CDP Supply Chain – Supplier Engagement for Carbon Management and Cost Reduction

Posted on August 2, 2011 by

The Carbon Disclosure Project 2011 Supply Chain Report, that was released earlier this year shows that leading global organizations and their suppliers are seeing cost savings as a result of implementing carbon management activities. The CDP Supply Chain Report analyzes 57 leading global organizations (listed below) and more than a thousand suppliers to these organizations. The report states that more than half the large businesses and more than a quarter of their suppliers saved on costs through targeted supply chain engagement activities.  Supply Chain is getting increasing attention as organizations realize that they account for more than half the total carbon emissions.

PepisCo, through its carbon management strategy and proprietary energy assessment could find more than $60 million energy saving opportunities and achieved the energy intensity by 16%. With this understanding, technology and benchmarks – it engaged with and educated the suppliers, helping them save costs and thus get cost savings in buyings as well.

The report shows some encouraging numbers including

  • The share of CDP Supply Chain members that have a formal climate change strategy rose from 63% in 2009 to 79% in 2010.
  • Around 45% of the businesses tracked and reported their supply chain emissions in 2010 against 22%.
  • 17% of the CDP Supply Chain member organizations included carbon management criteria in their supplier selection.

With organizations such as Walmart soon institutionalizing sustainability and related facets in its supply chain, these numbers would rise further.

List of CDP Supply Chain Members

Accenture; Acer Inc.; Asustek Computer Inc; Banco Bradesco S/A; Bank of America; Barclays; Baxter International Inc.; Becker Underwood; Biogen Idec Inc.; BT Group; Kraft Foods; Chicony Power Technology Co.,Ltd. (DongGuan); Colgate Palmolive Company; Coloplast A/S; ConAgra Foods, Inc.; Danone; Dell; Diebold; EADS N.V; Elopak; EMC Corporation; Endesa; ENEL SpA; eni;Hynix Semiconductor; Imperial Tobacco Group; International Business Machines (IBM); Johnson & Johnson; Johnson Controls; Juniper Networks, Inc.; KAO Corporation; Kellogg Company; Kimberly-Clark Corporation; L’ Oreal; Logica; Merck & Co., Inc.; Millipore Corp.; Molson Coors Brewing Company; National Australia Bank; National Grid; Nestle; PepsiCo, Inc.; Philips Electronics; Reckitt Benckiser; Rolls-Royce; Royal Mail Group; Sony Corporation; Unilever; Vivendi Universal; Vodafone Group; VT Group.