Isra-Mart srl : Global carbon project calls on businesses to “green” their supply chains

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Isra-Mart srl news:

The Carbon Disclosure Project has released its latest report; 2011 Supply Chain Report which addresses carbon emissions produced by its member companies and its suppliers.

Members cover the industries vastly and include:

· Consumer packaged groups such as Danone.

· High technology groups such as Dell.

· Financial industries such as Barclays.

· Life science representatives such as Johnson & Johnson.

· Smaller industries such as WalMart, L?Oreal and Ford.

The Report summaries the progress of the companies and recognises that whilst they are successful in reducing carbon dioxide emissions within their supply chains, the effects are not happening quickly enough and need to be accelerated.

The Project has on average 300 members and the Report acknowledges from this that "over 50% of an average corporation?s carbon emissions are typically from the supply chain rather than within its own four walls. Managing supply chain emissions is therefore critical if we are going to address climate change effectively."

When choosing suppliers companies now put in the region of 17% weight on their carbon management criteria which is up on last years 11%.

The Report uses data from 55 of the 57 member companies participating, of whom then asked 1853 of their suppliers to respond to the survey with over half then doing so.

The Report can be summarised by the following outcomes:

1. The rate of reduction in CO2 emissions is not enough. It is felt by CDC that it will not therefore have the necessary impact on global warming. Still only one third of suppliers address the issue of carbon reduction and so it is likely only a 6% target of global emissions reduction will be reached by 2015 rather that the 20% necessary to have an impact on global warming.

2. Progress, is however, still being made. Companies can be seen to be laying the foundations for change including teaching and awareness, board level responsibility and pursuing carbon reduction approaches as an investment opportunity rather than a risk.

3. Members are increasingly using their awareness to change the market including amending and redesigning their products and working with their suppliers to cut emissions.