Beyond the ESG debate: How responsible procurement builds stronger supply chains

Across the U.S., ESG and sustainability programs are facing increased scrutiny, shaped by shifting cultural dynamics and evolving regulatory expectations. For procurement teams in the chemical industry, the rationale for responsible sourcing remains unchanged: it helps mitigate risks such as supply disruptions, regulatory shifts and reputational damage—risks that are only intensifying. What began as compliance has evolved into a driver of long-term value.

Today, many U.S.-based members of the Together for Sustainability (TfS) initiative are seizing this moment to increase transparency and strengthen performance across global networks. This article explores why responsible procurement remains at the center of resilient supply chains, the tangible benefits companies are realizing and how collaborative frameworks are enabling them to scale their impact.

The U.S. landscape: complexity, change—and continued commitment

U.S. chemical companies are navigating a mix of operational and political pressures. Global supply chain instability, caused by factors such as extreme weather and geopolitical risks, underscores the need for stronger business continuity planning.

Despite the noise surrounding ESG, many leaders in the sector are staying the course. The reason is clear: sustainability is increasingly linked to operational resilience and long-term competitiveness. Responsible procurement has emerged as a strategic capability that enhances supplier visibility, improves traceability and enables faster responses to global shocks.

U.S.-based chemical companies engaged in collaborative sustainability initiatives are demonstrating that even in uncertain conditions, progress is not only possible but necessary.

Danielle Warnock, senior manager, global carbon business strategy at Nouryon and co-chair of TfS North America, views this as more than just a board talking point.

“At Nouryon, we view responsible procurement as a catalyst for innovation, resilience and long-term value. By embedding sustainability into every layer of our supply chain, we are meeting today’s expectations and shaping a more reliable and future-ready chemical industry,” she said.

The business case for responsible procurement

As regulatory requirements and customer expectations continue to evolve, responsible supply chains are no longer optional—they are becoming a strategic differentiator. For chemical companies, responsible procurement is central to building stronger, more agile organizations that can withstand disruption and preserve market relevance.

The business case is compelling. Research shows that companies in North America and Europe investing in supply chain resilience experienced an average 23% revenue boost, underscoring the link between robust procurement practices and long-term performance. At the same time, the chemical sector sits at the heart of the net-zero transition. Ninety-five percent of manufactured products depend on chemicals, yet only 30% of 250 publicly traded chemical companies currently track Scope 3 emissions. That gap represents both a challenge and an opportunity.

Responsible procurement is no longer just about mitigating risk. It’s about adapting to a changing global environment and unlocking new pathways for growth, agility and sustained value creation.

Practical tools to help procurement teams deliver on sustainability

As procurement teams shoulder more responsibility for delivering on sustainability goals, the challenge is not just about setting ambitious targets; it’s also about finding practical, scalable ways to make progress. At the same time, procurement leaders face real obstacles: sustainability requirements can add costs, increase complexity and sometimes meet resistance from suppliers who are themselves under pressure. Acknowledging these barriers is critical, because it underscores that progress depends not only on ambition but also on pragmatic solutions that work across diverse supply chains. That means having tools that can measure supplier performance, track emissions and drive real improvements across complex global networks.

Industrywide collaboration platforms are proving essential here. By aligning on common standards and avoiding duplication of effort, these initiatives help companies accelerate progress while freeing up teams to focus on the areas that matter most.

TfS is one such initiative, offering a shared framework tailored to the chemical industry. It gives companies a framework to benchmark supplier performance, collaborate on improvements and harmonize emissions data, all while cutting down on administrative burden.

The toolkit is practical and wide-ranging: companies are using EcoVadis assessments to gauge supplier performance across environment, labor, ethics and procurement; running targeted audits with high-risk suppliers to generate clear, actionable insights; applying a Product Carbon Footprint (PCF) Guideline aligned with ISO standards and the GHG Protocol to bring consistency and transparency to Scope 3 reporting; and leaning on digital platforms like the PCF Exchange solution to make emissions tracking and data sharing faster, safer and far less cumbersome.

A key enabler of this progress is the TfS Academy, which provides shared training programs and development resources for both companies and suppliers. By offering workshops, e-learning modules and targeted coaching, the TfS Academy helps participants apply best practices consistently across the supply chain.

The impact is tangible. In 2024, 88% of suppliers improved after audits and 65% showed progress after reassessments—results made possible by targeted training, development and ongoing support. For U.S.-based chemical companies, these tools are helping to identify emissions hotspots, strengthen supplier relationships and build resilience into procurement operations.

Responsible procurement as a strategy for growth and stability

Even as the ESG debate continues, chemical companies across the U.S. are proving that responsible procurement is both the right thing, and the smart thing, to do. With regulatory, climate and geopolitical pressures mounting, the organizations that embed sustainability into procurement today will be the ones best positioned to lead tomorrow.

Collaborative initiatives like TfS show that meaningful progress is possible when companies work together. By raising the bar across the value chain, they’re building more competitive and future-ready businesses.

About the author

Dr. Jennifer Jewson is President of Together for Sustainability and Chief Procurement Officer at LyondellBasell, bringing nearly 30 years of experience in the chemical industry across R&D, supply chain, procurement and business management. She holds a Ph.D. in Chemistry from the University of Delaware and an MBA in Finance from Villanova University

About TfS

Together for Sustainability (TfS) is a pioneering, member-led initiative working to accelerate sustainable and resilient chemical supply chains. Guided by the UN Global Compact and Responsible Care® principles, TfS operates globally, with regional teams across the Americas and Asia.

SC
MR