How to develop a sustainable procurement policy

A practical guide to creating a sustainable procurement policy that turns sustainability commitments into clear procurement priorities, supplier expectations and measurable action.

A sustainable procurement policy should do more than set out good intentions. It should help people make better procurement decisions. 

A strong sustainable procurement policy connects organisational sustainability commitments with decisions about what you buy, which suppliers you work with and how contracts are managed. It gives procurement teams a clear mandate, establishes expectations for suppliers and makes sure sustainability counts in routine purchases as well as big contracts. 

This is increasingly important as organisations look beyond their own operations to understand and address the impacts within their supply chains. Procurement teams can influence many of these impacts, from carbon emissions and resource use to working conditions, social value and responsible sourcing. 

But this only happens when sustainability ambitions are translated into practical action. A well-designed policy provides the framework for doing that, helping teams understand which issues matter, what is expected of them and how sustainability should influence procurement decisions. 

In this guide, we explain how to develop a sustainable procurement policy that is relevant to your organisation, practical to implement and capable of supporting measurable outcomes. 

What is a sustainable procurement policy? 

A sustainable procurement policy tells your buyers how to weigh environmental, social and economic impacts when they buy goods, works and services. 

Priorities will vary between organisations. They might include carbon reduction, circular economy, biodiversity, responsible sourcing, human rights, modern slavery, equality and diversity or social value. 

The policy should reflect what is material to your organisation rather than attempting to cover every sustainability issue Cover what’s material to your organisation. A policy that tries to cover every sustainability issue won’t guide anyone. 

A policy and a sustainable procurement strategy do different jobs. The policy sets out what you’re committing to. The strategy sets out how you’ll deliver it: priorities, targets, resources and actions. 

Why does your organisation need a sustainable procurement policy? 

Procurement is one of the biggest levers an organisation has over its sustainability impact. 

Public procurement alone represented around 13% of GDP across OECD countries in 2023. In the UK, the public sector spends more than £400 billion each year on goods and services. This purchasing power creates significant opportunities to influence environmental, social and economic outcomes through supply chains.  

The same principle applies beyond the public sector. What an organisation buys can influence greenhouse gas emissions, resource use, working conditions, human rights and communities. 

A sustainable procurement policy helps translate wider sustainability objectives into procurement activity. But simply publishing one is not evidence of sustainable procurement. The real value comes from how effectively it is implemented. 

How to develop a sustainable procurement policy in seven steps 

There is no single policy that will work for every organisation. It needs to reflect your sustainability priorities, procurement model and supply-chain impacts. 

1. Understand your sustainability priorities 

Start with your organisation’s existing sustainability objectives. What have you committed to on issues such as net zero, social value, human rights, biodiversity or circular economy? 

Then identify which priorities procurement can influence. 

Materiality is important here. For one organisation, purchased goods and services may be a major source of carbon emissions. For another, labour conditions in the supply chain may present a greater risk. 

A focused policy based on material impacts is more useful than a long list of generic commitments. 

2. Identify where procurement can make the biggest difference 

Look at major spend areas, high-risk categories, critical suppliers and the lifecycle impacts of the goods and services you buy. 

Carbon demonstrates the scale of procurement’s potential influence. CDP estimates that around 40% of global greenhouse gas emissions are driven or influenced by companies through their purchases and the products they sell, based on modelled emissions from more than 35,000 companies. If most of your footprint sits in what you buy, your procurement team has more say over it than almost anyone else in the business.  

However, spend alone does not determine significance. A lower-spend category could carry substantial human rights or environmental risks, while a major category may offer significant opportunities to reduce carbon or waste. 

Try asking yourself where the greatest sustainability risks are, and where procurement can create the greatest positive impact. 

3. Engage the right stakeholders 

Sustainable procurement cannot sit with procurement or sustainability teams alone. 

Engage the people who will implement the policy and influence purchasing decisions. This could include finance, legal, operations, risk, contract managers and budget holders. 

Talk to key suppliers too. They’ll tell you what the market can actually deliver and where your policy is likely to hit problems. 

