Procurement has been actively upgraded to become the central unit responsible for the buyer-supplier-interface, supplier selection, and supplier management. The procurement function not only determines the commercial conditions of the procurement transactions on behalf of the buyer, but plays a pivotal strategic role in both the composition of the supply chain and the business practices used therein. However, procurement functions in companies often struggle with balancing cost reductions versus sustainability standard compliance. In many companies, the procurement function lacks important capabilities, capacity, structures, objectives, or incentives to manage sustainability performance in the supply chain - of direct suppliers and beyond of upstream sub-suppliers and of subcontractors.

This project addresses the fundamental question: "How to integrate sustainability standards into operative procurement practices and adjust procurement capabilities, capacity, structures, objectives, and incentives?" It seeks to develop hands-on tried-and-tested approaches for business practice to align structures, objectives, and incentives, develop new capabilities, and extend capacities in the regular procurement function of Western buying companies to establish and maintain sustainability standard compliance in their supply chains.