2 February 2010 | Luca Del Buono
Carbon, Climate Change, Asia, Europe, North America

 

In a report recently issued, the Carbon Disclosure Project (CDP) stated Member companies would cut ties with suppliers who do not properly relegate CO2 emissions.

6% of CDP's supply chain clients backed this statement, including Google, Dell, PepsiCo and Cadbury, plan to sever ties with suppliers who do not adhere to carbon regulation.

"Climate change could result in changes in consumer preferences and retail customer demands – we must anticipate and react to such changes to maintain the demand for our product," PepsiCo argues.

CDP is an independent NFO and holds the world's largest database of corporate climate change information. Within the CDP, over 87% of the members have set a target to reduce carbon emissions, as compared to only 22% of their suppliers.

The suppliers need to impose both short and long-term goals to meet the IPCC's projections. It is imperative for suppliers to solidify carbon reduction not only for their environment and the community's sake, but also for their own survival.

The CDP estimates that climate change threatens almost three quarters of CDP companies' suppliers due to rising sea levels, natural disasters, crop infestation, and coastal erosion. The suppliers that can sustain CO2 reduction will be the suppliers that can maintain clients and sustain profitability.

As a result of the survey, 44 member companies reportedly reached out to 1,402 of their suppliers. While more than half of their suppliers responded, 7 percent did not respond and 42 percent have yet to respond.

Michael Good | Climate Action

Images Provided By: Kennyth Hynek | Flickr

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