Target, Tesco and CVS Health have joined Walmart in an agreement to collect data from suppliers, through non-profit CDP, regarding their overall environmental footprint. By asking suppliers to report on their environmental footprint, the retailers aim to reduce environmental risk and cut carbon emissions in their supply chains. The retailers are three of the new companies that have joined in the supply chain initiative through CDP: the total number of companies now reporting through CDP marks more than a 15% increase from last year, when 99 organizations were requesting data.
Other organizations which have begun requesting supplier data through CDP in 2018 include: AB InBev, Royal Bank of Canada, chemical companies Croda and Arkema, and the Los Angeles Department of W”after & Power.
Retail Leads the Charge
Commitments by the retail sector regarding supply chain sustainability is part of a wider surge of action from private and public-sector organizations, says CDP. Retail companies are acknowledging that they can harness their purchase power and global scale to tackle issues like climate change, deforestation and water security.
Emissions in the supply chain are on average four times greater than those from a company’s direct operations; for retailers and consumer-facing companies, that rises to seven times greater. Therefore, large multinational corporations cannot comprehensively address their environmental impact without looking to their supply chains, says CDP.
With increasing numbers of retailers requesting data from their suppliers, they can uncover hidden risks within their supply chains, which leads to opportunities for finding ways to reduce their overall environmental footprint.
This in turn, boosts innovation and cuts costs, says Sonya Bhonsle, head of supply chain at CDP.
Last year, Walmart announced it is working with suppliers to reduce emissions by 1 Gigaton by 2030.
Joining the Ranks
Tesco, CVS Health, and Target join many of the world’s leading companies in requesting supplier information through CDP. Others include Bank of America, Barclays, Dell, Imperial Brands, Juniper Networks, Microsoft, LEGO, L’Oréal, Novartis, NRG Energy, Phillips Lighting, Philip Morris International, Royal Phillips, the US General Services Administration, and Virgin Money Holdings.
In total, 115 organizations,representing a combined annual spend of more than $3.3 trillion – are now requesting data from over 11,500 suppliers. This is more than a 15% increase from last year, when 99 organizations requested data.