Executive Briefings

CDP to Rate Corporate Supply Chain Leaders on Climate Action

The supply chain program at CDP, formerly the Carbon Disclosure Project, has published the methodology behind what it says is the first ever system to assess how companies manage carbon and climate change across their supply chains.

The supplier engagement rating from CDP - the NGO reportedly holding the most comprehensive set of global corporate environmental data - is designed to shine a spotlight on the companies taking action to reduce emissions and lower climate-related risks in the supply chain.

With supply chains responsible for up to four times the greenhouse gas emissions of a company’s direct operations, they present a critical focus area for businesses preparing for a carbon-constrained world. In 2016, 89 organizations – including global retailer Metro Group and the U.S. Department of the Navy – requested data from over 8,300 suppliers worldwide through CDP's supply chain program, which asks companies in the supply chain to report on their environmental performance via an annual questionnaire.

Companies scoring the highest on supplier engagement on climate issues will be named in the annual CDP supply chain report, released in January 2017. In subsequent years, the report will also list those companies failing to manage carbon and climate change in their supply chains.

The CDP supplier engagement rating will score all companies that disclose to the 2016 CDP supply chain questionnaire, with over 4,000 companies having disclosed in 2015. CDP supply chain members (purchasing organisations that request data from their suppliers via CDP) that themselves disclose to the supply chain or climate change questionnaire will also be evaluated on supplier engagement.

Scores will be given based on performance across four key areas related to governance, ambition, measurement and supplier engagement. The full methodology can be viewed here.

Source: CDP

The supplier engagement rating from CDP - the NGO reportedly holding the most comprehensive set of global corporate environmental data - is designed to shine a spotlight on the companies taking action to reduce emissions and lower climate-related risks in the supply chain.

With supply chains responsible for up to four times the greenhouse gas emissions of a company’s direct operations, they present a critical focus area for businesses preparing for a carbon-constrained world. In 2016, 89 organizations – including global retailer Metro Group and the U.S. Department of the Navy – requested data from over 8,300 suppliers worldwide through CDP's supply chain program, which asks companies in the supply chain to report on their environmental performance via an annual questionnaire.

Companies scoring the highest on supplier engagement on climate issues will be named in the annual CDP supply chain report, released in January 2017. In subsequent years, the report will also list those companies failing to manage carbon and climate change in their supply chains.

The CDP supplier engagement rating will score all companies that disclose to the 2016 CDP supply chain questionnaire, with over 4,000 companies having disclosed in 2015. CDP supply chain members (purchasing organisations that request data from their suppliers via CDP) that themselves disclose to the supply chain or climate change questionnaire will also be evaluated on supplier engagement.

Scores will be given based on performance across four key areas related to governance, ambition, measurement and supplier engagement. The full methodology can be viewed here.

Source: CDP