Scaling up sustainable supply chain practices
The number of companies forging ahead with an industry-leading approach to tackling emissions in the supply chain has doubled in a year, according to CDP’s Global Supply Chain Report 2018. But despite a high awareness of climate-related risks, this leadership is not yet spurring widescale action down the supply chain, leading to missed opportunities for cutting emissions and costs.
Emissions located in the supply chain are around four times as high as those from direct operations. To meet the goals of the Paris Agreement, we need action at every level of the supply chain.
A growing group of companies are leading the way. This year, CDP’s Supplier Engagement leader board recognizes 59 organizations for their work to reduce emissions and lower environmental risks in their supply chain, double the 29 in 2017. The leaders include Ajinomoto, Bank of America, Kellogg Company, Nestlé, Panasonic, Rolls Royce, Sky, Tokyo Gas Co. and Unilever.
Innovative solutions to address climate change are available right now; I am pleased to see that an ever-increasing number of companies reporting to CDP are integrating sustainability-thinking into their business models.Patricia Espinosa, Executive Secretary, United Nations Framework Convention on Climate Change, who has written the foreword in the report.
Over three quarters (76%) of suppliers responding to CDP identified some inherent climate change risks and just over half (52%) report that they have integrated climate change into their business strategy.
There is huge potential for this growth in awareness to lead to cost savings from reductions in carbon emissions.
Large portions of the global supply chain network remain untapped, with less than a quarter (23%) of CDP’s supplier respondents engaging with their own suppliers to reduce emissions, and even less engaging on water security and deforestation..
While some markets, such as France and Japan forge ahead, others are still lagging, missing out on the business opportunities, financial savings and environmental progress.
Adobe Systems, Inc.
Advanced Micro Devices, Inc
Ajinomoto Co. Inc.
Bank of America
Coca-Cola HBC AG
Companhia de Concessões Rodoviárias - CCR
Cisco Systems, Inc.
Daikin Industries, Ltd.
Hankook Tire Co Ltd
Hewlett Packard Enterprise Company
Honda Motor Company
Johnson & Johnson
Juniper Networks, Inc.
Konica Minolta, Inc.
Koninklijke Philips NV
NRG Energy Inc
Pacific Market International
Philip Morris International
Red Eléctrica S.A.U.
Reynders Label Printing
Taiwan Semiconductor Manufacturing
TD Bank Group
Tokyo Gas Co., Ltd.
Yokohama Rubber Company, Limited
CDP’s Supplier Engagement leader board recognizes these organizations for their work to reduce emissions and lower environmental risks in their supply chain.
Find out how you can engage your suppliers on climate change, deforestation and water security through CDP supply chain membership.
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