Transforming global supply chains for social impact through the power of social procurement

“This report is a call to action for businesses, policymakers, and stakeholders worldwide. With contributions from organisations like the Global Alliance of Impact Lawyers, it provides the legal and strategic frameworks needed to integrate social impact into the heart of global supply chains—creating a more equitable, sustainable, and resilient future.”

Schwab Foundation for Social Entrepreneurship, January 2026

The Global Alliance of Impact Lawyers is proud to have contributed to the State of Social Procurement, a collaborative initiative by the Schwab Foundation for Social Entrepreneurship, bringing together 21 leading organisations on social procurement.

It highlights novel data on social issues in global value chains, provides insights into the business case for social procurement, highlights regulatory developments, and showcases how a maturing ecosystem for social procurement drives positive impact in over 10 countries and regions.

Between January 2023 and October 2025, social issues accounted for around 18% of more than 180,000 material global supply chain events, making them the second most significant source of disruption after legal and regulatory issues. Disruptions escalated from late 2024 and peaked in March 2025, when social risks reached their highest monthly level in the dataset.

These disruptions were driven primarily by labour strikes, protests, and worker demonstrations, often linked to livelihoods, working conditions, and cost -of-living pressures. At the same time, a shifting economic and regulatory environment, including increased
trade friction and tariff use, is intensifying strain across global supply chains, amplifying underlying social risks.

In this context, buying from social enterprises that prioritise fair work and community benefit is becoming increasingly critical for long-term supply chain resilience.

The State of Social Procurement 2026 captures these dynamics across 18 chapters contributed by 21 organisations, offering new insights into the ripple effects of public sector procurement regulation on private sector practice, expanded country and regional snapshots, and a new chapter on quick -start wins for companies beginning their social procurement journey.

Two -thirds of a company’s potential for positive or negative impact comes from its supply chain. FTSE 100 companies typically allocate an average of $12 million to their corporate social responsibility (CSR) budgets. But their procurement spending averages $5 billion, which holds tremendous potential for positive impact through social procurement – the process of buying from social enterprises and other, impact -first organisations.

Since the launch of the Rise Ahead Pledge two years ago, its 25 signatories have invested USD 525 million in social innovation. Social procurement is the leading investment category, representing 36 per cent of total spend.

The report emphasises the power of social procurement—purchasing from social enterprises that prioritise community benefits—as a pathway to resilience. It highlights regulatory developments likely to increase the demand for social impact investments and explores innovative financing mechanisms to support these interventions.

Featuring over ten country and regional studies, the report provides actionable insights from regions such as the US, Malaysia, Brazil, and Europe.

The data underscores the immense potential for transformation. While FTSE 100 companies allocate an average of $12 million to corporate social responsibility (CSR) initiatives, their procurement spending averages $5 billion—offering a vast opportunity to drive positive change through social procurement. With supply chains accounting for two-thirds of a company’s potential for impact, the strategic alignment of procurement practices with social impact goals is no longer optional—it is essential.

The Rise Ahead Pledge, backed by 25 organisations that have collectively invested nearly $100 million in social procurement, demonstrates the tangible benefits of this approach. By channelling resources into social enterprises, these leaders showcase how impactful and practical social procurement can be.