Nestlé has a very large supply chain comprised of wide range of producers, distributors and suppliers. All these companies leave a carbon footprint in their wake, engaging them to check and reduce their carbon footprint is vital, if not the central key, to a sustainable low carbon future.
For its unprecedented efforts, the Global Supply Chain Report 2018 has recognised Nestle for engaging its suppliers to tackle climate, water and forest-related risks in its supply chain.
Nestlé is one of only 58 companies included out of a total of 3,300 assessed, putting it among just 2% awarded a place.
Nestlé has committed to showing climate change leadership as part of its goal of enhancing quality of life and contributing to a healthier future.
For the second year in a row, the international not-for-profit CDP has included Nestlé in its supplier engagement leader board. The Global Supply Chain report is being released today
The 89 members of CDP’s supply chain program, including names like BMW, Johnson & Johnson, Microsoft, Walmart and Nestle, have a combined spending power of US$2.7 trillion.
They are using this power to engage suppliers by asking them to disclose environmental data to CDP.
This data shows that disclosing companies have reduced their CO2 emissions by 434 million tonnes this year, which is more than France’s annual global greenhouse gas (GHG) emissions.
The 20% increase in CDP supply members in 2016 indicate that organizations are increasingly concerned with measuring and managing the emissions housed in their supply chain.
CDP supply chain members and their suppliers saw the benefit of taking action when cost savings of US$12.4 billion were disclosed this year.
However, these actions are not taken up across the whole supply chain. Only 22% of responding companies are engaging with their own suppliers on carbon emissions and just 16% of companies are engaging on water use.
Convention on Climate Change
Patricia Espinosa is Executive Secretary, of the United Nations Framework Convention on Climate Change she gives a forward to the just released Global Supply Chain Report 2018.
Understanding and quantifying climate impacts, risks, and opportunities is fundamental to developing a sustainable supply chain program. It helps organizations prioritize, plan and lead on engaging with suppliers.
Action on climate change has never been more necessary or more achievable. Year after year we see the hottest temperatures on record and the impact this has on the ecosystems that sustain us all.
Against this backdrop, the Paris Agreement has entered into force. This decisive statement of intent, born of unprecedented global consensus, marks a truly meaningful step towards a low carbon future.
Effectively addressing climate change requires action across the supply chain. Millions of businesses operate within the complex supply networks of the world’s biggest purchasing organizations, and greenhouse gas emissions within the supply chain are often at least four times greater than those from direct operations.
Amidst increasing climate policy, investor awareness and consumer engagement, competitive companies increasingly look to their supply chain to reduce negative environmental impacts from business activity and realize more sustainable practices
Many innovations that reduce impacts are available. CDP supply chain data is testament to the resourcefulness of global suppliers to reduce their greenhouse gas emissions and water footprint while benefitting the business, customers and communities.
Savings of USD $12.4 billion in 2016 were reported by suppliers, proving that action on climate change and water is not only the right thing to do, but the smart thing to do
By raising awareness of the positive aspects of supply chain action, it is possible to deliver tangible, meaningful results for the bottom line and the planet.
What Is CDP
CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
For over 15 years, CDP has created a system that has resulted in unparalleled engagement on environmental issues worldwide.
CDP has a large network of investors and purchasers, representing over $87 trillion. They also work with policy makers around the globe who use the CDP data and insights to make better-informed decisions.
With offices and partners in 50 countries, CDP has driven unprecedented levels of environmental disclosure.