Greening within the Supply Chain Still a Work in Progress

Although manufacturers have stepped up their efforts aimed at reducing their own carbon footprints, they have yet to significantly widen those efforts throughout their supply chains. According to a recent study conducted by the Carbon Disclosure Project (CDP) and Accenture, while 43% of the respondents say they have achieved year-on-year emissions reductions, only 28% of their suppliers can say the same.

Part of the reason, explains Frances Way, program director for CDP, is that companies have had to train their procurement staffs in supply chain carbon management, which can be a significant investment. While encouraged by the number of companies that say they've begun that training process, Way notes that "these trends are only now emerging, so we are yet to see a transformational impact on suppliers' emissions."

Following are some other findings of the study:

74% percent of companies that expect increased regulatory costs to impact their business within the next five years.

63% percent that are training their procurement staff in supply chain carbon management.

62% percent that recognize suppliers with good carbon-management practices.

39% percent that plan to deselect suppliers that do not formally implement environmental criteria.

24% percent that help their suppliers identify ROI for their carbon-management investments.

20% percent that can identify ROI for their own carbon-management initiatives.

Source: Carbon Disclosure Project / Accenture

See Also:

Intermodal Transportation Strategies Offer Manufacturers a Greener Way of Doing Business