Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
How to Find and Evaluate Sustainable Suppliers
As taught in the Sustainable Procurement Course / ★★★★★ 4.9 rating
What are sustainable suppliers?
- Sustainable suppliers are those who prioritize environmental, social, and ethical practices in their sourcing, production, and distribution processes.
- Sustainable suppliers minimize their environmental footprint, ensure fair labor conditions, and promote long-term economic sustainability.
- Sustainable suppliers adhere to standards like carbon reduction, ethical sourcing, and circular economy principles, balancing profit with responsibility.
What Makes a Supplier Sustainable?
Sustainable procurement involves acquiring goods and services in an environmentally and socially responsible manner to support a company’s operations. A sustainable supplier aligns with these principles by minimizing environmental impact, ensuring ethical labor practices, and maintaining long-term resource efficiency.
To achieve this, companies must integrate corporate social responsibility (CSR) principles into their procurement strategies while maintaining a long-term approach to meeting demand. This helps identify and collaborate with suppliers that prioritize sustainability and ethical sourcing.
As sustainability becomes a global priority, businesses are increasingly adopting sustainable practices, driven in part by consumer demand for transparency in product sourcing. Companies that lead in environmental stewardship gain a competitive edge and strengthen their brand reputation.
Furthermore, sustainable procurement ensures that a company’s sustainability values are upheld across the entire product and service lifecycle, securing long-term responsible investments and reinforcing commitment to sustainable policies.
How to Find Sustainable Suppliers?
Finding sustainable suppliers involves identifying partners that align with environmental, social, and ethical standards. Here’s a structured approach:
1. Define Sustainability Requirements – Establish key criteria such as eco-friendly materials, ethical labor practices, carbon footprint, and certifications (e.g., ISO 14001, FSC, Fair Trade).
2. Use Sustainability Databases & Platforms – Search supplier directories like EcoVadis, SEDEX, B Corp, or the Global Reporting Initiative (GRI) for verified sustainable suppliers.
3. Check Industry Certifications – Look for third-party certifications that confirm a supplier’s compliance with sustainability standards.
4. Network and Get Referrals – Engage with industry associations, sustainability forums, and trade events to discover reputable suppliers.
5. Send Supplier Questionnaires – Request detailed sustainability data, including waste management, energy efficiency, and responsible sourcing policies.
6. Conduct Supplier Audits – Perform on-site inspections or third-party audits to verify claims and assess real sustainability practices.
7. Evaluate Transparency & Commitment – Prioritize suppliers who share clear sustainability reports, goals, and continuous improvement plans.
8. Negotiate Sustainable Contracts – Establish agreements that ensure long-term sustainability commitments, compliance, and performance tracking.
Process for Selecting Sustainable Suppliers
Selecting a supplier is crucial to the success of your business operations, especially if you are striving for sustainability. Thus, having selection criteria will help you mitigate the risk of selecting unethical and non-compliant suppliers.
When selecting a sustainable supplier, you must be guided by your sustainable requirements. These are the rules and guidelines you lay down for what you expect from your potential suppliers.
If they can meet your sustainable requirements, then that means that they are adopting sustainability within their operations. Thus, you are assured that what you are purchasing from them is ethically sourced.
Selecting sustainable suppliers involves a structured approach to ensure environmental, social, and ethical standards are met. Here are the key steps:
Step 1 – Procurement Methodology for Sustainable Suppliers
A structured procurement methodology is essential for organizations committed to sustainability. It helps ensure transparency, efficiency, and alignment with both stakeholder expectations and relevant regulations.
Before detailing this methodology, it is important to distinguish between a procurement strategy and a procurement policy. A strategy targets specific sustainability objectives—such as minimizing environmental impact, promoting fair labor practices, or supporting local economic development—while a policy defines overarching guidelines to ensure compliance with legal, donor, and ethical requirements.
The first step in working with sustainable suppliers is to define clear requirements: identify which goods or services are needed, outline relevant sustainability standards (e.g., eco-labels, fair trade certifications), set budget constraints, and incorporate sustainability metrics that reflect the organization’s mission. This ensures that all stakeholders understand the broader goals and operational needs from the outset.
