Sustainable procurement policy: Best practices for 2025

The role of procurement leaders in 2025 is more demanding and strategic than ever. Procurement professionals are no longer just managing cost and supply—they’re also tasked with advancing sustainability goals, ensuring environmental, social, and governance (ESG) compliance, and building resilient supplier relationships, all while keeping operations running smoothly. 

Having a sustainable procurement policy in place creates a framework to help meet these growing expectations. It offers an opportunity to improve procurement efficiency, manage risk, and create long-term value across your organization. But making sustainability actionable, especially at the enterprise level, starts with a clear, practical strategy. 

Whether you’re looking to update an existing policy or create one from scratch, it’s critical to understand what a successful policy should include, the implementation process, and the benefits sustainable procurement practices can deliver. 

What is a sustainable procurement policy? 

A sustainable procurement policy is a formal document that outlines how an organization integrates environmental, social, and governance considerations into its purchasing decisions. It goes beyond simply choosing green products to set standards and processes for evaluating suppliers, selecting goods and services, and ensuring the supply chain aligns with broader ESG commitments. 

A few examples of considerations that fall under each category include:

Environmental:

• Energy consumption
• Carbon footprint
• Impacts on climate change
• Greenhouse gas emissions
• Recycled content
• Waste reduction

Social:

• Human rights
• Child labor
• Modern slavery
• Social impact
• Worker well-being
• Working conditions

Governance:

• Code of conduct
• Corporate behavior
• Accounting practices
• Executive compensation
• Ethical partnerships
• Compliance with applicable laws

According to a 2025 survey by IntegrityNext, 70 percent of global companies surveyed have already embedded sustainability into their procurement process, and more than 80 percent view it as a strategic priority.

Why does a sustainable procurement policy matter?

Sustainable procurement policies are important for enterprise and mid-market procurement leaders for a number of reasons, including:

• Regulatory pressure: Governments and industry bodies are increasingly introducing regulations around emissions, labor practices, and reporting standards. A documented policy helps ensure compliance and prepares your organization for audits or disclosures.
• Stakeholder expectations: Customers, investors, and employees expect companies to act responsibly. Sustainable procurement is a tangible way to demonstrate that your business “walks the talk.”
• Operational resilience: Suppliers aligned with sustainable practices can be more resilient, ethical, and transparent by lowering their exposure to environmental or labor-related disruptions.
  
  

Focusing your efforts on sustainability can also be profitable and attract new customer bases. For example, some consumers shared in a PwC survey that they’re willing to spend almost 10 percent more on sustainably produced products, even amid inflation and a higher cost of living, because they’ve experienced the disruptions of climate change.

6 pieces of a sustainable procurement policy

A strong sustainable procurement policy provides structure, clarity, and accountability. Below are six key elements to consider when crafting an impactful policy.

1. Purpose and background of the policy

It’s often helpful to start with a section that explains why the policy exists and how it aligns with the organization’s overall mission and values. You might reference commitments to responsible purchasing goals, corporate responsibility, or stakeholder expectations.

Example: If your company has committed to net-zero emissions by 2040, the procurement policy should state how purchasing decisions support that goal.

2. Alignment with internal and external sustainability directives

To be credible and actionable, your policy should align with both internal initiatives and external standards. Internally, this means syncing with your organization’s ESG goals, corporate social responsibility (CSR) programs, and supply chain strategies. 

Externally, alignment could include international standards such as:

• ISO 20400 (the international standard for sustainable procurement)
• UN Sustainable Development Goals (SDGs)
• Global Reporting Initiative (GRI)
• Local and federal procurement regulations
  
  

This alignment ensures consistency across departments, enhances reporting transparency, and makes your policy defensible to regulators, investors, and customers.

3. Sustainability criteria and assessment processes

One of the most critical sections of your sustainable procurement policy, this section should outline how you evaluate suppliers, products, and services for sustainability. 

