{"id":7643,"date":"2026-06-29T13:42:06","date_gmt":"2026-06-29T12:42:06","guid":{"rendered":"https:\/\/newtonimpact.com\/?post_type=content_library&p=7643"},"modified":"2026-06-29T14:41:33","modified_gmt":"2026-06-29T13:41:33","slug":"procurement-you-are-cpgs-key-to-net-zero","status":"publish","type":"content_library","link":"https:\/\/newtonimpact.com\/en-us\/content-library\/blog\/procurement-you-are-cpgs-key-to-net-zero\/","title":{"rendered":"Procurement – You are CPG’s key to net zero"},"content":{"rendered":"\n
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\n Take Me Back<\/a>\n\n

Procurement – You are CPG’s key to net zero<\/h1>\n

By Hans Neufeld<\/p>\n\n

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Director<\/p>\n <\/span>\n \n

Blog<\/p>\n <\/span>\n \n

9 min<\/p>\n <\/span>\n \n

29th June 2026<\/p>\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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Making Net Zero Happen Series – Article 1<\/p>\n

With 1,000 days until most CPGs are due to meet their self-imposed 2030 net zero targets, how can procurement act today to get their organisation where it wants to be? <\/h2>\n <\/hgroup>\n \n
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Hans Neufeld, Director in Newton\u2019s Consumer Goods practice, has spent the last decade moving organisations towards a future balancing cost considerations, consumers and carbon emissions \u2013 including contributing to the World Economic Forum\u2019s far-reaching report on collective action and sustainability. With only a third of organisations set to hit their net zero targets (1)<\/span><\/b>,\u00a0he\u00a0explains why momentum has stalled in many CPGs,\u00a0how to step up the pace\u00a0and\u00a0the start of a roadmap for the future (which will be unpacked further\u00a0as\u00a0part of\u00a0this\u00a0\u2018<\/span><\/b>Making\u00a0net zero\u00a0happen\u00a0playbook\u2019<\/span><\/b>\u00a0series).\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

Think back five to ten years \u2013 chances are your organisation announced ambitious 2030 net zero targets to great fanfare. Back then, sustainability was rarely seen as sitting within procurement\u2019s remit \u2013 despite up to 95% of CPGs\u2019 emissions sitting with suppliers (2).<\/span><\/p>\n

Over half the time to\u00a02030 has\u00a0passed.\u00a0Targets have shifted, some scaled back \u2013 but they\u00a0haven\u2019t\u00a0disappeared. And whether you inherited this role last month or five years ago, delivery now falls to you.\u00a0<\/span>\u00a0<\/span><\/p>\n

It\u2019s\u00a0not\u00a0uncommon\u00a0to be\u00a0promoted\u00a0or rotated\u00a0into a\u00a0procurement\u00a0role\u00a0in a specific category\u00a0and suddenly inherit\u00a0targets\u00a0for an area you have never worked in before.\u00a0Procurement has historically been underrepresented in climate action\u00a0conversations,\u00a0and\u00a0the landscape\u00a0may be entirely\u00a0new to you \u2013 the outcome of\u00a0a culture of\u00a0CPGs rotating their best people between teams every couple of years.\u00a0<\/span>\u00a0<\/span><\/p>\n

Rest\u00a0assured,\u00a0you are not alone.\u00a0<\/span><\/b>It’s\u00a0a challenge even for\u00a0people\u00a0in other industries\u00a0who have been\u00a0doing\u00a0this\u00a0for years\u00a0–\u00a0there is no universal\u00a0methodology, regulations have a way of shifting, and levels of understanding and measurement are patchy\u00a0across\u00a0even\u00a0the most established\u00a0supplier networks.\u00a0Candidly, I think\u00a0the industry has come to an inflection\u00a0point\u00a0and it must now\u00a0look at this differently. The risk is\u00a0stark:\u00a0if\u00a0CPGs\u00a0don\u2019t\u00a0tackle this\u00a0in a new\u00a0way\u00a0it will materially\u00a0impact\u00a0not just\u00a0near-term\u00a0profitability but future growth.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Net zero execution procurement playbook <\/h2>\n <\/hgroup>\n\n
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What is needed to gain momentum is anything but traditional\u00a0procurement, and\u00a0that puts you in a stronger position than you might\u00a0think.\u00a0<\/span><\/b><\/p>\n

Only a third of organisations are on track to hit their targets, but yours very well could, with fresh thinking and 1,000 working days still to act.<\/span>\u00a0<\/span><\/p>\n

The roadmap below has been developed over years of helping CPGs decarbonise their supply chains without sacrificing commercial performance. It runs across three stages, each anchored by a set of levers that turn intent into action.<\/span><\/p>\n <\/div>\n\n <\/div>\n<\/div>\n\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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This article focuses on stage one: Understand the context<\/h2>\n

Stages two and three follow in the articles ahead. <\/p>\n <\/hgroup>\n

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\n 01<\/span>\n

1. Understand the context<\/h3>\n

Lever 1: Know the obligations and constraints shaping sourcing decisions. Lever 2: Agree ways of working and internal governance. The outcome: A rich contextual understanding of the challenges and headwinds we collectively face <\/p>\n <\/div>\n

\n 02<\/span>\n

2. Model the portfolio<\/h3>\n

Lever 3: Know your portfolio and prioritise. Lever 4: Emissions baseline and measurement. Lever 5: Supplier landscape mapping. Lever 6: Dynamic procurement intelligence. The outcome: A prioritised portfolio understanding of carbon emissions across suppliers and materials <\/p>\n <\/div>\n