Once these objectives are set, it is crucial to obtain leadership and stakeholder approval to secure the necessary budget and organization-wide support. A dedicated procurement team should then conduct a comprehensive needs assessment, evaluate potential suppliers against sustainability benchmarks, and carry out market research. By prioritizing ethical and ecological criteria from the beginning, organizations can make informed purchasing decisions that not only meet immediate needs but also advance long-term social and environmental objectives.
Recommended Course for Sourcing Methodology
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Junior Procurement Management Course This course covers the fundamentals of procurement for non-profit organizations, including how to establish a structured and transparent sourcing methodology to optimize resources and align with the organization’s mission. |
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This course helps in developing a sustainable and mission-driven procurement strategy for non-profit organizations, ensuring cost efficiency, transparency, and long-term supplier partnerships. |
Step 2 – Market Research for Sustainable Suppliers
Market research is a critical phase in the sustainable procurement process, as it ensures the selection of reliable, cost-effective, and ethically responsible suppliers. By thoroughly evaluating the market landscape, procurement teams can identify suppliers who align with the organization’s environmental and social objectives while also meeting practical needs like budget and quality.
Key considerations include:
- Existing Sustainable Suppliers – Does the organization already have relationships with suppliers who meet sustainability criteria?
- Alternative Eco-Friendly Options – Are there additional suppliers with credible environmental or fair-trade certifications who can fill gaps if the primary supplier is unavailable?
- Budget Feasibility – Is the allocated budget sufficient for sustainable products or services, which may sometimes be more expensive or require special certifications?
- Market Constraints – Are there any shortages in ethically sourced materials, and how might these impact costs and timelines?
- Contingency Planning – What sustainable alternatives exist if the preferred supplier or product is out of stock or fails to meet updated sustainability standards?
During this phase, procurement teams should compare potential suppliers based on pricing, reliability, quality, and demonstrable commitment to ecological and social responsibility. Insights from market research inform procurement decisions, helping organizations uphold their mission and stewardship goals while securing the necessary goods and services.
Recommended Course for Market Research
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This course helps non-profit procurement professionals analyze costs, market trends, and supplier pricing to make data-driven and mission-aligned procurement decisions. |
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Risk Management in Procurement Course This course will teach you how to identify and manage procurement risks in non-profit organizations, including shortages, supplier reliability issues, and price fluctuations, ensuring sustainable and cost-effective sourcing. |
Step 3 – Request for Information (RFI) for Sustainable Suppliers
For non-profit organizations committed to ethical and environmentally responsible sourcing, the request for information (RFI) is a pivotal step in identifying suppliers who meet both operational needs and sustainability goals. Before finalizing any purchase, it is crucial to gather detailed information from prospective suppliers to ensure alignment with the organization’s mission, budget constraints, and ecological objectives.
Key considerations include:
- Goods or Services Required – What specific products or services (e.g., recycled materials, fair-trade goods) are needed to advance the organization’s sustainability initiatives?
- Quantities and Procurement Frequency – How frequently are these sustainable goods needed, and in what volumes?
- Budget Allocation – Is the budget sufficient to support sustainable offerings, which may sometimes entail higher initial costs?
- Reliability of Suppliers – Are there existing sustainable suppliers, or should new vendors be considered to meet stricter environmental and social standards?
- Quality, Ethical, and Sustainability Standards – Do potential suppliers hold relevant certifications (e.g., organic, fair trade, eco-labels) and adhere to recognized labor and environmental practices?
By issuing an RFI focused on sustainability criteria, procurement teams can evaluate supplier capabilities and gather insights on cost, availability, and compliance. The information collected at this stage informs budget approvals, fosters organizational transparency, and paves the way for negotiating responsible supplier agreements that align with the non-profit’s mission and donor expectations.
