Supply chain data pressure

28th April 2015


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  • Business & Industry ,
  • Management ,
  • Supply chain ,
  • Procurement ,
  • Corporate governance

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IEMA

More businesses than ever are demanding disclosure of climate change data from companies in their supply chain, according to CDP.

Twelve organisations have joined the NGO’s supply chain group this year. They include vehicle manufacturers Toyota and Volkswagen, and breakfast cereal business Kelloggs.

The US government’s leading procurer of goods and services, the General Services Administration, and US-based trade body the Electronics Industry Citizenship Coalition are among new non-corporate members.

The World Resources Institute has also signed up, having reported voluntarily for the past two years.

There are now 72 members of the supply chain group, with 14 based in the UK, including BAT, Jaguar Land Rover, KPMG, Vodafone and Unilever. Three companies, Italian oil and gas company ENI, Brazilian food processor Marfrig and Canadian paper manufacturer Domtar, did not renew their membership. The combined spend of members has almost doubled from US$1.3 trillion in 2014 to US$2 trillion in 2015.

Members have requested data on greenhouse-gas emissions and other risks from almost 8,000 suppliers, up from 6,500 in 2014, CDP says. Dexter Galvin, head of CDP’s supply chain programme, said: “These corporations want to maintain robust supply chains in a climate-changed world. We are seeing that decision making in procurement is changing.”

CDP sent out its supply chain questionnaire in April. Last year's survey found that members of the group were leaving their suppliers behind. For example, whereas 34% of members had set both absolute and intensity-based emissions reduction targets, just 7% of suppliers had done so. More than one-third of suppliers reported no documented processes for assessing climate risks.

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