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October 9, 2025
Alexander Hellwig
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Rethinking ROI – The Strategic Value of Sustainable Procurement

Most organizations still struggle to measure the ROI of their sustainable procurement efforts but continue investing, recognizing that the risks of inaction outweigh short-term uncertainty. The third and final part of our series shows how many organizations are leveraging sustainability as a long-term investment and strategic enabler.

The ROI Debate Around Sustainable Procurement

Ask any executive about sustainability and one question inevitably follows: What’s the return? It’s a fair point – and one that procurement leaders still find difficult to answer in concrete terms.  

Our 2025 survey confirms that only very few organizations have mastered ROI measurement. However, it also reveals a compelling paradox: While 78% of companies haven’t yet determined the ROI of their sustainable procurement initiatives, 90% still plan to invest. The reason? Leaders recognize that the risks of inaction outweigh the short-term challenge of quantifying impact. 

Measuring ROI: A Work in Progress

This disconnect between strategic priority and measurement capabilities isn’t surprising. Calculating the ROI of sustainable procurement is notoriously complex. Only a select group of companies have managed to capture a clear, quantifiable return. Most remain in the early stages of measurement, and many have yet to get started.   

Unlike cost savings – for example, switching to renewable energy or upgrading to more efficient machinery – the broader benefits of sustainable procurement don’t fit neatly into traditional ROI models. How can organizations attribute the value of avoided disruptions, stronger supplier relationships, or improved brand reputation directly to their sustainability efforts? These impacts may be hard to quantify, but they carry real financial weight.

Building the Right Foundation

To close the measurement gap, organizations must build the infrastructure to track both tangible and intangible value. This includes developing detailed metrics, defining specific KPIs, and implementing robust monitoring systems. 

At the same time, targeted capacity-building efforts can equip suppliers to apply consistent methodologies and contribute relevant data. When suppliers are aligned and enabled, organizations gain a more accurate and comprehensive view of impact across the value chain. 

Why Companies Keep Investing

Why are companies still committing resources to sustainability in the absence of clear ROI metrics? Because the business case extends well beyond short-term financial returns.  

Sustainable procurement is not only about generating savings – it’s about avoiding losses and unlocking long-term value. This value becomes apparent in several critical areas, including:  

  • Resilience: A single supply chain disruption can result in lost sales and contractual penalties – potentially costing millions.   
  • Risk avoidance: Reputational damage can lead to customer churn, regulatory scrutiny, and loss of investor confidence. 
  • Securing long-term value: Stronger supplier relationships drive more resilient, collaborative supply chains – a crucial advantage in times of crisis.   

Against this backdrop, even imperfectly measured sustainability investments make sense.

Where Companies Are Investing Next

Despite the challenges of measuring ROI outcomes, nearly all surveyed organizations continue to invest in sustainable procurement. Their top priorities reveal where they see both risks and opportunities:  

  • Building internal expertise through training and upskilling. 
  • Embedding sustainability throughout the supplier lifecycle, moving from isolated and ad-hoc initiatives to integrated, strategic supplier management.  
  • Improving impact measurement capabilities to track progress and quantify returns.  
  • Deploying digital solutions to assess, manage, and monitor sustainable procurement.  
  • Engaging suppliers to improve sustainability performance and spur co-innovation.  

These examples show that leading organizations view sustainability not as a cost center, but as a strategic enabler and long-term investment.

Figure: Top Investment Areas to Advance Sustainable Procurement

The Risk of Doing Nothing

Perhaps the most compelling argument for sustainable procurement is this: The cost of inaction is greater than the cost of investment. This reframes the ROI debate from “Can we prove it pays off?” to “Can we afford not to act?”.  

Our survey confirms this shift in mindset: 86% of companies report that failing to invest in sustainable procurement carries significant risks, including supply chain disruptions, regulatory penalties, and reputational harm. 

By prioritizing sustainability, organizations are not just improving their ESG performance – they’re safeguarding resilience, credibility, and long-term growth. That makes investment not only strategic, but essential.

Rethinking ROI as a Strategic Value

Sustainability is a long-term play – not only in procurement, but also beyond. Measuring ROI will become more sophisticated in the coming years, but companies are not holding back. They’re investing in people, processes, and technology now to future-proof their supply chains and gain a competitive edge. 

To unlock the full potential of sustainable procurement, organizations must particularly evolve both their measurement tools and mindsets, viewing ROI not just through a financial lens, but as a key driver of resilience, trust, and future-readiness. 

For the full picture of how procurement teams are approaching ROI and investment priorities, download our report: The State of Sustainable Procurement 2025 – Practitioners’ Insights and ROI Perspectives.

How Does IntegrityNext Elevate Sustainable Procurement?

The IntegrityNext platform streamlines supply chain due diligence, decarbonization, and sustainable procurement: 

  • Assess and embed sustainability performance throughout the supplier lifecycle. 
  • Leverage our ESG database of more than 2 million suppliers and get a head start with pre-existing supplier sustainability data. 
  • Ensure compliance with due diligence laws and regulatory requirements, including the CSDDD, EUDR, CBAM, EU Forced Labor Regulation, UK Modern Slavery Act, and UFLPA. 
  • Map your upstream supply chains and gain visibility across all tiers – from raw materials to finished products. 
  • Strengthen supplier engagement and collaboration at scale with built-in platform tools. 
  • Drive operational efficiency with highly automated processes and intuitive, user-friendly workflows. 
  • Seamlessly integrate ESG and risk data into all major ERP, SRM, and procurement systems to embed sustainability in your operations.  
  • Benefit from expert ESG support for your teams and suppliers, including dedicated project managers, targeted enablement, tutorials, and a supplier helpdesk. 

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