CDP, with the help of FirstCarbon Solutions (FCS), a pioneer in environmental and sustainability business solutions, has announced the debut publication of the Supplier Climate Performance Leadership Index (SCPLI), a new evaluation and benchmarking tool for CDP supply chain members and suppliers.
Compiled by FCS on behalf of CDP, the index is based on supply chain program data from 2,868 suppliers that are disclosing climate change data at the request of CDP's 64 supply chain members, which represent a combined spending power of nearly US$1.15 trillion. The 79 companies included in the index demonstrate strong and transparent climate strategies and emissions reduction programs.
"Suppliers have been asking for a way to benchmark their climate change performance since FCS became the exclusive scoring partner for the CDP Supply Chain program in 2011," says Robert Francisco, president of FirstCarbon Solutions. "With the launch of the Supplier Leadership Index, FCS and CDP recognize the top 3 percent of suppliers who are committed to integrating climate resiliency programs into their overall business strategies which leads to unprecedented operational efficiencies, cost savings, revenue opportunities, and positive planet stewardship."
These leading suppliers demonstrate a number of defining characteristics in their CDP survey responses, including:
- Board-level oversight on climate planning along with monetary incentives for emission reductions
- Substantive detail on how climate change is integrated into risk management and corporate strategy planning
- Scope 1 and Scope 2 reduction targets
- Evidence of Scope 1 & Scope 2 emissions reduction activities that delivered significant results
- Independent third-party assurance of Scope 1, Scope 2 and Scope 3 emissions
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"Introducing a supplier performance leadership index into CDP's supply chain program will drive best practice. We have great insights into the fact that big multinational purchasers — namely our members — are increasingly demanding that their suppliers take action on mitigating climate change risks. Suppliers need to improve their levels of sustainability to differentiate themselves from their competitors or they will lose business," said Nigel Topping, Executive Director at CDP.
The report lists corporates found to be leading in a variety of sectors, including:
- Consumer Discretionary — dominated by automotive brands BMW, Daimler, Fiat and Volkswagen
- Consumer Staples — AB InBev, Brown-Forman, Diageo, Nestlé, L’Oréal and Unilever
- Healthcare — GSK and Daiichi Sankyo Co.
- IT — by far the largest sector represented — included Cisco, Autodesk, Microsoft, HP, Fujitsu, Wipro, Nokia and SAP, to name a few
- Telecom — BT, Sprint-Nextel, Belgacom, Swisscom and Telenor Group
Find the full supply chain report, including names of companies featured in the SCPLI and the methodology used, in the SB Library.
In September, CDP revealed in its Global 500 Climate Change Report 2013 that 50 of the world’s 500 largest companies are responsible for nearly three quarters of the group’s 3.6 billion metric tons of GHG emissions. Not surprisingly, most of the top 50 carbon-polluting companies operate in the energy, materials and utilities sectors, and the carbon dioxide emitted by these companies has risen by 1.65 percent to 2.54 billion metric tons over the past four years, according to the report.