The financial reality of climate change
The numbers are staggering.
In 2025, more than $250 billion in damages from Los Angeles wildfires alone.[1]
In 2024, the top 10 climate disasters have cost the world $228 billion, claimed more than 2000 lives, destroyed over 12,300 structures, and burned more than14,000 acres in what may become the costliest disaster in U.S. history.[2]
“Most of these estimates are based only on insured losses, meaning the true financial costs are likely to be even higher, while the human costs are often uncounted".
Christian Aid, a global NGO
What is procurement and why does it matter?
Think of procurement as your company's shopping department.
When a business needs anything from office supplies to manufacturing materials to shipping services, procurement is responsible for finding suppliers and making purchases.
At Trianon Scientific Communication (Trianon), we've guided dozens of organizations through procurement transformations that have dramatically reduced their climate impact.
Through our Sustainable Procurement Toolkit, we've helped businesses quantify and visualize these transformations. In fact, procurement isn't just a company's "shopping department", it's a powerful lever for meaningful climate action.
When a business needs anything from office supplies to manufacturing materials to shipping services, procurement makes decisions that cascade throughout the entire carbon footprint.
For example, when a company buys 1,000 plastic chairs for its offices, procurement determines:
Who makes the chairs (a factory running on coal or solar power?)
What they're made of (virgin plastic or recycled materials?)
How they're shipped (by plane, truck, or more efficient rail?)
What happens at end-of-life (landfill or recycling program?)
Through our client engagements, we've seen how each of these decisions can transform the total carbon footprint of even simple purchases like office chairs.
Understanding carbon footprints.
When companies talk about reducing their "carbon footprint," they break emissions into three categories:
Scope 1: Emissions you create directly
Example: The exhaust from your company's delivery trucks or the natural gas burned in your factory
Scope 2: Emissions from the energy you buy (Indirect emissions from purchased electricity and energy)
Example: The electricity powering your office building or warehouse
Scope 3: Emissions from everything else in your value chain (All other indirect emissions in a company's value chain)
Example: The emissions created when your supplier manufactures the products you sell, or when customers use your products
![What are scope 1, 2 and 3 [©Certainty]](https://static.wixstatic.com/media/009237_d0f1a20ea38d483d8ade6e392dfb9a70~mv2.png/v1/fill/w_980,h_653,al_c,q_90,usm_0.66_1.00_0.01,enc_avif,quality_auto/009237_d0f1a20ea38d483d8ade6e392dfb9a70~mv2.png)
Why Trianon Scientific Communication positions procurement at the center of decarbonization.
Through our extensive client work, we've discovered that procurement directly influences up to 70% of a company's carbon footprint. These decisions ripple throughout an organization's entire emissions profile, affecting all three scopes.
Scope 3 typically represents the largest portion of a company's carbon footprint.
According to recent studies, these supply chain emissions are up to 26 times greater than a company's direct operations.[3]
This is precisely where our sustainability consulting and toolkit have driven the most significant change.
How our clients' procurement choices changed their climate impact.
Example 1: Office furniture purchase
Our client's traditional approach: One of our clients previously bought the cheapest desks available, made from non-sustainable wood and shipped from overseas.
Trianon's climate-smart approach: We helped procurement find locally-made desks from certified sustainable wood, reducing shipping emissions by 80% and supporting forest conservation.
Example 2: Company vehicle fleet
Our client's traditional approach: Another client was leasing conventional gas-powered vehicles based solely on lowest monthly payment.
Trianon's climate-smart approach: We developed a holistic transport strategy that incorporated multiple mobility options:
Electric vehicles for essential company cars, reducing emissions by 65%
Corporate bike-sharing program for short trips, which eliminated 15% of local car journeys
Public transport subsidies that increased employee usage by 40%
Hybrid work policy reducing commuting needs by 30%
Carpooling platform that increased average vehicle occupancy from 1.2 to 2.4 persons
This integrated approach not only cut transport emissions by 72% but reduced total mobility costs by 28% over three years while improving employee satisfaction and wellbeing.
The Business Case Simulator provided clear financial projections that convinced the CFO to approve the initiative.
