The world's largest companies cut CO2 from supply chains by 633 million metric tons. (CDP Report)

With greenhouse gas (GHG) emissions in supply chains an average of 5.5 times that of direct operations, a new report by CDP, a global non-profit platform for the disclosure of environmental information, reveals a step-by-step change in corporate awareness and action on environmental impacts in the supply chain in the last decade.

In 2018, 115 organizations with a combined purchasing power of more than US$3.3 trillion asked their key suppliers for environmental information from 5,500+. That's an increase ten years ago from just 14 organizations. Suppliers reported reductions in emissions of 633 million metric tons of carbon dioxide -higher than South Korea's emissions in 2017 [1] -resulting in savings of US$19.3 billion in collective costs.

The research finds that sustainability is now an important factor in purchasing decisions for some large buyers. Nearly three-quarters (73 percent) of a subset of 27 major buyers responding to a CDP survey said that they are either deselecting existing suppliers on the basis of their environmental performance or considering deselecting them. In addition, 63 percent are currently using data from CDP disclosures or considering using them to influence whether or not they contract with suppliers. This is in stark contrast to the four percent and nine percent who did it a decade ago. "In the ten years we've been working with purchasing organizations, we've seen a major shift in expectations about sustainability business action," said Sonya Bhonsle, CDP's Global Supply Chain Head. "leading buyers use disclosure to reduce the supply chain positively, with data playing an increasingly important role in their decision-making. Further down through the Supply Chain, suppliers can make a big difference in a rapid transition to a sustainable, low-carbon economy. However, with only 57 percent of suppliers reporting activities to reduce emissions, and less than half (47 percent) of suppliers reporting targets to reduce emissions, the change in the expectations of their customers means that

Post a Comment