Dive Brief:
- CDP, the former Carbon Disclosure Project, announced that 89 companies, with a combined purchasing power of $2.7 trillion, have cut 434 metric tons of greenhouse gas (GHG) emissions from their suppliers, more than the total emissions in France in 2014, Supply Management News reported Monday.
- CDP noted that supply chains release approximately four times as much direct emission pollution as the rest of a company, making them the prime focus for global corporations seeking to reduce their carbon footprint.
- CDP, which analyzed the emissions of more than 4,300 firms around the world, believes far more improvement is possible, since only 22% actively engage with their suppliers to reduce emissions, and a mere 16% engage with suppliers to reduce water waste.
Dive Insight:
American supply chain companies who are concerned with reducing emissions have a number of methods available to help in achieving sustainability goals.
Companies that report a substantial emissions decrease are not only likely to exceed sustainability targets, but also earn credibility from stakeholders (and customers). Compliance is not merely enough; active steps beyond; it is the extra step past compliance that will establish the best credibility, as Inbound Logistics notes. Also, the ability to attach IT-based measurement systems to the process of carbon reduction supports sustainability performance through carefully analyzed data.
Ultimately, a company able to proactively identify areas of improvement in reducing its carbon footprint is better equipped and more credible when it shares information and goals with its suppliers, which will further encourage higher standards down the chain. Establishing partnerships with members of the supply chain, working toward a common goal and most importantly, utilizing the right metrics, can elevate a company mired in competition distinguish itself and the members of its supply chain.
