As the push for sustainability intensifies, procurement teams in London and across the UK are under growing pressure to align with ambitious environmental goals. Nowhere is this more critical than in the housing sector, where carbon-zero targets are a defining measure of success. However, the race to meet these targets has inadvertently fueled a rise in greenwashing—where suppliers exaggerate or fabricate their environmental credentials. Compounding the issue is a growing concern that career-driven procurement professionals may be prioritising quick wins over genuine due diligence. Regulators are beginning to take notice, and the consequences could be far-reaching.
What is Greenwashing in Procurement?
Greenwashing occurs when companies misrepresent their sustainability practices to appear more eco-friendly. In procurement, this deception often involves exaggerated claims about environmental initiatives, such as carbon neutrality or the use of recycled materials, with little to no supporting evidence. Suppliers may also outsource to third parties with weak sustainability practices, bypassing carbon-zero requirements while presenting a façade of compliance. The housing sector, with its emphasis on sustainable development, is particularly exposed to this growing problem.
Lessons from the Fashion Industry
The risks of greenwashing are becoming more evident across industries. In March 2024, the UK’s Competition and Markets Authority (CMA) held major fashion retailers—such as ASOS and Boohoo—accountable for misleading environmental claims. These companies committed to making their sustainability assertions more transparent and verifiable following regulatory investigations. This serves as a cautionary tale for procurement teams in the housing sector: regulators are watching, and organisations that fail to properly vet suppliers could face significant reputational and financial damage.
Why the Housing Sector is Vulnerable
London’s housing sector faces immense pressure to deliver sustainable housing solutions amid government-mandated carbon-neutral goals. Procurement professionals, tasked with selecting eco-conscious suppliers, may overlook critical vetting processes in their rush to meet targets. For example, construction firms might overstate their use of green building materials or rely on dubious carbon offset programs. These oversights not only risk project integrity but also tarnish the housing sector’s commitment to authentic sustainability practices.
The Role of Career-Driven Procurement Practices
Strong procurement professional practices are essential to mitigating the risks of greenwashing and ensuring sustainability claims hold up to scrutiny. By prioritising rigorous evaluation over shortcuts, professionals can help safeguard their organisations and the sector at large.
Procurement teams under pressure to hit performance metrics may inadvertently enable greenwashing. Career-focused professionals may prioritise meeting short-term objectives over thoroughly evaluating supplier claims, exposing their organisations to:
- Reputational Risks: Endorsing suppliers later exposed for greenwashing erodes public trust and credibility.
- Legal and Financial Costs: Missteps in supplier selection could lead to contractual disputes and expensive retendering processes.
- Project Failures: Suppliers failing to meet genuine sustainability standards can derail housing developments.
Additionally, inadequate training within the industry often focuses on compliance rather than equipping professionals to identify misleading green claims effectively.
Strategies to Combat Greenwashing
To protect against greenwashing, procurement teams must implement robust practices:
- Thorough Verification: Demand verifiable evidence, such as independent certifications and on-site inspections, to substantiate environmental claims.
- Clear Sustainability Metrics: Include explicit, measurable green criteria in tender documents.
- Ongoing Supplier Oversight: Monitor suppliers throughout contracts to ensure continued compliance with sustainability commitments.
- Improved Training: Provide procurement staff with the tools to detect and challenge greenwashing effectively.
Conclusion
The housing sector cannot afford to overlook the risks posed by greenwashing. Procurement teams must adopt more rigorous processes to separate genuine environmental initiatives from deceptive claims. By focusing on transparency, accountability, and proper due diligence, organisations can ensure their sustainability efforts contribute meaningfully to carbon-zero goals. Integrity is essential, and the time to act is now. Only through robust measures can procurement safeguard its reputation and deliver on the promise of authentic sustainability in housing.
