CDP Supply Chain Report 2012

Supply chain thinking enables managers to understand that indirect greenhouse gas emissions (i.e., those from the supply chain) often represent the lion’s share of a company’s total emissions. The Carbon Disclosure Project (CDP) has now published its Supply Chain Report 2012. CDP Supply Chain members are about 50 companies who are requesting climate information from their suppliers. The report reveals that a majority of these companies reward “suppliers that employ good carbon-management practices” and that many of these companies will soon begin to deselect suppliers, if they don’t adopt such measures. Moreover, these companies increasingly factor climate change into the evaluation of suppliers. It has been found that many companies have benefited both from own emission reduction activities and from their supplier’s reduction activities. The report warns that suppliers will soon “see their business move to competitors that can provide better information and clearer evidence of change”, if they do not measure, quantify, and manage their greenhouse gas emissions.