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Indian suppliers to MNCs like L’Oreal, Dell may lose out if they fail to address climate concerns

January 30, 2015

Indian suppliers to MNCs like L’Oreal, Dell may lose out if they fail to address climate concerns

With climate change rising to the top of the global agenda, Indian companies supplying to multinational chains like L’Oreal, Dell, Unilever, Colgate Pamolive, Jaguar Land Rover are likely to lose out if they don’t start taking measures that address concerns about climate change, particularly the amount of carbon produced.

UK-based international organisation, CDP (formerly known as the Carbon Disclosure Project) states in a study released on Tuesday that many Indian companies supplying to global chains are not altering their production processes in light of climate and water risks.

Global chains are of the view that physical climate, regulatory and consumer preference changes is making it absolutely necessary to ensure that companies in its supply chains take steps to ensure their production is responsive to the growing levels of climate risk.

Suppliers from India, Brazil, and Canada, who participated in the research, reported fewer emission reduction initiatives than the global average. This despite the fact that those companies that are orienting their production processes to climate and water risks the best return on investment in terms of emissions reductions and monetary savings.

Around 130 Indian companies supplying to major global chains responded to CDP. Only 25 per cent of the Indian suppliers consider physical climate risk, such as floods, extreme rainfall, droughts, as an issue to be addressed.

Read more at Eco-Business.

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