The number of companies calling on their supplier to disclose environmental data to CDP has increased by 24% in a year, with more than 150 organisations now taking proactive steps to gain more understanding of the environmental impacts of their supply chains.
CDP announced today (20 May) that companies including Sainsbury’s, Nike, Ørsted and the New York Metropolitan Transport Authority have joined the likes of Walmart, Microsoft and Japan’s Environment Ministry in requesting supplier data on environmental impacts related to climate change, deforestation and water security.
CDP’s global director of corporations and supply chains Dexter Galvin said: “The current Covid-19 pandemic and its economic fallout has shown that building resiliency into our global supply chains has never been more vital.
“Global corporations have supply chains that wrap around the globe, touching millions of people, and by holding the purse strings they have the power to drive impact at scale – incentivizing a behaviour shift in the companies that supply them.”
More than 30 large purchasing companies have started working with CDP this year to help with supply chain management. It brings the total number to more than 150 organisations, with a combined procurement spend of more than $4trn. It is a more than 20-fold increase on 2008 levels. Requests for information have been issued to more than 15,000 suppliers this year.
CDP has found that the average company’s supply chain emissions are estimated to be around five-and-a-half times greater than those generated by their direct operations.
If key suppliers to the world’s largest corporations used 20% more renewable energy than they do at present, one billion metric tonnes of greenhouse gas (GHG) emissions would be mitigated, according to CDP.
Across all of the suppliers analysed, the average proportion of electricity sourced from renewables annually stands at 11%. CDP found that if this proportion were increased to 31% and energy efficiency measures implemented more rapidly and holistically, one billion metric tonnes of GHG emissions could be mitigated within a year.