Between 2020 and 2025, integration of Environmental, Social, and Governance (ESG) criteria into procurement processes significantly gained momentum. Organizations recognized ESG factors as key determinants in supplier selection, risk assessment, and strategic planning.

Businesses increasingly used ESG performance as a differentiating factor, aligning procurement strategies with broader sustainability and corporate responsibility goals. This shift provided transparency and enhanced stakeholder trust.

Innovations in ESG reporting and analytics enabled procurement teams to effectively measure and monitor suppliers' ESG compliance, further embedding these considerations into day-to-day procurement operations.

Engagement with suppliers became more collaborative, focusing on continuous ESG improvement. Initiatives included training programs, incentives for sustainable practices, and co-creation of responsible sourcing strategies.

The future of procurement will likely see ESG criteria becoming deeply ingrained within organizational culture, driving sustainable business practices and fostering greater accountability and long-term value.