Reflections on Sustainable Procurement: Progress, Challenges, and the Path Ahead

As sustainable procurement continues to evolve, it’s crucial to assess where we stand, how we can build on our momentum, and the role ISO 20400 has played in advancing the field—and how it can continue to accelerate progress. World Sustainable Procurement Day provided an excellent opportunity for Shaun McCarthy from ISO 20400.org and me to sit down and reflect on the progress made so far, as well as the challenges still ahead.

In our discussion, we explored ongoing developments, key challenges, and emerging opportunities, highlighting the vital role ISO 20400 plays in shaping the future of sustainable procurement.

Progress: Building Momentum and Embracing Innovation

Sustainable procurement has made significant strides in recent years, but there’s still much to be done. One key area of progress is the growing recognition of ISO 20400. The standard is gaining momentum globally, with increasing engagement through resources like self-assessments and podcasts, though its adoption remains a challenge in some regions—particularly those where the focus is on certification or short-term solutions. Despite being around for nearly a decade, Shaun believes that ISO 20400 is often overlooked in key discussions, and that raising awareness of the standard could accelerate its adoption, providing organisations with a consistent and impactful tool for driving sustainable procurement practices.

Another significant area of progress is the increasing adoption of circular economy models, which align closely with the principles outlined in ISO 20400. Shaun shared an inspiring example from Canada, where a company in the circular economy space is extracting precious metals from catalytic converters. What makes this case particularly noteworthy is the seamless collaboration between different companies along the value chain, demonstrating how businesses can work together to reduce waste, improve efficiency, and ultimately support a more sustainable economy.

Challenges: Overcoming Key Barriers

As with any evolving field, challenges remain, some of which we’ve already touched on, particularly around the adoption of ISO 20400. Another, and perhaps the most significant, challenge in sustainable procurement is addressing Scope 3 emissions. Many companies are increasingly recognising the scale of Scope 3 emissions, with some organisations reporting up to 90% of their total emissions from indirect sources. However, indirect emissions across the supply chain are often difficult to measure and reduce. This growing awareness is prompting organisations to take action—not just on carbon reduction, but also on broader sustainability issues. Those organisations truly excelling in sustainable procurement are also focusing on social sustainability factors—such as human rights and labour practices—which are crucial for achieving a holistic approach to sustainability.

Geopolitical factors also play a significant role in shaping sustainable procurement practices. European policies, such as the Carbon Border Adjustment Mechanism (CBAM), are pushing companies worldwide to align with stricter environmental standards to maintain access to European markets. Shaun noted that companies in India, particularly in industries like steel, are feeling the pressure to meet these European standards if they wish to stay competitive globally.

Meanwhile, in the U.S., the shifting political landscape has affected federal sustainability policies. While federal actions may fluctuate, businesses are still recognising the importance of sustainable procurement, driven largely by market forces and investor pressure. For global companies, aligning with sustainable procurement practices has become a competitive necessity, even in the face of political uncertainty.

The Road Ahead: Continuing the Journey

While progress has been made in sustainable procurement, the road ahead requires a continued focus on tangible actions that drive lasting change. The recognition of ISO 20400 and growing engagement through self-assessments and podcasts provide a strong foundation, but wider adoption remains essential. Organisations must view ISO 20400 not merely as a tool, but as a critical framework for embedding sustainability into every facet of procurement practices. Achieving this shift will require commitment, collaboration, and a deeper understanding of what true sustainability in procurement means.

Shaun’s call to action is clear: to continue making progress, we must remain focused on the real, practical steps that will drive long-term change. ISO 20400 plays a central role in this effort, helping organisations evaluate their sustainability efforts and integrate meaningful, sustainable practices into their procurement processes.

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