Corporates drive supply-chain emissions awareness

Multi-national corporations are increasingly demanding emissions transparency in their supply chain, a new report by the Carbon Disclosure Project (CDP) has found.

The report found that 115 organisations, with a combined purchasing power of over US$3.3 trillion, requested environmental information from more than 5,500 of their key supplies.

Suppliers reported emissions reductions of 633 million metric tonnes of carbon dioxide – greater than the emissions of South Korea in 2017 – leading to collective cost savings of US$19.3 billion.

The Cascading commitments: Driving upstream action through supply chain engagement report is based on data collected by 5,562 supplies to some of the world’s largest companies, and reveals that sustainability is now a major factor in purchasing decisions for big buyers.

The report found that 73% of major purchasers are deselecting, or considering deselecting, existing suppliers based on their environmental performance. In addition, 63% are either currently using, or considering using, data from CDP disclosures to influence whether they contract with suppliers or not. This is in stark contrast to the 4% and 9% respectively, who were doing this a decade ago.

“In the ten years that we have been working with purchasing organizations we have seen a fundamental shift in expectations around business action on sustainability,” Sonya Bhonsle, Global Head of Supply Chain at CDP said.

“If suppliers continue to cascade good practices further down the supply chain, this has the potential to play a huge role in the rapid transition to a sustainable, low-carbon economy.”

The full report can be found here

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