4
Members have improved their capabilities and are causing a chain reaction
Overall, members have increased their carbon management capabilities. They have improved their strategic awareness, reporting and implementation practices and have achieved significant successes as a result. Clearly, they are working on the building blocks for change. By doing this, members are causing a chain reaction, putting pressure on their supply chains and business partners to commit to targets and implement emission reduction practices to drive change.
Strategic awareness is increasing In 2010, an increasing number of members from different sectors engaged in the CDP Supply Chain request. This year, 55 members asked their suppliers to participate – an increase of 25% compared to last year. Over three quarters of them are in Industrials (26%), Materials (20%), IT (11%), Consumer Discretionary (11%) or Financials (9%). Members in Utilities (4%) and Energy (4%) are not highly represented.
2009 - suppliers 1,402 715
98
2010 - suppliers 1,853 1,000
fig 2
Figure 5 – Members with a corporate climate change strategy
fig 2 2009 2009 63% 2010 79% fig 5 63%
2009 2010
2010 fig 5
Employee motivation 24%
Employee motivation 24%
fig 5 Employee motivation 37%
63% 79%
21% 79%
formal and documented general guidelines
fig 6
2009 2010
21% 47% fig 8 47% 2009 20% 2009 fig 8 20%
2009 2010
80% 20% Efficiency
37% 21%
2010
41% 47%
37% Cost reductions 41% 47% 2009
2.22009 2010
47%
2010 fig 8
+56% 3.4
Members now leverage opportunities for top line growth More members are recognizing climate change as a key risk, and almost 80% have a formal strategy to deal with it, compared to 63% last year (Figure 5). While the objectives of climate
2009 - suppliers 1,402 715
98
2009 - suppliers 1,402 2010 - suppliers 1,853
589 715
2010 - suppliers 1,853 1,000
1,000 59
fig 2 98 59 794 59 794 fig 7 73%
Figure 8 – Members’ average annual GHG emission reduction target
fig 7 2009
2.2 2.2
Staff training +56%
3.4
Awards and recognition for sta 11%
+56% 3.4
80% 25% 5
80% 26% 4 fig 10 589 Compliance 794
CDP Supply Chain Member Analysis
2009 - suppliers 1,402 715
98
2010 - suppliers 1,853 1,000
fig 2 59 589
change strategy were more risk and compliance driven in previous years, we now see real changes in these objectives. Employee motivation and brand improvement have more than doubled, and product differentiation has also become more important (Figure 6). This means that members have moved from an attitude of obligation to address the risks of climate change driven by
794 2009 63% 2010 79% fig 5 21%
Figure 6 – Objectives cited by members for corporate climate change strategy
Employee motivation 24%
47% Brand improvement fig 9 38% 73% Product differentiation 41% 60%
Risk management 589
2009 2010 87% 59% 59% 78% 73%
2009 Today
Figure 7 – Members with a detailed GHG emission reduction target
11% 2009 78%
2009 2010
2010 fig 7
22%
78% 87%
13% 87%
Yes No
27%
29% 2010
17% 2010
22%
2009 Within 5 years
22% 13%
13% 37%
78% 2009
investors, to increasingly leverage opportunities of climate change for top line growth.
87% 2010
Carbon reduction ambition is growing
fig 7
The vast majority of members (78%) have become more willing to commit to increasingly ambitious and detailed targets to reduce emissions (Figure 7). Last year, members had an average annual reduction target of 2.2%, while this year it increased to 3.4% (Figure 8). Members explained this by stating that increasing awareness has caused them to realize the reductions they could achieve. The most ambitious members have reduction targets of over 10% per annum.
2009 2.2 2010 47% fig 8
20% 2009
45% 2010
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