Supply chains slipping up on green ambitions
Source: Middle East Insurance Review | May 2023
Companies are lagging in tracking supply chain emissions and risk missing forthcoming regulations on nature, according to the global non-profit disclosure platform CDP.
A media release by the non-profit platform revealed a 42% increase in firms reporting through its climate platform. However, only 41% are reporting on any of their supply chain emissions despite their impact exceeding direct emissions by more than 11 times.
CDP’s report Scoping out: Tracking nature across the supply chain reveals that nearly 70% of companies do not assess the impact of their value chains on biodiversity despite fast-approaching mandatory regulations on nature.
Across the 18,600 companies disclosing to CDP in 2022, more than 7,000 engaged their suppliers on climate change, compared with 915 on water and just over 500 on forests. The report shows that 70% of senior management teams are not incentivised to act on deforestation before 2025, while only 3% of companies have water-related incentivisation for their chief procurement officers.
CDP supports companies, cities, states and regions to measure and manage environment-related risks and opportunities.
The COP15 agreement finalised in December 2022 urged countries to encourage and enable all large companies and financial institutions to take measures by 2030 on their risks, dependencies and impacts on biodiversity in their operations, supply chains and portfolios. M