Recommended Course for Request For Information (RFI)
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This course helps non-profit procurement professionals analyze costs, market trends, and supplier pricing to make data-driven and mission-aligned procurement decisions. |
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Risk Management in Procurement Course This course will teach you how to identify and manage procurement risks in non-profit organizations, including shortages, supplier reliability issues, and price fluctuations, ensuring sustainable and cost-effective sourcing. |
Step 4 – Request for Quotation (RFQ) for Sustainable Suppliers
The request for quotation (RFQ) is a critical phase in the procurement process, focusing on cost-effectiveness, transparency, and compliance with sustainability policies. During this step, the procurement team formally requests pricing and delivery terms from multiple suppliers to secure the best arrangements while ensuring quality and adherence to environmental and social standards.
To make the RFQ comprehensive and sustainability-oriented, the procurement team should gather the following information from suppliers:
- Availability of the requested goods/services and storage capacity, with an emphasis on sustainable materials and processes
- Manufacturing or sourcing location and distribution timelines, aiming to reduce the carbon footprint
- Estimated delivery time for both local and international suppliers, including an assessment of the environmental impact of transportation
- Unit pricing and the possibility of bulk discounts, with attention to ethical and eco-friendly certifications
- Current market constraints (e.g., raw material shortages) that could affect delivery schedules
- Minimum order quantities (MOQs) and flexibility for smaller orders, to avoid surplus and waste
- Payment terms and any options for special arrangements for sustainability-focused projects
Once supplier responses are received, procurement specialists analyze the quotations, comparing prices, delivery conditions, and overall value while paying special attention to sustainability criteria. This step is crucial for securing favorable commercial terms and ensuring alignment with socially and environmentally responsible procurement principles.
Recommended Course for Request For Quotation (RFQ)
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Junior Procurement Management Course This course is essential for beginners to understand how non-profit organizations analyze and select suppliers, ensuring cost-effective, transparent, and mission-driven procurement. |
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This course covers how to review supplier terms and draft pricing agreements, essential for creating RFQs in non-profit procurement, ensuring cost transparency and compliance. |
Step 5 – Negotiation Phase for Sustainable Suppliers
The negotiation phase is a pivotal step in sustainable procurement, ensuring cost-effective purchasing without compromising environmental or social standards. Beyond pricing, discussions should address bulk discounts, flexible payment terms, delivery schedules, and the potential for long-term partnerships that foster responsible sourcing practices.
Procurement teams should verify that suppliers can consistently meet quality, compliance, and sustainability commitments. Effective negotiations, supported by data from market research and RFQs, help secure the best overall value, optimize budgets, and build reliable supplier relationships grounded in eco-friendly and socially responsible principles.
Recommended Course for Negotiation Phase
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Junior Procurement Management Course This course introduces the fundamentals of negotiation for non-profit procurement professionals, helping them secure fair pricing, favorable terms, and strong supplier relationships. |
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Negotiation Course for Procurement Professionals This course provides essential negotiation techniques for non-profit procurement, helping secure the best pricing, quality, and payment terms while ensuring transparency and alignment with the organization’s mission. |
Step 6 – Contracting Phase for Sustainable Suppliers
In the contracting phase for sustainable procurement, organizations formalize agreements to maintain transparency, accountability, and adherence to environmental and social standards. These contracts should clearly define pricing, delivery schedules, quality expectations, and payment terms—whether upfront, in installments, or post-delivery—while explicitly covering sustainability requirements (e.g., certified materials or carbon-reduction measures).
To avoid disputes, agreements must include quality control provisions and penalties for delays or non-compliance, particularly regarding sustainability commitments. Proper contract management—whether digital or manual—provides a reliable record of procurement activity, strengthens collaboration, and helps build enduring supplier relationships centered on responsible sourcing and production practices.
Recommended Course for Contracting Phase
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This course provides a detailed approach to drafting, reviewing, and managing procurement contracts in non-profit organizations, ensuring transparent and efficient supplier agreements. |
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Risk Management in Procurement Course This course will teach you how to mitigate risks in non-profit procurement, including contract failures, delayed deliveries, and compliance issues, ensuring transparency and operational efficiency. |
Step 7 – Supplier Relationship Management (SRM) for Sustainable Suppliers
The final step in a sustainable procurement process is supplier relationship management (SRM), ensuring long-term reliability and adaptability. Maintaining close partnerships with both primary and alternative suppliers helps mitigate risks from potential supply disruptions or market fluctuations.
