Choosing sustainable suppliers has become a practical necessity for FM and property teams tasked with balancing ESG goals, compliance, and cost pressures. With increased scrutiny and a greater focus on long-term value, real estate procurement professionals are re-evaluating how to source services that align with sustainability targets without exceeding budgets or falling short on standards.
The pressure on FM and property procurement is growing
Across the UK and Ireland, facilities management (FM) and property teams are expected to deliver more for less. The UK Green Building Council notes that 80% of buildings projected to be in use by 2050 already exist today, which puts sustainable management and retrofitting at the heart of climate action strategies.
Compliance demands are also rising. In sectors where contractors frequently access multiple sites, procurement and risk teams need reliable processes to ensure that FM suppliers meet required standards and contribute to safe, efficient operations. This is particularly important in multi-tenanted or high-traffic buildings, where any lapse in standards can have reputational and legal consequences. Increasingly, these teams must consider how procurement policies support not just operational efficiency but broader organisational resilience and ESG performance.
Aligning sustainability, compliance, and cost in FM procurement
Sustainable FM procurement is often viewed as a trade-off between ideals and practical outcomes. Yet when implemented thoughtfully, sustainable sourcing strategies can reduce overall costs, lower compliance risks, and improve long-term service quality. The key is clarity and consistency.
Procurement teams should begin by defining what sustainability means in the context of their organisation’s operations. This could include carbon reduction targets, social value delivery, or circular resource management. Integrate these expectations into procurement policies and communicate them across teams.
Standardisation plays a crucial role here. A consistent supplier onboarding template holds every new vendor to the same expectations from day one. Similarly, a robust supplier vetting checklist helps avoid inconsistencies that can lead to missed risks or non-compliance.
Digital sustainable procurement tools can streamline the process, offering visibility into supplier credentials, ESG scores, and historic performance. With greater automation, procurement teams can track and verify supplier commitments without overburdening internal resources. This makes it possible to scale sustainable practices across large property portfolios.
What defines a sustainable FM supplier?
In FM procurement, sustainability is about more than recycling bins and low-energy lighting. Sustainable FM suppliers are those who demonstrate consistent, measurable efforts to minimise their environmental impact and support responsible business practices. This might include ISO 14001 certification, evidence of low-carbon service options, transparent emissions tracking, or clear workforce welfare policies.
But certifications alone are not enough. Procurement professionals should consider how a supplier manages subcontractors, addresses training and safety standards, and provides ongoing reporting. For example, a cleaning contractor offering eco-labelled products is of little value if their staff turnover is high and safety records are incomplete.
Equally important is the supplier’s ability to contribute to cost certainty. Services that reduce energy waste, extend asset lifespans, or prevent unplanned maintenance can have a direct financial impact. Lifecycle costing should be part of the evaluation process to ensure short-term savings don’t lead to long-term risk.
Embedding consistency through supplier onboarding
Consistency is vital when onboarding new FM suppliers, especially in organisations with multiple sites, diverse service needs, and varying local regulations. A structured supplier onboarding template provides a uniform way to collect and assess critical information.
This might include:
- Compliance documentation (e.g. insurance, licenses, health and safety policies)
- Evidence of sustainability practices and certifications
- Acknowledgement of site-specific requirements and performance expectations
When used systematically, onboarding templates reduce time-to-engagement and help avoid issues caused by missing documentation or unclear expectations. They also support audit-readiness by ensuring every supplier meets the same baseline before starting work.
Strengthening supplier evaluation with a comprehensive checklist
Even with onboarding, risk remains unless suppliers are thoroughly vetted. A supplier vetting checklist ensures that due diligence is carried out consistently. This should cover both basic and advanced criteria:
- Business integrity and financial health
- ESG frameworks and certifications
- Health and safety track record
- Legal and regulatory compliance
- Previous performance on similar contracts
Reviewing this information in detail gives FM procurement teams a clearer picture of where risk lies, whether it’s reputational, operational, or financial. Digital tools can speed up this process by linking to third-party data sources and automating document collection. Solutions such as those offered by Achilles help validate supplier claims and keep records current over time.
Leveraging digital tools for sustainable procurement
Technology is increasingly central to effective FM procurement. Sustainable procurement tools enable teams to compare suppliers, verify credentials, and track sustainability outcomes across contracts and geographies. They also provide a single source of truth for supplier data, improving transparency and enabling better decision-making.
For FM and property professionals managing complex estates, the ability to monitor trends, benchmark performance, and generate reports in real time is invaluable. Procurement leaders can use this data to refine strategies, engage underperforming suppliers, and demonstrate progress against ESG goals. As noted by the Chartered Institute of Procurement & Supply (CIPS), more than 60% of procurement leaders now prioritise ESG in sourcing processes, a figure expected to grow as regulatory and investor pressures increase.
Putting strategy into practice
To create a procurement strategy that supports sustainability without compromising on cost or compliance, FM and property teams can take the following steps:
- Define measurable sustainability goals that align with operational priorities.
- Standardise onboarding and vetting processes using templates and checklists.
- Implement tools that centralise supplier data and automate due diligence.
- Establish regular supplier reviews focused on ESG, compliance, and performance.
- Collaborate with suppliers to build trust and unlock shared innovation opportunities.
These steps not only protect budgets and compliance standards, but also help future-proof operations by embedding resilience and transparency into supplier relationships.
A balancing act; cost, compliance and sustainability
Balancing cost, compliance, and sustainability in FM procurement is entirely achievable. It requires clarity of purpose, the right tools, and a structured approach to supplier engagement. For property and facilities teams, sustainable sourcing is now a smarter, more resilient way to operate.
