CDP Initiative Aims to Establish Carbon Reporting Across the Supply Chain

ppp028-pollutioncoalplantthailand.jpg Eleven of the world’s largest corporations have agreed to measure carbon dioxide emissions of several hundred companies in their supply chains as part of the Carbon Disclosure Project. The data will be used to develop comprehensive strategies to reduce CO2 emissions, according to a Jan. 20 CDP media release.
Each member of the CDP’s Supply Chain Leadership Collaboration (SCLC) will ask as many as 50 suppliers to complete a standardized request for information, one that is undergoing review and testing during this year’s first quarter. The CDP is aiming to substantially enhance the ability of large companies, as well as their supply chain partners, to develop carbon footprint reduction strategies by enlarging SCLC membership and eventually having tens of thousands of supply chain partners participate in the process.
“The Supply Chain Leadership Collaboration is a key step towards a unified business approach to climate change. By bringing together the purchasing authority of some of the largest companies in the world, CDP will encourage suppliers to measure and manage their greenhouse gas emissions. This will enable large companies to work towards managing their total carbon footprint, as the first step to reducing the total carbon footprint is to measure its size,” CDP CEO Paul Dickinson stated.

Expanding Carbon Disclosure By Industry & Geographically
The CDP is a non-profit organization whose aim is to facilitate globally coordinated action by businesses to develop effective, efficient ways of reducing their carbon dioxide emissions and carbon footprints. Based in the U.K., it is a collaborative effort on the part of more than 315 institutional investors with more than $41 trillion of assets under management.
Representatives from Supply Chain Leadership Collaboration members are working together to create and establish a standardized approach of providing essential climate change information throughout their supply chains.
Dell, HP, L’Oreal, PepsiCo and Reckitt Benckiser recently became members of the CDP’s Supply Chain Leadership Collaboration, joining original members Cadbury Schweppes, Imperial Tobacco, Nestle, Proctor & and Gamble and Tesco, which joined last fall. The CDP has been working on a similar initiative with WalMart for the past year.
As part of a pilot test, each SCLC member is working with as many as 50 suppliers in Q1 2008 to respond to the CDP information request, which includes information such as greenhouse gas emissions composition and volumes, emissions reductions targets and climate change strategies. Results will be fed back into and refine the development process in preparation for a full-scale roll out to CDP members and supply chain partners that is to begin in May. A report will then be released publicly.
The CDP has extended invitations to join the SCLC to other global companies in an effort to broaden and extend the carbon reporting and disclosure initiative’s sectoral and geographic scope. Representatives from key economic sectors that have thus far agreed to contribute include agriculture, building management, chemicals, electronics components, packaging and transportation.
This will be the first time that private companies and small- and medium sized businesses will provide data to the CDP, and it is also an important step forward in terms of involving Chinese companies in the process, as a large number of multinational suppliers are based there.

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