This report uses CDP data to better understand how large purchasing organizations and their suppliers are working to address impacts on and risks from climate change, deforestation, and water security. The data is based on the results from a standardized questionnaire about climate change, forests, and/or water security that CDP members sent to their suppliers. 53% of the suppliers responded. One of the key findings was that 95% of responding members believe suppliers showing environmental leadership are better value companies to partner with long-term, with only 5% stating that in their experience those suppliers are more costly.
For most companies, the majority of their environmental impacts and exposures are to be found in their supply chains. For example, companies’ supply chains produce on average more than five times the emissions from their direct operations. While reducing impacts beyond a company’s direct control poses challenges, it also provides opportunities to work with suppliers to multiply positive environmental impacts.