Carbon Disclosure Project reports more focus on carbon reduction in supply chain

The Story

Depending on the product type but typically most of the carbon footprint of an average corporation’s carbon emissions is typically from its value chain rather than within its own four walls. Managing supply chain emissions is therefore critical in addressing climate change effectively.

The Carbon Disclosure Project’s Supply Chain program is a unique collaboration of 57 global corporations who are members of CDP Supply Chain. These companies recognize the significance of the supply chain in carbon management. They are actively engaged in working with their suppliers to manage carbon and have the power and influence to really make a difference.

Some of the conclusions over 2010 (compared to the report 2009:

1. Supplier carbon reduction ambition still does not meet global carbon reduction requirements to limit the rise of global surface temperature. Only one third of responding suppliers have a target for carbon reduction and even the targets that are in place are not sufficient. Should this status continue, this would mean global emissions by 2015 will increase by 6% instead of the necessary 20% reduction.
2. But there is hope… Compared to last year, companies have improved in assembling the building blocks for dramatic change – including improved reporting, increased board level responsibility and greater realization that carbon management presents a wider cost and revenue opportunity rather than being a pure risk mitigation activity.
3. CDP Members are leading the way – they have started a chain reaction for engagement in the supply chain – they are increasingly using their influence and power to drive change. More suppliers are jumping on the train. (69% compared to 60% of a year ago with a larger group of corporations)

They come up with a format for how to deal with suppliers depending on own and supplier’s power.

Interesting piece. Note of myself; have a look at a typical product/service life cycle analysis first to have a look where it is most effective to start, it is the way to find out where your carbon, and other environmental, weaknesses lay.

Images

Levers for supplier engagement

Levers for supplier engagement

By Carbon Disclosure project