Improving baseline data accuracy Improved baseline data accuracy will enable suppliers in setting targets, and commit to them. This increased accuracy can be achieved in part if companies integrate carbon emission reporting into their standard reporting systems. The good news is that participating in the CDP is making companies more aware of their data gaps and the need to improve so that they can define their current level of emissions. For 2011, CDP has focused on reducing the reporting burden on responding companies, and worked to ensure that the questions asked in 2011 will be more specific than they have been in the past. CDP expects that the shorter and more specific questionnaire will improve the quality of reported data.


Setting challenging targets Companies are currently facing difficulties in setting the right quantitative reduction targets for suppliers, and they are benchmarking and aligning suppliers’ targets with their own. This is a good development, because members must challenge suppliers on the targets they set – it is the only way to push reduction ambitions and align reduction targets with global requirements.


In 2011, member companies will have a greater ability to evaluate the quality of targets by asking companies to specify the percentage of total emissions to which the target applies. CDP has also enhanced comparability across companies’ responses by asking responding companies to provide the target as a percentage reduction from a base year. Companies will also be asked to provide details on their progress against their targets. As members become increasingly empowered to compare an individual supplier’s performance against peers or against sector averages, based on increasingly reliable data, we can expect to see more members talking to their suppliers about


their carbon management and insisting on more ambitious targets. Driven by the Lead Members of CDP 2010 Supply Chain (Dell, EADS, Eni, Fibria, PepsiCo) and in conjunction with all members, CDP Supply Chain has developed a roadmap for supplier assessment. Members from across industry sectors have agreed on a common sub-set of questions that will be used to assess a supplier’s performance in carbon and climate change management against three stages. This Supplier Roadmap (Figure 28) communicates a clear vision for how a supplier can progress from stage 1 to stage 3. It is important that CDP does not just ask for increased disclosure, but also works to drive emissions reductions. CDP analytics (via SAP) provides a dynamic reporting environment to evaluate supplier performance, providing members with a way to baseline and conduct target benchmarking for suppliers. This tool will continue to be enhanced to support them in developing appropriate measures for their sustainability criteria.


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