Example 3: Food service supplier
Our client's traditional approach: A tech company contracted with the food service provider offering the lowest per-meal cost for their company cafeteria.
Trianon's climate-smart approach: We facilitated a partnership with a provider offering seasonal, locally-sourced options that reduced transportation emissions and food waste while improving employee satisfaction. The Sustainable Procurement Toolkit's customized analysis demonstrated that while meal costs increased by 8%, overall employee productivity and retention benefits created a positive ROI within 18 months.
The evolving role of the Chief Procurement Officer (CPO)
"The role of Chief Procurement Officers now extends beyond 'better, cheaper, faster' to driving green procurement as a key strategy for global climate goals"
notes a recent industry report.[4]
Through Trianon's executive training programs, and the data-driven insights provided by our Sustainable Procurement Toolkit, we've helped today's CPOs lead the systemic changes needed to build resilient, low-carbon supply chains.
This represents a fundamental shift in how procurement functions within organizations, from transactional cost centers to strategic value creators with environmental impact at their core.
Why sustainable procurement makes financial sense
While climate action is often framed as an ethical imperative, the financial case for procurement-led decarbonization is compelling:
1. Cost efficency (Avoiding the cost of climate inaction)
In Europe, the devastating 2021 floods (Belgium, Germany and surrounding countries) illustrate the catastrophic costs of climate-related disasters. With economic damage estimated between €30-40 billion and insured losses between €8-10 billion, these events demonstrate how climate change directly impacts business operations, insurance premiums, property values, and supply chain stability.
For our clients, these costs manifest as:
For businesses, these costs manifest as:
Supply chain disruptions
Higher insurance premiums (if coverage remains available at all)
Physical damage to assets
Operational interruptions
Reduced asset values
Our consulting team has helped procurement departments play several critical roles in mitigating these impacts:
Risk assessment and supplier diversification:
We've guided procurement teams to identify supply chain vulnerabilities related to geographic concentration and establish relationships with alternate suppliers in unaffected regions.
Sustainable procurement practices:
Our team has implemented climate-conscious procurement policies that reduced overall climate impact while building resilience against extreme weather events.
Our Sustainable Procurement Toolkit helped quantify these benefits in financial terms that resonate with CFOs and executive leadership.
Technology investment:
We've advised on procurement of advanced monitoring systems, predictive analytics tools, and climate modeling software to improve early warning capabilities and response planning.
Supply chain visibility:
We have deployed management solutions that provide end-to-end visibility, allowing for quicker identification of disruption points and faster recovery.
Inventory management:
We've developed strategies for buffer inventory of critical components, minimizing operational interruptions during supply chain disruptions.
2. Capturing cost savings and efficiency gains
Sustainable procurement drives tangible financial benefits through:
Reduced energy consumption and costs
Lower resource usage
Minimized waste management expenses
Streamlined logistics
Improved operational efficiency
"Procurement is leading sustainability into the upstream part of the value chain. No one else is doing it."
Bertrand Conqueret.
This upstream influence creates opportunities for cost optimization that might otherwise be missed.
For example, when our team worked with a hotel chain's procurement team to switch engaging us to energy-efficient lighting and low-flow water fixtures, they cut utility bills by 22% across all properties.
By selecting resource-efficient products and services, procurement reduces ongoing operational costs.
3. Building resilience against future risks
With freshwater species facing extinction risks and extreme weather events becoming more common, businesses with climate-resilient supply chains will maintain operational continuity while competitors struggle. This resilience translates directly to financial stability and competitive advantage.
For example: A global food manufacturer sources cocoa beans as a key ingredient for their chocolate products. Their procurement team implemented several strategic changes that both reduced climate impact and built resilience.
Before engaging us: The company sourced cocoa primarily from a single region in West Africa prone to increasing drought conditions. They prioritized lowest-cost suppliers without environmental criteria, resulting in beans largely from farms practicing deforestation and monocropping.
After engaging us: The procurement team implemented these changes:
Diversified sourcing geography: Established relationships with farmers across multiple regions (West Africa, South America, Southeast Asia), reducing vulnerability to region-specific climate events.
