OneAdvanced was recently joined by a panel of experts to discuss optimising procurement and supplier management for ESG goals.
Together, they explored the rapidly evolving procurement landscape, addressing the growing challenges organisations face as they strive to meet Environmental, Social, and Governance (ESG) objectives. A recent survey of over 600 procurement leaders highlighted key concerns, including the complexity of supply chains and increasing compliance demands. As procurement and supplier management play an integral role in achieving these goals, it’s crucial to adopt strategies that not only build resilience but also enhance transparency and flexibility. Download the report here: Future Focused Procurement: The Rise of ESG
Brynn Beetge, Head of Marketing for OneAdvanced ANZ & ESG Specialist, opened the panel discussion by highlighting the growing complexity of supply chains and the need for resilience referenced in the report. This set the stage for the conversation, acknowledging that these are pressing issues that procurement teams are actively facing.
Sharon Morris, APAC Group Regional Head at WorldCC, kicked things off by discussing multi-faceted approaches to resilience and transparency. She noted "We’re seeing multi-faceted approaches to resilience and transparency. I can list the top four that stand out."
- Strong supplier relationships – "Building strong relationships means understanding suppliers’ challenges, fostering empathy, and ensuring fair lead times and payment terms. It’s about viewing suppliers as partners on this journey." Sharon's point emphasised the need for a deeper, more collaborative approach to supplier relationships, particularly as the complexities of ESG goals require a unified effort between organisations and their suppliers.
- Collaboration & innovation – "Diversifying supply chains is crucial. We see organisations partnering with businesses that build communities, such as women-owned enterprises through WeConnect or Supply Nation. Supporting their innovation and goals strengthens the ecosystem." Further highlighting the role of procurement in not only addressing business needs but also fostering broader social impact, enhancing the sustainability of supply chains.
- Simplified contract design - "If contracts are clear, it simplifies the process for suppliers and enhances collaboration." Sharon's advice to streamline contracts is a reminder that clear communication and transparent terms can prevent potential risks and foster long-term collaboration.
- Targeted training programs – "We must equip procurement and contract managers to spot risks and drive transparency. This knowledge is essential for resilient supply chains."
Training the procurement teams is central to driving change, ensuring they are equipped with the necessary skills to manage complex ESG-driven requirements.
Sue Dingwall, Account Management Lead at OneAdvanced ANZ, built on this by discussing the importance of supplier diversification, particularly within councils. "Many organisations, particularly councils, are aligning their supply bases with the communities they serve. That includes Indigenous, women-owned, and local businesses." Speaking to a shift in procurement priorities, focusing on not just cost and efficiency but also social impact and inclusion.
- Insight on Community Impact: Collaboration with initiatives like Supply Nation allows organisations to ensure suppliers reflect the communities they serve, especially for public sector organisations. This illustrates how procurement decisions are increasingly aligning with broader societal values and goals, strengthening both community relations and supply chain resilience.
Balancing Compliance & Agility in Procurement
Brynn addressed a major challenge: "With 64% of respondents citing compliance and ethics as top concerns, procurement teams are often overwhelmed by new regulations. The key is shifting from a reactive to a proactive approach." By emphasising the need for foresight in procurement, Brynn underscored that organisations need to anticipate changes in regulations to remain agile and compliant.
Chris Newman, Managing Director of ArcBlue, stressed that procurement teams must take the lead: "We can’t just wait for new mandates to be thrown at us. Procurement should be stepping into a leadership role, defining priorities, and embedding ESG into planning, contracts, and supplier management." He also emphasised the need for education: "It’s about training procurement professionals to understand these objectives and work collaboratively with suppliers - whether addressing modern slavery concerns or expanding supplier diversity." Chris’s comments reinforced the idea that compliance needs proactive leadership and that procurement professionals are the drivers of this change.
Overcoming ESG Implementation Barriers
Dr Hadi Rezaei Vandchali, ESG consultant at Local Government Procurement, outlined four practical approaches for overcoming ESG implementation barriers. His perspective added depth to the conversation, giving actionable strategies to help organisations transition into more sustainable practices.
- Capability building – "A structured training program ensures teams are confident in integrating ESG principles, not just for awareness, but for action." Hadi highlights the need for practical, hands-on training to ensure that ESG principles aren't just theoretical but actionable in everyday procurement decisions.
- Leadership buy-in – "Gaining executive support is crucial. Highlighting benefits, regulatory changes, and community needs helps secure resources." Dr. Vandchali emphasised that strong leadership support is necessary to navigate ESG complexities. Without it, initiatives risk lacking the necessary resources and commitment to succeed.
- Cost management – "Collaboration is key. For example, councils working together on joint ESG projects can reduce costs and share risks. There are also funding opportunities from agencies like the EPA." This point reinforced the value of collaboration, not just within organisations but across sectors, to pool resources and share risks while making ESG initiatives more financially viable.
- Supplier collaboration – "Clear ESG expectations must be embedded across procurement stages, supplier evaluation, tender processes, contract clauses, and KPIs." Dr. Vandchali stressed the need for clarity in contracts and supplier agreements to ensure ESG goals are met throughout the procurement lifecycle.
