RS and CIPS: How Ethical Procurement Builds Resilience

Following the instability throughout 2025, business leaders have been evolving their supply chain strategies to become more resilient.

Procurement professionals are central to this shift, driving sustainability and smarter sourcing across their organisations. CIPS and RS have partnered on Uncertainty Driving Efficiency, the 2026 Indirect Procurement Report, which explores the challenges facing procurement teams and the strategies emerging as a result.

Strengthening supply resilience

Procurement strategies have evolved dramatically over recent years amid mounting global pressures. As supply chains continue to reshape in response to economic and geopolitical turbulence, procurement leaders are prioritising responsible sourcing to enhance resilience.

This rise in resilience-building coincides with growing expectations for social and environmental accountability, with more consumers favouring brands that display clear ethical commitments.

Accordingly, procurement teams are increasingly sourcing from socially and environmentally responsible suppliers to safeguard brand reputation and maintain stability through volatility. The Indirect Procurement Report examines how the professional landscape has changed and how these challenges are driving innovative approaches.

“It’s more important than ever for these professionals to be engaged: these are very challenging times for the profession with political instability, shifting tariffs and fragile global supply chains,” says Raj Patel, Managing Director for the UK&I at RS.

“This has all created an environment where certainty can no longer be assumed. These same pressures are showing up sharply in indirect procurement, where teams are being asked to deliver cost control, continuity and compliance in shifting conditions.”

Risks reshaping procurement priorities

Across industries, companies are being pushed to lower costs, improve resilience and enhance strategic foresight. External disruptions and internal expectations are redefining the scope of indirect procurement worldwide, as leaders adapt to the realities of economic and political uncertainty.

Key areas of concern include:

• Inflation and higher costs (68%)

• Supply chain risk management (50%)

• Supply chain disruption (47%)

• Global political instability (47%)

These priorities illustrate how procurement leaders are now grappling with intertwined issues of cost, continuity and geopolitics—far beyond supplier negotiations. Many must now evaluate trade policy and national politics, broadening their responsibilities and visibility within the organisation.

Tariff pressures and trade friction continue to drive strategic change, pushing businesses to mitigate the impact of rising costs and inflation. In response, 65% of organisations are reviewing supply locations, considering diversification or localisation strategies, while 57% are re-negotiating existing contracts to secure better terms.

All sustainability, net zero and sustainable supply chain leaders should attend:

• Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Sustainability LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Supply Chain LIVE, these events brings together CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Balancing cost and sustainability

As sustainability expectations rise alongside financial scrutiny, procurement teams are reassessing how they purchase—focusing on measures that deliver both environmental and economic value. Many are moving away from paying a premium for sustainable products unless those investments yield faster returns. The latest report found that 53% of MRO professionals are now willing to pay more for sustainable options, down from 62% the year before.

Meanwhile, 47% of respondents indicated that sustainability has become a greater procurement priority in the past year, with key focus areas including waste recycling (74%), energy reduction (60%), renewable energy adoption (60%), energy management (59%), and waste-to-landfill reduction (57%).

ESG measures are increasingly being implemented where they can simultaneously improve efficiency, reduce resource use, and deliver cost savings—reflecting a shift toward pragmatic sustainability.

“Climate change is, of course, the most significant risk. While ‘greenhushing’ has become more prevalent over the past year – with companies opting not to promote their ESG initiatives – procurement and supply chain professionals are still actively pursuing sustainable solutions,” says Ben Farrell, Chief Executive Officer at CIPS.

“Amid these competing forces, effective procurement and supply chain professionals strike smart balances. They have the skills to find cost reductions while also reducing carbon emissions. They know how to consolidate their supplier base while also mitigating risks. Ultimately, the job of the procurement and supply chain professional is to ensure security of supply; the best are able to achieve this by remaining flexible to short-term opportunities.”

Digital transformation redefining oversight

Shifts in purchasing trends are reshaping the MRO landscape, as organisations consolidate suppliers, cut spend, and reduce internal processing costs. Yet many teams still lack full visibility over these internal costs.

This knowledge gap is partly due to rising digitisation. Automation has reduced manual touchpoints and increased auto-approvals for recurring purchases. However, large teams relying heavily on digital systems now report less cost visibility (35%) than smaller (38%) and medium-sized (43%) organisations.

Globally, businesses are streamlining their supplier bases to tighten control over standards, contracts, and ESG compliance. This more selective approach enhances governance and transparency across the value chain.

As procurement’s influence grows, it is becoming a critical pillar of business resilience. The evolving landscape requires procurement leaders to make decisions that balance strategy, cost-efficiency, and sustainability—ensuring their organisations remain agile in the face of uncertainty.