Can Sustainable Supply Chains Boost Decarbonisation Efforts?

Turner & Townsend explore how businesses must embrace sustainable procurement through a strategic approach for supply chain decarbonisation
Organisations can improve their business resilience and ensure regulatory compliance by effectively integrating sustainability into their supply chain and procurement processes.

With the rise of regulations – such as EU Corporate Sustainability Due Diligence Directive and UK Procurement Act 2023 – expecting greater accountability and transparency, organisations that fail to prioritise sustainability face reputational and economic risks.

With this in mind, Ben Carter, Principal Consultant, UK, at Turner & Townsend, explores how sustainable procurement can have on supply chain decarbonisation and regulatory-mandated reporting.

He states: “With net-zero commitments high on the agenda, some companies are quickly tackling the issue and working to understand their supply chain emissions and wider social value. Others are early on in this journey.

Ben Carter, Principal Consultant, UK, at Turner & Townsend
“The majority, currently, don’t go far enough. To avoid falling behind peers and wider legislative change, now is the time for businesses to act.”

The importance of sustainable procurement
Organisations can mitigate risks linked to resource scarcity, climate change and regulatory changes by integrating sustainability into their strategic vision.

Not only do sustainable procurement and responsible supply chain management reduce costs and improve efficiency but it also creates a more resilient value chain and enhances supplier relationships.

Businesses with integrated sustainability strategies have better financial performance as investors are more likely to focus on customers who showcase their long-term commitment to sustainability.

Therefore, organisations must stay up to date with the latest ESG regulations and ensure they pass this knowledge onto their employees.

“Sustainable procurement must be integrated into the company’s core and aligned to its overall strategic vision,” Ben continues. “For example, supporting suppliers to build their ESG knowledge base, and ensuring teams are equipped to hold the supply chain to account if issues are found.

“Many companies are already doing parts of this. But they could be doing it better, more strategically and more consistently.

“Furthermore, proper integration is also not a ‘one time’ activity – it requires continual reassessment, especially given the frequently changing regulatory picture.”

Turner & Townsend has partnered with the University of Sheffield to lead estate decarbonisation (Credit: University of Sheffield)
The rise of new ESG regulations
2024 and 2025 have seen a rise in regulations that demand greater accountability around sustainability and reporting across several industries.

As Ben highlights: “The global impacts of 2024’s ‘super-election year’ on ESG legislation are becoming clear. However, decarbonisation deadlines that once appeared distant are now closing in.”

This urgency means many organisations are shifting from an economic focus to a sudden emphasis on sustainability and diversity to ensure their strategies align with recent procurement changes, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), the National Procurement Policy Statement and the Procurement Act.

The Procurement Act 2023, which came into effect on 24 February 2025, placed a strong focus on sustainability and social value in our supply chains.

It strives to create a more equal environment for businesses whilst enhancing competition, transparency, innovation and competition.

By focusing on social value, the act encourages organisations to integrate sustainability throughout the supply chain, such as ethical labour practices, environmental impact and community engagement. This will mean all businesses will become aligned with the UK’s wider sustainability goals.

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How can businesses overcome challenges?
As consumers and stakeholders continue to demand greater sustainability and accountability, businesses must overcome common challenges – such as cost pressures, supplier transparency and regulatory compliance – to unlock greater social value.

This can be done by utilising technology and data analytics to track sustainability metrics, integrating sustainability into procurement policies and engaging suppliers in sustainability goals through collaboration and training.

As Ben concludes: “Sustainable procurement must become a core part of business operations, as the need for a robust strategy will only increase in years to come.

The solutions are straightforward, but it will take leadership buy-in to put the right priorities and processes in place. The risks of falling behind only make the reward for action even greater.”