Introduction


As climate change begins to exert a larger impact on business operations, reporting on greenhouse-gas emissions has become standard practice in the world’s major corporations. The mission of Carbon Disclosure Project (CDP) is to accelerate solutions to climate change and water management by putting relevant information at the heart of business, policy and investment decisions.


As part of this mission, CDP conducts annual surveys among large global corporations. In response to a CDP- facilitated request from 551 institutional investors with $71 trillion in assets, 81% of the corporations that comprise the Global 5002


reported climate-change


actions and related strategies via CDP’s database in 2011. Year-over- year results point to clear progress among these companies. Among these responding companies, 93% now report their greenhouse-gas emissions, and 74% have targets in place to reduce those emissions. Boards of directors and senior executives are increasingly involved in this process, helping drive company-wide innovation and emissions reductions.


While large, global corporations are doing well, members of CDP’s Supply Chain program are taking the next step. These 50 organizations, listed at the beginning of this report, collaborate directly with CDP in order to gather


Figure 1 – Proportion of members with a climate change risk management strategy and upward trend of climate change strategies that include procurement.


Climate Change Risk Management Approach of Member Companies in 2011


84% 84% 10%6% 10%6%


Integrated into multi-disciplinary company-wide risk management process


Specific climate change risk management process No documented processes


Member Companies in 2011 with Climate Change Strategies that Include Procurement


89% 2011


2010 34% 2009 57% 0 fig 1 fig 1 59%


89% 2011


59% 2010 34% 2009 57% 20 0 40 20 60 40


17% 74% 80


60


17% 74% 100


80


Has corporate climate change strategy with some general guidelines for procurement


Has corporate climate change strategy that specifically addresses procurement


45% 79% 45% 79% 31% 90%


emissions-related information from their suppliers. CDP Supply Chain member companies have evolved beyond reporting; 94% of them have incorporated climate change into their company-wide risk management process. In addition, 90% now have a formal approach to climate change in procurement, up from 79% in 2010 (Figure 1). Leading companies are also taking direct action to improve their carbon management: 43% of CDP’s Supply Chain members report absolute scope 1 and 2 emissions reductions, and 39% reported monetary savings from emissions reduction initiatives.


While this progress is noteworthy— more large corporations have an overall strategy in place to address climate change—their suppliers are still catching up. Only 28% of suppliers reported demonstrable emissions reductions in 2011.


31% 90% 100


To evaluate the current state of progress on such measures across the supply chain, CDP conducted an information request on behalf of its 50 member companies (please see “About the CDP Supply Chain program”). The results* show that progressive companies are uncovering significant opportunities to reduce emissions throughout their supply chains, leading to reduced risks of climate change-related disruptions, lower costs, and new business opportunities.


* All percentages listed as a percentage of companies able to provide information on this subject. The number of member companies responding ranged from 29 - 49.


2 The Global 500 are the largest companies by market capitalization included in the FTSE Global Equity Index Series 1


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