Download AmandahaworthWiklund - Global Compact Nordic Network

The Power of Transparency
Amanda Haworth Wiklund
Global Compact Nordic Network
Reykjavik, May 8th 2008
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Carbon Disclosure in the Supply Chain
•
What is the Carbon Disclosure Project?
•
How CDP moved from Investors to Supply Chain
•
Supply Chain Leadership Collaboration
• The Story so far
• Why companies are engaging with their suppliers in a
collaborative way
• What is it all about?
• How companies are using the process
• What’s next
•
Q+A
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The Carbon Disclosure Project (CDP)


A global NGO with a mission to facilitate a rational response to climate
change
A secretariat for 385 investors with assets of $57 trillion

Information requested from over 3000 companies (GHG protocol plus)

1,300 companies answered the questions in 2007

www.cdproject.net largest registry of corporate GHGs in the world

2007 expansions in US, Japan, UK, France, Germany, Canada, Brazil, India,
Australia, Asia, South Africa, Scandinavia

Global launches with high profile speakers

CDP is now an established annual process

CDP is where the corporate world reports GHG emissions
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CDP – Collaboration and Co-ordination
3000
Companies
CDP
385
Investors
$57 trillion
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CDP5 Key Findings 2007 (FT500 Companies)
 Highest
response rate ever – 77% answered questionnaire
 North America leads growth in emissions disclosure
 Improved
carbon accounting; more robust responses - 79%
disclosed GHG data
 Dramatic rise in Scope 3 reporting
 80%
see risks from climate change
 82%
see opportunities
 76%
implemented emissions reductions programs
 46%
strategies for emissions trading
Wide variations in risk exposure – between and within sectors
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From investors to supply chain
• Wal-Mart approached CDP in 2006 with the idea of using CDP process to
engage with suppliers
• CDP and Wal-Mart carried out pilot project in 2007
• 7 product groups
• 43 suppliers
• Lots of learning!
• CDP5 results showed
• Big increase in scope 3 reporting
• Collective realisation that many risks and opportunities lay in the supply chain
• CDP launched Supply Chain Leadership Collaboration in October 2007
• Standard questionnaire to suppliers from CDP
• Will become annual process like investor CDP
• Massively extends scope of CDP
• From 2000 to 200 000 companies in 3 years?
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CDP – Collaboration and Co-ordination
Suppliers
CDP
SCLC
Members
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SCLC – The story so far

Launched in October 2007 at the London launch event

12 members at the start of the pilot project in December
Including Tesco, Unilever, Nestle, P+G, Dell, HP, Cadbury Schweppes

335 suppliers involved, many with more than one customer among the
members

Only 35 of the suppliers had responded to CDP in the past – 90% firsttimers

Pilot closed end Feb, report in April

Early lessons
Asking the questions prompts new thinking and leads to change directly
First timers struggle, capacity building needed
Response rate expected to be similar to investor CDP, first time usually about 40%
but grows with each iteration
Quality of supplier engagement from procuring organisation makes a big difference
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SCLC – why companies become
members?
• To accelerate understanding of waste in supply chains
• Get the benefits faster
• To accelerate suppliers‘ understanding of the
risks/opportunities
• Suppliers start to change as soon as they know the questions
• Innovate faster
• To demonstrate thought-leadership to stakeholders
• Investors value forward thinking (supply chain engagement as element of future
leadership indices)
• Consumers value pioneer companies
• To identify risks/opportunities outside corporate boundaries
• Better strategy formulation
• Earlier action on risks
• Earlier action on opportunities
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What is involved in SCLC
• The same questionnaire as CDP6, with an additional section,
exploring supplier capabilities and splitting emissions
• Members choose which suppliers are involved (up to 2000)
• Members provide CDP with supplier contact data
• CDP sends request for disclosure to suppliers
• Suppliers register and enter on line
• 3 levels of disclosure – public, members, customers
• Members can see status of all suppliers on-line
• Members cannot see who each others‘ suppliers are
• CDP sends reminders
• Members receive searchable database at end of disclosure
• CDP commissions report
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SCLC – how companies are using the
data (early view)
• Letting suppliers know that this is a business issue
• Getting suppliers onto the learning journey NOW
• Identifying which suppliers are engaged on climate change
• Incorporating into vendor rating
• Targeting known hot-spots or key product lines
• Verifying product-footprinting projects
• Supporting scope 3 assessments
• Extending understanding of risks and opportunities
• Operationalising climate change management
• From investor relations to procurement!
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SCLC right now and the future
•
CDP currently inviting all respondents to become SCLC
members
•
27 members so far. Recent new members Carrefour, Johnson
Controls, UK National Grid, Juniper Networks, Merrill Lynch,
IBM, Kellogg’s, Johnson and Johnson, Colgate-Palmolive
•
Extend success of CDP from investor community to supply
chain
•
Integrating disclosure into procurement
accelerate business action on climate change
will
massively
• Private companies, SMEs, emerging markets
•
One standardised disclosure process avoids duplication and
therefore cost
•
Recognise the learning journey – don‘t overwhelm suppliers
•
SCLC to become annual process, in line with investor request
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Thank you
Carbon Disclosure Project
www.cdproject.net
Amanda Haworth Wiklund
[email protected]
+46 8 31 42 06
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