Implemented environmental criteria: Developed supplier scorecards that rewarded sustainable farming practices like shade-growing techniques and agroforestry, which maintain biodiversity and improve soil health.
Price premium for sustainable practices: Offered 15% premium payments to farmers using water-efficient irrigation and avoiding deforestation, incentivizing climate-smart agriculture.
Long-term contracts: Shifted from spot purchasing to 3-5 year commitments with sustainable suppliers, allowing farmers to invest in resilient infrastructure and practices.
Technology investment: Procured satellite monitoring services to verify compliance with no-deforestation commitments and measure carbon sequestration.
Results our client achieved.
40% reduction in supply chain carbon footprint
Maintained 98% supply continuity during a major drought that disrupted competitors
Reduced water usage in the supply chain by 35%
Avoided $12M in lost revenue that competitors experienced during climate disruptions
Built stronger farmer relationships that increased quality while reducing long-term price volatility
4. Enhancing brand value and market position
As investors and consumers increasingly favor sustainable businesses, procurement-led sustainability initiatives directly improve market position.
The World Economic Forum predicts the green transition will boost the global jobs market by 78 million roles by 2030—creating enormous opportunities for forward-thinking organizations.
For example, when a popular snack company's procurement team secured sustainable palm oil certification for all ingredients, they avoided consumer boycotts affecting competitors and gained market share.
Trianon helped procurement, by ensuring products meet evolving sustainability expectations, protecting brand reputation and customer loyalty.
Overcoming implementation challenges
Despite its potential, procurement faces several challenges in driving decarbonization:
1. Supply chain complexity
Modern supply chains involve multiple tiers across global networks, making emissions tracking challenging. The complex nature of supply chains and the difficulty of tracing emissions requires sophisticated data collection and analysis capabilities that many organizations are still developing.
2. Cross-functional collaboration
Sustainable procurement demands cooperation between departments that often operate in silos.
"It's about understanding others' roles and integrating capabilities to succeed together."
Lauren Richardson, CPO at Colgate-Palmolive.
Breaking down these institutional barriers is essential for meaningful progress.
3. Standardization and measurement
The lack of standardization and measurement frameworks for sustainable procurement practices creates consistency challenges. Without universal standards, organizations must develop internal frameworks to evaluate supplier performance against clear sustainability metrics.
Four key strategies for procurement-led decarbonization
Organizations serious about leveraging procurement for climate action should implement these proven approaches:
Strategy 1: Building the business case for sustainability
Sustainability requires a solid business case for practical execution. CPOs must demonstrate that green procurement drives financial performance by building resilient operations, optimizing supply chains, and improving resource efficiency.
Industry leaders should emphasize the partnership between procurement and finance to balance sustainability goals with business objectives.
By making informed trade-offs, sustainable products like recyclable wind turbine blades and cleaner insulation technologies become integral to the value proposition.
Strategy 2: Elevating procurement to the C-Suite
For procurement to lead on sustainability, it must become a corporate priority with executive support.
At a mid-sized electronics manufacturer, the procurement team attempted to introduce sustainability criteria into supplier selection and materials sourcing. However, without executive backing, these initiatives were consistently overridden when they conflicted with short-term cost objectives. The procurement team remained limited to traditional metrics of cost, quality, and delivery time.
Following a leadership change, the new CEO established sustainability as a core corporate value and took these practical steps:
Elevated procurement leadership: Created a new Chief Procurement and Sustainability Officer position reporting directly to the CEO, with a seat in executive leadership meetings.
Revised performance metrics: Modified executive bonuses to include sustainability KPIs alongside financial targets, with 25% of variable compensation tied to meeting carbon reduction goals.
Resource allocation: Approved budget for three new sustainability specialists within the procurement team and technology to track supply chain emissions.
Formal mandate: Issued a company-wide directive requiring all departments to prioritize sustainable procurement, even when it meant a modest cost premium.
Public commitment: The CEO announced ambitious scope 3 emission reduction targets to shareholders and customers, creating accountability.
