The report, Transparency to Transformation: A Chain Reaction analyzes data from 8,000+ supplier companies disclosing to their corporate customers via CDP in 2020.

Key findings from the report include:

  • Companies are facing US$120 billion in costs from environmental risks in their supply chains
  • within the next 5 years.
  • Blue chip companies like Google, L’Oréal, Walmart, Braskem and Toyota are among 150+ major
  • buyers to call for transparency and action from suppliers to tackle these risks.
  • On average, supply chain GHG emissions are 11.4 times as high as operational emissions.
  • Cutting emissions cuts costs: Suppliers undertook activities that cut emissions by 619 million tC02e and saved US$33.7 billion in the process.

The report also offers 4 steps for supplier engagement on climate change:

1- Ask questions: Start asking your suppliers to assess and report their environmental data to you through CDP’s disclosure system. You cannot manage what you have not measured. If your suppliers are regularly disclosing, you can pinpoint risks, identify opportunities and start collaborating to build resiliency.
2- Set public targets for the supply chain: Setting targets publicly gives buyers and suppliers clarity on their climate, deforestation and water security goals, and a clear-shared pathway towards achieving them.
3- Collaborate with others: Supplier companies are more likely to act when to do so by multiple customers. For example, 57% of suppliers disclosed on forests if requested by one member and 75% disclosed when asked by multiple members.
4- A chain reaction: Ask your suppliers to engage with their own suppliers. Risks and opportunities do not stop at tier one. By driving disclosure requests, target setting and collaboration across your suppliers’ values, you are futureproofing your own business.

Please click here to read the report.

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