Dive Brief:
- Environmental disclosure platform CDP has named 58 companies for their sustainability initiatives — twice the number it named last year. Among the companies are Apple, Coca-Cola, Honda, Johnson & Johnson and Nestle.
- CDP recognized companies that work with their suppliers to mitigate environmental risks across the supply chain. These efforts included disclosing water data, tackling deforestation and using recycled materials.
- CDP, along with analysis from McKinsey & Company, estimated companies saved $14 billion as a result of reducing emissions.
Dive Insight:
The number of companies recognized for reducing environmental risks has doubled since last year, and that indicates a sizable shift in company priorities toward sustainability.
Whether the motive is brand reputation, cost savings, the greater good or all of the above, companies are realizing the long-term benefits of sustainable practices and reduced emissions.
More importantly, they're doing this on their own without overarching regulations. One-third of the organizations on CDP's list are U.S. companies, despite the current administration's decision to withdraw from the Paris Climate Agreement.
Meeting sustainability goals is a supply chain wide issue that doesn't come without challenges.
Not only does a company have to ensure its own operations are eco-friendly, it also has to purchase from suppliers that use sustainable practices. In some instances, companies had to sever ties with a supplier that didn't meet their sustainability goals.
In addition, the logistics of moving goods must be done in a sustainable way. Greenhouse gas emissions on the supply chain are four times higher than the emissions from a company's direct operations, according to CDP.
The transport aspect may become trickier in coming months, as driver shortages continue to plague the trucking industry. The recycling market in particular suffers from the shortage, due to its relatively low priority of goods to be shipped.
