Suppliers lack carbon awareness

16 March 2009

16 March 2009 | Martha McKenzie-Minifie

Many suppliers to big business lack awareness about the risks to their operations of climate change, authors of a global survey have found.

In the first global collaboration on climate change between major organisations and their suppliers, the Carbon Disclosure Project (CDP) surveyed 634 suppliers to major companies, including Cadbury, Tesco, Vodafone and Johnson & Johnson.

It found 58 per cent of suppliers believed climate change posed a risk to their business, while a third said it posed no risk.

Long-term supply risks identified include water scarcity and associated cost volatility.

"Procurement teams need to understand which procurement categories may be exposed, and then develop sourcing strategies to mitigate the risks. If done well, businesses can help secure future supplies and ultimately their long term viability."

Vodafone said: "For us this is about encouraging suppliers to manage carbon and supporting their development."

Up to 60 per cent of greenhouse gas emissions were outside the direct control of organisations and found within the supply chain though processing, packaging, transport and other activities, the CDP said.

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