Supply Chain Management

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Carbon Disclosure Project Supply Chain Report 2009

Shared value: Managing climate change in the supply chain

Report written for Carbon Disclosure Project by:

Carbon Disclosure Project info@cdproject.net +44 (0) 20 7970 5660 www.cdproject.net

CDP Supply Chain Project 2009

CDP Supply Chain Project 2009 If you are interested in becoming a CDP Supply Chain member company, please go to the CDP website at www.cdproject.net or contact Frances Way on +44 (0) 20 7415 7095 to see the benefits available to your organisation, the CDP Supply Chain questionnaire, and responses to some frequently asked questions.

CDP Supply Chain member companies
Member companies Acer Inc Banco Bradesco Boeing Company (Boeing) BT Group Cadbury Carrefour CELESC Colgate-Palmolive Company Dell Inc Exelon Corporation (Exelon) FIJI Water H.J. Heinz Company (Heinz) Hewlett-Packard Company (HP) International Business Machines Corporation (IBM) Imperial Tobacco Johnson & Johnson Johnson Controls Juniper Networks Kellogg Company (Kellogg) L’Oréal Merrill Lynch & Co Inc National Grid Nestlé Newmont Mining Corporation PepsiCo Inc Procter & Gamble Company Prudential Reckitt Benckiser Royal Mail SSL International Tesco Unilever Vale Vodafone Country of incorporation Taiwan Brazil USA UK UK France Brazil USA USA USA USA USA USA USA UK USA USA USA USA France USA UK Switzerland USA USA USA UK UK UK UK UK UK Brazil UK

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Executive Summary

The Carbon Disclosure Project (CDP) has been asking large global corporations to measure and report the impact climate change will have on their business and their carbon emissions since 2002. In 2008 CDP extended this work with the CDP Supply Chain Project. Thirty four member companies nominated a selection of suppliers to receive a questionnaire on climate change looking at issues related to: carbon risks and opportunities, emissions reporting, reduction targets and plans, governance, supplier engagement and product lifecycles.

Executive Summary
This CDP Supply Chain report looks for the first time at how businesses are responding to the call for action and transparency in managing carbon and climate change in their supply chain.

Looking at the impacts of carbon and climate change on supply chains, it is difficult to understand why some companies are questioning ‘if’ they should do something. The questions to be asked should instead be ‘what’ and ‘how’. The reason why is simple; carbon and climate change are serious issues, with critical commercial, financial, operational and brand implications. Therefore it is not an option, it is basic business sense. No matter how well an organisation manages its direct impacts, if its suppliers are not managing the future challenges around regulation, reporting, scarcity of resource, or the effects that changes in the climate could have on their business, their ability to supply and even operate in the marketplace could be dramatically affected. When managed well, there are many achievable and sustainable benefits to be gained; short and long term cost removal, improved supplier loyalty, long term supply risk management and competitive advantage.

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CDP Supply Chain Project 2009

“It is clear to us that there is still a lot of education needed around carbon emission reporting and the understanding that customers like Kellogg will increasingly be expecting this information.” Kellogg Company

Managing carbon and climate change in the supply chain may seem like a significant challenge, but it is scalable and manageable by taking a practical approach and building considerations into everyday business processes. The key is collaborating, internally and externally, and taking it step by step. As part of the CDP Supply Chain Project a total of 2,318 suppliers were invited to complete a questionnaire by 34 participating member companies in 2008. Of those invited, 634 (27%) provided a response, with 453 (71%) of these disclosing information to CDP for the...
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