There has been a 24% increase in large corporations asking suppliers to report on environmental data, according to non-profit CDP.
CDP, a climate research provider with a membership of more than 150 organisations with a combined procurement spend of over $4tn, said the increase was driven by demand from buyers, investors and consumers for greater transparency.
CDP’s membership grew 24% in 2020 year-on-year, with Nike, Airbus and Sainsbury’s among new joiners. CDP asks a total of 15,000 suppliers each year for data on issues including CO2 emissions, deforestation and water security, on behalf of members.
Dexter Galvin, global director of corporations and supply chains at CDP, told SM: “We use the power of procurement to get large suppliers to those organisations to disclose.
“There has been a lot more pressure on companies to be transparent and have a handle on what’s going on in their operations and the supply chain.
“There has been a move in society at large and that’s started to flow down into supply chains as consumers become more aware of the outsourced business models that exist.”
Jaycee Pribulsky, vice president, sustainable manufacturing and sourcing at Nike, said: “Engagement with our extended supply chain and manufacturing partners has been key to Nike’s climate strategy for over a decade. We are pleased to join CDP as a supply chain member this year to further support our suppliers in reducing emissions and strengthening their climate resiliency.”
Galvin said the coronavirus pandemic showed the importance of supply chain resilience and despite a “resource squeeze”, he believes long-term climate commitments “remain in place” for businesses.
“Global corporations have supply chains that wrap around the globe, touching millions of people, and by holding the purse strings they have the power to drive impact at scale – incentivising a behavior shift in the companies that supply them,” he said.
“With emissions in the supply chain being on average 5.5 times higher than a company’s direct emissions, the buyer-supplier dynamic will make or break whether our economy can reach net zero by 2050, as the science demands.”
Galvin added that deforestation had been shown to have played a part in the Covid-19 crisis.
“There is a correlation between deforestation and habitat loss and the increase of these cases of viruses in society,” he said.
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