Involve people early. People back a policy they helped shape, and they’re the ones who’ll spot the parts that won’t work in practice. 

4. Define clear commitments 

Turn your priorities into commitments that can guide procurement decisions. 

Avoid vague statements such as committing to “consider sustainability”. Instead, be clear about the outcomes procurement should support. 

These might include reducing whole-life carbon, preventing modern slavery, increasing opportunities for SMEs and social enterprises, improving resource efficiency or delivering social value. 

The right commitments depend on your organisation. What matters is creating a clear connection between corporate sustainability priorities and procurement activity. 

5. Set roles and responsibilities 

A policy without ownership can quickly become a document everyone supports but nobody implements. 

Define who owns the sustainable procurement policy and who is responsible for delivery. 

Procurement teams might embed sustainability into sourcing. Contract managers may monitor supplier commitments. Sustainability specialists can provide expertise, while senior leaders provide governance and oversight. 

Responsibilities for monitoring, reporting and reviewing the policy should also be clear. 

6. Embed sustainability into procurement 

This is where policy becomes practice. 

Sustainability should be considered throughout the procurement lifecycle rather than added as a question at the end of a tender. 

Start by challenging demand. Is the purchase necessary? Could something be reused, repaired or refurbished? Could a different solution achieve the same outcome with fewer resources? 

When you go to market, your priorities should shape the specification, supplier selection, tender questions and evaluation. Then they need to carry through into the contract and how you manage the supplier. 

The 2026 Sustainable Procurement Barometer from EcoVadis and Accenture found that 98% of surveyed companies had started embedding ESG data into procurement processes. But gathering information is not enough. If a supplier makes a sustainability commitment during a tender, it should carry through into contractual requirements, KPIs and supplier performance discussions. 

7. Measure performance and improve 

Decide how you will know whether the policy is working. 

Useful measures include supplier performance against sustainability KPIs, carbon reductions, social value delivered or improvements in supplier practices. 

Reliable supply-chain data remains a challenge. The 2026 Sustainable Procurement Barometer found that 30% of suppliers surveyed provided no carbon data to customers, while only 21% provided detailed activity-level carbon data covering Scope 1 and 2 and selected Scope 3.

So design measurement in from day one. Leave it until reporting time and you’ll be chasing suppliers for data many of them don’t provide. 

Try to measure outcomes as well as activity. Knowing how many tenders contain sustainability criteria is useful, but understanding the environmental or social improvement achieved tells you much more. 

What should a sustainable procurement policy include? 

An effective policy covers: 

• Purpose and scope: why the policy exists and where it applies. 
• Commitments: the environmental, social and economic outcomes procurement will support. 
• Priority issues: your material supply-chain risks and opportunities. 
• Supplier expectations: what you expect from suppliers. 
• Responsibilities: who owns and implements the policy. 
• Implementation: how commitments will be incorporated into procurement and contract management. 
• Measurement: how progress and outcomes will be assessed. 
• Review: when and how the policy will be updated. 

The policy itself doesn’t need to be long. A few clear commitments that people actually use will do more than a comprehensive document nobody can apply.

Common sustainable procurement policy mistakes 

One common mistake is trying to address every sustainability issue equally. Prioritisation makes the policy more relevant and practical. 

Another is treating publication as the end of the process. If buyers don’t have the tools or know-how to apply it, the policy sits on the intranet and nothing changes. 

There can also be a disconnect between what organisations ask suppliers to do and how purchasing decisions are actually made. If sustainability has little influence on specifications, evaluation or contract management, suppliers will quickly understand where the real priorities lie. 

From sustainable procurement policy to practice 

Writing a sustainable procurement policy is the easy part. 

The real test is whether it influences what your organisation buys, how requirements are specified, how suppliers are selected and how contracts are managed. 

Done well, your policy connects sustainability ambitions toand everyday buying decisions. That requires clear priorities, ownership, measurement and practical integration throughout the procurement lifecycle. 

At Action Sustainability, we help organisations develop and implement sustainable procurement approaches that move beyond policy commitments and deliver measurable change. Get in touch with our team to discuss how we can help you develop or strengthen your sustainable procurement policy.