensuring these values endure within their organisations.

Björn advocates for breaking down organisational silos and treating suppliers as partners in sustainability initiatives. Transparency and shared metrics, he argues, are vital for building trust and achieving shared goals.

Oliver Bischof, CPO at Siemens Gamesa, reinforces this point: "To make sustainability mainstream, it’s crucial to bring our suppliers along.

Oliver Bischof, CPO at Siemens Gamesa

"We need to work closely, not just to innovate but to industrialise these innovations, making sustainable practices the new norm across our supply chain."

Bold actions such as joint ventures can encourage suppliers to invest in green technologies that benefit their businesses and the planet. These efforts set the stage for systemic change, enabling procurement leaders to meet immediate sustainability targets while laying the groundwork for long-term impact.

By prioritising resilience, creativity and collaboration, CPOs empower future leaders to navigate the ever-changing landscape of sustainability challenges.

As WEF concludes, CPOs must focus on building the business case for sustainability, integrating procurement into corporate strategy and fostering innovation. This approach positions them as drivers of systemic, meaningful change across industries.


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