Spend analysis may sound technical, but the basic idea is simple. It is about understanding how...
Every organisation wants to contribute to sustainable development. But when it comes to procurement, turning ambition into practice is often difficult. The goals are high, yet unclear evidence, inadequate systems and the pressures of day-to-day work get in the way. Here is our view of the gap between ambition and reality, and what it takes to close it.
When the goals are clear, but the evidence is missing
There is a great deal of discussion about sustainability targets, climate plans and green strategies. In reality, purchases are often spread across hundreds of suppliers, categories and systems.
The goals may be clear, but the evidence is not strong enough to guide action.
Anyone working with sustainability will probably recognise this: you are expected to track climate impact, waste, transport and supply chains, but the figures are not where you need them.
They are scattered across invoices, spreadsheets and reports that do not speak the same language.
Why structure is your best friend
Good intentions are not enough to make sustainable procurement work. You also need structure.
Consistent purchasing data, gathered in one place, makes it possible to see:
- what you actually buy, not just what your policy documents say
- which categories have the greatest impact, such as transport, energy or construction
- where suppliers fall short on sustainability and where they deliver on their commitments
- how the climate impact of purchasing changes over time
With categorised data, using a system such as UNSPSC, you can see which purchasing areas have the greatest impact and what should be prioritised first.
As carbon and climate reporting requirements become more demanding, this is becoming essential rather than a nice-to-have.
An everyday example
Imagine an organisation that wants to reduce the climate impact of transport.
The ambition: “We will halve our emissions.”
The reality: No one knows exactly how much is being spent on transport, which suppliers are being used or which parts of the organisation are driving the cost.
The ambition is good, but it is difficult to act on.
With clear spend data, the gap would begin to close and the picture would become clearer:
- which departments are buying the most
- which suppliers are being used
- where purchases deviate from contracts
- where the greatest impact lies
Without that data, sustainability work becomes a matter of assumptions and manual detective work.
The people who put time, energy and commitment into getting that work done deserve recognition. But they are working against the wind. The job becomes easier when the organisation has systems designed to support it.
When governance falls short
Sustainability work without reliable purchasing data often leads to three recurring problems:
- It becomes difficult to decide what to prioritise first.
- It becomes difficult to see whether actions are working.
- It becomes difficult to demonstrate results to management, committees or reporting functions.
Without that transparency, building trust becomes difficult – both internally and externally.
The solution starts in procurement – not reporting
Many sustainability initiatives start with reporting.
The thinking is: “We need to report better.” And better reporting is important. But in practice, the organisation’s purchasing data determines whether the reporting will be meaningful.
Without structured spend data, it is difficult to:
- know which actions will make the greatest difference
- direct purchasing towards the areas where it creates the most value
- track sustainability targets without additional manual work
- coordinate the organisation in a way that works over time
With modern purchasing data, it becomes easier to guide the work, track progress and make decisions that benefit both the organisation and the planet.
Conclusion
Sustainability ambitions need reliable evidence. In procurement, that means structured, categorised and traceable data. Once purchasing becomes visible, sustainability work becomes possible in day-to-day practice.