Sharon added to this by addressing the challenge of measurement: "We’ve found that unclear contracts contribute to an 8.6% value leakage. One of the biggest pitfalls is a lack of flexibility, which we must address with outcome-driven governance." This insight reinforced that unclear expectations and rigid frameworks often lead to inefficiencies, underscoring the need for flexibility in ESG governance.
Sue continued the flow of conversation by reflecting on the evolving ESG landscape: "ESG is a buzzword, but procurement teams need the right structures and KPIs to track progress effectively." Reflecting the increasing recognition of ESG as a core part of procurement strategy, yet with the understanding that tracking and managing ESG progress remains a challenge for many.
She also noted that "26% of respondents cited budget constraints as a major challenge, and lack of resources is another pressing issue. Procurement teams are already stretched, and now they’re expected to develop a whole new skill set." Sue’s comment highlighted a common frustration, as procurement teams are asked to take on additional responsibilities without the necessary support or resources.
She emphasised that ESG governance must be a shared responsibility: "Too often, ESG compliance is dumped on procurement teams alone. Instead, organisations need a top-down approach where leadership, governance, and education align to create long-term success."
Embedding ESG in Procurement Strategy
Brynn highlighted that many organisations are still in the early stages of ESG adoption, lacking clear strategy or commitment. He emphasised the importance of embedding metric drivers aligned with corporate values and larger goals. This sets the tone for organisations looking to refine their ESG strategies and integrate them meaningfully into their procurement frameworks.
Chris Newman reinforced this, noting that procurement has a major opportunity to lead on ESG. “People don’t often look to procurement to lead, but this is where you can demonstrate the role you play in delivering organisational outcomes.” This was a powerful reminder of procurement’s potential to influence organisational strategy, particularly as ESG becomes a more central focus.
Sharon jumped in with a powerful point: “Procurement are the superheroes - you have all the data. Utilise it to influence strategy and showcase your value.” By empowering procurement teams to leverage the data they already have, organisations can unlock significant strategic advantages, aligning procurement with the wider business goals.
Driving ESG with Technology
Hadi outlined how technology and AI are enhancing procurement strategies. “Technology plays a key part in data-driven decisions - AI can process data faster and more accurately.” This provided a glimpse into the future of procurement, where AI and technology drive efficiency and enhance decision-making capabilities.
- AI-driven spend analysis to detect anomalies and trends
- Smart contracts that flag non-compliance issues like expiring supplier certificates
- AI-powered supplier selection, expanding sourcing options and driving value for money
Sue reinforced that while technology is a crucial enabler, “it’s not a silver bullet - it’s only as good as the information you collect.” This underlined the idea that technology requires robust data to be truly effective. Without solid data, even the best tools can’t drive meaningful outcomes.
Chris added that simplicity and focus are key: “Do what you’re doing well and build from there - don’t try to do everything at once.” His point was that a phased, deliberate approach to adopting new technologies ensures that teams don’t get overwhelmed while still making meaningful progress.
AI in Procurement: Hype vs. Reality
AI was a major talking point, with Brynn acknowledging its growing presence but questioning procurement’s readiness: “AI is everywhere right now - but how ready are teams to adopt and integrate it effectively?” A live poll revealed varying levels of engagement with AI, showcasing both excitement and caution around its adoption.
- 44% are actively exploring AI solutions
- 22% are interested but unsure where to start
- 19% are already using AI and seeing value
- 9% are concerned about challenges like data, budget, or compliance
- 6% are not exploring AI
Sue described AI adoption as both “exciting and scary,” highlighting the struggle many teams face in integrating AI effectively.
Hadi expanded on this by pinpointed three key areas where AI is already making an impact in procurement:
- Spend analysis to detect trends and anomalies
- Smart contracts that proactively manage compliance
- AI-driven supplier selection, expanding procurement options
Sharon also shared findings from recent market research, showing rapid AI adoption in contract management. “AI adoption in contracting has risen from 30% to 42% in 2024, and 86% of professionals recognise its potential to enhance their workforce.” However, she also noted security and data privacy as major concerns, with 63% citing them as barriers. This highlighted the need for organisations to approach AI adoption cautiously, balancing its benefits with the risks.
Final Thoughts
Procurement is at a pivotal moment, with ESG and AI providing opportunities to lead and drive strategic impact. The key takeaways:
- Procurement has a unique opportunity to lead on ESG, leveraging data to influence business strategy
- AI is already transforming procurement, particularly in spend analysis, compliance, and supplier selection
- Adoption challenges remain, particularly around data readiness, security, and integration
- Technology is an enabler, but success depends on a clear strategy, quality data, and a phased approach to implementation
As Brynn summarised: “AI and ESG are reshaping procurement - success lies in focusing on key priorities and building from a solid foundation.”
With supplier and contract management now more critical than ever in driving ESG goals, organisations are increasingly turning to integrated solutions that streamline these processes. Optimising supplier relationships and contract management can create not only resilience but also transparency and agility, aligning with ESG objectives seamlessly.
Explore how OneAdvanced’s Supplier and Contract Management solutions can help you build a more sustainable and efficient procurement strategy, ensuring compliance and fostering collaboration with your suppliers. Watch the webinar on demand by clicking here.