www.bifa.org


Policy & Compliance


BIFAlink


Jump in firms asking suppliers for environmental transparency


There has been a sharp upturn in the number of major companies seeking environmental transparency from their suppliers, according to CDP Worldwide


CDP Worldwide (a global non-profit organisation) recently announced that this year it has seen a 24% jump in the number of companies asking their suppliers to report environmental data. CDP – which drives companies and


governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests – said blue-chip corporations like Nike, Airbus, Sainsbury’s and Ørsted, as well as public sector organisations including the New York Metropolitan Transport Authority (NY MTA), are among 30 large purchasing organisations around the world to start working with it for the first time. The companies are asking their key suppliers to


report data through CDP’s environmental disclosure platform on their impacts, risks, opportunities and strategies relating to climate change, deforestation and/or water security issues. This data will then be used to inform procurement


August 2020


decisions and supplier engagement strategies. These companies are joining the likes of


Walmart, Microsoft, Stanley Black & Decker and Japan’s Environment Ministry, bringing the total number of CDP supply chain members to over 150 organisations with a combined procurement spend of over USD4 trillion. In total, the request has gone out to over 15,000 suppliers this year.


Resiliency The current Covid-19 pandemic and its economic fallout has shown that building resiliency into global supply chains has never been more vital. Global corporations have supply chains that wrap around the globe, touching millions of people. In holding the purse strings, they have the power to drive impact at scale – incentivising a behaviour shift in the companies that supply them. With emissions in the supply chain being on average 5.5 times higher than a


company’s direct emissions, the buyer-supplier dynamic will make or break whether our economy can reach net zero by 2050, as the science demands. The organisations joining CDP for 2020 hail


from around the world, with a 34% increase in North America.


Growing awareness The demand for this data among the procurement teams of some of the biggest buyers in the world is driven by growing awareness of the environmental risks posed to business – including physical impacts disrupting global supply chains and reputational risks to brands because of environmental damage in the supply chain. BIFA encourages its Members to appreciate


that they have a duty to act sustainably and to both protect and, where possible, enhance the environment through the efficient and effective conduct of all business operations. It also encourages its Members to commit to


environmental issues and understand that more and more companies will be looking for evidence of environmental/sustainability commitments when they are looking to award logistics contracts.


13


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20