Circular Economy Procurement and Sustainable Supply Chains: Key Insights from IPSERA 2023

Posted by: Nathan Davies
Category: Blogs
IPSERA 2023 systemic change event image highlighting procurement leadership in driving sustainable and strategic transformation.

In April 2023, I was fortunate enough to attend the IPSERA 2023 Conference on Systemic Change. IPSERA (the International Purchasing and Supply Education and Research Association) brings together academics, researchers and practitioners from across the world to explore the latest thinking in procurement and supply chain management.

This year’s conference focused on systemic change, with the aim of bridging research across borders, connecting different academic disciplines, and strengthening collaboration between industry and academia.

The discussions explored some of the biggest challenges facing organisations today, including sustainable procurement, green supply chains, supplier ecosystems, circular economy models, collaborative procurement, carbon reporting, social value and modern slavery within supply chains.

Below are some of my key reflections from the event and what they mean for procurement professionals looking to drive sustainable supply chain transformation.

Procurement’s Role in Driving Systemic Change

One of the clearest messages from the conference was that procurement is increasingly recognised as a strategic business function capable of influencing how organisations operate and how supply chains behave.

With my practitioner hat on, I left feeling both inspired and overwhelmed by the scale of change required across the profession. Procurement teams have a significant role to play in addressing environmental and social challenges, but achieving meaningful change requires more than updated processes or policies.

Recurring themes throughout the conference focused on the barriers preventing organisations from making progress, including communication challenges, lack of appropriate tools, outdated processes, regulatory constraints and limited investment in procurement capability.

A key discussion point was the need for greater collaboration across supply chains. This is particularly important when addressing carbon reduction, where organisations and suppliers must recognise that sustainability challenges cannot be solved in isolation.

As one consistent message emerged throughout the conference: we are all connected through the supply chain, and therefore we must work together to create meaningful change.

Barriers to Sustainable Procurement Transformation

The conference highlighted that many of today’s societal and environmental challenges require more than governance changes. Organisations need investment in fit-for-purpose procurement systems, sustainability skills and people development to empower procurement professionals to lead change.

One interesting discussion explored the role of technology in procurement transformation. While digital procurement tools have improved operational efficiency, research presented at the conference suggested that many technologies remain focused on transactional activities rather than helping organisations address complex sustainability challenges.

This highlights the need for further investment in procurement technology, data capability and supply chain visibility.

Other discussions explored how some large global organisations are outsourcing elements of their procurement functions to access specialist expertise and support with increasingly complex challenges.

However, long-term sustainable procurement transformation requires organisations to build internal capability, develop stronger supplier relationships and embed sustainability into procurement strategies.

Carbon Reduction, Scope 3 Emissions and Supply Chain Reporting

One of the most prominent themes throughout the conference was carbon reduction and Scope 3 emissions reporting.

It was not surprising to hear that organisations continue to face uncertainty around how best to measure and reduce supply chain emissions. However, there was broad agreement that businesses must take responsibility for the environmental impact of their wider supply networks.

For many organisations, the majority of emissions sit outside their direct operations, within their supply chains. This makes procurement a critical function in supporting carbon reduction strategies through supplier engagement, responsible sourcing and improved supply chain visibility.

Research presented at the conference also suggested that organisations taking direct action on carbon reduction performed better financially than those relying solely on offsetting approaches or delaying action.

This reinforces the importance of moving beyond compliance and recognising sustainability as a strategic opportunity.

Why the Circular Economy Matters for Procurement Professionals

A theme that particularly interested me was the role of the circular economy in procurement.

Research presented during the conference highlighted the potential economic benefits of circular economy approaches, with some studies suggesting significant returns from investment in circular business models.

Given the current economic climate, increasing resource pressures and growing sustainability expectations, organisations should be exploring how circular principles can create both environmental and commercial value.

Countries such as Sweden have introduced initiatives designed to encourage circular behaviours, including policies supporting the reuse and recovery of materials.

The circular economy challenges traditional linear business models based on “take, make and dispose” approaches. Instead, it focuses on keeping resources in use for as long as possible through reuse, repair, refurbishment and recycling.

