The HVACR industry has experienced rapid changes in recent years. These changes
– covering regulations, refrigerants and rebates – have pushed industry professionals to rethink how they approach sustainability. The effects of climate change, backed by governmental policy, have accelerated the need for energy-efficient systems that can help to support sustainability goals and reduce energy costs. Moving into 2024, workforce challenges and continued supply chain disruptions
are a cause for concern, particularly when companies have more and more pressure to focus on sustainable and ethical practices and products. So, why is ethical procurement so important and how can HVACR professionals effectively integrate it into their processes? 

Ensuring that products are procured in a responsible and sustainable manner, emphasising fair treatment
of workers, minimal environmental and social impacts, and adherence to specified standards throughout the supply chain, are vital steps in sharing a brand’s commitment to ethical practices, as well as protecting reputation and staying competitive. Far from being just a strategy to mitigate business risks, protect brand integrity or to sidestep superficial environmental claims, ethical sourcing offers businesses a distinct edge over their market peers. 

As sustainability becomes a global corporate mandate, organisations are making bold commitments to decarbonise building operations and conserve resources. In a recent study conducted in conjunction with Forrester Research, 2,348 business leaders were surveyed to better understand how organisations are prioritising and investing in sustainability. The survey revealed that 80% of respondents cited implementing or maturing sustainability efforts as their top priority and, for most, 2024 was the target date for achieving these goals. 

In the HVACR industry, CPOs have recognised the need to evolve their procurement practices and consider ethical and sustainable options when acquiring heating, ventilation and air conditioning systems and equipment for residential, commercial and industrial purposes. With governments making regulatory changes, advances in technology and consumers demanding that organisations implement ethical and sustainable practices that resonate with their own ethical position, a CPO’s worth has never been more valued. Residential as well as commercial customers now expect more than just comfort from their HVACR systems — they want healthy, energy-efficient homes and buildings that are aligned with environmentally responsible practices. 

There is a push towards decarbonisation and electrification in the industry, driven largely by unstable energy costs, legislation and climate change. As a result, there is a need for renewable energy sources and demand for high-efficiency HVACR systems, including the adoption of heat pumps across all sectors. The opportunity for sustainable implementation is considerable, with the use of renewable energy sources, such as solar or geothermal energy. These sources require minimal fossil fuels and can reduce the amount of greenhouse gas emissions significantly. 

According to Middle East HVAC Market Overview 2024-2028, the Middle East HVAC market is poised for significant expansion over the next few years, driven by increasing demand for energy efficient and sustainable cooling solutions. This growth can be attributed to several factors, including rapid urbanisation, a burgeoning construction industry and rising temperatures
due to climate change. In response, governments across the region have introduced stringent regulations to promote the use of energy-efficient HVAC systems, further propelling market growth. 

As the industry evolves, HVACR CPOs face critical decisions about
how to integrate their current strategy to become more ethical, and should consider how to generate internal commitment. If they haven’t already, businesses should be developing, and adhering to, an ethical strategy or code of conduct. Being able to demonstrate that you have policies in place to keep your business and your supply chain free from fraud and corruption and that your business endeavours to source sustainably, wherever possible, is vital for CEOs and CPOs today. 

An ethical code of conduct
should cover a range of issues. For procurement professionals, all suppliers should be treated fairly at all stages 

of the procurement process. Buyers should discourage the unfair use of buying power or influence and must
not tolerate corruption in any form. Social responsibility is a key aspect and should address freedom of association, health and safety, abolishment of child and forced labour, excessive working hours and discrimination. 

In addition to ethical conduct, policies around sustainability should address environmental issues such
as pollution, carbon emissions, deforestation, recyclable materials, energy usage and end-of-life disposal to minimise the impact on the planet.
It is here that HVACR CPOs can make a substantial difference. CPOs can
look to innovative new technologies that increase energy efficiency and decarbonise heating, cooling and ventilation while creating healthy indoor spaces. Combining solutions for air 

onditioning, cooling and heating needs can now be offered using
heat pump technologies and natural refrigerants like CO2 and ammonia. These technologies are highly efficient compared to conventional technologies using HFCs/HCFCs. They also provide a sustainable and long-term solution. 

As the HVACR industry continues to innovate to make products more energy efficient, durable, repairable, recyclable and as having reduced environmental impacts, insightful CPOs will embrace the shift and lead companies into a sustainable and positive future