Sustainable procurement involves integrating environmental, social, and economic considerations into purchasing decisions to minimize negative impacts and promote long-term value. It emphasizes sourcing goods and services that are environmentally friendly, socially responsible, and economically viable. This approach helps organizations reduce their ecological footprint, support ethical labor practices, and foster innovation. Financial risk in procurement arises from factors like resource scarcity, regulatory changes, reputational damage, and supply chain disruptions. By adopting sustainable procurement practices, organizations can mitigate these risks. For example, choosing suppliers with strong environmental compliance reduces exposure to fines and sanctions. Similarly, prioritizing ethical suppliers limits reputational risks associated with labor abuses. Sustainable procurement also enhances supply chain resilience by encouraging diversification and long-term supplier relationships. Overall, sustainable procurement aligns financial risk management with corporate social responsibility, ensuring that procurement decisions support both profitability and sustainability goals. This integrated approach helps organizations safeguard their financial performance while contributing to broader environmental and social objectives.