As climate pressures intensify, organisations are waking up to a simple truth: Decarbonisation isn’t a technical exercise, it’s a change management challenge of unprecedented scale. Supply chains account for up to 90% of total emissions, meaning procurement sits at the heart of the transition. Yet many organisations still underestimate the depth of transformation required.
Decarbonisation is as a strategic inflection point. It demands new capabilities, new ways of working, and a shift in mindset across every layer of the business.
Why Change Is Needed, And Why It’s Hard
Climate change is accelerating, and the window to act is narrowing. While many organisations have set Net Zero ambitions, too often these commitments remain abstract. The real work begins when targets must be translated into operational decisions, supplier expectations, and redesigned value chains.
Three obstacles consistently slow progress:
- Measurement gaps, organisations struggle to quantify emissions upstream and downstream.
- Cultural resistance, teams are unsure how to adapt long‑established practices.
- Resource constraints, decarbonisation requires investment, prioritisation, and leadership alignment.
Four Layers of Change
Decarbonisation succeeds only when organisations activate change across four interconnected layers:
- Corporate Layer: Setting a clear vision, governance, and long‑term roadmap.
- Procurement Layer: Embedding Decarbonisation into category strategies, sourcing decisions, and supplier relationships.
- Ecosystem Layer: Working across industries to reshape markets, standards, and capabilities.
- Individual Layer: Equipping buyers and category managers with the knowledge, tools, and confidence to act.
Ignoring any one of these layers creates bottlenecks that stall progress.
Seven Building Blocks for Procurement‑Led Decarbonisation
The EIPM Value Creation Observatory identifies seven practical building blocks that help procurement teams move from ambition to action:
- Measure emissions
- Understand emission drivers
- Integrate Decarbonisation in upstream procurement
- Embed Decarbonisation in the procurement process
- Integrate Decarbonisation into Supplier Relationship Management Programmes
- Use Decarbonisation levers (reduce, slow, circularise)
- Scale the change and think differently
These building blocks recognise that Decarbonisation is not a single project, it is a systemic shift in how organisations design, buy, and collaborate.
What This Means for Leaders
Decarbonisation is no longer a nice to have. It is a strategic imperative that will reshape supply markets, cost structures, and competitive advantage. Leaders must:
- Align internal policies and incentives
- Build cross‑functional governance
- Invest in capability development
- Support suppliers, especially small medium enterprises, on the journey
- Encourage experimentation and avoid green dreaming or green picking
The organisations that succeed will be those that treat Decarbonisation not as compliance, but as an opportunity to innovate, differentiate, and create long‑term value.
Source: Decarbonation A change management challenge by The Value Creation Observatory an EIPM Laboratory
