Suppliers to large multinationals are increasingly aware of the physical and
legislative risks to their business posed by climate change, but relatively few
have developed comprehensive strategies for curbing their carbon emissions.
That is the conclusion of the Carbon
Disclosure Project's first report from its
Supply
Chain Leadership Collaboration group, which is aiming to collect carbon data
from across the supply chains of some of the world's largest firms, including
Cadbury Schweppes, Dell, HP, Nestlé, Procter & Gamble, Tesco and Unilever.
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The companies in the group issued information requests for carbon data from
firms across their supply chains, including details of their carbon footprint,
emission reduction targets and climate change strategy.
Almost a 150 suppliers responded to the requests and of these 58 per cent
reported emissions from their own operations and the electricity they purchase,
while 12 per cent also reported indirect emissions that are a consequence of
their activities but originated in other sources.
Over 95 per cent of suppliers identified greenhouse gas regulation as a
potential risk, while 48 per cent that an increase in extreme weather conditions
arising from climate change would adversely affect their operations and prove a
drain on productivity. However, only 26 per cent claimed to have put in place
carbon emission reduction targets so far.
CDP chief executive Paul Dickinson said that the results represented
something of a "mixed bag", but proved that global supply chains are
increasingly aware of the risks and opportunities arising from climate change.
"There is a sense from the respondents that climate change is now a material
issue to them, it is just that not everyone is yet in a position to put together
a credible response," he said.
He added that with the first wave of multinationals signed up to the Supply
Chain Leadership Collaboration group having been recently joined by a raft of
new firms, including Carrefour, Heinz, IBM, Merrill Lynch and Vodafone, pressure
on suppliers to record and disclose carbon data is only going to increase. The
second round of information requests are set to be sent out to over 1,000 firms
and Dickinson insisted that more and more companies could expect to be asked to
respond to such requests.
"These multinationals are going to continue to write to these suppliers
year-on-year requesting this information and in the end they will have to come
round," he said. "We're like the Mounties – we will get our man."
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