Companies to Suppliers – We’d Like More Environmental Data

Companies to Suppliers – We’d Like More Environmental Data

May 26, 2020
Information on suppliers' impacts, risks, opportunities and strategies related to climate change, deforestation, and water security issues will be used for procurement decisions.

Environmental non-profit CDP has seen a significant 24% jump in the number of companies asking their suppliers to report environmental data this year. They are asking their key suppliers to report data through CDP’s environmental disclosure platform on their impacts, risks, opportunities and strategies related to climate change, deforestation and/or water security issues. This data will then be used to inform procurement decisions and supplier engagement strategies.

The platform, which recently saw companies such as blue-chip corporations like Nike, Airbus, Sainsbury’s and Ørsted, are among the  30 large purchasing organizations from around the world that have started working with CDP for the first time this year to help manage their supply chains more sustainably.

“Engagement with our extended supply chain and manufacturing partners has been key to Nike’s climate strategy for over a decade, said Jaycee Pribulsky, vice president, Sustainable Manufacturing & Sourcing at Nike “We are pleased to join CDP as a supply chain member this year to further support our suppliers in reducing emissions and strengthening their climate resiliency."

These companies are joining Walmart, Microsoft, Stanley Black & Decker bringing the total number of CDP supply chain members to over 150 organizations with a combined procurement spend of over $4 trillion, all calling for transparency on environmental issues from their suppliers.

In total the request has gone out to over 15,000 suppliers this year.

Dexter Galvin, Global Director of Corporations & Supply Chains at CDP, pointed out that a resilient global supply chain has never as important as it is now during COVID-19. “Global corporations have supply chains that wrap around the globe, touching millions of people, and by holding the purse strings they have the power to drive impact at scale – incentivizing a behavior shift in the companies that supply them. With emissions in the supply chain being on average 5.5 times higher than a company’s direct emissions, the buyer-supplier dynamic will make or break whether our economy can reach net zero by 2050, as the science demands.”