September 2025

The State of Sustainable Procurement 2025 – ESG Moves from Policy to Performance

A new study by IntegrityNext and CIPS shows how sustainability in procurement delivers value today – and where investment will matter tomorrow.

Munich, 4 September 2025 – A new survey by IntegrityNext, in partnership with the Chartered Institute of Procurement & Supply (CIPS), shows that sustainable procurement has moved from intention to implementation. Drawing on the insights of 105 procurement professionals across industries and regions, the study highlights how ESG is increasingly embedded in supplier management – and where challenges remain.

While regulation is often the trigger, the study finds that organizations are equally motivated by strategic objectives such as brand protection, resilience, and innovation. Companies already see benefits – from greater transparency and stronger supplier relationships to fewer ESG risks – yet many still struggle to measure impact and prove financial return. Still, 90% plan to expand their sustainability efforts, focusing on training, embedding ESG across the supplier lifecycle, and investing in digital tools.

Sustainable Procurement Enters the Mainstream

The study confirms that sustainable procurement has entered the mainstream with a growing maturity in how companies approach it. 70% of companies have already implemented sustainability initiatives in procurement, and 82% regard it as a strategic priority.  This broad commitment indicates growing maturity and signals a shift from awareness to action, with companies now focused on scaling impact.

Nick Heine, Co-Founder and CCO of IntegrityNext, explains:
“Procurement has reached a new stage of maturity when it comes to sustainability. Most organizations are no longer debating the ‘if’ – they are focusing on the ‘how’. This shift marks the beginning of a more strategic phase, where ESG is systematically embedded and positioned to deliver measurable impact.”

Drivers and External Pressures Shaping Sustainable Procurement

In light of ongoing regulatory shifts, the study finds that while compliance is often the initial catalyst, strategic business goals now carry equal weight in driving sustainable procurement. Nearly eight out of ten companies (78%) cite business objectives as an important driver – underlining that ESG is no longer only about regulation, but also about strengthening competitiveness. Among the top strategic business goal drivers are brand protection, resilience, efficiency, and innovation.

Despite regulatory uncertainty, trade disruptions, and geopolitical challenges, most organizations are staying the course or even doubling down, with 64% maintaining or stepping up their initiatives. This underlines that many see sustainable procurement as a way to build resilience amid mounting uncertainty.

Nick Heine, Co-Founder and CCO of IntegrityNext, comments:
“Regulation may be the trigger, but strategy is becoming the driver. Companies realize that sustainable procurement strengthens their reputation, makes them more resilient, and creates efficiencies – benefits that go well beyond compliance.”

Measuring Impact Remains the Hardest Part

Companies widely recognize the benefits of sustainable procurement, but many continue to face major obstacles in practice. Half of the surveyed organizations report difficulties in measuring the impact of their initiatives, making it hard to demonstrate tangible outcomes. Limited budgets, unreliable supplier ESG data, internal silos and a lack of expertise further hinder progress. These challenges highlight the need for better metrics, reliable data, and stronger cross-functional collaboration.

Nick Heine, Co-Founder and CCO of IntegrityNext, comments:
“The biggest barrier we see is not the willingness to act, but the ability to measure and prove impact. Without reliable data and clear metrics, companies struggle to turn ambition into accountability – and to build the internal momentum needed for real change.”

From Compliance to Value

Despite measurement challenges, 85% of respondents report tangible benefits from sustainable procurement, including more transparency, stronger supplier relationships, and reduced risks. Only a small minority of 10% have quantified ROI, but most recognize that avoiding disruptions, safeguarding reputation, and staying ahead of regulation justify continued investment. 86% of companies say that failing to invest in sustainable procurement poses significant risks.

Looking Ahead: Top Three Priorities for Sustainable Procurement Investment

Companies are continuing to invest in sustainable procurement. 90% of organizations plan to channel resources into people, processes, and digital solutions. The top three priorities are staff training and upskilling, embedding ESG criteria across the supplier lifecycle, and developing impact measurement frameworks. In addition, many organizations are investing in digital tools to strengthen traceability and monitoring. These investments underscore that procurement is no longer just about compliance but a strategic enabler of resilience and competitiveness.

Nick Heine, Co-Founder and CCO of IntegrityNext, concludes:
“The next chapter for procurement is about scale and depth. Companies are ready to professionalize their approach – investing in skills, systems, and collaboration to turn sustainability from a regulatory requirement into a lasting competitive advantage.”

Access the full study, including all detailed findings, here: The State of Sustainable Procurement 2025

About the Study

The survey was conducted by IntegrityNext in collaboration with the Chartered Institute of Procurement & Supply (CIPS) in June and July 2025. A total of 105 procurement and supply chain professionals participated, representing a wide range of industries and company sizes. The sample was predominantly UK-based (80%), with additional participation from continental Europe, North America, and other regions. Drawing on responses from across this diverse sample, the research provides a data-driven snapshot of sustainable procurement in 2025.

About IntegrityNext

As a global leader in supply chain sustainability software, IntegrityNext stands at the forefront of corporate sustainability and compliance. Since 2016, businesses have trusted IntegrityNext to simplify ESG compliance, reduce risks, and address critical challenges like due diligence, decarbonization, and sustainability reporting. With over 500 customers and 2 million suppliers across 190 countries, IntegrityNext is transforming supply chains into engines of transparency and sustainable growth. For more information, visit www.integritynext.com.

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