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Why Firms Aren’t Spending on Supply Chain Emissions Cuts

coal power plantCompanies are increasingly recognizing climate risk in their supply chains, but investment in emissions reductions programs is going down, according to research by CDP and Accenture.

The firms say the research establishes a “clear link” between stalling progress on emissions reductions within supply chains and the uncertain regulatory framework.

According to the CDP Global Supply Chain Report 2014, Collaborative Action on Climate Risk, more companies are reporting on their emissions reductions programs and there are clear financial benefits from investment in sustainability measures. However, average monetary savings from emissions reductions efforts have fallen 44 percent in the past 12 months. The report points to an ever widening gap — highlighted last year — between measures taken by large corporates that are members of CDP’s supply chain program and those by suppliers.

The research is based on information from 2,868 companies including some of the world’s largest firms. These produce some 14 percent of 2013’s global industrial emissions.

Photo Credit: Pollution via Shutterstock



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One thought on “Why Firms Aren’t Spending on Supply Chain Emissions Cuts

  1. It is important to understand the differences between a corporate’s emission reduction efforts and those of a supplier. There may be significaant differences and the conclusion that a gap exists is being drawn from an apples to oranges comparison. There is a huge difference between a MNC purchasing green energy, running commuter reduction programs, etc. and a supplier reconfiguring its production lines, altering its transportation methods or changing its direct materials supplies. It is also much harder for suppliers to make these investments when the brand customers are retaining the lion’s share of the profits.

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