The Carbon Disclosure Project (CDP) announced the first ever findings of its Supply Chain Leadership Collaboration, which assists Dell, HP, L’Oréal, Nestlé, Procter & Gamble, Tesco and other major corporations in measuring carbon risks and liabilities in the supply chain.
Each of these companies has a supply chain spanning multiple sectors and countries, which is generally responsible for the majority of their greenhouse gas emissions.
The CDP’s Supply Chain Leadership Collaboration requests information from suppliers on behalf of its members to gather carbon footprints and climate change-relevant information, including greenhouse gas emissions data, emissions reduction targets and climate change strategy. Below are some of the findings.
- The CDP said the 144 suppliers who responded to the information request were mainly large and medium-sized. 95 of these companies have never reported through CDP and for many suppliers this was the first time they addressed climate change issues.
- More than a third of companies have a member of the Board of Directors responsible for climate change.
Risks and Opportunities:
- 96% of suppliers identified greenhouse gas regulation as a potential risk.
- Suppliers foresee extreme weather conditions adversely affecting operations and slowing productivity.
- 58% identified reduction in energy consumption as the best means of managing climate change related risks.
- Only 26% have established greenhouse gas reduction targets so far.
Since concluding the initial phase of the CDP Supply Chain Leadership Collaboration, the founding members have been joined by new members including Carrefour, Colgate-Palmolive, Exelon Corporation, Fiji Water, Heinz, IBM, Johnson Controls, Juniper Networks, Kellogg Company, Merrill Lynch & Co., National Grid, SSL International and Vodafone.
On behalf of all the members, the second Supply Chain Leadership Collaboration information request is being sent out to over 1,000 suppliers. Suppliers include private companies and businesses based in China, where a significant number of suppliers to large multinationals are based. Findings will be announced in January 2009.
Paul Dickinson, CDP’s CEO, said: "CDP’s Supply Chain Leadership Collaboration shows how seriously some large corporations are taking the measurement of supply chain greenhouse gas emissions. It is only by asking suppliers the right questions that large corporations will be able to manage their supply chain emissions."
CDP is the world’s largest investor collaboration on climate change, with 385 institutional investors holding assets under management of US $57 trillion.
Current CDP Supply Chain Leadership Collaboration Members include: Cadbury Schweppes, Carrefour, Colgate-Palmolive Company, Dell Inc., Exelon Corporation, Fiji Water, Heinz, HP, Imperial Tobacco Group, IBM, Johnson Controls, Juniper Networks, Kellogg Company, L’Oréal , Merrill Lynch & Co., Inc., National Grid, PepsiCo UK & Ireland, Inc., Procter & Gamble Company, Reckitt Benckiser, SSL International, Tesco, Unilever, Vodafone Group.
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