New CDP Product-Level Supply Chain Data: Analysis and Recommendations
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Transcript of New CDP Product-Level Supply Chain Data: Analysis and Recommendations
Cynthia Figge@CSRHUBCSRHub
Christoph Meinrenken@CoClearCoCoClearBetty Cremmins@climatebettyCDP
From Consumer of Stuff to Creator of Data Re-Shaping Culture: The New Normal in Business Consumer Relationships
#SB16SD #ActivatingPurpose
www.cdp.net | @CDP Page 1
New CDP Product-Level Supply Chain Data: Analysis and Recommendations
Betty CremminsCDP Supply Chain
[email protected]@cdp and @climatebetty
www.cdp.net | @CDP
CDP – The global standard for environmental disclosure
Page 2
Ban Ki-moon
Secretary General, United Nations
www.cdp.net | @CDP
Disclosure Roadmap
Page 3
?
www.cdp.net | @CDP
2016 supply chain members – 89 purchasing entities with over $2.7 trillion in spend
www.cdp.net | @CDP
CDP supply chain report 2015-16
Page 5
41%Response rate amongst suppliers
receiving one CDP request
74%Response rate amongst suppliers
receiving two CDP requests
93%Response rate amongst suppliers
receiving five CDP requests
www.cdp.net | @CDP
CDP Supply Chain’s newest report proves that disclosure works…
Page 6http://www.cdp.net/CDPResults/CDP-Supply-Chain-Report-2016.pdf
$6.6BAnnual savings from GHG reduction projects in 2015
606Million metric tons of GHGs
Reduced by suppliers in 2015
www.cdp.net | @CDP
But we are missing half the story…and they likely perform badly
0%
10%
20%
30%
40%
50%
60%
70%
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100%
Report Scope 1/2emissions
Identified regulatoryrisks
Emissions reductiontargets
Engage with suppliers
First year reporting 2 years reporting 3-plus years reporting
Percent of suppliers taking climate actionsby number of years reporting to CDP
Suppliers take
about 3 years to
reach maturity in
disclosure
Respondents Non-Respondents
49%did not submit data…
Of 7,879 total suppliers contacted:
www.cdp.net | @CDP
Levels of engagement are currently limited
Page 8
0
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Does not engage with suppliers Does engage with suppliers
Do responding companies to SC engage with suppliers
Does not engage with suppliers
63%
Does engage with suppliers
37%
Do responding companies to SC engage with suppliers
*Results from all disclosers to CDP supply chain in 2015
www.cdp.net | @CDP
…and stakeholders want to see that companies are engaging key suppliers
^ CDP’s first supply chain ranking
^ Ranking will examine the existing climate
change questionnaire through a supply
chain lens to assess organizations on the
breadth and depth of their supply chain
engagement on climate change.
^ Leaders released January 2017
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https://www.cdp.net/CDPResults/CDP-Supply-Chain-Report-2016.pdf#page=28
www.cdp.net | @CDP
Engagement techniques that drive improvement
^ CDP and BSR found that purchasing entities
can drive change by:
- Asking suppliers to provide information
- Engaging their procurement teams
- Setting targets to articulate ambition
Page 10
www.cdp.net | @CDP
Example: BT Group
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^ Founding member (7 years)
^ Engaged 212 suppliers in 2015
^ Aim to have top 200 suppliers reporting emissions and actions to reduce emissions via CDP by 2015.
^ Integrated CDP data into their scope 3 emissions accounting.
Find out more: @BTBetterFuture#betterfutureforumwww.bt.com
BT has integrated its supplier emissions into its wider emission reduction goal
www.cdp.net | @CDP
Collaboration commitments
Page 12https://www.cdp.net/CDPResults/CDP-Supply-Chain-Report-2016.pdf#page=26
www.cdp.net | @CDP
Example: Jaguar Land Rover
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Industry Standardization^ In 2012 JLR was one of the first
OEMs to join CDP Supply Chain; now there are 8.
^ Last year 87% of JLR suppliers were asked by other OEMs.
^^Jaguar Land Rover is aiming to have the vast majority of its strategic supplier partners taking action to reduce emissions and reporting them through CDP Supply Chain…We will also be joining the CDP Action Exchange program to help Jaguar Land Rover suppliers look for further opportunities or innovative solutions in the marketplace to reduce their carbon emissions
^^
Focus on taking action ^ JLR saw suppliers improve
reporting over first 3 years. ^ Now the focus is on
encouraging & collaborating with suppliers to take more action to reduce emissions.
www.cdp.net | @CDP
Pirelli
Page 14
“Pirelli activated the climate performance monitoring of its key suppliers at Group level, identified according to criteria of
environmental and economic materiality”
^CDP Disclosure Leader in Italy for 3 years in a row, Pirelli is a member of the CDP Supply Chain program since 2014
^Pirelli is the first tyre manufacturer to have introduced the program into its global supply chain
^ In 2015, 118 suppliers have been engaged
^ In 2014, Pirelli’s responding suppliers collectively avoided emissions of 65 million tons of CO2, also making it possible to obtain economic savings of €681 million
^^Pirelli is collaborating with its keysuppliers to find opportunities to
decrease its own organizational carbon Footprint. Supplier engagement is
substantially driven by the “Pirelli GreenSourcing Policy”, and is facilitated through
CDP’s supply chain request^^
www.cdp.net | @CDP Page 15
Example: Walmart
https://www.cdp.net/Documents/Guidance/2015/Additional-Guidance-Reporting-CDP-Walmart-Supplier-015.pdfhttp://www.corporatereport.com/walmart/2015/grr/https://www.cdp.net/en-US/Programmes/Pages/supply-chain-member-videos.aspx
Eliminate 20 million metric tons of greenhouse gas (GHG) emissions from
Walmart's global supply chain by the end of 2015. Suppliers can attribute emissions reductions to Walmart’s goal through their
CDP response.
Develop a sustainable product index. Where GHG management is cited as a key
sustainability priority, public disclosure through CDP is awarded maximum points on
Walmart’s Sustainability Index.
^^“It is always nice to see our customers supporting and recognizing our efforts. But the CDP reporting process deserves the credit in bringing all businesses onto the common platform.”
^^Responding supplier since 2011 and
new member in 2016
www.cdp.net | @CDP
With two engaged companies, is product-level data the essential next step?
^ Supplier Module Question 3 (SM3)
^ 2015: 349 companies, 600 products
^ 2014: 326 companies, 566 products
^ Unscored, optional… unanalyzed?
^ Is there value in CDP capturing product-level data?
