Unlocking the ROI of Sustainable Procurement: 9 Metrics Every Business Leader Should Track

Business leaders are zeroing in on the numbers that demonstrate how sustainable procurement pays off – here we explore some high-level metrics they’re tracking.

Procurement and sustainability leaders face growing pressure from the C-suite, investors and other stakeholders to clearly demonstrate the ROI of their sustainable procurement efforts. The encouraging news is that many companies are already doing this. Research by Morgan Stanley found that 83% of companies are measuring returns on sustainability initiatives with the same rigor as other core investments.

This reflects a broader strategic shift as businesses increasingly recognize sustainable procurement as a critical lever for growth and resilience. In our 2025 US Business Sustainability Outlook, 65% of the 400+ US executives surveyed said supply chain sustainability is a competitive advantage driving value through cost savings, risk reduction, stronger brand and improved supplier performance. Finance leaders echo this, with 52% saying these efforts directly support growth and competitiveness.

So what are companies actually measuring? And how are they linking metrics to core business outcomes? This article highlights some KPIs that matter most across financial impact, risk and growth, including practical measures your company can take to accelerate your ROI measurement journey and solidify your business case.

Financial metrics: Cost and time savings you can prove

1) Cost savings from supplier efficiency and energy

When suppliers cut energy use, reduce material waste or streamline logistics, those gains only yield tangible value if they are captured, reported and reflected in financial accounts. Procurement and sustainability teams play a key role in working with suppliers to validate these efficiencies – through utility bills, freight invoices or materials data – so the results show up as lower operating costs, not just sustainability highlights in a report. According to a recent study by PRI, Bain and NYU, 64% of companies already view cost-efficiency gains from sustainability as financially material. Capgemini finds that companies are realizing 8–20% savings across waste, energy consumption and supply chain costs. On average, they’ve captured only a quarter of the total savings potential.

2) Cycle-time reduction in supplier due diligence 

Tracking the amount of time it takes to conduct due diligence on potential supplier sustainability issues – and then shortening these cycles through effective ESG risk mapping and supplier engagement – delivers efficiency and resilience. In our survey, 57% of companies report adopting risk-mapping tools and 49% now use supplier engagement platforms. This is not just about operational agility. Research from Maersk shows that firms with stronger resilience capabilities lose less than 1% of annual revenue to disruptions, compared to an average loss of 3.9%. Greater ESG risk visibility accelerates supplier identification, selection and onboarding — reducing real financial exposure.

3) Cost of capital and insurance advantages

By reducing supplier-related ESG risks, procurement can directly improve access to financing. Companies with credible sustainability programs often qualify for loans at lower interest rates and can negotiate better insurance terms. PRI highlights enhanced liquidity and reduced cost of debt as common outcomes, while other research shows that strong performance can unlock tax incentives, low-interest green loans and rebates. Together, these benefits show how sustainable procurement can lower the overall cost of doing business.

Risk reduction: Quantify the downside you avoid

4) Disruption costs avoided

A practical way to demonstrate ROI is by estimating the costs avoided through stronger ESG and supplier risk management. Breakdowns are expensive – whether it’s last-minute air freight, production downtime or reputational crises from human rights abuses. By sourcing from higher-performing suppliers and strengthening resilience, companies can minimize both operational shocks and reputational damage. In a volatile landscape, resilience is essential. Our survey found that 47% of US C-suite leaders expect ESG rollbacks to increase disruptions, while 41% anticipate higher costs from climate impacts.

5) Compliance readiness and reporting efficiency 

Chances are your company is already in scope for – or soon will be impacted by – at least one major ESG disclosure or supply chain due diligence regulation. Yet readiness in the US remains relatively low: only 53% of large companies are on track for compliance with the EU’s CSRD and California’s SB-253, and just 44% for CBAM. The risk of being unprepared is clear: potential fines, penalties and higher costs due to last-minute scrambles for supplier data. The smarter approach is to treat compliance as an investment, not just an expense. By adopting ESG and supplier reporting platforms, companies can reduce risks, cut reporting overhead and create lasting business value – turning compliance into a driver of long-term ROI.

6) Climate risk exposure and costs 

Beyond guarding against disruptions and ensuring compliance, procurement can take a proactive role in measuring exposure to physical and transition risks. According to Morgan Stanley, more than half of companies say climate events have already disrupted operations, with increased costs being the most common impact. By mapping supplier locations and identifying categories most at risk, procurement generates a forward-looking view of potential costs and builds a stronger business case for supplier engagement and diversification.

Growth and brand: Protect revenue and win deals

7) Revenue protected or won due to ESG requirements 

Customers are embedding ESG thresholds into RFPs and contract renewals, making compliance directly tied to revenue retention and growth. More than 60% of US directors and VPs and 59% of C-suite leaders say supply chain sustainability helps win and keep customers. The PRI framework reinforces this link, tying revenue growth to KPIs such as the share of revenue from sustainable products and the percentage of suppliers under sustainability contracts. These metrics translate into tangible outcomes: avoiding lost bids, securing price premiums and expanding market share where ESG performance is a clear differentiator.

8) Supplier performance improvement rate

Measuring the share of suppliers that improve their sustainability ratings or close corrective actions within a set timeframe demonstrates whether engagement is driving results. The focus should be on material topics such as reducing GHG emissions and strengthening labor and human rights practices. Our latest Index report shows that, after years of stagnation, US companies’ performance on sustainable procurement rebounded in 2024 and has since accelerated. This momentum signals that companies failing to effectively engage suppliers on sustainability risk falling behind competitors.

9) Innovation pipeline

Count co-innovation pilots with suppliers – such as new low-impact materials, circular models, or digital traceability and clean-tech solutions – and, where feasible, connect those wins to margin gains or improved win rates. Private-market research shows that sustainability initiatives often contribute to 6–7% higher enterprise valuations, underscoring how innovation, efficiency, and reduced regulatory risk translate into measurable business value.

The right technology means a quicker path to value 

Over the next quarter, define the key metrics for your program and secure the data needed to measure them. Use supplier sustainability ratings, carbon and ESG risk mapping tools, and an engagement platform to establish baselines, collect data and track progress. Share a monthly one-pager highlighting performance against targets, key drivers and next actions. Finally, formalize attribution rules – what qualifies as revenue protected, cost saved or risk avoided – so finance can validate results with confidence.

The bottom line

The right metrics do more than prove ROI – they create the foundation to accelerate it. With focused KPIs and reliable data, sustainable procurement becomes easier to manage, more resilient to disruption, and more competitive. EcoVadis delivers the ESG intelligence and engagement tools you need to measure, track, and continuously improve supplier performance.

Request a demo to see how EcoVadis can help you unlock more ROI from your sustainable procurement program.