Suppliers in US, Brazil, China and India least resilient to climate change risks

Lack of preparation currently leaves supply chains in Brazil, China, India and the US more vulnerable to climate risks than those in Europe and Japan. While, suppliers in China and India deliver the greatest financial return on investment to reduce their greenhouse gas emissions and demonstrate the strongest appetite for collaboration across the value chain. So finds new research from CDP, the international NGO formerly known as the Carbon Disclosure Project and Accenture.

The research, which also incorporates information from the United Nations’ World Risk Report, is based on data collected from 3,396 companies. Climate and water data disclosed by suppliers to CDP were scored and evaluated to create a sustainability risk/response matrix.   

“While climate and water risks are apparent, the implications for businesses and economies reliant on complex supply chain models are less understood,” said Paul Simpson, chief executive officer, CDP. “That multinationals are engaging with thousands of suppliers to better manage environmental challenges and opportunities is encouraging. These companies are catalyzing progress in response to global problems.”

“What is concerning is that, despite the increase in the number of companies assessing and reporting on their emissions, the data suggests that suppliers are making either marginal or no improvements in their development of sustainable supply chains capable of weathering climate risks and other natural disasters,” added Gary Hanifan, managing director, Accenture Strategy. “The good news is that as companies transform their supply chains into digital supply networks they will gain greater end-to-end visibility, traceability and access to information to report on their compliance progress and mitigate climate risks.”

The report also notes that suppliers in France, the UK, Spain and Germany – in that order – are identified as the most sustainable.

To view the full report click here.