Top social procurement trends businesses can't afford to ignore
Social procurement is when organisation's use their buying power to generate social value above and beyond the value of the goods, services or construction being procured.
It’s a lever to meet sustainability and ESG goals by incorporating diverse suppliers into their procurement strategies.
The social procurement marketplace has grown every year since FY18. $1.1 billion has been spent with certified social enterprise, and it's on the rise.
Here are the trends we're seeing.
Reground
Eco Catering
Business motivations are changing, ESG is leading the way
ESG has overtaken policy mandates as the primary reason businesses are joining Social Traders to use their business spend to deliver social impact.
In 2020, 54% of Social Traders members joined due to tender weighting or mandatory requirements. By 2024, that figure dropped to 42%.
The new number one reason? Alignment with ESG and sustainability goals, cited by 48% of businesses.
Social procurement is happening in new categories
Engineering, tech, training, and logistics are among the fastest growing spend areas. Social procurement isn't just catering or cleaning anymore.
Businesses are getting strategic about where social enterprise suppliers fit, and the results are striking.
- Engineering & tech services: $15k → $5.9M
- Training & education: $316k → $5.8M
- Transport & logistics: $220k → $2.4M
- Architecture & design: $80k → $2.0M
Trade Mutt
Miei
New industries are taking the lead
Energy is the fastest-growing sector, with new members joining Social Traders every year.
While property and infrastructure remain significant; banking and finance, consulting, education, transport, FMCG, and energy are now embedding social procurement as standard practice.
Momentum is building, business and government are doing more
64%
increased the number of certified social enterprises they spent with.
62%
increased their spend with certified social enterprises.
49%
of buyers increased the number of product/services categories of spend with certified social enterprise.
Social spend impact
Our members have spent $1.1 billion with certified social enterprises in the last seven years (FY18 - FY24), with $257 million spent in FY24 making it the highest on record (+8% YoY). Through the total cumulative spend, our business for good community has supported:
10,000
Employment outcomes
918,000
Training hours
$88.1 million
Community goods/services delivered
$13.1 million
Funds donated
56,500
Tonnes of waste diverted from landfill
Social performance leaders
These are the members generating social impact through their supply chain and have reported $1 million+ spent with certified social enterprises in FY24.
Business
Government bodies and projects
Guide to Social and Indigenous Procurement
We have collaborated with the Property Council of Australia and Supply Nation to create this guide.
It's a resource to effectively implement social procurement within your organisation. The first step, set clear objectives and building awareness among key stakeholders.
Define the benefits for your business and society, ensure alignment with your values and strategy, and secure a senior sponsor to drive engagement, all while leveraging existing resources and forming strategic partnerships.
Looking to start or enhance your social procurement journey?
Get in touch to find out how we can help.