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Industry-Leading Purchasers totaling to $3.3 Trillion Spend hone in on Supply Chain Sustainability.

News   •   Jul 30, 2018 08:17 CEST

Clean Technica reported CDP’s announcement that “[…] 115 of the world’s largest purchasers it works with, which together represent annual spend of over $3.3 trillion, are requesting environmental data from over 11,500 suppliers” (Hill 2018).

CDP, also known as Carbon Disclosure Project, is an environmental impact-focused non-profit seeking to reduce emissions in the global supply chain, ultimately in efforts to keep global temperatures from rising.

Brand giants such as Walmart, CVS Health, Target and Tesco are amongst the 115 global companies looking to gain greater insight into their supplier’s organizations by requesting data regarding carbon emissions and environmental risk.

This is a thought that has existed in various organizations for years, but it’s now becoming a main focus for procurement and sourcing organizations. Walmart is amongst the group joining in on the movement, and they have been requesting data from their suppliers for over 10 years. "Walmart is working with CDP, our suppliers and others on Project Gigaton – an approved science-based target initiative aimed at avoiding a gigaton (one billon metric tons) of emissions from the global value chain by 2030," remarked Ariane Grazian, Senior Manager, Walmart Sustainability (Hill 2018). The elaborate infrastructure of these organization's supply chains makes it very difficult to implement sustainable development initiatives, especially at scale.  

Utilizing supplier relationship/performance management as a starting point is a good first step towards building better transparency. Scrutinizing external parties involved in supply chain performance, such as suppliers, will allow these organizations to apply sustainable action within the line.

Sonya Boshia, Head of Supply Chain at CDP explained, “By requesting data from their suppliers, they are shining a light on the risks hidden deep within their production chains – and uncovering a myriad of opportunities for reducing their overall environmental footprint, boosting innovation and cutting costs”.

Environmental data holds an incredible untapped potential for locating wins in buyer-supplier collaboration. The large-scale movement to decarbonize, and become more environmentally lean at the source, will set a new standard for other organizations around the globe.