Charter members of the Carbon Disclosure Project’s Supply Chain Leadership Council are leading the way forward when it comes to fostering greenhouse gas emissions accounting and disclosure practices, emissions reduction targets and the formulation of climate change strategy across their multinational supply chain networks.

Back in January the CDP Supply Chain Council’s 12 founding members - leading manufacturers of global brand name products such as Cadbury Schweppes, Proctor & Gamble and Dell – launched Phase 1 of their program and began working to design and distribute a greenhouse gas emissions and climate change survey to their suppliers (see post).

Spanning 22 economic sectors including chemicals, computer components, food and beverage, and containers and packaging, the results were released today. Among the findings, suppliers are expecting extreme weather conditions to adversely affect their operations and hinder productivity. Ninety-six percent of the 144 suppliers that responded see greenhouse gas emissions regulation as a potential risk - taxes and emissions caps being the measures most commonly reported. That said, just 26% have established greenhouse gas reduction targets.

Survey Says

Though the majority of the suppliers to the CDP Supply Chain Council’s initial survey – predominantly medium- to large-sized companies - have not set greenhouse gas emissions reduction targets, more than one-third of the companies that responded have a member of their Board of Directors responsible for addressing climate change.

Fifty-eight percent report their Scope 1 and 2 emissions – their own fossil fuel use and electricity purchases. Twelve percent track their Scope 3, indirect, emissions, though many indicated that they run into difficulties trying to gather Scope 3 data.

Fifty-eight percent of respondents also identified reducing energy consumption as the best means of managing risks associated with climate change, according to the CDP’s media release.

Phase 2 in Motion
A second group of corporate members has joined the CDP Supply Chain Leadership Council. Among the new members are Carrefour, Colgate Palmolive, Heinz, IBM, Kellogg and Merrill Lynch, as well as Vodafone Johnson Controls and Juniper Networks.

Phase 2 of the Council’s was put into effect today with the aim of producing a second Supply Chain Leadership Collaboration request that is to be sent out to more than 1,000 suppliers with results expected to be announced in January 2009.

“CDP’s Supply Chain Leadership Collaboration shows how seriously some large corporations are taking the measurement of supply chain greenhouse gas emissions. It is only by asking suppliers the right questions that large corporations will be able to manage their supply chain emissions. Engaging with suppliers is a key first step to understanding carbon liability and to bringing about emissions reductions through the supply chain,” CDP CEO Paul Dickinson stated.

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