Top 3 climate challenges for procurement teams - and how to tackle them

In our recent webinar, Dr Steve New (Saïd Business School, Oxford) outlined three core challenges facing procurement teams today. They’re not theoretical - they’re practical barriers that organisations need to address if they want to move from ambition to action.

Here’s what to focus on.

1. Building confidence in supplier data

The first - and arguably most critical - challenge is data.

Procurement teams are under pressure to understand climate risk across their supply chains, but that starts with a fundamental question: how confident are you in your supplier data?

Many organisations have launched complex mapping exercises, trying to trace risk deep into second, third or even fourth-tier suppliers. But as Steve highlighted, this can be the wrong place to start.

Before going deeper, organisations need a complete, accurate and up-to-date view of their first-tier suppliers. Without that foundation, any further analysis risks being unreliable.

The reality is that outdated or inconsistent data limits your ability to:

• assess exposure to climate risk

• understand Scope 3 emissions

• respond to regulatory expectations

• make informed procurement decisions

Getting the basics right at scale - across the full supplier base - is what enables everything else. Without trusted data, climate strategy stalls before it starts.

2. Engaging suppliers without adding burden

Once you have the data, the next challenge is engagement.

How do you collect the right information from suppliers - without creating excessive administrative burden, cost or frustration?

This is a delicate balance. Overly complex or repetitive requests can lead to:

• poor-quality responses

• inconsistent data

• “box-ticking” behaviour

• disengaged suppliers

Steve’s point is clear: engagement needs to be built on trust, clarity and ease of use.

That means:

• asking for the right information, not everything

• aligning requests across the organisation (and ideally across the industry)

• making it straightforward for suppliers to respond

• creating a consistent, repeatable process

This is where a collaborative, standardised approach becomes critical. When suppliers can provide information once and share it with multiple buyers, it reduces friction and improves data quality - benefiting everyone involved.

3. Evolving the role of procurement

The third challenge is perhaps the most fundamental: the role of procurement itself is changing.

Traditionally, procurement has focused on cost, value and commercial negotiation. Those skills remain essential - but they are no longer enough on their own.

Managing climate risk requires procurement teams to engage with:

• carbon accounting and Scope 3 emissions

• climate scenario planning

• regulatory frameworks and disclosure requirements

• broader environmental and sustainability considerations

In other words, procurement is becoming more cross-functional, data-driven and technically complex.

As Steve noted, this evolution has been underway for years - but it is far from complete.

Organisations now need procurement professionals who can:

• interpret sustainability data

• engage suppliers on climate topics

• balance commercial and environmental priorities

• translate risk into business impact

This shift isn’t just about skills - it’s about mindset. Procurement is no longer just a cost function; it’s a key enabler of resilience and long-term value.

From challenge to action

These challenges are significant - but they’re also solvable.

The common thread is clear:

• start with reliable supplier data

• build efficient, trusted supplier engagement

• equip procurement teams with the skills and tools they need

Organisations that get this right will be better positioned to manage climate risk, meet regulatory expectations and build more resilient supply chains.