It’s summer, and thousands of companies are busy completing the now-familiar annual report submittals about their carbon emissions and sustainability plans to the Carbon Disclosure Project (CDP).
Included in this reporting is the CDP Supply Chain Program, where companies such as Accenture, Coca-Cola Company, Colgate-Palmolive Company, Jaguar Land Rover, Johnson & Johnson and Philips Electronics ask their suppliers to disclose carbon emissions and climate risk data.
More suppliers this year are participating in the survey than ever before, which suggests an increased importance of sustainability along corporate supply chains. Fifty-four companies asked an unprecedented 6,000-plus number of suppliers to respond to the questionnaire. (Last year 4,232 suppliers were invited to participate, and 1,864 replied, which resulted in a 44 percent participation rate). The five-year-old program works with the suppliers of the large companies to track and improve the operations of suppliers as it relates to sustainability and climate change.
How does it work? Suppliers to these companies complete the CDP Supply Chain questionnaire and submit it by July 31. Each supplier has the option of whether to allow this submittal to be public or not. Companies can then access the submitted information online by individual responses or aggregated statistics.
Last year was also the first year that supplier submittals were scored for performance. Previously, suppliers only received disclosure scores. CDP worked with FirstCarbon Solutions to score suppliers on their carbon performance (letter grades A–E) and disclosure completeness (scored 1–100). This scoring methodology is consistent with the scoring programs of other CDP programs.
CDP has several disclosure programs. Its original climate change program involving the world’s largest companies now has 3,700 corporations that disclose their carbon emissions and climate risk data to their shareholders. The project’s database is the largest global collection of self-reported emission data and is used by investors, nonprofits, and researchers. This database has become the de facto global standard for voluntary reporting.
Photo of globe, report and plant provided by violetkaipa via Shutterstock
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As the "supply chain" for 15+
As the "supply chain" for 15+ million shippers a day, UPS is a strong supporter of the CDP's efforts. We believe that transparency is the first step toward addressing any company's environmental impact. You can't manage or mitigate what you don't measure. That means not just direct emissions but indirect emissions too, including the transportation and logistics activities that most companies outsource to companies like UPS. The next milestone for supplier scorecards is when environmental performance becomes a deciding factor. Unfortunately, most companies are still focused on price exclusively, and that hurts all of us companies who are diligently seeking to manage supply chains responsibly, transparently and comprehensively. (P.S. We are on the CDP Leadership Index.)
Thanks for the article
Thanks for the article Paul.
Lynette,
I think there are few that would disagree with your assertion that the first step towards addressing a company's environmental impact is transparency. However, I would question UPS's leadership with respect to transparency.
A number of Nootrol clients have requested environmental impact data from UPS only to be told that this information is only sold to clients and not provided freely in a transparent manner.
Anecdotal evidence from our clients suggested the options and costs as follows:
a) Carbon Impact Statement (CIS)
This reports the total Kg CO2 per Kg shipped for a defined period (usually per quarter or per year). The cost for the customer of one standard report is EUR 500.
b) The Carbon Impact Analysis (CIA)
This is a more elaborate report and proposes a breakdown of Kg CO2 emitted for a defined period (usually per quarter or per year) per Mode of transport (Air, Ocean, road) and by Scope I, II and III. The cost for the customer of one standard report is EUR 3,000.
I believe it is disingenuous to suggest that UPS have a policy of transparency in light of the above.
I am happy to have a discussion offline and I am sure Paul would be happy to pass on my contact details.
Best regards
Mark
Thanks for this piece,
Thanks for this piece, Paul.
The CDP is playing a very important role in driving transparency of supply chain impacts. A number of other organizations, from the Sustainable Apparel Coalition to the Sustainability Consortium to NRDC and more, are playing important roles as well.
A wide range of technology vendors is also stepping up to help companies manage the process of collecting, analyzing and acting on supply chain sustainability data. This is the subject of a forthcoming Green Research study, to be released before month end.
If you have a particular interest in this topic, feel free to drop me a line or visit us online.
While I hope anybody reading
While I hope anybody reading GreenBiz is educated about these things, in your definition of posion, which isn't an exacting portrayal of what a poison is, Ed Selkow, CO2 is in fact dangerous. Trap yourself in a room with a high enough ratio of CO2 to O2 and you will start to feel the effects. Too much of anything can be deadly..
As for the real point of the article, about disclosing sources of Carbon. An expansive amount of multi-national corporations all buying into this "fairy tale" I'm sure is evidence that it is a massive fraud.
-SR
And so the CO2 is poison
And so the CO2 is poison fairy tale continues and grows. Let's not let the science of photosynthesis from the 4th grade be revistited, that would never work.
Those truly concerned about their carbon footprint need only stand completely still and stop exhaling. But here lies the problem, how will the green hucksters get paid if every one stops breathing??
Ed Selkow