Common criteria include:

• Carbon footprint and emissions reporting
• Energy efficiency or renewable energy use
• Waste and water management
• Use of sustainable or recycled materials
• Fair labor practices and supply chain ethics
• Supplier diversity and local sourcing
  
  

Assessment methods can include request for proposal (RFP) sustainability scoring, third-party audits, ESG data verification, and supplier self-assessments. Using a tiered approach allows you to apply stricter criteria to high-impact categories.

4. Roles and responsibilities

A successful policy depends on clearly defined roles. Everyone involved in procurement should understand their part in supporting sustainability goals.

Your policy should outline responsibilities such as:

• Chief procurement officer (CPO): Sets strategic direction and oversees policy enforcement
• Category managers: Integrates sustainability into sourcing decisions and supplier selection
• Sustainability/ESG teams: Provides guidelines, conducts supplier evaluations, and reports outcomes
• Buyers and end users: Complies with approved vendor lists and product selections
• Finance and legal: Ensures contracts and budgets reflect sustainability standards
  
  

Assigning clear ownership helps drive accountability and promotes adoption across your organization.

5. Accountability and reporting requirements

Tracking progress and demonstrating impact are essential to the credibility of your sustainable procurement policy. This section should outline:

• Which metrics you will track (e.g., percentage of sustainable spend, number of certified vendors, emissions reduction from procurement activities)
• Who will be responsible for data collection and reporting
• How frequently reporting will occur (monthly, quarterly, annually)
• Which tools or platforms you'll use to gather data
   

Make sure reporting requirements connect back to your organization’s ESG reporting frameworks, whether that’s annual reports, sustainability disclosures, or internal dashboards.

6. Term definitions

To avoid confusion, the policy should clearly define key terms used throughout the document. This ensures consistency across teams and reduces the risk of misinterpretation.

For example, an organization might define a “green supplier” as a vendor that aligns with its sustainability standards, such as holding relevant certifications or reporting Scope 1–3 emissions. Other examples of terms you may want to define include:

• Sustainable product
• Scope 3 emissions
• Socially responsible purchasing
• Circular procurement
   

Where possible, link to appendices or external standards to support these definitions.
 

How to implement a sustainable policy

Even the best-written policy is useless if you don't put it into practice. Here are six steps to kickstart your action plan. 

Step 1: Assess your current procurement practices

Start with a baseline audit. Identify:

• How much of your spend goes to sustainable products or suppliers
• Which categories have the most environmental or social impact
• Gaps in supplier ESG data or transparency
   

This step sets the foundation for goal-setting.

Step 2: Set clear goals

Create KPIs to measure the outcomes of your new policy. Consider setting SMART goals, which are:

• Specific
• Measurable 
• Achievable
• Relevant
• Time-bound

Your procurement team can use this framework to define precise targets and aid strategic decision-making. 

Examples of SMART goals for a sustainable procurement policy include:

• Increase sustainable spend by 30 percent in 12 months.
• Vet 100 percent of Tier 1 suppliers for labor practices by the end of the fiscal year.
   

Step 3: Engage internal stakeholders

Cross-functional buy-in is essential for a successful policy implementation. Be sure to involve the following teams in the implementation process to keep everyone aligned:

• Finance for budget alignment
• Legal for supplier agreements
• ESG/sustainability teams for alignment with reporting
• IT for integrating the tools that can help make policy enforcement easier, such as Amazon Business
   

Step 4: Craft your company policy

Once you include the right stakeholders, you can begin writing your sustainable procurement policy with the elements covered above. Use clear language and make sure it reflects your company's culture and goals.

Step 5: Provide support and training during implementation

After the policy is approved and finalized, it’s time to implement it across your organization. As part of your policy rollout strategy, consider:

• Hosting training sessions for procurement teams so they understand any new expectations and tools
• Creating supplier onboarding materials
• Developing internal guides on using procurement solutions like Amazon Business to source products with sustainability standards
   

Step 6: Track your progress

During and after rollout, use dashboards and regular reporting cycles to monitor success and identify areas for continuous improvement. You can use business analytics tools to track sustainability performance and KPIs alongside spend to help you demonstrate policy impact over time.

