Low carbon strategies gain ground—MARCH/APRIL 2012 PRINT EDITION

Some 39 percent have seen savings from emissions reductions, survey reveals

April 9, 2012
by Purchasing b2b staff

Companies are changing their operating models—most often in procurement—to reduce greenhouse-gas (GHG) emissions and increase savings across supply chains, according to the Carbon Disclosure Project’s recent survey of member companies and their suppliers. The results of the survey, CDP Supply Chain Report 2012, A New Era: Supplier Management in the Low-Carbon Economy, have been released in collaboration with consulting, technology and outsourcing company Accenture.

Of the 49 companies surveyed, 90 percent have a climate change strategy with at least general guidelines for procurement, the report says—up from 79 percent in 2010. About 62 percent reward suppliers with good carbon management practices and 39 percent plan to deselect suppliers without such measures. Meanwhile, 30 percent consider climate change when evaluating suppliers but only 20 percent report a monetary value for initiatives improving carbon management.

Some 39 percent of responding companies have seen savings from emissions reductions and over 34.5 percent have benefited from new revenue streams or financial savings as a result of their suppliers’ carbon reduction activities. However, the report says, less than 24 percent help suppliers to quantify the ROI of low-carbon investments. The next step, the report says, is to better evaluate suppliers, improve performance through more effective procurement and improve the metrics used to quantify gains from emissions reductions.