Chapter Three
Resilience Under Pressure – Managing Risk, Regulation and ESG Realities
Procurement leaders are facing a period defined by intersecting risks - geopolitical, environmental, and regulatory - each placing mounting pressure on procurement’s strategic role. When asked about their top supply chain concerns over the next 12 to 24 months, respondents cited geopolitical tensions and trade barriers (58%) as the most pressing issue. However, environmental and climate-related disruptions (51%) were close behind, signalling a notable shift: sustainability is no longer a long-term ambition but an urgent operational risk. The volatility of climate events, from extreme weather to raw material scarcity, is forcing procurement teams to factor environmental instability into core supply strategies.
Surprisingly, traditional pain points such as supplier-side talent shortages (13%) and regulatory compliance (20%) rank lower, indicating confidence in handling known constraints, but concern around unpredictable, systemic shocks.
On Scope 3 emissions tracking, most respondents (59%) are mid-journey, actively implementing tracking mechanisms. While 24% have robust systems in place, 17% still rely on supplier self-reporting - with limited transparency. Encouragingly, no respondents reported complete inactivity in this area, underlining the growing maturity of ESG accountability in procurement functions.
Sustainability sentiment remains broadly resilient: 81% say its importance has been maintained, while 12% report that it has strengthened further. Just 7% have scaled back due to cost or market pressures. Sustainability remains a strategic priority, but must now deliver against both regulatory requirements and supply chain resilience objectives.
Procurement’s influence on enterprise-wide risk and compliance strategy is also evolving. Leaders increasingly see the function as a strategic partner, detecting risks early, bridging external disruptions with internal controls, and collaborating cross-functionally with legal and compliance teams. While influence still varies by organisational maturity, the direction of travel is clear: procurement is becoming the nexus of risk intelligence and ESG alignment across the business.
Question 1: What are your biggest concerns regarding supply chain risk in the next 12–24 months? (Respondents were asked to select three options)
Geopolitical tensions or trade barriers
Environmental or climate-related disruptions
Cybersecurity and data breaches
Lack of visibility beyond tier 1 suppliers
Rising costs of goods and services
Supplier financial instability
Compliance with evolving regulations (e.g. CSRD, ESG)
Talent shortages within the supplier base
"Given the recent upheaval in international trade policy and tariffs, it's no surprise to see this as the top concern. More frequent and more severe weather events are driving the second ranked priority, and cyber concerns round out the next two. In this era defined by relentless risk management, shifting regulations, and rising expectations, supply chain resilience must be intentionally designed and constantly maintained. By positioning procurement as a strategic force for securing supply, leaders transform volatility into vision, and pressure into performance."
Conrad Snover, CEO, ProcureAbility
Question 2: How are you tracking and reporting Scope 3 emissions within your procurement operations?
We’re in the process of implementing tracking mechanisms
We have robust systems in place and actively track/report
We rely on supplier self-reporting with limited visibility
We’re not currently tracking Scope 3 emissions
“The focus on Scope 3 tracking isn’t necessarily driven by environmental ambition, it’s driven by regulation. CPOs aren’t prioritising ESG only because they want to do good, but mainly because the EU requires it. That’s why ESG ranks highly in priorities. The real focus for most is still resilience. Scope 3 shows how regulation is shaping procurement behaviour, it’s compliance-led, not vision-led, and that defines the current ESG narrative.”
Lukasz Stolarski, Senior Strategic Sourcing manager, Viasat
Question 3: How has your organisation’s sustainability agenda shifted in the past 12 months?
“I find it puzzling that most organisations say their sustainability agenda has simply been ‘maintained’. To me, this reflects uncertainty - companies are waiting to see how the Green Deal, CSRD, and geopolitical shifts evolve before committing to change. In six to twelve months, I’d expect very different answers. For now, many feel their existing plans are adequate, but this cautious approach risks short-term thinking in an area that demands long-term vision.”
Carine Assaf, International Procurement Supervisor, Leading French Bank
