Higher education is under significant pressure these days to reduce costs while addressing climate change, equity, and compliance requirements. Procurement teams are at the center of these challenges and often under the microscope to meet a long list of demands, some of which conflict with each other. It’s a challenge, especially in the current environment where inclusion and inclusion programs have become a flashpoint in political arguments. Yet, the decisions made in purchasing play a pivotal role in cost control, financial resilience, and your institution’s reputation.
Here, we’ll explain sustainable procurement and supplier inclusion programs, outline their benefits, and explore how colleges and universities can implement them effectively. We’ll look at each approach individually and provide recommended approaches on how they can be integrated to strengthen your overall procurement strategies in higher education.
Supplier sustainability is evaluating and selecting suppliers not just by price or quality, but also on their environmental, social, and governance (ESG) practices. In higher education, supplier sustainability has become a significant part of broader institutional commitments, such as climate action plans, net-zero pledges, or initiatives that effect social outcomes.
It’s not just higher education either. According to the 2025 Global Supply Chain Sustainability Risk & Performance Index, more than 70% of organizations said they now include sustainability criteria in at least half of their supplier contracts, up from 46% in 2022.
Institutions that embrace sustainable procurement benefit from a wide range of advantages that go beyond just compliance.
| Category | Key Benefit | Higher Ed Impact |
| Environmental | Reduced emissions and waste | Supports campus climate action plans and net-zero commitments |
| Financial | Lifecycle savings | Lower energy/waste costs, longer product lifespan |
| Compliance | Meets grant and reporting standards | Improves competitiveness for federal/state funding |
| Reputation | Stronger student/community trust | Students today weigh sustainability in evaluating institutions |
| Innovation | Access to new technologies | Encourages suppliers to deliver creative, cost-effective solutions |
With many institutions facing enrollment challenges, it’s notable that the majority of students say an institution’s sustainability record influenced their decision on where to go to school. And we’ve got some work to do. The Council for the Advancement of Standards in Higher Education (CAS) reports that a survey of students shows that only 23% believe their institution was doing enough.
Implementing sustainability in procurement requires a strategic approach and an honest evaluation of where your program currently stands. For higher education, here are five steps to get you started:
By making sustainable procurement operations the standard, you can move beyond goal setting to delivering measurable results.
Don’t underestimate the impact of reporting in helping establish sustainability in procurement as the norm. The Association for the Advancement of Sustainability in Higher Education (AASHE) tracks sustainability performance at nearly 400 schools. Inclusion there can aid your reputation in addition to your regular reporting of sustainability targets and goal achievement.
Solid reporting means you’re measuring performance against your goals. Here are some of the key metrics colleges and universities are tracking.
| Metric | How It’s Measured | Why It Matters for Higher Ed |
| Spend with sustainable suppliers | % of total procurement spend | Shows commitment and allows benchmarking |
| Emissions reduction | Tons of CO₂ avoided | Ties directly to institutional climate goals |
| Waste reduction | % reduction in non-recyclable materials | Demonstrates tangible progress to students/stakeholders |
| Lifecycle cost savings | TCO vs. upfront cost | Provides financial justification for sustainable procurement |
| Certified contracts | Number meeting eco-certifications | Ensures compliance with sustainability requirements |
Procurement teams are more commonly using “carbon scorecards” to evaluate suppliers as part of their procurement matrix, alongside cost and quality. You’ll need the help of your suppliers here to track these metrics, including your vendors’ downstream suppliers (Scope 3 emissions), which often account for about 80% of a company’s carbon footprint.
A Supplier Inclusion program is a strategic initiative within an organization that aims to ensure that businesses owned by historically underrepresented or disadvantaged groups have equitable access to procurement opportunities. These groups often include:
For higher education, supplier inclusion is about building meaningful partnerships with businesses in local communities and ensuring campuses maintain their values of accessibility and economic empowerment.
Supplier inclusion delivers economic impact both social impact and measurable business value. Here are some of the key benefits of supplier inclusion programs.
| Category | Key Benefit | Higher Ed Impact |
| Innovation | New perspectives and agile solutions | Diverse suppliers often bring creative, cost reductions- innovative approaches to campus needs |
| Resilience | Expanded supplier base | Reduces dependency on a few large suppliers and strengthens continuity during disruptions |
| Community impact | Supports local diverse businesses | Strengthens relationships with surrounding communities and promotes economic mobility |
| Reputation AND BRAND Enhancements | Demonstrates Institutional commitments | Enhances institutional credibility with students, alumni, and external stakeholders |
Supplier inclusion programs can build resilience and innovation. Organizations embracing inclusion are 1.7 times more likely to be leaders in innovation.
An efficient supplier inclusion program provides the structure you need to manage your program effectively. This includes:
In higher education, those investments translate into stronger supplier pipelines and more transparent procurement processes.
Supplier inclusion and sustainable procurement are often discussed separately, but they are deeply interconnected. Both aim to ensure that procurement decisions create long-term value, extend beyond immediate cost considerations, and align with broader institutional missions.
