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Radical Collaboration in Action: SPP Delivers a Procurement-driven Solution with Carbon Pricing Principles for Supplier Tenders 

Earth, January 23, 2025: The Sustainable Procurement Pledge (SPP) is proud to start the year with the announcement of a groundbreaking achievement: the release of the collaboratively developed Carbon Pricing Principles 

This milestone marks the beginning of SPP’s five years of impact, a period dedicated to transformative action in sustainable procurement.  

Over the past 14 months, this first-of-its-kind effort was driven by SPP’s Champions Program and developed in collaboration with over 235 industry leaders, including Chief Procurement Officers, sustainability and procurement practitioners, and key stakeholders including the Scope 3 Peer Group. The Carbon Pricing Principles aim to embed carbon pricing directly into commercial evaluation criteria for tenders and supplier selection, making sustainability a core driver of procurement decisions. 

2025 will now see the launch of a Carbon Pricing Pilot Group – with 15 companies expressing interest in participating, including SPP Champions Haleon & Bayer – already committed to working together to share best practice and continuously-improve the Principles based on the feedback from those implementing and engaging. 

These principles provide a clear, actionable framework that incentivizes suppliers to measure and reduce their carbon emissions. Leveraging the European Union Emission Trading System (EU ETS) carbon price per tonne of CO2 equivalents, it assigns a financial value to each supplier’s carbon emissions within tender evaluations.  

“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.” said Richard Crane, SPP Champion Program Member and Chief Procurement Officer of Haleon. 

“We are excited to introduce principles that bring carbon emissions to the heart of the commercial model, this should inspire suppliers to innovate and reduce their carbon footprints,” said Chris Low – Champions Program member, Director, Sustainability Procurement & Packaging, Haleon. “Our goal is to offer a flexible yet impactful solution that builds carbon emissions into the heart of the commercial model and supports companies in achieving their Scope 3 emissions targets.”

This approach ensures that suppliers with lower carbon footprints can gain a competitive edge, creating a tangible pathway toward decarbonized supply chains. The Carbon Pricing Principles are a testament to the power of SPP’s unique ability to provide a “safe space” to collaborate and the active role that the Procurement profession has taken to drive sustainability at scale.  

“Through collaboration on real-world challenges, the SPP Community has fostered the development of practical, scalable solutions like this one. It is a demonstration of the power of moving beyond competition to tackle shared challenges together, embedding sustainability in every decision.” Says Oliver Hurrey – SPP Champion Program Lead & Scope 3 Peer Group Founder 

“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.” said Thomas Udesen, SPP Co-Founders, Champions Program Member and Chief Procurement Officer of Bayer. 

The leadership demonstrated by the Chief Procurement Officers in SPP’s Champions Program has been instrumental in reaching this milestone. Their commitment to sustainability and collaboration sets a powerful example for the entire procurement community. 

“Procurement professionals are uniquely positioned to drive change at scale,” said Melissa de Roquebrune – SPP Executive Director “With just five years left to 2030, it is essential that we act now. I look forward to many members of our community implementing and developing these principles to deliver impact. I hope that this inspires other collaborations to tackle sustainability challenges from Human rights to Biodiversity. Collaborative initiatives are crucial to this journey.” 

SPP encourages procurement professionals worldwide to adopt these principles and actively participate in its ongoing development to expand impact, refine application, and continue building solutions that address the critical challenges of our time. 

This is only the beginning. By integrating the Carbon Pricing Principles into their tender practices, procurement can contribute to a more sustainable future while ensuring that sustainability remains at the forefront of decision-making. Join SPP on this transformative journey to build a better future—one tender at a time.

Procure Tomorrow.  

 

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