May 1, 2008

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

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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