CDP: 96% Of Suppliers See Climate Change Regulation As Potential Risk

May 1, 2008

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The Carbon Disclosure Project has announced findings of its Supply Chain Leadership Collaboration.

Cadbury Schweppes, Dell, HP, Imperial Tobacco, L’Oréal, Nestlé, PepsiCo UK & Ireland, Procter & Gamble, Reckitt Benckiser, Tesco and Unilever all work through CDP’s Supply Chain Leadership Collaboration to measure carbon risks and liabilities in the supply chain.

Supply Chain Leadership Collaboration Findings

Emissions reporting:
• 58% of responding suppliers report their scope 1 and 2 emissions (supplier’s own fossil fuels burnt and electricity purchased). The majority of these suppliers are large or medium sized.
• 12% of suppliers report that they track scope 3 emissions (indirect emissions that are a consequence of your company’s activities, but which arise from sources that are owned or controlled by others).
• Many suppliers indicated difficulty in accessing scope 3 emissions data.

Risks and Opportunities:
• 96% of suppliers identified greenhouse gas regulation as a potential risk.
• Taxation and emissions limits are the most commonly reported risks.
• Suppliers foresee extreme weather conditions adversely affecting operations and slowing productivity.
• 58% identified reduction in energy consumption as the best means of managing climate change related risks.
• Only 26% have established greenhouse gas reduction targets so far.

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