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.

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.