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Global supply chain still yawns at climate risks, CDP finds

January 29, 2015

Global supply chain still yawns at climate risks, CDP finds

Barbara Grady
Thursday, January 29, 2015 - 3:00am

Climate change warnings keep growing more dire, and the world's business leaders now even cite water crises and extreme weather as top economic risks. And yet the supply chains leading to many of the world's biggest companies reflect only middling attention to these issues.

That's the conclusion of a new report by CDP, formerly known as the Carbon Disclosure Project, and Accenture Strategy, which was informed by responses from 3,396 supply chain companies that sell goods or services to 66 of the world’s largest multinational corporations. Those multinationals, including companies like Microsoft, L'Oreal and Coca-Cola, are part of CDP's Supply Chain Program and procure $1.3 trillion worth of goods and services.

Most supply chain companies around the world are making “marginal or no improvements” in developing sustainable practices and climate resiliency, according to the report entitled “Supply Chain Sustainability Revealed: A Country Comparison.” Only 22 percent of supply chain companies are implementing low-carbon energy projects. About 55 percent have assessed their water risks, even though droughts and floods are increasingly common.

“What is concerning is that, despite the increase in the number of companies assessing and reporting on their emissions, the data suggests that suppliers are making either marginal or no improvements,” said Gary Hanifan, managing director of Accenture Strategy.

Read more at GreenBiz.

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