Time to change: ESG is no longer optional

In recent years, purchasing has changed from a support function to a strategic one. Today, buyers are on the front lines when companies want to achieve real sustainability goals. The CSRD directive and European ESG reporting standards (ESRS) increase responsibility – not only for large corporations but also for smaller companies and their suppliers. For purchasing departments, this brings new challenges – and new opportunities to build more sustainable supply chains. 

One key approach is the circular economy (CE). This means that products and materials should be used as long as possible, and waste from one company can become a resource for another. Instead of the old model “take – use – throw away”, CE promotes the model “take – use – reuse – recycle”. In practice, this means designing purchasing and logistics processes that support recycling, reuse, and recovery. This helps reduce the use of raw materials and the amount of waste going to landfills. CE is not just about ecology – it also brings financial and strategic benefits: less dependence on raw materials, more supply chain resilience, and a better brand image. 

1. Choosing suppliers that follow ESG principles

The first step is to include ESG criteria (Environmental, Social, Governance) in supplier selection. This means not only checking price and technical specs, but also looking at environmental impact, working conditions, and business ethics. 

In practice, check if the supplier uses environmental management systems (like ISO 14001), respects labor laws (like SA8000), and follows ethical business rules. This reduces risk and improves quality. 

Many companies use ESG tools like self-assessment forms, contract clauses, and ESG scorecards. But just checking documents isn’t enough – it’s better to also build long-term partnerships: support suppliers, share knowledge, and create improvement plans together. This way, you meet regulations and build a responsible supply network. 

Also, ESG does not mean higher costs. Responsible suppliers often have better quality, fewer delays, and are more stable. For companies that want a strong supply chain, ESG is a must-have, not a nice-to-have. 

Tip: Add ESG to supplier evaluations. Start with the most important categories. 

2. Measuring the carbon footprint of products and services

Another key step is calculating the carbon footprint – especially Scope 3 emissions. These come from suppliers: material production, transport, subcontractors’ energy use, and end-of-life processes. Scope 3 is usually the largest part of a company’s total footprint – and the hardest to measure. 

To do it right, more companies use LCA (Life Cycle Assessment) – it tracks emissions from raw materials to disposal. The ISO 14067 standard helps compare results. Data from suppliers is essential – their EPDs and production data help estimate your footprint accurately. 

You can then identify “hot spots” – materials or services with the highest emissions. This helps you choose suppliers: 

  • closer to your location (lower transport emissions), 
  • using low-emission or recycled materials, 
  • offering greener delivery (e.g. trains instead of planes). 

Some companies even use “emission price lists” – showing carbon as a key factor in decisions. Others add emissions into TCO (Total Cost of Ownership) to highlight the environmental cost. 

Tip: Choose one category and measure emissions from key suppliers. Find where you can cut emissions. 

3. Circular economy in purchasing practice

In the circular economy, waste is not garbage – it’s a resource. Companies try to keep products and materials in use as long as possible. Buyers can help by choosing products that support reuse and recycling from the start. 

For example, buy items made from recycled or recyclable materials. Choose parts that are easy to take apart and fix. Use “product as a service” models – where instead of buying, you lease equipment, and the supplier handles maintenance and recycling. 

Also, support closed-loop logistics: reuse pallets, boxes, or components. Some companies resell used parts to be refurbished and reused. 

This way, purchasing teams stop being just consumers – they become active in circular transformation. It’s good for the environment, reduces costs, and builds a strong, green brand. 

Tip: Check what materials your company throws away most – and see if any can go back into the cycle. 

4. Transparency and traceability in the supply chain

Clients and regulators expect companies to know where their products come from and what conditions they were made under. Buyers need access to clear data: where materials come from, who processed them, and if social and environmental rules were followed. 

Traceability helps avoid working with unethical or harmful suppliers. It protects your brand and reduces legal risks. It also gives customers proof that your products are ethical and sustainable. 

Leaders use advanced traceability systems – like blockchain – for real-time tracking. Others use supplier statements or regular audits. The goal is better visibility across all supply chain levels – not just the first supplier, but also second, third, and fourth. 

Tip: Ask top suppliers what traceability data they can share. Start with critical materials or high-risk categories. 

5. Challenges and barriers to implementation

Even with more awareness, many purchasing teams still face real problems. One is the lack of standard ESG rules across industries. Too many different norms and tools make it hard to compare suppliers or track progress. 

Also, many small suppliers don’t have the systems to collect or report data. This limits analysis and progress tracking. 

Another issue: tension between cost goals and sustainability. Under budget pressure, buyers still often choose the cheapest option – even if it’s less responsible. 

And sometimes, companies just aren’t ready: no clear ESG roles, no support from management, no training. This makes actions uncoordinated and weak. 

The best results come from companies that treat ESG as a long-term process. They start small, help suppliers improve, and build real partnerships. It takes time and effort, but brings lasting benefits – stability, a better image, and protection from future changes. 

Tip: Start small. One change in one category is already real progress. 

 

Summary

Sustainability is no longer a PR strategy – it’s a hard requirement from regulators, customers, and investors. Responsible supply chains impact your market success. Buyers play a key role – choosing partners, materials, and shaping a product’s footprint. 

You don’t need to rebuild your strategy overnight. Start with one project, one category, or one action. What matters is not to wait. 

Not sure where to begin? Let’s talk. We can share ideas, explore options, and maybe help you faster than you expect. And if not – at least you’ll know your options. 

Nie trzeba od razu przebudowywać całej strategii zakupowej pod kątem ESG. Czasem wystarczy zacząć od jednego projektu, jednej kategorii lub jednej inicjatywy, by zrobić realny krok w stronę zrównoważonego podejścia. Kluczowe jest, aby nie odkładać działania na później.

Jeśli masz poczucie, że warto byłoby porozmawiać, ale nie wiesz jeszcze, czy Twoja organizacja jest gotowa na konkretny ruch – to w porządku. Możemy się po prostu spotkać i wymienić doświadczeniami. Może okaże się, że możemy pomóc Ci szybciej niż się spodziewasz. A jeśli nie – przynajmniej sprawdzisz, jakie masz możliwości.

Is it worth 30 minutes to avoid risk and build long-term value in purchasing? Buyer’s recommendations:
  • Add ESG to your purchasing strategy and KPIs 
  • Run ESG audits and help suppliers grow 
  • Measure carbon footprint and reduce Scope 3 emissions 
  • Support CE and circular partnerships 
  • Build tools for traceability and reporting 
  • Train your team: ESG is a future skill