Diverse suppliers usually fall into two category types: multi national firms and small regional businesses. Depending on the institution’s preference, partnering with them can expand institutional purchasing power while reducing transportation emissions by sourcing goods and services closer to campus. A localized approach strengthens surrounding economies, supports community job growth, and contributes to measurable sustainability outcomes. For higher education institutions that serve as economic anchors in their regions, the economic impact of supplier inclusion can be significant.
By integrating supplier inclusion with sustainable procurement operations, colleges and universities can achieve multiple goals at once: advancing supply chain excellence, lowering environmental footprints, building economic impact in communities, and reinforcing financial resilience. Rather than treating these priorities as separate agendas, procurement leaders are recognizing that they are mutually reinforcing strategies that strengthen both operations and institutional credibility.
| Shared Benefit | Supplier Inclusion | Sustainable Procurement |
| Resilience | Expands supplier base, reducing overreliance on a few providers | Diversifies sourcing strategies and reduces risk from global disruptions |
| Local economic impact | Supports minority- and women-owned local businesses | Strengthens regional economies through shorter supply chains |
| Environmental gains | Regional sourcing reduces transportation emissions | Focuses on eco-friendly products and lifecycle management |
| Innovation | Encourages creative, agile solutions from smaller suppliers | Promotes adoption of sustainable technologies and practices |
| Institutional reputation | Demonstrates commitment to inclusion in supply chain operations | Aligns procurement with climate and ESG goals valued by students and funders |
Implementing sustainable procurement and supplier inclusion programs in higher education requires overcoming a few obstacles. Institutions often face barriers that slow progress or create resistance.
One of the most common concerns in higher education is the perception that there simply aren’t enough diverse or sustainable suppliers available to meet institutional needs. Smaller colleges, in particular, may struggle to identify qualified partners in their immediate regions or get favorable responses to RFPs. This challenge is amplified in categories like specialized lab equipment or IT services, where the supplier market is already narrow.
Cooperative contracts can expand access, connecting institutions to suppliers across categories without requiring each school to run its own lengthy RFP process.
Another frequent barrier is the belief that sustainable or diverse suppliers are inherently more expensive. Administrators under pressure to reduce spending may hesitate to support initiatives that seem to increase short-term costs.
However, this perspective overlooks the long-term value of sustainable procurement operations. For example, lifecycle costing often shows that energy-efficient products, though more expensive upfront, deliver significant savings over their lifespans through reduced utility bills and maintenance costs. Similarly, working with local diverse suppliers can reduce transportation expenses and shorten lead times. Framing procurement decisions in terms of total cost of ownership rather than lowest bid is critical for building support.
Tracking supplier inclusion and sustainability metrics can be difficult for institutions relying on outdated procurement systems or decentralized purchasing processes. Without reliable data, it becomes really challenging to demonstrate progress or satisfy reporting requirements tied to federal grants and state funding.
Modern procurement platforms that integrate analytics and automate reporting can help. In fact, the Hackett Group’s 2025 study noted that more than 60% of organizations are investing in technology to improve supplier inclusion tracking. For higher education, upgrading to systems that capture and analyze spend data in real time supports compliance and provides the insights you need for reporting and improvement.
Perhaps the most difficult challenge is cultural. Not all stakeholders view supplier inclusion and sustainability as core priorities.
Some faculty, administrators, or trustees may see procurement as a transactional function rather than a strategic tool for advancing institutional values.
Addressing this resistance requires regular communication and education. Procurement leaders can highlight how these programs support institutional missions, increase cost savings, and improve financial resilience. Sharing success stories from peer institutions that achieved measurable cost savings or boosted community engagement through supplier inclusion can also help shift perceptions.
Sustainable procurement and supplier inclusion don’t have to be competing priorities.
They really are complementary strategies that make higher education institutions more resilient, innovative, and mission-driven. By embedding both approaches into your procurement operations, you can reduce costs, strengthen compliance, and deliver positive environmental and social impact.
How can sustainability in procurement reduce costs?
By focusing on lifecycle costs rather than upfront expenses, institutions save on energy, waste disposal, and replacement cycles, which results in significant long-term savings.
What are best practices for sustainable procurement operations?
Set measurable goals, integrate sustainability requirements into contracts, leverage cooperative agreements, and use reporting tools for transparency.
What is a supplier inclusion program?
A Supplier Inclusion program is a strategic initiative within an organization that aims to ensure that businesses owned by historically underrepresented or disadvantaged groups have equitable access to procurement opportunities. Delivering innovation, cost savings and economic impact to local communities.
How can cooperative contracts help with supplier inclusion and supplier sustainability?
Cooperative contracts allow institutions immediate access to suppliers that already meet sustainability requirements and inclusion requirements. This saves time and money while ensuring compliance with funding requirements.
Cooperative agreements through E&I Cooperative Services provide an efficient way to access pre-vetted suppliers that meet sustainability and inclusion standards. View hundreds of competitively solicited contracts or contact us for a free consultation.