Sustainable procurement yields returns

26 January 2011

26 January 2011 | Lindsay Clark

About half of large businesses have saved money as a result of carbon management programmes in their supply chains, according to a report out today.

The research also found that, in 2010, 86 per cent of companies reaped commercial benefits from working closely with suppliers to improve performance and mutual return on investment, up from 46 per cent in 2009.

The Carbon Disclosure Project 2011 Supply Chain Report, by management consultants AT Kearney, is the result of interviews with 57 global companies and 1,000 suppliers. It found that 50 per cent of large businesses and 25 per cent of their suppliers reduced costs by managing carbon in the supply chain.

Around half of greenhouse gas emissions come from supply chains, the report said.

Daniel Mahler, AT Kearney partner and study co-leader, said: “Forward looking corporate executives are realising that the implementation of carbon emission reduction programmes deliver significant economic and strategic benefits for their organisations. Close collaboration with suppliers on these efforts multiplies the benefits.”

More than 79 per cent of the companies in the study are now employing a formal climate change strategy, which has increased from 63 percent in 2009.

Meanwhile, more businesses are training procurement staff in supply chain carbon management, up to 41 per cent in 2010 from 26 per cent a year earlier.

The Carbon Disclosure Project is a not-for-profit organisation that claims to hold the largest database of corporate climate change information in the world.

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