How to Improve Sustainability in Sourcing & Procurement

The world is turning up the heat on greenhouse gas (GHG) emissions reporting – and businesses can’t afford to ignore the shift. With regulations tightening across the globe, companies must step up, measure their carbon footprints and report emissions transparently. And for many, this has become a priority: According to the Sustainable Procurement Barometer 2024, more than 70% of companies say “delivering on corporate sustainability goals and commitments” is a top procurement driver.

Key challenges in carbon reporting

But let’s be honest: between complex data collection, inconsistent reporting standards and resource-heavy compliance demands, this process can feel like an uphill battle. These can be separated into two areas that need to be addressed so that accurate reporting becomes possible: the data collection process and the varying roles within a company that are involved.

Despite the growing emphasis on sustainability, companies face several challenges in accurately measuring and reporting their GHG emissions:

• Complex data collection: Tracking GHG emissions, especially Scope 3, is challenging. Limited C-suite engagement slows progress.
• Standardization and compliance: Varying global reporting standards and evolving regulations make consistency difficult, particularly for smaller businesses.
• Resource constraints: Significant investment in technology and expertise is needed to integrate emissions tracking into procurement systems.
• Limited value chain visibility: Weak supplier engagement and inadequate sustainability oversight hinder progress, requiring full cooperation across all teams.

Silos and disparate responsibilities:

From chief procurement officers (CPOs) trying to balance cost and sustainability to chief financial officers (CFOs) navigating investor scrutiny and ESG managers facing the especially tough task of ensuring accurate Scope 3 emissions data, tracking GHG emissions involves a lot of different people.

Here's a breakdown of the different roles involved and their challenges when it comes to emissions tracking:

CPO:

• Balancing cost efficiency with sustainability in procurement decisions
• Managing supply chain risks, including environmental and social impacts

CFO:

• Addressing investor demand for transparent carbon emissions reporting
• Navigating evolving ESG regulations while ensuring data accuracy

ESG Manager:

• Overcoming data quality challenges, especially for Scope 3 emissions
• Embedding ESG goals into business strategy, requiring operational shifts  

How Esker solutions advance business sustainability initiatives

Esker’s Source-to-Pay suite simplifies this puzzle with a tech-powered, automation-driven approach to emissions tracking. Here’s how Esker helps businesses easily manage the compliance puzzle:

• Sustainable sourcing: Identify suppliers who align with environmental goals using weighted bid scoring that prioritizes sustainability alongside pricing.
• Comprehensive data collection: Pull emissions metrics from utility bills, supplier invoices and other sources for a clear picture of Scope 1, 2 and 3 emissions.
• Standardized ESG reporting: Navigate global standards effortlessly with dashboard insights and transparent reports that tick compliance boxes.
• Enhanced supply chain transparency: Keep tabs on ESG indicators in real time, reducing risks and improving supply chain traceability.
• Sustainable procurement: Choose wisely — Esker’s procurement catalogs display CO₂ impact, helping companies prioritize energy-efficient, eco-friendly products.

Sustainability made simple

No one said cutting emissions would be easy – but Esker makes it manageable. By automating workflows, centralizing data and driving informed decisions, companies can reduce their carbon footprint without drowning in red tape. According to the Sustainable Procurement Barometer 2024, 50% of mainstream programs use integrated ESG data to "operationally inform" or "strategically engage" their executive stakeholders.

Sustainability isn’t just about compliance – it’s a competitive edge that drives efficiency, boosts innovation, and ensures long-term success. Ready to get started with Esker? Contact us now.