About the CDP Supply Chain Report


The CDP Supply Chain program provides a global system that allows companies with vast supply networks to collect business-critical climate change information from their suppliers. The program currently has 50 members (including one US city), of which the majority are located in North America (20) or Europe (19). In 2011, CDP collaborated with these members to gather information on greenhouse gas (GHG) emissions from 4,234


of their collective suppliers. 1,864 global suppliers cooperated with this information request, a 44% response rate. While that rate was slightly lower than in past years (54% in 2010), the questionnaires were sent to far more companies, leading to a more comprehensive picture of supply-chain emissions among members. In addition, response rates in Europe and Asia outpaced the rate for suppliers in North America and other regions (Figures 2 and 3).


Figure 2 – Supplier participation in CDP Information Request


Note: A total of 5,745 invitations were sent out to 4,234 suppliers. In many cases, a given supplier received more than one request from CDP Supply Chain members to participate. In these cases, suppliers only responded one time and their response was then distributed to their multiple customers—reducing redundant work for the suppliers.


2011 1,864 2010 1,000


2009 715


98 59 589 794


86% increase in participants over 2010


95 2,275 Total


Requests 4,234


128% increase in requests over 2010 1,853 1,402 fig 2 54% 51%


Response Rate


44%


In addition, CDP and Accenture conducted an in-depth formal survey of member companies to better assess the current state of supplier engagement on climate change. The number of member companies responding to each question varied from 29 to 49, depending on their ability to provide information. Therefore, percentages stated relate to the number of member companies who answered each question. Finally, select members were interviewed to draw additional qualitative insights. A team of experts extensively analyzed all of these sources and conducted supporting outside research to produce this report.


Figure 3 – Supplier response rate by region. Europe


68% Asia 66%


North America 50%


Rest of World 45%


Answered Questionnaire Declined to Participate No Response


1% 3% 1% 32% 47% 54% Total 607 3,163 621 5,745


3 For more detailed information, please review the 2011 scoring methodology document available here: https://www.cdproject.net/Documents/Guidance/ CDP-2011-Scoring-Methodology1.1.pdf


3 3% 29%


Total Invitations 1,354


Scoring Methodology3 All responses to the 2011 supplier information request were scored on two factors: 1) transparency, in the form of a numeric disclosure score and 2) action on climate change, in the form of a letter grade performance band. Last year, in recognition of a promising trend in improved transparency among large public companies, CDP introduced a performance component to its scoring system to recognize companies that are taking action on climate change. This year, the same performance scoring was introduced to the CDP Supply Chain program and all suppliers with a sufficiently high disclosure score (≥50) also received a performance band. Disclosure scores under 50 do not necessarily indicate poor performance; rather, they indicate insufficient information to evaluate performance. First Carbon Solutions, the CDP Supply Chain scoring partner, performed the scoring evaluations of the suppliers who did not overlap with or were not evaluated in the Investor CDP program in 2011— a majority of the 1,864 who responded to the request.


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