Ongoing collaboration through regular communication, performance reviews, and constructive feedback ensures that suppliers consistently meet expectations in quality, delivery, and adherence to sustainability standards. Building trust-based partnerships, rather than purely transactional arrangements, can lead to more competitive pricing, priority service, and overall procurement stability—ultimately advancing an organization’s broader sustainability objectives.
Recommended Course for Supplier Relationship Management (SRM)
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Supplier Relationship Management Course In this course, you’ll learn how to manage supplier performance, build long-term partnerships, and foster trust in non-profit procurement to ensure transparency and reliability. |
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Soft Skills for Procurement Course This course will help you develop communication skills for resolving supplier issues, negotiating contract renewals, and maintaining effective collaboration in non-profit procurement. |
Additionally, you may consider using pre-qualification questionnaires to thoroughly check if they can meet your environmental and social standards. Here are some sample questions that we categorized based on the three pillars of sustainability:
Environmental Standards
- Do the suppliers have a certified environmental management system?
- How do these suppliers manage carbon emissions, waste, and water use?
- Are their operations sustainable?
Social Standards
- Do these suppliers comply with national and local laws and legislation?
- Do they comply with fair trade practices?
- What is the health and safety record of their employees?
- What is their policy regarding human rights, working conditions, and fair wages?
Economic Standards
- Do the suppliers have an anti-bribery policy?
- Do they have an anti-corruption policy?
- Have they ever been prosecuted or fined for infringements?
Real-life Examples of Sustainable Suppliers
1. Patagonia (Apparel & Textiles)
A leader in sustainable fashion, Patagonia uses recycled materials, fair trade-certified labor, and eco-friendly production methods to minimize environmental impact.
Finding and Evaluating Suppliers: Patagonia carefully selects suppliers that use recycled materials and adhere to fair trade standards. The company collaborates with global partners who meet strict environmental and social criteria.
Key Factors Considered: Patagonia prioritizes certifications such as Fair Trade Certified™ and Global Organic Textile Standard (GOTS). It also assesses carbon emissions, water usage, and working conditions in production facilities.
Implementation Success: Patagonia has become a leader in sustainable fashion by reducing its carbon footprint through circular economy initiatives and encouraging consumers to recycle and repair products.
2. Unilever (Consumer Goods)
Unilever collaborates with sustainable suppliers for palm oil, tea, and other raw materials, ensuring ethical sourcing, waste reduction, and carbon neutrality initiatives.
Finding and Evaluating Suppliers: Unilever implements programs such as the Sustainable Agriculture Code to identify and select suppliers for palm oil, tea, and other raw materials.
Key Factors Considered: The company evaluates carbon emissions, labor conditions in the supply chain, waste management practices, biodiversity impact, and certifications like RSPO (Roundtable on Sustainable Palm Oil).
Implementation Success: Unilever has successfully sourced 95% of its palm oil from sustainable sources and set ambitious goals to reduce carbon emissions and waste in its production processes.
3. Tesla (Automotive & Energy)
Tesla works with battery suppliers like Panasonic that prioritize responsible mining, energy efficiency, and recycling programs to support sustainable electric vehicle production.
Finding and Evaluating Suppliers: Tesla partners with suppliers like Panasonic and CATL, which focus on responsible mining, lithium-ion battery recycling, and energy efficiency.
Key Factors Considered: Tesla assesses energy consumption during production, safe disposal of battery materials, and compliance with standards such as the Responsible Minerals Initiative (RMI).
Implementation Success: Tesla continuously improves the sustainability of its batteries through a closed-loop recycling system, while its Gigafactory facilities rely on renewable energy sources for production.
4. IKEA (Furniture & Retail)
IKEA sources wood and cotton from certified sustainable suppliers, prioritizing FSC-certified wood, renewable energy, and circular economy principles to reduce waste and carbon footprint.