Results:
Procurement successfully implemented a supplier sustainability scorecard that became a required part of all RFPs
Achieved 32% reduction in supply chain carbon emissions within two years
Redesigned packaging with sustainable alternatives, eliminating 450 tons of plastic annually
Developed new products with 85% recyclable components, opening access to markets with strict environmental regulations
Attracted top talent who cited the company's authentic sustainability commitment in choosing to join
The key insight: When executive leadership made sustainability a genuine priority backed by resources, authority, and accountability mechanisms, procurement was empowered to make decisions that balanced short-term financial considerations with long-term sustainability impact.
Strategy 3: Expanding Procurement's influence
Procurement must work beyond its traditional boundaries, collaborating with product design, marketing, and HR.
This cross-functional approach ensures sustainability is built into products from conception and communicated effectively to stakeholders.
To make sustainability mainstream, we must innovate and industrialize sustainable practices across the supply chain."
Oliver Bischof, CPO of Siemens Gamesa.
This requires procurement to share sustainability metrics with other departments and suppliers, breaking down silos and fostering collaboration.
Strategy 4: Building a sustainability legacy
CPOs have a responsibility to create lasting impact through systemic change. This legacy approach ensures that sustainability becomes embedded in organizational DNA rather than remaining a temporary initiative.
Imagine a CPO (Chief Procurement Officer) as the leader of a newly established community garden in a neighborhood where most residents have never gardened before.
Short-term vs. Systemic Approach:
Short-term approach: The garden leader could simply buy vegetables from the store each week and place them in the garden for people to take. This would provide immediate results (food for the community) but creates no lasting change and requires constant intervention.
Systemic approach (what Reed and Udesen advocate): Instead, the garden leader:
Creates infrastructure: Installs irrigation systems, builds raised beds, and creates composting stations that will serve the garden for years.
Establishes processes: Develops simple guidelines for planting seasons, water conservation, and natural pest control methods.
Builds knowledge: Trains community members on sustainable gardening practices and creates easy-to-follow reference materials.
Cultivates culture: Organizes regular community events that make gardening a social activity and celebrates sustainable practices.
Implements measurement: Sets up simple ways to track harvest yields, water usage, and community participation to guide improvements.
The Lasting Impact:
Years later, even after the original garden leader has moved on, the community garden continues to thrive because:
The physical infrastructure remains in place
Community members understand sustainable gardening practices
New gardeners are naturally mentored by experienced ones
Sustainable decision-making has become habitual
The culture values long-term garden health over quick yields
Just as this garden leader transformed not just the physical space but how the community thinks about and practices gardening, effective CPOs transform not just what their companies buy, but how procurement decisions are fundamentally made.
The urgent need for action
The climate crisis isn't waiting, and neither should businesses. With global emissions required to drop 43% from 2019 levels by 2030 to prevent increasingly dangerous floods, droughts, and other impacts, the window for effective action is narrowing.
Meanwhile, the cost of inaction continues to mount.
When the richest 1% burn through their annual carbon budget in just 10 days, and a quarter of freshwater species face extinction risk, the environmental imperative becomes impossible to ignore.
For businesses, these environmental realities translate to material financial risks that demand immediate attention.
The recent California wildfires serve as a stark reminder that climate events don't just harm the environment—they devastate balance sheets, disrupt operations, and threaten business continuity.
Conclusion: Procurement as a catalyst for climate action
As we face the mounting costs of climate change, procurement emerges as a powerful lever for meaningful action.
By influencing supplier selection, product specifications, transportation methods, and packaging requirements, procurement departments can drive substantial emissions reductions while creating business value.
The transformation of procurement from a cost-focused function to a sustainability driver represents one of the most significant opportunities for businesses to address climate change.
CPOs who embrace this expanded role won't just reduce their organization's carbon footprint—they'll build more resilient, efficient, and profitable businesses better equipped to thrive in an increasingly carbon-constrained economy.
The cost of climate inaction is already too high and rising rapidly. Through strategic procurement transformation, businesses can mitigate these costs while positioning themselves for success in a decarbonized future.
The question isn't whether your organization can afford to transform procurement for sustainability—it's whether you can afford not to.
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