Benefits of a sustainable procurement policy

Integrating ESG considerations into procurement decision-making is a key action for generating long-term value, according to a report by McKinsey. A well-implemented sustainable procurement policy offers multiple enterprise-wide benefits, including:

• Improved risk management: Lower your exposure to environmental, labor, and compliance risks.
• Cost savings: Achieve long-term savings through energy-efficient products, waste reduction, and fewer supply chain disruptions.
• Better supplier relationships: Develop stronger partnerships with aligned vendors.
• Enhanced reputation: Demonstrate ESG leadership to customers, investors, and partners.
• Regulatory readiness: Prepare for emerging global and local regulations.
• Talent attraction and retention: Attract employees who value purpose-driven workplaces.
   

Future trends in sustainable procurement

Amid regulatory shifts and technological advances, procurement leaders not only need to optimize current policies but also anticipate what’s next to stay competitive and compliant. Sustainable procurement in 2025 and beyond will increasingly rely on deeper data integration and a greater focus on value chain emissions. 

Here’s a look at a few trends that could shape your sustainable procurement strategy in the coming years.

AI and data-driven procurement

Artificial intelligence (AI) is transforming procurement from a reactive function into a proactive driver of strategic value. In the context of sustainability, AI and advanced analytics help organizations:

• Predict supply chain disruptions due to environmental or social risks
• Identify and recommend lower-impact alternatives for high-volume purchases
• Analyze supplier ESG performance using vast datasets, including non-financial disclosures, certifications, and external ESG scores
• Automate decision-making by applying sustainability criteria to purchasing workflows
   

In large enterprises, the challenge isn’t a lack of data—it’s making sense of it. AI supports buyers by aligning every purchase with organizational ESG goals.

Growing importance of Scope 3 emissions in procurement decisions

As ESG reporting standards evolve, there’s increasing scrutiny on Scope 3 emissions, which are the indirect emissions from your supply chain and purchased goods and services.

Scope 3 often accounts for much of a company’s total emissions, yet it’s the hardest to measure and control. In response, procurement teams are being asked to:

• Collect more detailed emissions data from suppliers
• Prioritize low-carbon and local sourcing
• Include emissions clauses in RFPs and contracts
• Collaborate with suppliers on emissions reduction targets
   

This trend is moving sustainable procurement from a product-level focus (e.g., buying eco-friendly products) to a supplier- and system-level strategy that prioritizes long-term emissions reduction.

Circular supply chain strategies

Linear supply chains are being replaced by circular models that emphasize reuse, refurbishment, and resource optimization. In the circular economy, procurement plays a central role in:

• Sourcing products with longer lifecycles or modular designs that allow for repairs
• Prioritizing remanufactured or recycled products
• Reducing packaging waste
• Building partnerships with vendors offering take-back or recycling programs
   

Circular procurement requires rethinking traditional “lowest-cost” buying metrics. Instead of focusing only on unit price, procurement teams must consider total cost of ownership, product lifecycle impact, and end-of-life management.

Launch your sustainable procurement policy

Implementing a sustainable procurement policy is a smart, strategic move that delivers value across your organization. By clearly defining goals, aligning with internal and external frameworks, and using the right tools, you can build a procurement strategy that supports both planet and profit.

Amazon Business plays an important role in helping organizations implement a more sustainable procurement policy by providing the tools and insights needed to make more responsible purchasing decisions. Through products with the Climate Pledge Friendly label and features like certifications, supplier diversity filters, Compact by Design, and bulk purchasing options, procurement leaders can align their procurement strategies with socially responsible purchasing goals while maintaining cost efficiency.

Sign up for a free Amazon Business account or talk to our sales team to explore custom enterprise solutions that support your sustainable procurement policy.