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Supplier non disclosure hindering climate risk management

The largest ever study of climate change data from major corporates and their suppliers has uncovered a significant blindspot of supply chain risk.  

While leading companies such as Dell, Unilever and Walmart are establishing the extent to which impending climate regulation will impact their business, half their key suppliers are failing to disclose climate information, impeding efforts to understand and manage climate risk, finds a new study (produced by CDP and written in partnership with BSR).

The analysis has been created on behalf of 75 multinational purchasing organisations and assesses how prepared companies and their global networks of suppliers are for new regulation and carbon emission reductions following the UN's international climate deal.

Analysis of the suppliers that have disclosed demonstrates the scale of risk now facing companies: close to three quarters (72%) state that climate change presents risks that could significantly impact their business operations, revenue or expenditure. The majority (64%) of suppliers specifically identify climate regulation as a risk, with the most commonly cited consequences being fuel, energy and carbon taxes.

However despite the high perception of climate related risk, less than half (45%) the participating suppliers have set a target to reduce their emissions and just one third (34%) have lowered their GHGs in the past reporting year. 

Access the full report here.

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