Public procurement accounts for nearly 15 per cent of gross domestic product (GDP) in the European Union, where the equivalent value is approximately 2,500 billion dollars per year. Still within the European Union, around 30 per cent of total public expenditure flows through contracts. This means that procurement choices shape entire supply chains, influence the competitiveness of businesses and can accelerate – or slow down – transitions such as the digital or climate ones. Yet, in the European Union, 55 per cent of tendering procedures are still awarded exclusively on the basis of the lowest price, without considering quality, environmental or social impacts.

Sustainable procurement: what the regulations say in Italy and Europe

The regulatory framework exists: Directive 2014/24/EU allows for the inclusion of environmental, social and innovative criteria in both technical specifications and award criteria for tenders, through the principle of the most economically advantageous tender (MEAT). However, these options are in most cases optional. It should be noted that the European Commission has launched a review of the public procurement regulatory framework, scheduled for 2026. In Italy, meanwhile, Minimum Environmental Criteria (Cam) are mandatory for several product categories and impose environmental standards throughout the entire product lifecycle.

While in the public sector sustainable procurement enters primarily through regulation, in the private sector the impetus comes from a different direction: supply chain management. In recent years, a series of standards and regulations has progressively shifted attention from direct operations to supplier relationships, making procurement one of the main focal points for risks and responsibilities. The European Union is moving in this direction with the sustainability reporting directive (Csrd) and the due diligence directive (Csddd).

Why, outside of mandatory requirements, sustainable procurement struggles to spread

The transition from theory to practice, however, remains far from straightforward. This is highlighted by the Sustainable Procurement Barometer 2024, a survey conducted among nearly 600 buying companies and over 1,000 suppliers, which sheds light on a series of recurring critical issues. The first concerns poor visibility along the supply chain: only around 50 per cent of companies have sustainability data on at least half of their first-tier suppliers; looking further down, half of companies have visibility into less than 5 per cent of their second-tier suppliers.

Again according to the Sustainable Procurement Barometer 2024, 63 per cent of companies do not incorporate environmental, social and governance (ESG) data into their risk management systems, and 65 per cent do not use them in tendering procedures, while only 34 per cent integrate them into the strategic management of supplier relationships. Supply chain engagement also remains limited: fewer than 50 per cent of programmes include structured audits or assessments, and only between 23 per cent and 46 per cent activate improvement plans, emissions reduction programmes or innovation initiatives.

Sustainability in procurement helps manage risk and create value

Sustainable procurement introduces a methodological shift. The OECD guidelines propose a risk-based approach, which helps companies identify and manage actual and potential impacts across operations, supply chains and business relationships. A company that sources electronic components from a single Asian supplier may obtain a lower price, but expose itself to production stoppages in the event of geopolitical tensions or logistical disruptions. A company that opts for cheaper but non-recyclable packaging may find itself having to bear additional costs when regulations or customer requirements change. Alternatively, an unreliable supplier in terms of deliveries can cause delays that translate into production downtime or contractual penalties, wiping out the initial saving.

The data show that information on sustainability, traceability or supplier performance exists, but is often not used in tendering systems, risk management or relationship management. In practice, decisions are made without incorporating a significant portion of the available information. In more advanced programmes, on the other hand, procurement changes its function: it is no longer merely price negotiation, but a safeguard for operational continuity. And this is where value is created, because disruptions are reduced, unexpected costs are avoided and more resilient supply chains are built.

This approach is beginning to gain traction. According to Kpmg, 66 per cent of procurement managers indicate that ESG requirements and regulatory pressure are already influencing sourcing decisions in the years ahead. At the same time, however, 91 per cent continue to cite cost reduction as the main priority and 83 per cent flag the growing complexity of supply chains as an obstacle. In the 2025 IntegrityNext report, based on a survey of 105 professionals, 85 per cent say they already see tangible benefits from sustainable procurement, including risk mitigation, smoother audits, greater transparency and stronger supplier relationships; so much so that 82 per cent count it among their priorities.