Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

The 3 Pillars of Sustainable Purchasing

Sustainable purchasing applies a three-dimensional life-cycle perspective, rather than focusing solely on upfront cost, to ensure every buy delivers environmental, social, and economic value. Below are the three pillars and illustrative purchasing practices for each:

1. Environmental Pillar

Low-carbon sourcing: Prioritize products and services with verified CO₂ reductions over their full life cycle.

Circular materials: Purchase goods made from recycled or renewable inputs (e.g., recycled plastics, FSC-certified wood).

Eco-friendly packaging: Specify minimal, recyclable, or compostable packaging in sourcing agreements.

Water stewardship: Select suppliers with water-efficient processes or closed-loop systems.

2. Social Pillar

Fair labor and human rights: Require supplier certifications for living wages, safe working conditions, and no child labor.

Community impact: Source from local or minority-owned businesses to support regional economic development.

Health & safety standards: Purchase equipment and materials that meet high occupational health and safety benchmarks.

Inclusive procurement: Embed accessibility requirements (e.g., assistive technologies) into purchase specifications.

3. Economic Pillar

Total cost of ownership: Evaluate long-term costs (maintenance, energy use, end-of-life disposal) rather than purchase price alone.

Value for money: Leverage competitive bidding and framework agreements to secure optimal quality-price balance.

Supplier development: Invest in capacity-building initiatives with strategic suppliers (e.g., training on process improvements).

Risk mitigation: Incorporate financial stability, geopolitical, and supply-chain resilience criteria into supplier selection.

Benefits of Sustainability in Purchasing

Here are the essential benefits of sustainability in purchasing. Keep this in mind when thinking of ways to be sustainable when it comes to purchasing.

1. Economic benefits

• Stimulates a strong local economy by supporting local vendors
• Decreases operation, maintenance, replacement, transportation, and waste disposal costs.
• Promotes innovation as more organizations demand and seek sustainable alternatives. 

2. Environmental Benefits

• Supports international labor rights and standards worldwide.
• Fosters workers’ safety, wellness, and health.
• Supports vendors that promote accessibility and diversity in the workplace. 
• Fosters the development of local social enterprises

 3. Social Benefits

• Supports waste reduction, water conservation, and energy conservation. 
• Decreases greenhouse gas emissions.
• Reduces pollutants and toxins released in the environment
• Supports products and services that respect biodiversity. 

Creating A Sustainable Purchasing Policy

A sustainable purchasing policy sets out your organization’s commitments and guidelines to ensure every procurement decision advances environmental, social, and economic objectives.

It provides a clear framework for selecting goods and services that align with your sustainability ambitions and helps embed accountability across all stakeholders.

The following are the key components in creating a sustainable purchasing policy.

1. Articulate Vision & Principles

Define your overarching sustainability vision and the core principles (e.g., “zero waste,” “fair labor,” “local sourcing”) that will guide all purchasing decisions.

2. Scope & Prioritization

Identify which spend categories, product lines, or supplier groups have the greatest environmental or social impact. Prioritize those areas where improvements will deliver the highest value.

3. Baseline Assessment

Evaluate current procurement practices, supplier performance, and resource allocations to uncover gaps and opportunities for improvement.

4. Measurable Objectives & Targets

Set SMART targets, such as “reduce single-use plastic packaging by 75% within two years” or “source 60% of indirect goods from certified green suppliers by Q4”, and link them to specific KPIs.

5. Roles, Responsibilities & Governance

Assign clear ownership for policy execution: procurement leads, sustainability officers, category managers, etc. Define approval processes, escalation paths, and review cycles.

6. Supplier Engagement & Capacity Building

Communicate your policy requirements to existing and prospective suppliers. Offer guidance, training, or incentives to help them meet your social and environmental standards.

7. Integrated Procedures & Tools

Embed the policy into your RFP templates, contract clauses, compliance checklists, and e-procurement systems to ensure consistent application.

8. Monitoring, Reporting & Review

Establish regular reporting rhythms (e.g., quarterly dashboards, annual sustainability reports) to track progress against objectives. Build in formal review points to update the policy as goals evolve.

9. Continuous Improvement

Use lessons learned, both successes and setbacks, to refine targets, reallocate resources, and drive deeper sustainability gains over time.

By formalizing these elements into a written policy, your organization creates a transparent, repeatable process that not only delivers value for money but also strengthens stakeholder trust and advances your long-term sustainability ambitions.

