Major firms commit to supply chain carbon management

10 May 2010

10 May 2010 | Andy Allen

Leading businesses will increasingly refuse to purchase from suppliers who fail to manage their carbon emissions, according to a survey.

The annual Carbon Disclosure Project (CDP) Supply Chain Report, produced by management consultants AT Kearney, found that only 6 per cent of major organisations currently deselect suppliers for failing to manage carbon emissions. However, 56 per cent have committed to do so in the future.

The survey of CPD supply chain members, which include Dell, BAE Systems, Cadbury, Sony, IBM, Unilever and PepsiCo, found that 89 per cent had an established strategy to engage with suppliers on carbon-related issues.

Meanwhile, 90 per cent of these companies have an emissions or energy reduction plan in place.

But while a significant proportion of carbon emissions are typically found in the supply chain, only 20 per cent of these companies report figures for their own supply chain emissions.

Of the 710 suppliers who disclose carbon emissions to their customers through the CDP programme, 60 per cent have appointed a board member responsible for climate change. Fifty-six per cent have a carbon reduction plan in place and 38 per cent have committed to a clear target, according to the report.

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