Overcoming barriers to ESG in procurement

While aligning procurement with ESG goals offers numerous benefits, challenges abound. Common barriers include cost pressures, insufficient supplier data, and lack of internal buy-in.

Balancing cost with ESG commitments

One of the most significant barriers is cost. Many procurement teams struggle with the perception that sustainable or diverse suppliers are more expensive. However, focusing on long-term value rather than short-term savings can yield better results. Studies show that companies investing in ESG see greater profitability over time.

Addressing data gaps

Procurement teams need robust data on suppliers to make informed decisions. Unfortunately, many suppliers—especially smaller or emerging businesses—lack comprehensive ESG reporting. Digital platforms that aggregate supplier data, like Scanmarket by Unit4, can help bridge this gap.