Less than half (41%) of the 18,500 global companies surveyed disclose greenhouse gas emissions from their supply chains and a very small percentage require suppliers to reduce emissions, reveals a study published Tuesday.
From the responsibility of the CDP (Carbon Disclosure Project), the organization that operates the global disclosure system for investors, companies, cities, states and regions to manage environmental impacts, the report resulted from an investigation into the action of 18,500 companies throughout the world. world on the impacts of supply chains, which are typically 11.4 times higher than the direct greenhouse gas (GHG) emissions of these companies.
The research also showed that only 0.04% of companies require suppliers to set high GHG reduction targets, and that only 1% of companies help direct suppliers reduce deforestation impacts.
Of the total number of companies, almost 70% still do not assess the impact of their value chain on biodiversity, despite the fact that European laws are being drawn up in this regard.
In a statement about the investigation, the CDP warns that laws on this matter will be strengthened in this decade and that companies may fall behind in monitoring GHG emissions from their supply chains, which is why it urges the rapid involvement of stakeholders. suppliers in relation to nature and climate.
The report, “Scoping out: tracking nature throughout the supply chain“, concludes that the leadership in the disclosure of environmental impacts is not taking place at the necessary scale and speed, as evidenced by the fact that only 41% of companies disclose more global GHG emissions.
An agreement reached in December 2022 at the summit on biodiversity held in Canada (COP15) – in which countries are urged to encourage large companies and financial institutions to assess the risks, impacts and dependencies in relation to biodiversity by 2030 – has no expression in the analysis released this Tuesday, since 70% of the companies said they had not done so. evaluated these impacts.
Most companies have not yet recognized that they have to identify the impacts of the supply chain, as a whole, on climate change and nature”, says the document, which indicates that of the total number of companies (more than 18,500) Some 7,000 disclosed last year data on the involvement of suppliers in climate change, 915 in the involvement in the issue of water and 500 in the issue of forests.
CDP points out, however, that the rate of commitment of companies with suppliers is higher in relation to deforestation, being three times lower in relation to water.
The organization notes thata small but growingSeveral companies are taking the lead by putting nature in “business as usual”.
One in 10 companies include climate-related requirements in their supplier contracts, and this is also happening to some extent with deforestation. However, most of these requirements are still not in line “with the goal of limiting the increase in temperatures to 1.5 degrees Celsius (C) above pre-industrial levels,” with less than 1% ( 0.04%) of all companies to require their suppliers to set targets based on science”, says the CDP.
Highlighting the importance of decarbonising value chains, Sonya Bhonsele, head of CDP’s business and value chains area, points out that the report shows that “environmental action is not taking place at the speed, scale and scope necessary to limit global temperature increases to 1.5 Cº”, because many companies “still do not recognize that their impact on the environment goes far beyond their operations”.
And it warns that if companies do not prepare for future regulations on nature in the supply chain, they will take risks and miss opportunities. “Simply put, if a company wants to be in business in the future, it must begin to integrate nature into the way it purchases and collaborate with suppliers to drive action in the supply chain.“.
By emphasizing that climate is only one part of the problems facing humanity, that nature includes forests, water and biodiversity, the report emphasizes that companies need to look beyond the direct impact and influence and engage suppliers.
Source: Observadora
