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Carbon Pricing for Procurement

About

The Carbon Pricing for Procurement Initiative is a transformative effort aimed to accelerate global supply chain decarbonization. It was launched in 2024 to co-develop a set of principles for integrating carbon pricing into tender evaluation and supplier selection processes. By incentivizing suppliers to baseline and decarbonize their operations, the initiative fosters an approach designed by Procurement, for Procurement with a shared commitment to sustainability across industries.

Central to this effort is the creation of an actionable framework that enables Procurement professionals to incorporate carbon considerations into decision-making. By addressing the opportunities and challenges of integrating carbon pricing into procurement decisions, these principles aim to promote meaningful reductions in emissions while supporting suppliers in their sustainability journeys.

This initiative exemplifies the Sustainable Procurement Pledge’s (SPP) distinctive approach to driving change. Through our collaborative and inclusive work, the Carbon Pricing Principles were shaped within a safe, neutral space where industry leaders, procurement professionals and stakeholders came together to share insights and co-create solutions. Guided by the SPP Champions Program, diverse perspectives contributed to bold, practical outcomes that evolve with real-world application.

In particular, we would like to highlight the leadership of Haleon and Bayer who helped drive the articulation of the principles as well as Oliver Hurrey in his dual role as SPP Champion Program Lead and Founder of the Scope 3 Peer Group in convening the SPP community and driving the delivery of the first iteration of this initiative. Their shared vision and leadership made it possible to launch this work.

As this initiative develops further, its focus remains on aligning key principles and enhancing collective understanding of integrating carbon pricing in procurement decisions. We hope to see many using, testing, and feeding back to ensure the principles continue to evolve. By evaluating existing frameworks, addressing gaps, and engaging stakeholders, the Carbon Pricing Principles aim to deliver scalable, co-created solutions that drive lasting transformation in supply chain sustainability.

Goal

The SPP community aims to collaboratively develop an actionable methodology that embeds carbon pricing directly into the commercial evaluation criteria for tenders and supplier selection to incentivize suppliers to baseline and reduce their carbon emissions.

Get involved

Pilot the Carbon Pricing Principles in your organization and share your experiences to expand best practices and collaboratively providing implementation support for the Procurement Community.
Industry leaders, (sustainable) procurement heads and sustainability leads are invited to support the initiative, if

  • You have sufficient knowledge of carbon foot printing and lifecycle assessments relevant to your sector.
  • You are in a position within your organization to make or influence decisions regarding sustainability and procurement.
  • Your organization is actively engaged in decarbonization efforts.
  • You can in principle commit to actively participating in the working group, including attending meetings and contributing to discussions and deliverables.
  • Your organization supports your involvement, including allocating time and resources for participation

If you and your organisation are interested in actively participating  in this initiatives, we would love to hear from you!

Achievements

In January 2025, SPP release the draft Carbon Pricing Principles that were developed in close collaboration with over 235 industry leaders, including Chief Procurement Officers, sustainable procurement heads, and champions from SPP’s Champions Program across diverse sectors in 2024. This collaborative effort lays the groundwork for a series of workshops in 2025 aimed at expanding best practices and providing implementation support.

Who's driving It?

SPP Champions Program

Chris Low

Oliver Hurrey

COLLABORATORS

What is the community saying?

To drive real progress in reducing carbon emissions, procurement must take the lead in aligning sustainability efforts with commercial priorities. By leveraging shared expertise, cutting through complexity and establishing consistent standards, procurement has a unique opportunity to embed sustainability at the core of business strategies. The Carbon Pricing Principles provide a clear framework that can be adopted right now to achieve meaningful results. It’s time for procurement to step up, lead the charge, and turn sustainability commitments into commercial success.

Richard Crane
VP Sustainable Procurement

The Carbon Pricing Principles is a great example of crowdsourcing solutions to business challenges that are universal. Tapping into the wealth of experience from leading practitioners, minimizing bureaucracy and creating a sustainable and level playing field, that’s at the core of SPP’s mission. The Carbon Pricing Principles will sure evolve, and we now have a strong foundation and a practical tool that all organizations can start using immediately.
Thomas Udesen
Chief Procurement Officer, Bayer and Co-founder of SPP

Resources

We invite you to browse our chapter resources including  videos, downloadable PDF documents and external websites. 

No website resources available yet.
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