Turner & Townsend: Are Supply Chains Key to Sustainability?

Embedding sustainability within procurement and supply chain operations is quickly becoming a business imperative all around the world.

Emerging regulations like the EU Corporate Sustainability Due Diligence Directive and the UK Procurement Act 2023 are helping to facilitate this trend.

These pieces of legislation are urging companies to amp up their transparency and accountability to avoid significant risks to their reputation and financial standing, as well as their future sustainability.

“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," says Ben Carter, Principal Consultant at Turner & Townsend.

"Others are early on in this journey. 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 transformative impact supply chain sustainability can have

Adopting sustainability as a core strategic element can help businesses manage risks related to resource scarcity and climate change.

Being proactive and creating a solid foundation of sustainability also helps businesses absorb the shock of new regulations far easier.

When it comes to procurement, sustainability can help to reduce operational costs, increase efficiency and create resilience through supply chains.

These attributes not only strengthen relationships with suppliers but also bolster overall corporate reputations, prompting investors to back firms with deep commitments to sustainable operations.

For companies, keeping on top of the latest ESG standards is imperative, and disseminating this knowledge within the organisation is equally vital.

"Sustainable procurement must be integrated into the company’s core and aligned to its overall strategic vision," says Ben.

“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.”

How businesses can navigate current and forthcoming regulations

Recent transformations in the regulatory landscape have seen businesses have to adapt to stricter sustainability measures and reporting requirements across all sectors.

“The global impacts of 2024’s ‘super-election year’ on ESG legislation are becoming clear," Ben says.

"However, decarbonisation deadlines that once appeared distant are now closing in.”

This means that companies have to be on their toes. Many are increasing the diversity of their portfolios to incorporate sustainability as much as possible.

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

The Act encourages fairer labour practices, environmental considerations and community involvement while fostering heightened competition, transparency and innovation.

These aspects are integral for aligning business goals with the wider objectives of UK sustainability.

Challenges and solutions in sustainable procurement

As consumer and stakeholder demands for sustainability and accountability grow, companies face challenges like cost pressures, opaque supplier practices, and compliance with stern regulations.

To overcome these hurdles, enterprises must utilise technology and data analytics to monitor sustainability metrics accurately, integrate sustainability goals into their procurement strategies and promote continuous supplier education and collaboration.

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

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.”

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