Finding and Evaluating Suppliers: IKEA collaborates with FSC (Forest Stewardship Council)-certified wood suppliers and sustainable cotton producers through its Cotton from More Sustainable Sources program.
Key Factors Considered: IKEA evaluates raw material sourcing, carbon footprint in production, impact on forests, and the use of renewable energy in its supply chain.
Implementation Success: Over 98% of IKEA’s wood comes from sustainable sources, and the company aims to become 100% circular by 2030, using only renewable and recycled materials.
Procurement Expert’s Advice on Sustainable Suppliers
For this article, we asked an experienced procurement expert to share her insights to help answer common questions about sustainable suppliers.
Joselina Peralta
Founder of STRACTIX
LinkedIn Profile: https://www.linkedin.com/in/joselina-peralta/
1. Why do you think sustainability plays a big role in procurement and supply chains?
“We live in increasingly multipolar economies, where interdependencies are more prevalent. Shifts in how people live, work, & play are structurally heightening post-pandemic. Setting a new economic era; highlighting the relevance of how organizations buy e2e, which in turn determines how organizations configure or reconfigure their supply chain upstream & downstream.
From: product design( to increase circularity, reduce carbon footprint, waste gen) ⇒ Plan(when/where/how) ⇒ Invest ⇒ Source(local, regionally, globally, responsible sourcing( how partners operate, align mission, objectives, environmental compliance/standards etc) ⇒ Make ⇒ Deliver ⇒ ⇐ Partnerships (understanding what happens behinds the curtain with Tier2- tier 3,4 in the suppliers, supply chain, from Raw materials that meet new environmental standards/biodegradable to elimination or reduction of secondary packaging, logistics/distro optimization etc. “
2. Are there specific impactful changes should companies choose suppliers that prioritize sustainability rather than other factors like convenience and cost?
“Believe part of the answer is AND, not or. Sustainability is a collective call to action, that we as humanity have answered a bit late. So it’s not discretionary anymore. Hence innovation, Technology, Procurement & Supply Chain are the keys to solving or remedying the impact of not purposefully acting earlier.
Part of the selection criteria of the partnership must include what is their sustainability agenda, what is their contribution back to the environment, to the communities in which they currently operate, and how together with you, can both advance the agenda alongside, gross profit, market share, customer experience, etc.”
3. For you, what are the best characteristics or qualities to look for in a sustainable supplier?
“Look for companies who walk the talk consistently, it’s part of their values, ideology, and company lingo!, some of the more formal key characteristics are how they operate their facilities, MFG footprint, Supply Network, what their Environmental considerations, plan, strategy, roadmap? Is it part of their core beliefs?
Do they have a social responsibility? How is it demonstrated and reported? What is their governance and compliance structure? What innovation projects are at play or in the pipeline for Sustainable operations(plan/source/make/deliver?)
Do they have long-term sustainability roadmaps with from to by categories of impact and how are they tracking progress? What are their supply Chain Transparency and traceability levels?”
Conclusion
Sustainable suppliers are integral to achieving environmental and social goals in procurement. Selecting them wisely ensures ethical sourcing, reduces environmental impacts, and enhances a company’s reputation. As sustainability gains prominence, innovation becomes key in achieving long-term goals.
This article emphasizes the importance of sustainable procurement, outlines the characteristics of sustainable suppliers, and provides guidance on supplier selection and market positioning for organizations striving for sustainability.
I have created a free-to-download editable Sustainable Procurement Strategy template. It’s a PowerPoint file that can help you assess your suppliers for your sustainable sourcing processes. I even created a video where I’ll explain how you can use this template.
Frequentlyasked questions
What is sustainable procurement?
It refers to the acquisition of goods and services in an environmentally-friendly manner to fulfill the needs of the company for its daily operation.
What are sustainable suppliers?
These are people that provide materials and products that meet certain environmental and social standards of a company.
Why is it important to select the right suppliers?
Suppliers have an essential role for you to achieve sustainability. They are the ones that provide you with the materials or services that you use for your daily operations. Thus, if you fail to choose an appropriate supplier, then you will fail to achieve sustainability in your business operations.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
