10 common missteps in sustainable procurement and how to avoid them
Summary
The hidden cost of ‘sustainable’ procurement often arises when businesses overlook key details. The overload of certifications can lead to inefficiency, while blind faith in labels: The greenwashing trap might expose companies to greenwashing. The cost of the short-term win over long-term value can backfire, just as ignoring the whole supply chain undermines sustainability efforts. Missing the collaboration opportunity and not adapting to changing regulations can hinder progress. The ‘just do it’ mentality: Skipping the planning phase or overlooking supplier engagement can cause misalignment, while failing to measure and report impact makes it difficult to assess success. Lastly, neglecting supplier diversity limits innovation and growth.
You believe you are making a sound decision. Your organisation has embraced sustainable procurement by choosing environmentally friendly materials and ethical suppliers. This initiative has received internal acclaim, and the marketing team is enthusiastic about promoting this transition. However, after a few months, issues begin to emerge. The ‘sustainable’ supplier struggles to fulfill orders, delivery timelines extend, and expenses rise beyond initial projections. To make matters worse, an investigation uncovers that their green certifications are not as reliable as they appeared. Consequently, you find yourself in a position of having to rectify the situation.
Green or sustainable procurement is no longer a niche concept—it is a global movement. Over 51% of businesses have integrated eco-friendly policies into their supply chains. But for all its benefits, sustainable procurement comes with its own set of risks. From hidden costs to supply chain disruptions, even the best-intentioned efforts can backfire if not carefully managed.
Let us explore the common missteps businesses make and explore strategies to circumvent these challenges.
What are the 10 common missteps in sustainable procurement?
Green procurement might sound straightforward, but getting it right is harder than it seems. You are under pressure to make eco-friendly choices, save costs, and hit your targets, but sometimes, even the best intentions backfire.
Whether it is getting caught up in too many certifications or missing the mark on supplier engagement, the road to sustainability can be full of bumps. To help you avoid some of the most common mistakes, here are 10 missteps many businesses make—and how you can steer clear of them.
- The overload of certifications
- Blind faith in labels: The greenwashing trap
- The cost of the short-term win
- Ignoring the whole supply chain
- Missing the collaboration opportunity
- Not adapting to changing regulations
- The ‘just do it’ mentality: Skipping the planning phase
- Overlooking supplier engagement
- Failing to measure and report impact
- Neglecting supplier diversity
Sustainable procurement is not just about good intentions—it requires strategy, collaboration, and continuous improvement. The key is to focus on long-term impact, engage the right stakeholders, and stay adaptable as sustainability standards evolve. When done right, green procurement is not just an obligation—it is a competitive advantage.
Misstep 01: The overload of certifications: When more is not always better
Sustainability certifications are designed to provide clarity, but too many can create confusion, inefficiency, and unnecessary costs. By 2026, 70% of technology procurement leaders will have environmental-sustainability-aligned performance objectives, making certification choices more critical than ever.
Not all certifications carry the same weight. Chasing multiple labels without understanding their relevance can slow down decision-making, increase compliance costs, and even result in conflicting requirements. A quality-over-quantity approach is essential.
To avoid certification overload:
✔ Prioritise credibility: Focus on well-recognised certifications aligned with industry standards.
✔ Assess relevance: Choose certifications that match specific sustainability goals, not just marketing appeal.
✔ Verify impact: Ensure certifications offer measurable benefits rather than just a badge.
A strategic, selective approach to certifications ensures that procurement remains effective, credible, and truly sustainable.
Misstep 02: Blind faith in labels: The greenwashing trap
Sustainability claims are everywhere, but not all of them hold up under scrutiny. 59% of companies lack accessible evidence to support their sustainability claims, making greenwashing a major risk in procurement.
Genuine sustainability goes beyond marketing buzzwords. A truly responsible supplier provides transparent reporting, third-party verifications, and measurable impact data—not just vague eco-friendly promises.
To avoid falling for greenwashing:
✔ Ask for proof: Require certifications from credible organisations and request sustainability reports.
✔ Look beyond labels: Assess suppliers’ entire operations, including sourcing, production, and labour practices.
✔ Prioritise transparency: Choose suppliers who disclose their environmental and social impact openly.
