Supply chain management has moved past the walls of the supplied and into the buildings of the suppliers. Companies have realized that their ability to manage their individual carbon emissions is certainly a worthy endeavor, but one that pales in comparison to the emissions of suppliers, which can represent up to 86% of supply chain emissions according to a new Carbon Disclosure Project (CDP) Supply Chain report.
The report from CDP Supply Chain looks at the result of a 2011 survey, which had 49 companies and 1,864 suppliers participating. The findings were largely encouraging, showing that 90% of respondents "have a climate change strategy with at least general guidelines for procurement," up from 74% in 2009.
Increasingly companies are pushing their suppliers to participate in the process, often using rewards to encourage participation. 62% of companies are now rewarding suppliers who track carbon emissions up from around 19% in 2009. Collaboration within the supply chain increases knowledge and can encourage transparency. In fact, it's evident on 2degrees, with projects like the Asda Sustain & Save Exchange and the Tesco Knowledge Hub.
The results of this report, along with case studies of what CDP Supply Chain member companies are doing, and the ways that your company can participate were explored in the webinar, "A New Era: Supplier Management in the Low-Carbon Economy" on April 3rd.
Dexter Galvin, Head of Supply Chain, Carbon Disclosure Project & Gary Hanafin, Global Sustainability Lead for Supply Chain, Accenture described The Carbon Disclosure Project Supply Chain Program and discussed how it can help companies transition to a low-carbon economy. It described what CDP Supply Chain member companies are doing to manage and reduce emissions in their supply chain, and discusses the 2012 Report's key findings.
Questions asked included:
Are members using CDP Supply Chain to calculate their scope 3 figure for upstream supply chain?
How are members going to encourage suppliers to actually reduce emissions?
- Do you have any examples of members deselecting suppliers?