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Survey: 56% of CDP Members May Cut Out Suppliers Who Don’t Manage Carbon

cdp2More than half (56 percent) of Carbon Disclosure Project members surveyed said that in the future they would cease doing business with suppliers that do not manage their carbon, according to the “Supply Chain Report 2010” (PDF) from the Carbon Disclosure Project.

Surveyed member companies included firms like PepsiCo, Dell, Google, IBM, Kellogg, HP and Unilever.

To assemble the report, 44 CDP member firms reached out to 1,402 of their suppliers. About 51 percent of suppliers responded to the survey, 7 percent declined to participate and another 42 percent did not respond.

The survey found that 38 percent of supply chain respondents have carbon reduction targets in place.

Most of those supply chain firms have short-term carbon reduction goals of about five years. More than 80 percent do not have goals beyond 2012.

About 62 percent of suppliers report Scope 1 emissions and 63 percent report Scope 2  emissions. Only 8 percent report Scope 3 emissions.

Twice as many supply chain firms are having their emissions data verified by third parties as last year.

Beginning this year, CDP also is requesting water-related data from 300 large firms in water-intensive industries.

For a look at the estimated annual carbon reduction of supply chain members, see the first chart below.

The second chart looks at the percentage of suppliers reporting exposure to regulatory and physical risks related to climate change.


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