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If Your Tech Isn’t Green, You’re Already Behind: How ESG Scores Are Driving Procurement Decisions

Introduction

In 2025, the most disruptive tech innovation isn’t AI, blockchain, or quantum computing—it’s sustainability. Procurement teams once obsessed with performance scores and price tags are now asking, how green is this vendor’s tech? What’s their carbon footprint? Can this system help us meet our ESG targets?

Welcome to the new rules of enterprise procurement—where green technology adoption in business isn’t a competitive advantage anymore. It’s table stakes.

In this article, we’ll break down how ESG scores are influencing procurement, what this means for technology decision-makers, and why businesses that overlook sustainability now risk falling behind.

Green Technology Adoption in Business: The New Standard for Smart Procurement

What Are ESG Scores—and Why Should Procurement Teams Care?

The rating system known as ESG Scores evaluates a company’s responsibility in its operations. ESG consists of environmental, social, and governance—and these terms represent essential areas through which companies get measured regarding their worldwide impact.

  • Environmental: How does the company manage its energy use, carbon emissions, and waste?
  • Social: Does it treat workers fairly, support communities, and protect human rights?
  • Governance: Is it well-run, transparent, and compliant with laws and ethical standards?

Third-party agencies calculate these scores through publicly available data and company disclosures.

Now, here’s why this matters to you.

ESG scores now matter to everyone in procurement because they transcend investor and sustainability team boundaries. Numerous businesses now must demonstrate their full supply chain responsibility, including their selection of technology vendors. That means the tools and platforms you bring into your organization can either help—or hurt—your company’s sustainability goals.

When a vendor has a strong ESG score, it shows they’re aligned with responsible business practices. But a low score could signal risks like high emissions, poor labor conditions, or lack of transparency. These issues don’t just stay with the vendor—they reflect on your business, too.

According to a 2024 Deloitte survey, 72% of procurement leaders now say they include ESG factors when selecting technology providers—a sharp rise from just 49% in 2022.

How ESG Scores Are Shaping Green Technology Adoption in Business?

The rise of ESG performance metrics within procurement systems directly drives how organizations handle technology acquisition. Procurement teams nowadays must evaluate vendors through multiple criteria, including cost and capability, while factoring in their environmental performance and social impact.

Organizations intensify their commitment to green technology adoption because of this recent development.

Procurement teams are prioritizing:

  • Business platforms that both maximize resource efficiency and minimize waste production.
  • Companies must select products that help digital transformation but require minimal negative impact on the environment.

By integrating ESG scores into tech evaluations, businesses are making smarter, more responsible procurement choices—and accelerating the transition to greener, more future-proof technology stacks.

Delaying Green Tech? Here’s What It’s Costing You

1. Rising Operational Expenses

Continuing with outdated, energy-intensive systems can lead to escalating utility bills and maintenance costs. Adopting energy-efficient technologies has been shown to significantly reduce operational expenses.

2. Regulatory and Compliance Risks

Environmental regulations are becoming more stringent globally. Non-compliance can result in hefty fines and restricted market access. The European Union’s carbon border tax, for example, imposes tariffs on high-carbon goods, potentially eroding profit margins for exporters .

3. Reputation and Brand Damage

Public awareness about environmental issues prompts customers to evaluate how committed different businesses are to their environmental pledges. An empty claim about environmental friendliness without concrete action will become noticeable by customers. When actions do not match verbal promises, it creates an inconsistency that may negatively affect brand perception.

4. Missed Talent Acquisition Opportunities

Top talent actively looks for sustainable companies to work for since sustainability establishes itself as a fundamental employee attraction factor. Research reveals that 46% of Generation Z and 42% of Millennials intend to transfer their careers either to new jobs or new industries because of environmental considerations.

5. Competitive Disadvantage

Businesses that postpone embracing green technology will encounter competitive setbacks because their competitors take advantage of sustainability for both innovation and market distinction. Implementing green technology enables organizations to decrease operational costs by 10-20% while simultaneously increasing their market position.

Conclusion 

By now, it’s not about whether you’re using sustainable tech. It’s about whether your business even shows up on the radar of buyers who are. ESG isn’t a trend anymore—it’s the lens through which deals are made, partnerships are formed, and vendors are screened.

Your tech stack is part of your business identity. If it’s not aligned with the sustainability values your clients live by, it may not even make it to the short list.

The reality is simple: You can’t afford to ignore green tech any longer.

So what’s holding you back—or pushing you forward?

Tell us what steps your team is taking to move closer to sustainable procurement. Share your thoughts in the comments and connect with others navigating the same shift.

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