June 5, 2025 Driving Sustainability Metrics into the RFP Process

Today, manufacturers can build sustainability into the RFQ process to ensure that suppliers conform to increasingly rigid standards.

By Dan Meyer

Since the rise of industrialization more than 200 years ago, manufacturing has never been more closely scrutinized or more tightly regulated. Senior management is searching to become lean and more productive. Investors are looking for a greater return on investment, and consumers want quality and innovation at a comfortable price point.  And, as if achieving these goals wasn’t difficult enough, all of this must be achieved with a watchful eye on sustainability.

This article from Deloitte Insights highlights the evolving global landscape of sustainability regulations. As stakeholders increasingly demand transparency and accountability regarding Environmental, Social, and Governance (ESG) practices, regulatory bodies are responding with new frameworks and requirements. Key trends include a focus on climate risk disclosure, supply chain sustainability, and the integration of ESG factors into corporate governance with failure to comply resulting in financial risks.

Steps Toward Sustainability

According to the United States Census Bureau, data from the International Database puts the global population at roughly 8 billion and rising. With this growth comes an increased demand for goods and products. Unfortunately, as manufacturing output intensifies, so does its effect on the environment.

Common significant environmental footprints in discrete manufacturing include:

• Material Consumption: The current demand alone exceeds 1.75 of Earth’s capacity. 
• Energy Consumption: 54% of global energy consumption is by manufacturing and production sectors.
• Waste: Only 18% of e-waste and 6% of discarded plastic is recycled. Although aluminium can be infinitely recycled, 7 million tons are not recycled each year.

Because industrial activities are directly responsible for a sizeable portion of global emissions, pollution, and resource depletion, government agencies, industry watchdogs, and consumers are holding manufacturers increasingly accountable for their carbon footprint. Companies are being asked to assume a leading role in building a sustainable future and many are doing just this by integrating sustainable practices, such as energy efficient technologies, renewable energy sources, and waste minimization strategies. But it doesn’t stop there as manufacturers are scrutinizing their extended enterprise and supply chain to ensure compliance.

Mike Troupos is Vice President at Foresight Management. The company provides sustainability and energy management services to manufacturers throughout such sectors as automotive, consumer packaged goods, furniture, aerospace, and more. Foresight’s services help manufacturers trace and quantify the carbon footprint of their operations as well as that of their supply chain. Troupos explained that while green stewardship initiatives, such as the Paris Climate Agreement, grab the headlines, sustainability programs are largely influenced at more regional levels and driven by the bottom line.

“For the majority of manufacturers what matters most is the regulatory landscape where local governments are concerned. Individual states are passing increasingly strict guidelines that must be followed for a company to conduct business in that state. California, for example, mandates greenhouse gas reporting and climate risk mandates for companies who want to do business there. Similar laws are being considered in Oregon, Washington, New York, and several other states.

And that’s just domestically, if you’re supplying internationally, the European Union, for example, has an incredible number of sustainability compliance mandates. For example, The Carbon Border Adjustment basically imposes tariffs on imported goods that are deemed to be high carbon. If you’re a sizable supplier who wants to grow and continue to operate in certain US states or Europe, then you’ve got to start taking sustainability seriously.”

Citing the findings associated with one large automotive OEM, Troupos says that most emissions live deep down in the supply chain.

“For every ton of carbon that this manufacturer omits, their supply chain omits 11 tons. So, even if this OEM decarbonized tomorrow, that’s just less than 10% of the total carbon emission associated with that company’s products. As a result, OEMs are setting reduction goals for greenhouse gases and carbon for their Tier 1 and Tier 2 suppliers as well as those who supply to these manufacturers.”

Supply Chain Through a Sustainability Lens

With sustainability being placed on the lap of manufacturers, supply chain traceability is becoming mandatory. Historically, supplier evaluations and metrics were confined within quality organizations. However, sustainability’s roots have quickly spread into other parts of the organization, becoming a strategic business driver.