5 Real-Life Examples of Sustainability in Purchasing

1. IKEA’s FSC-Certified Wood Sourcing

IKEA has committed to sourcing 100% of its wood from Forest Stewardship Council (FSC), certified or recycled sources, a goal it first set in 2009 and achieved in 2015. By partnering with FSC-certified suppliers, IKEA ensures that forests are managed to preserve biodiversity, respect the rights of indigenous communities, and maintain long-term ecological balance.

The company also invests in reforestation projects and supports smallholders in gaining certification, strengthening local economies. This approach not only guarantees traceability of raw materials but also sends a clear market signal that large-scale wood purchasers can drive sustainable forestry practices worldwide.

2. Patagonia’s Recycled Materials Initiative

Patagonia sources over 80% of its fabrics from recycled materials, primarily polyester and nylon reclaimed from post-consumer waste such as plastic bottles and discarded fishing nets. Since introducing its first recycled fleece jacket in 1993, the company has continually expanded this program, now diverting millions of pounds of plastic from landfills and oceans each year.

In addition to cutting greenhouse-gas emissions by up to 75% compared to virgin polyester, Patagonia invests in research to improve recycling technologies, sponsors take-back programs for used garments, and encourages customers to repair rather than replace gear, thereby extending product lifecycles and reducing overall material demand.

3. Starbucks’ Ethically Sourced Coffee (C.A.F.E. Practices)

Under its Coffee and Farmer Equity (C.A.F.E.) Practices program, Starbucks evaluates suppliers against a comprehensive set of social, economic, and environmental criteria. These include fair wages and working conditions, water usage efficiency, biodiversity conservation on coffee farms, and community development.

By 2020, Starbucks reported that over 99% of its coffee met these standards. The program provides financial incentives (such as premium payments) for farms that exceed the baseline requirements and offers agronomy training to improve yields and climate resilience.

Through this model, Starbucks not only secures high-quality beans but also fosters long-term partnerships with farming communities, enhancing livelihoods and ecological stewardship.

4. HP’s Closed-Loop Plastic Cartridges

HP’s closed-loop recycling program collects used ink and toner cartridges from businesses and consumers in over 50 countries. These cartridges are cleaned, ground, and remanufactured into new HP cartridges containing up to 30% recycled plastic.

By diverting more than 200 million cartridges from landfills annually, HP reduces demand for virgin polymer, lowers energy use in manufacturing by an estimated 10–15%, and cuts carbon emissions associated with raw-material extraction.

The program is supported by HP Planet Partners, a take-back initiative that makes recycling convenient through prepaid shipping or drop-off centers, reinforcing HP’s commitment to circular-economy principles.

5. Unilever’s RSPO-Certified Palm Oil

Unilever has pledged to source 100% of its palm oil from Roundtable on Sustainable Palm Oil (RSPO), certified plantations, or from smallholders through its Palm Oil Smallholder Inclusion Program. This commitment covers more than 3 million metric tons of palm-derived oils used each year across Unilever’s food and personal-care brands.

RSPO certification requires that plantations prevent deforestation, protect high-conservation-value habitats, and uphold workers’ rights. Unilever also engages in satellite monitoring to verify compliance, funds satellite-based fire detection systems, and supports training programs that help small farmers improve yields without expanding into natural forests.

This multifaceted approach ensures that palm oil purchases do not drive environmental degradation or social injustice.

Conclusion

Delving into sustainable purchasing reveals its pivotal role in supply chain dynamics. The distinction between sustainable purchasing and procurement becomes evident, emphasizing the acquisition of goods with recycled content and environmentally preferable attributes.

Beyond cost considerations, the scope of sustainable purchasing extends to maximizing value and minimizing environmental and social impacts across a product’s life cycle.

For organizations aspiring to bolster their sustainable purchasing strategies, actionable steps are outlined. These encompass internal advocacy, resource utilization, policy formulation, supplier negotiations, and adoption of a Total Cost of Ownership (TCO) perspective.

Clear goal-setting, ongoing performance evaluation, and effective communication emerge as critical elements in the pursuit of sustainable purchasing.

In essence, readers are empowered to recognize the significance of sustainable purchasing, urging them to align procurement practices with environmental and social priorities. This serves as a roadmap for companies aiming to contribute to a sustainable future while reaping tangible economic and operational advantages.

After you finish reading this article, you will have a deeper understanding of why companies are adopting sustainability not only in purchasing but also in the supply chain. Thus, allowing you to gain benefits from having a sustainable supply chain

Furthermore, I have created a free-to-download, editable Sustainable Procurement Strategy template. It’s a PowerPoint file that can help you with your sustainable purchasing initiatives. I even created a video where I’ll explain how you can use this template.