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Companies Likely to Turn Away from Suppliers Who Don’t Manage Their Emissions
Supply and Demand. It’s a common thing amongst businesses and consumers. We demand something, they supply it. They demand something and some other company, manufacturer, or what-have-you supplies it. Such a common thing is about to take a bit of an unexpected turn.
Image source: screen capture from report .pdf file
The world of supply and demand is changing and it’s coming to the point that, if suppliers do not take better steps (or any steps) to managing their greenhouse gas emissions, they could lose clients. There are already about 56% of large firms that would stop doing businesses with suppliers if they failed to meet specific CO2 emissions managing criteria.
According to the Carbon Disclosure Project (CDP) Supply Chain Report (.pdf file), 6% of its members would stop doing business today with suppliers that did not manage their carbon emissions. Some of these members are quite well-known, including Dell, Google, and PepsiCo.
CDP head, Paul Dickinson, stated:
“This is no longer a ‘nice to have’ for leaders, it is becoming a ‘need to have’ and we expect to see this trend growing across the whole business sector.”
A further breakdown of the survey shows that 44 member companies contacted 1,402 of their suppliers on the matter. More than half of the suppliers responded; 42% did not respond and 7% declined. Out of these companies, only 20% reported figures for supply chain emissions; which is comparable to the 90% that have created a plan to work with suppliers on climate change and also have executives responsible for environmental affairs.
It is definitely great to see businesses, companies and so forth step up and take climate change seriously. Many of them have been getting more involved with environmental projects, green initiatives, and even trying to get employees into the habit of living a more eco-friendly lifestyle.
What steps has your workplace taken to fight climate change, help the environment, or become more green?
By Heidi Marshall
Tags: carbon, Carbon Disclosure Project, CDP, Climate change, co2, Green business, greenhouse gas emissions, suppliers, supply and demand
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