Sustainability is about action, not just words. By doing due diligence, businesses can ensure that their procurement choices drive real, measurable change.
Misstep 03: The cost of the short-term win
Cutting costs may seem like a quick victory, but prioritising short-term savings over long-term sustainable value can lead to greater losses. While businesses may see cost reductions of 5-10%, the real impact of sacrificing quality, ethical sourcing, or environmental responsibility can be far more damaging.
Choosing cheaper, unsustainable suppliers can result in higher long-term costs, reputational damage, and supply chain instability. On the other hand, companies that invest in sustainable procurement can experience a 15-30% increase in brand value, improved resilience, and stronger supplier relationships.
To balance cost and sustainability:
✔ Consider total lifecycle cost: Look beyond upfront savings to long-term operational, reputational, and compliance costs.
✔ Invest in ethical sourcing: Choose suppliers that align with environmental and social responsibility standards.
✔ Prioritise value over price: Green procurement strengthens brand reputation and future-proofing.
Short-term savings should never come at the expense of long-term success.
Misstep 04: Ignoring the whole supply chain: It’s not just about one supplier
While focusing on a single supplier’s sustainability efforts is important, it is essential to consider the entire supply chain. 48% of global companies face pressure to adopt greener procurement practices, yet neglecting upstream or downstream impacts can undermine the effectiveness of sustainability efforts.
Sustainability is a shared responsibility that extends beyond the immediate supplier. Ignoring the broader supply chain can lead to hidden environmental costs, unethical practices, and missed opportunities for improvement. A holistic approach ensures that sustainability efforts are consistent across all stages of production and delivery.
To address the entire supply chain:
✔ Map the supply chain: Assess every link, from raw material sourcing to final delivery.
✔ Collaborate with suppliers: Work together to address sustainability challenges at every level.
✔ Promote transparency: Choose suppliers who are open about their environmental and social impact across the supply chain.
Sustainable procurement requires a comprehensive view, ensuring that efforts are not compromised by unseen or neglected impacts.
Misstep 05: Missing the collaboration opportunity: Sustainability isn’t a solo effort
Sustainability is not a one-department job. Procurement teams often miss valuable input from sustainability, finance, and other departments, which can limit the potential of green procurement efforts. Effective collaboration across teams ensures that sustainability goals align with overall business strategy, driving greater impact and efficiency.
When departments work in silos, opportunities for cost savings, innovation, and improved practices are overlooked. Transitioning to sustainable practices globally could result in $26 trillion in savings by 2030.
To foster collaboration:
✔ Engage all departments: Involve sustainability, finance, and other key teams early in the procurement process.
✔ Align goals: Ensure that sustainability objectives are integrated into broader business strategies.
✔ Encourage open communication: Create a culture of cross-departmental dialogue to share insights and challenges.
Sustainability thrives when teams collaborate, making it a company-wide effort rather than just a procurement responsibility.
Misstep 06: Not adapting to changing regulations
Sustainability regulations are evolving rapidly, and failing to keep up with them can lead to costly mistakes. Procurement teams who overlook changes in environmental laws and standards risk non-compliance, legal penalties, and damage to their reputation. As global regulations become stricter, staying informed and adapting to these changes is crucial to maintaining a sustainable, legally compliant supply chain.
To avoid costly mistakes:
✔ Monitor regulatory changes: Stay up-to-date with national and international sustainability regulations through industry reports and news.
✔ Invest in compliance tools: Use software and resources that track sustainability laws and alert you to changes.
✔ Be flexible: Ensure your procurement strategy can adapt quickly to new regulations, avoiding disruptions.
Adapting to changing regulations is not just about compliance—it is an opportunity to future-proof your business and stay ahead of industry standards.
Misstep 07: The ‘just do it’ mentality: Skipping the planning phase
In the rush to implement sustainable procurement practices, many teams fall into the trap of jumping straight into action without a clear strategy. While enthusiasm is important, lacking a structured plan can lead to misaligned efforts, wasted resources, and missed opportunities. To ensure long-term success, sustainability goals must be aligned with broader business objectives.
