Title: Sustainable Procurement Financing and Supply Chain Performance: A Paradigm Shift towards Sustainable Development
Authors: Arimie, Biebele Emmanuel, PhD, Bamson, Tamunoene Jones, PhD
Volume: 9
Issue: 11
Pages: 174-179
Publication Date: 2025/11/28
Abstract:
This paper reviewed literature on sustainable procurement financing and supply chain performance, and introduces sustainable procurement financing as a transformative paradigm to bridge the gap between procurement's function focus on cost and quality, in relation to finance's function concentration on liquidity and risk in an organization, which had created procurement financing gap for sustainability, vis-a-vis supply chain performance. Departing from prior research that primarily uses financial and operational metrics, this paper proposes a novel triple-framework for measuring supply chain performance through the lens of sustainable development, which includes operational cost, carbon emissions, and community relations. The review demonstrates that sustainable procurement financing mechanisms such as green bonds, sustainability-linked loans, and green supply chain finance can directly optimize operational expenditures, mitigate environmental impact, and foster robust community stakeholder relationships. The findings posit that sustainable procurement financing is not merely a funding mechanism but a strategic capability that generates long-term value, resilience, and a sustained competitive advantage. The paper concludes with pragmatic and actionable recommendations for practitioners, policymakers, and future research to operationalize this paradigm.