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3. Plan and execute<\/h3>\n

Lever 7: Build the glidepath. Lever 8: Contract and commercial. Lever 9: Supplier engagement model <\/p>\n <\/div>\n<\/div>\n <\/div>\n <\/div>\n <\/section>\n\n \n\n\n

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1. Understand the context<\/h2>\n <\/hgroup>\n \n
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Lever\u00a01.\u00a0Know\u00a0the obligations and constraints shaping sourcing decisions<\/span><\/b>\u00a0<\/span><\/p>\n

Many external pressures and a complex regulatory landscape create significant headwinds\u00a0with\u00a0their\u00a0interdependencies\u00a0further complicating progress toward 2030 goals.<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/p>\n

T<\/span>he Climate Transition Action Plan (CTAP) outlines the four systemic issues\u00a0fuelling\u00a0this:<\/span>\u00a0<\/span><\/p>\n

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  1. Government policy – The\u00a0<\/span>EU Corporate Sustainability Reporting Directive (CSRD) places\u00a0<\/span>greater<\/span>\u00a0scrutiny on sustainability progress audits and reporting, while the EU Deforestation Regulation (EUDR) requires proof that commodities traded in the EU are deforestation-free and traceable through geolocation data. The backdrop is fast-<\/span>changing too<\/span>, as we know.\u00a0<\/span>Trade policy adds another layer of complexity:<\/span>\u00a0<\/span>with effective rates on goods from Southeast Asia now running at 25-145%, cost-driven sourcing decisions have direct carbon implications (3).<\/span><\/span><\/li>\n
  2. Industry-wide system change – The systems that run and govern the industry take time to change and<\/span>\u00a0remain<\/span>\u00a0in flux. Updates to the GHG Protocol Corporate Standard are underway which could force participants to re-measure targets. Added to that, carbon tracking data is inconsistent and often incompatible between suppliers (and even between\u00a0<\/span>recognised<\/span>\u00a0methodologies).\u00a0<\/span><\/span><\/li>\n
  3. Technology maturity – \u00a0<\/span>The technology gaps are significant.\u00a0<\/span>B<\/span>io<\/span>-palm alternatives\u00a0<\/span>remain<\/span>\u00a0<\/span>pre-commercial<\/span>.\u00a0<\/span>F<\/span>lexible<\/span>\u00a0plastic recycling is technically\u00a0<\/span>viable<\/span>\u00a0but lacks infrastructure<\/span>.<\/span>\u00a0G<\/span>reen\u00a0<\/span>fragrance production\u00a0<\/span>currently\u00a0<\/span>costs<\/span>\u00a0more than conventional alternatives. Scope 3 emission reduction requires step-changes delivered by innovative\u00a0<\/span><\/span>and\u00a0<\/span><\/span>cost-effective\u00a0<\/span>solutions<\/span>\u00a0but\u00a0<\/span>we\u2019re<\/span>\u00a0not there yet.\u00a0<\/span><\/span><\/span><\/li>\n
  4. Consumer\u00a0behaviour\u00a0change – Though\u00a0<\/span>consumers<\/span>\u00a0<\/span>are pushing for change,\u00a0<\/span>they<\/span>\u00a0<\/span>are not\u00a0<\/span>consistently<\/span>\u00a0<\/span>willing to pay a premium for sustainable product<\/span>s<\/span>\u00a0or change their own\u00a0<\/span>behaviour<\/span>.\u00a0<\/span>Most<\/span>\u00a0people say they intend to use refillable\u00a0<\/span>formats<\/span>\u00a0yet<\/span>\u00a0<\/span>reuse and\u00a0<\/span>refill\u00a0<\/span>models still account for only around 1-<\/span>2%\u00a0<\/span>of major brands’ packaging (4).<\/span><\/span>\u00a0Procurement can do everything in its power to\u00a0<\/span>decarbonise<\/span>\u00a0<\/span>inputs<\/span>\u00a0but how consumers use products is even harder to affect \u2013 and the<\/span>\u00a0environmental<\/span>\u00a0impact\u00a0<\/span>there<\/span>\u00a0<\/span>remains<\/span>\u00a0<\/span>substa<\/span>n<\/span>tial<\/span>. For laundry and hair care, product use emissions represent 60-70% of lifecycle carbon emissions (5).<\/span><\/span><\/span><\/li>\n<\/ol>\n

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    Lever\u00a02. Agree ways of working and internal governance<\/span><\/b>\u00a0<\/span><\/p>\n

    Measurement matters<\/span>,<\/span>\u00a0but the biggest lever to achieving sustainability ambitions is treating carbon with the same\u00a0<\/span>rigour<\/span>\u00a0as cost.\u00a0<\/span>If a buyer\u00a0<\/span>can\u2019t<\/span>\u00a0compare two materials on a cost<\/span>–<\/span>carbon\u00a0<\/span>basis<\/span>\u00a0then sustainability is still being treated as a separate conversation.<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

    Since as far back as 2017, L’Or\u00e9al has scored every new product’s environmental impact through its SPOT tool, with CEOs and brand managers<\/span>\u2019<\/span>\u00a0<\/span>bonuses\u00a0<\/span>in part\u00a0<\/span>tied\u00a0<\/span>into<\/span>\u00a0how well they\u00a0<\/span><\/span>reduce carbon emissions (<\/span><\/span>6)<\/span><\/span>. For this type of progress to happen, action is needed on three fronts:<\/span><\/span><\/p>\n