In order for observables like scattering amplitudes to be finite, one must implement a renormalization scheme for parameters like the mass $m$, the coupling $\lambda$, and the field $\phi$.
Question: Why isn't the renormalization of the composite operator $\phi^2(x)$ part of the usual renormalization procedure as well? Since its renormalization is required for calculating matrix elements of, say, the energy-momentum tensor, and because of the $\frac{1}{2}m^2\phi^2$ term in the Lagrangian, I don't understand why its not needed.
I imagine it must not be necessary for rendering the S-matrix finite, so I suppose I'm more so confused as to why the $\phi^2$ in the lagrangian isn't a problem, but $\langle \phi^2\rangle$ is. The two-point function is an integral part of the mass renormalization, and it seems like $\langle \phi^2\rangle$ is just just local limit of that. Since this local limit looks like a bubble diagram which doesn't contribute to the S-matrix, maybe that has something to do with it?
I have a follow-up question, though I understand if this post is long enough: If the lagrangian is $$\mathcal{L}=\frac{1}{2}\partial_\alpha\phi\partial^\alpha\phi-\frac{1}{2}m^2\phi^2+V(\phi)$$ Could you renormalize just the field $\phi$ for the kinetic term $\partial_\alpha\phi\partial^\alpha\phi$, renormalize $\phi^2$ for the mass term, and then whatever composite operator the interaction lagrangian is described by?