Strategic planning is crucial to achieving measurable impact. Companies that integrate sustainability into their core strategy see significant benefits—a sustainability-focused report shows 18% higher returns on investment.
To avoid the ‘just do it’ mentality:
✔ Set clear goals: Define specific, measurable sustainability targets aligned with business objectives.
✔ Develop a roadmap: Outline the steps needed to meet sustainability goals, with clear timelines and responsibilities.
✔ Monitor progress: Regularly assess performance to ensure that actions are driving the desired outcomes.
A thoughtful, strategic approach to sustainability ensures that efforts are not just well-intentioned but successful.
Misstep 08: Overlooking supplier engagement: They’re part of the solution
Engaging suppliers early in the green procurement process is crucial to success. Many companies overlook the importance of maintaining ongoing communication with suppliers, which can lead to misalignment in sustainability goals and missed opportunities for collaboration. Suppliers are key partners in achieving sustainability targets, and their involvement from the start ensures that both sides are working towards the same objectives.
To strengthen supplier engagement:
✔ Initiate early discussions: Involve suppliers in sustainability planning and align expectations from the outset.
✔ Maintain open communication: Foster regular dialogue to address challenges, track progress, and adapt strategies.
✔ Encourage collaboration: Work together to innovate, find solutions, and enhance sustainability efforts across the supply chain.
Suppliers are not just vendors—they are essential allies in achieving sustainable procurement goals. Engaging them early and consistently ensures long-term success for both parties.
Misstep 09: Failing to measure and report impact: Sustainability needs proof
Many organisations set ambitious sustainability goals but fail to track progress effectively. Without clear metrics and reporting, it is challenging to assess whether procurement strategies are truly making an impact. Measuring and reporting on sustainability performance provides transparency and accountability, allowing companies to identify gaps, adjust strategies, and demonstrate real value to stakeholders.
To ensure your sustainability efforts are measurable:
✔ Define clear KPIs: Establish specific, measurable goals aligned with your sustainability targets.
✔ Use reliable tools: Leverage software or frameworks to track and report on your sustainability performance consistently.
✔ Regularly evaluate progress: Monitor results and adjust strategies to stay on track with your goals.
Sustainability is not just about setting goals—it is about proving progress. By measuring and reporting impact, businesses can ensure their efforts are driving meaningful change.
Misstep 10: Neglecting supplier diversity
In sustainable procurement, diversity is more than just a buzzword—it’s a critical component of long-term success. Neglecting supplier diversity can limit innovation, reduce market opportunities, and undermine the social aspect of sustainability. Companies that work with a wide range of suppliers from diverse backgrounds not only contribute to economic equality but also tap into new ideas, perspectives, and solutions that can drive sustainable growth.
To embrace supplier diversity:
✔ Broaden your supplier base: Actively seek out diverse suppliers, including those from different geographic locations, industries, and ownership backgrounds.
✔ Build inclusive relationships: Foster long-term partnerships with diverse suppliers, offering support and development opportunities.
✔ Track and report: Measure the diversity of your supply chain and set goals to increase diversity over time.
Supplier diversity is key to a more inclusive and innovative supply chain. Embracing it strengthens sustainability efforts and creates a more resilient business model.
Avoid the missteps in adopting green procurement with Kronos Group
From overloading your procurement strategy with excessive certifications to neglecting supplier engagement and failing to measure impact, these pitfalls can undermine the success of your green procurement efforts.
Kronos Group’s procurement consulting services can guide you in navigating these challenges effectively. Our team helps you align sustainability with your business objectives, streamline processes, and ensure that every step, from supplier selection to impact measurement, supports your long-term success.
Avoid the mistakes others make—partner with Kronos Group to implement a green procurement strategy that delivers measurable results and future-proof growth.
Green procurement helps reduce your environmental impact, ensures compliance with regulations, and can boost your brand image. It also leads to long-term savings, whether through more efficient use of resources or lower waste disposal costs.
Ask for certifications, sustainability reports, and other proof of their practices. Look beyond just labels and investigate their entire supply chain to ensure they align with your sustainability goals.
Yes! While the initial costs may be higher, green procurement can lead to savings through better resource use, reduced waste, and long-term efficiency improvements. Plus, you could attract more customers who value sustainability.
