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New report suggests half of suppliers to major companies fail to disclose actions to mitigate climate change

Author: Carbon Disclosure Project, Published on: 26 January 2016

"Companies blind to climate risks in half their supply chains", 26 Jan 2016

…[M]ajor companies…are establishing the extent to which impending climate regulation will impact their business. However, half their key suppliers fail to respond to requests for climate information, hindering efforts to understand and manage climate risk…75 multinationals representing over US$2 trillion in procurement spend work with CDP…to seek data from 7,879 key suppliers on their carbon emissions and climate risk strategies. Information was received from 4,005 suppliers, meaning 49% failed to fulfill their customers’ requests, creating a substantial blind-spot for those preparing for a carbon constrained world…[L]ess than half (45%) the participating suppliers have set a target to reduce their emissions…The new report…suggests that carbon emissions and climate management are increasingly factored into procurement decisions…The climate performance of suppliers that disclose to CDP improves with time…Regular disclosers are also better at realizing financial benefits...The report goes on to note various ways that purchasing organizations can improve the climate performance and risk management of suppliers...[Also refers to Coca-Cola Company, Dell, LEGO Group, L’Oreal, Unilever, and Walmart.]

Read the full post here

Related companies: Coca-Cola Dell L'Oreal Lego Unilever Walmart