Supply chains are responsible for up to four times the greenhouse gas emissions of a company’s direct operations and yet half of major companies’ key suppliers don’t provide requested climate data to their corporate customers, according to a study produced by CDP and written in partnership with BSR.
The report also gives examples of ways companies can encourage supplier performance. It says L’Oréal works with CDP to create supplier climate scorecards that can be easily understood in the purchasing department.
Additionally, Coca-Cola and Lego Group are both experimenting with incentives and training for suppliers that aim to improve climate performance. Coca-Cola, for example, encourages suppliers to implement sustainable agricultural practices, reduce material used in packaging, and reduce the carbon footprint of vending machines. Lego Group LEGO Group is hosting “innovation camps” that the report says not only identify projects to reduce CO2 emissions, they also strengthen partnerships with suppliers.
Read more at How to Better Manage Supply Chain Climate Risks
Leave comments if you have any opinions about this topic and subscribe to get updates in your inbox.
