As oil, gas, and power companies face growing pressure to lower emissions and improve ESG (Environmental, Social and Governance) performance, one area drawing more attention is green procurement.
Cost and delivery are still important aspects of procurement, but now, environmental impact is key, and suppliers, clients and customers are focusing on this piece just as much.
What Is Green Procurement?
Green procurement, sometimes called sustainable or responsible sourcing, is the practice of choosing goods and services that are better for the environment over their entire lifecycle.
That could mean working with suppliers who follow sustainable practices, prioritising energy-efficient or low-carbon equipment, choosing materials that are recyclable or made from recycled content, or factoring in the emissions involved in manufacturing and transport.
In the energy sector, this might involve sourcing steel from low-carbon producers, selecting more efficient generators, or switching to transport providers with cleaner fleets. It’s not just about buying “green” products, but also thinking about the wider picture of the full supply chain.
Why Green Procurement Matters
Regulations are tightening
Governments around the world are introducing stricter rules on emissions, waste, and sustainability reporting. Procurement teams can no longer ignore environmental impact if they want to stay compliant and avoid project delays or fines.
Reputation
Expectations are rising. Companies, partners, and customers want to see genuine efforts to run responsibly. Green procurement is a clear way to demonstrate that.
It can reduce long-term costs
While some sustainable products or services cost more upfront, they often last longer, use less energy, or reduce maintenance costs. Over time, those savings add up.
Why is Everyone Not Doing It?
Even with the benefits, changing the way people run their procurement processes isn’t easy, and transitioning to sustainable sourcing isn’t always straightforward.
For example, in remote areas or specialised sectors, finding environmentally responsible suppliers can be a challenge, especially in countries where governments are not putting pressure on these policies.
Many procurement teams are already stretched thin, and adding sustainability to the mix means changing workflows and re-evaluating priorities. Also, verifying ESG claims is still difficult.
However, saying this, these are all solvable problems—with the right strategy and support.
Making Green Procurement Work
For companies looking to make procurement more sustainable, define what green procurement means to your business. Set realistic targets and create guidelines for evaluating suppliers and sourcing decisions. Look for partners with recognised sustainability certifications, and more importantly, choose suppliers open to improving over time.
It’s unlikely you’ll replace your entire supply base overnight. Start with the categories that have the biggest impact and build from there. Even gradual changes can create results over time.
As more companies set net-zero targets and look to change their operations, sustainable sourcing will continue to grow in importance. It’s also a competitive advantage. Companies that take sustainability seriously are in a better position to win projects, attract investors, and build their customer and client base.
At Storm Procurements, we work with energy companies to build supply chains that are not only efficient and cost-effective but also aligned with sustainability goals. Get in touch with our team if you’re looking to work with a company aligned with your goals.
