What happens if you don’t implement sustainable procurement properly? In the fourth part of his sustainable procurement series, Federico Caporali explores the consequences of not acting, when it makes sense to bring in external experts and what good consultants should (and shouldn’t) do.
The reality for procurement teams
Over the past two years, I’ve seen the same pattern repeat itself: procurement leaders want to move the needle on sustainable procurement, but their teams are already stretched too thin.
BAU priorities dominate: sourcing, renewals, cost pressures, supply disruptions. Sustainable procurement gets added on top – without extra resources or dedicated skills.
This creates the perfect storm:
- Capability gaps: Many teams don’t have deep knowledge of ESG, Scope 3 or human rights frameworks
- Resource gaps: Even if the knowledge exists, people simply don’t have the time to design and implement a proper framework
- Risk of “box-ticking”: Without support, sustainable procurement becomes reactive compliance – not a strategic enabler
The consequences of not acting
It’s tempting to “do the minimum” and move on, but not implementing sustainable procurement properly carries very real risks:
- Reputation damage: Failing to identify or address risks, like modern slavery or supplier environmental breaches, can quickly escalate into media coverage and public scrutiny
- Regulatory penalties: Non-compliance with legislation (e.g. Modern Slavery Act, APRA CPS 230, Safeguard Mechanism) can result in fines, sanctions and heightened regulator attention
- Supply disruptions: Without supplier resilience planning, organisations risk shortages or business continuity crises when suppliers fail audits or collapse under ESG pressure
- Financial impact: Non-compliance costs money, but so do missed opportunities. Inefficient freight, waste management or energy-intensive supply chains can drain millions that could otherwise be saved
- Lost competitive advantage: Clients, investors and talent increasingly demand proof of ESG performance. Falling behind peers means missing contracts, partnerships and market opportunities
These aren’t “nice to have” issues. They’re tangible business risks.
When it makes sense to bring in the experts
External expertise isn’t always necessary, but there are clear moments when it pays off:
- Designing the framework: If your organisation has never implemented a structured approach (e.g. aligned with ISO 20400), experts can help design a fit-for-purpose framework
- Building the business case: Experts can quantify ROI – not just cost savings but risk mitigation, reputation value and resilience. This makes it easier to secure executive sponsorship
- Navigating regulatory complexity: Modern Slavery Act, APRA CPS 230, Scope 3 emissions reporting – the landscape is changing fast. Specialists can interpret requirements and ensure you’re compliant and audit-ready
- Supplier engagement: Experts can facilitate workshops, benchmark peers and support smaller suppliers who may lack capability to meet ESG requirements
- Accelerating delivery: When deadlines are tight – for a tender, board reporting or audit – external partners can bring in tools and people to deliver in weeks what might otherwise take months
What experts shouldn’t do
Bringing in consultants doesn’t mean outsourcing your responsibility. Sustainable procurement only sticks if it’s embedded in your team’s processes and culture.
Good experts will:
- Transfer knowledge not just hand over a report
- Build internal capability
- Leave you with tools and frameworks you can sustain
If the program collapses once they leave, it wasn’t a success.
Why this matters
The cost of doing nothing is rising – in financial terms, in supply continuity and in reputation. Engaging external experts at the right time can help procurement teams avoid those risks and accelerate capability, while keeping ownership in-house.
It shifts procurement from being seen as a compliance fulfiller to a strategic driver of resilience and value.
What’s next?
This article looked at when to bring in external experts and the consequences of not acting.
In the next piece, I’ll cover the frameworks that work – including ISO 20400 – and how to apply them in practice, not just theory.
In the meantime, catch up on parts two and three.
Connect with Federico Caporali on LinkedIn for more sustainable procurement insights.
About the author
Federico Caporali is a procurement leader with 25 years of global experience across industries, specialising in sustainable procurement, category management, supplier negotiations and procurement transformation. He currently advises public and private sector organisations in Australia, helping them move beyond compliance to unlock environmental, social and financial value through procurement.
