Carbon Disclosure Project Supply Chain, UK
Climate change has become a mainstream business issue and large corporations are now extending their gains in internal carbon management to the next opportunity: their supply chain. An organisation’s supply chain can represent as much as 86% of its total emissions and, in the past year alone, 30% of Carbon Disclosure Project (CDP) Supply Chain member companies reported supply chain disruptions due to weather-related incidents.
The business case is strong and growing: suppliers that do not measure, quantify, and manage their GHG emissions will soon see their business move to competitors that can provide better information and clearer evidence of change. Supply chain engagement can help mitigate these risks and drive greater emissions reductions, as well as identifying new revenue opportunities and improved brand positioning. Cost reductions primarily come from energy efficiency measures, collaborative efforts in packaging, logistics, and other functions.
Leading companies are now taking the risks and opportunities that climate change presents seriously by directly engaging their suppliers. The CDP Supply Chain program enables member organisations to implement successful supplier engagement strategies, reduce supply chain emissions and manage risk in a changing climate. CDP works with many of the world’s largest organisations, such as Walmart, Dell and L’Oréal, to drive action on climate change from purchasing companies and their suppliers.
CDP Supply Chain makes a win-win scenario a reality: both the purchasing organisation and their suppliers benefit because relationships with suppliers are strengthened and suppliers improve their capacity to operate in a low carbon economy. Executed correctly, supply chain engagement will not simply generate benefits for the environment, but for the balance sheet as well.