Where price and delivery have long been the predominant factors in securing a contract, proposal requests from manufacturers increasingly include environmental targets. Consequently, sustainability data must be widely accessible as sales organizations are not only tasked with accelerating the creation of accurate, timely, and profitable quotes; but are now asked to include sustainability metrics.

Sustainability metrics must be transformed into actionable information allowing data to be leveraged toward sales goals, environmental initiatives, supply chain optimization, and higher profit margins.

The bottom line is this, for manufacturers, sustainability is only sustainable when it aligns with production and product targets, contributes to financial goals, and is seamlessly integrated into existing workflows.

Integrating Sustainability Metrics into RFPs

With environmental responsibility becoming an integral part of procurement, manufacturers are increasingly expected to incorporate sustainability metrics into decision-making processes. A key opportunity for companies to improve their environmental impact lies in embedding sustainability metrics within the Request for Proposal (RFP) process. This empowers manufacturers to assess suppliers not on cost and quality alone, but also on carbon footprint, energy efficiency, waste management, and resource utilization. Such a data-driven approach allows procurement teams to evaluate potential partners based on their alignment with corporate sustainability goals.

Key is the ability to aggregate critical sustainability data from spreadsheets, Excel files, and commercial ESG applications, and applying advanced analysis to attribute metrics directly to specific parts. Indicators, such as CO2 emissions, water usage, energy consumption, and waste output, can be analyzed to support responsible sourcing, costing, and quoting decisions.

Turning Data into Actionable Insights

Correlating plant-level sustainability data directly to individual components provides a granular view of environmental impact allowing manufacturers to generate quotes and select suppliers based on known sustainability metrics, aligning procurement decisions with broader environmental goals. Additionally, predictive analytics help organizations model the long-term environmental effects of supplier choices.

This foresight supports the adoption of greener materials and manufacturing practices, helping companies proactively align their supply chain strategies with their sustainability objectives.

Optimizing the Supply Chain for Environmental Impact

Manufacturers using Campfire software for quote management benefit from faster, more accurate, and more successful quotes. This efficiency frees up time to make quotes more competitive factoring in key considerations like sustainability.

With real-time data from production, engineering, and supply chain logistics, companies can assess how operational choices impact environmental outcomes. For example, detailed material cost and availability analysis enables manufacturers to prioritize sustainable sourcing without compromising profitability. Additionally, opportunity management and sales forecasting help minimize overproduction and waste by aligning production with demand leading to more efficient resource use and lower emissions from unnecessary transportation.

A Data-Driven Path to Sustainability

Capturing critical data from a product’s Bill-of-Materials offers a complete lifecycle assessment from raw material extraction through production, usage, and disposal. This enables companies to measure emissions accurately and report sustainability scores to OEM customers.

For those looking to elevate their environmental performance, predictive analytics can be used to model long-term environmental impacts of supplier choices. By embedding sustainability considerations directly into the RFP process, organizations can prioritize environmental stewardship alongside profitability and operational efficiency.

Sustainability Transformation

Empowering manufacturers to measure, compare, and select suppliers based on comprehensive environmental metrics allows companies to drive both profitability and positive environmental outcomes. For organizations committed to reducing their carbon footprint and embedding sustainability into their core operations, this helps turn these ambitions into actionable strategies.

The global movement to mandate sustainability is quickly approaching; and companies must verify conformance against the highest standards. Forward-thinking manufacturers are taking steps to proactively demonstrate ecological and social leadership.

Manufacturers must embrace sustainability not just for compliance, but as a vital component of long-term success and resilience in a rapidly changing regulatory environment. Incorporating sustainability metrics into the RFP process is a growing priority for companies seeking to minimize their environmental impact. Now companies can embed sustainability criteria early in the product development phase, aligning project goals with environmental targets.

About the Author:
Dan Meyer is President & CEO of Campfire Interactive, Inc. The company’s solutions help manufacturers leverage the power of their own data (and external data feeds) to increase efficiency, throughput, and profitability.

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