For procurement professionals, this represents both a challenge and an opportunity.

How Procurement Can Support a Circular Economy

Source Materials Responsibly

The circular economy begins with responsible sourcing. Procurement teams have an important role in understanding supplier sustainability practices and encouraging suppliers to adopt circular principles such as resource efficiency, closed-loop production and responsible material choices.

Consider Product Lifecycle

Procurement decisions should move beyond initial purchase price and consider the entire product lifecycle.

Working with suppliers to prioritise durability, repairability and recyclability can help reduce waste and improve long-term value.

Implement Circular Business Models

Procurement can support innovative approaches such as product-as-a-service models and closed-loop supply chains.

These models allow organisations to reduce waste, improve resource efficiency and create new opportunities for suppliers while supporting a more sustainable economy.

Collaborate Across the Supply Chain

Circular economy procurement cannot be achieved by one organisation alone.

Collaboration between suppliers, customers, regulators and other stakeholders is essential to identify opportunities for improving resource use across the entire value chain.

Measure and Report Progress

To make circular economy initiatives successful, organisations need clear measurement and reporting.

Procurement teams should consider metrics such as recycled content, waste reduction, product lifecycle performance and supplier sustainability improvements.

Data and transparency will be critical in ensuring circular economy approaches remain a business priority.

The Future of Sustainable Procurement

The discussions at IPSERA 2023 reinforced that sustainable procurement is no longer simply an aspiration; it is becoming a business necessity.

Whether organisations are addressing Scope 3 emissions, developing circular supply chains or improving supplier sustainability, procurement professionals have a critical role in driving systemic change.

The transition will not be easy. It requires investment in people, technology, collaboration and new ways of thinking. However, organisations that embrace sustainable procurement strategies will be better positioned to manage future environmental, regulatory and commercial challenges.

The future of procurement is not just about buying better. It is about creating supply chains that are more resilient, responsible and sustainable.

Disclaimer: Nathan is a part-time PhD researcher at the University of Liverpool, with his research focused on modern slavery within UK construction supply chains.

IPSERA is a unique, multi-disciplinary network offering researchers, practitioners and educators a platform for developing and creating purchasing and supply chain knowledge. The annual IPSERA Conference enables the exchange of recent research developments in an inspiring scientific and social environment, with contributions from academics and practitioners across purchasing and supply management.

FAQs

What is circular economy procurement?

Circular economy procurement is an approach to sourcing that considers the entire lifecycle of products and materials. Rather than focusing only on purchase price and short-term requirements, it considers how products can be designed, used, reused, repaired, refurbished and recycled to minimise waste and maximise value.

For procurement professionals, this means working with suppliers to identify more sustainable solutions, improve resource efficiency and support circular supply chains.

How can procurement help reduce Scope 3 emissions?

Procurement plays a critical role in reducing Scope 3 emissions because many organisations’ carbon impacts sit within their supply chains rather than their own operations.

Procurement teams can support carbon reduction by improving supplier engagement, increasing supply chain transparency, incorporating sustainability criteria into sourcing decisions and working collaboratively with suppliers to identify lower-carbon solutions.

Why is sustainable procurement important?

Sustainable procurement helps organisations balance commercial objectives with environmental and social responsibilities.

By embedding sustainability into procurement strategies, organisations can reduce risk, improve supply chain resilience, support responsible sourcing practices and create long-term value.

What role does procurement play in building sustainable supply chains?

Procurement acts as a connection point between organisations and their suppliers. This gives procurement professionals significant influence over supplier behaviour, innovation, sustainability performance and ethical practices.

Through stronger supplier relationships, better data and collaborative approaches, procurement can help create supply chains that are more resilient, transparent and sustainable.

How can organisations start implementing circular procurement?

Organisations can begin by reviewing their current sourcing practices, identifying opportunities to reduce waste and engaging suppliers early in the procurement process.

Practical steps include prioritising products with longer lifecycles, considering repair and reuse options, measuring sustainability performance and exploring circular business models such as product-as-a-service.

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Author: Nathan Davies