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Flexo Sustainable : Winter 2008
Carbon Disclosure Project & CPCs to Assess Supply Chains in 2008 T he Carbon Disclosure Project (CDP), a collaboration of over 315 institutional investors, including Goldman Sachs, Merrill Lynch, Allianz and HSBC, with assets under man- agement of more than $41 trillion, is now working with some of the world’s largest companies to help them assess greenhouse gas (GHG) emissions through their supply chains. CDP has teamed up with some of the largest purchasing global organisations under the CDP Supply Chain Leadership Collaboration (SCLC). New corporate members include Dell, HP, L’Oreal, PepsiCo, and Reckitt Benckiser. They join original members Cadbury Schweppes, Imperial Tobacco, Nestlé, Procter & Gamble, Tesco and Unilever, announced in October 2007. CDP is working with these global companies and their suppliers to create one single standardized approach to provide key climate change information throughout their supply chains. Each member of the SCLC has selected up to 50 suppliers to work with them and to respond to the CDP pilot information request in the first quarter of 2008. The results of the pilot will refine the process in preparation for the roll out and will help customers and suppliers to work together to develop strategies to reduce their carbon footprints. Some members will work with suppliers at national level, others will work internationally. The project will be rolled out in May 2008, and CDP is inviting more companies to join the Collaboration. This will broaden both the geographical and sectoral scope—and potentially bring tens of thousands of new suppliers into the CDP process and extend disclosure globally. A report will be produced on the findings. Paul Dickinson, CEO of CDP commented, “The Supply Chain Leadership Collaboration is a key step toward a unified business approach to climate change. By bringing together the purchasing authority of some of the largest companies in the world, CDP will encourage suppliers to measure and manage their greenhouse gas emissions. This will enable large companies to work toward measuring their total carbon footprint, as this is the first step to managing and reducing it.” Dr. Peter White, director of global sustainability, Procter & Gamble, stated, “Participating in the CDP Supply Chain Leadership Collaboration is one of the steps that will help P&G achieve its new five-year sustainability goals, which include improving the environmental profile of our products across their lifecycles. Working within supply chains to innovate and reduce CO2 , as well as other environmental impacts, will be a key part of this work.” “We have been setting and meeting targets for tackling the impact of our own operations on the environment for some considerable time, but we really want to continue to develop our understanding of greenhouse gas management across our extended supply chain,” added Ian Midgley, senior vice president, supply chain for Unilever plc. “The collaboration with the CDP and other companies with similar aims should accelerate learning and lev- www. f le xomag.com erage expertise in this critical arena. Hence we are delighted that participation in the Supply Chain Leadership Collaboration pilot is continuing to grow. We look forward to being part of this work over the coming months.” “L’Oreal is pleased to be one of the first members of the Supply Chain Leadership Collaboration,” said Pierre Simoncelli, corporate sustainable development managing director, L’Oreal. “We believe our participation in this pilot project is a win-win for the Environment, our Suppliers and L’Oreal. Our suppliers will now have a single central source for reporting their greenhouse gas strategies and results that are accessible to all their customers. We also believe this will help drive our performance as well as theirs in this important environmental area.” The CDP information request gathers detailed information on companies’ supply chains. It encourages suppliers to report carbon footprints and climate change-relevant information, such as greenhouse gas emissions data, emissions reduction targets and climate change strategy. This is the first scheme that allows corporations to assess the emissions through their supply chain using one single standardized methodology. This will vastly decrease the burden on suppliers who might otherwise receive several separate requests for similar information. Key sectors which are represented in member supply chains include packaging, agriculture, chemicals, transportation, buildings management, and electronic components and this is the first time CDP will collect climate change relevant information from private companies and Small and Medium Enterprises (SMEs). The Supply Chain Leadership Collaboration will bring some of the world’s largest privately owned companies into the CDP system. It is also an important step to moving the CDP process into China, where a significant number of suppliers to large multinationals are based. n WINTER 2008 Sustainable FLEXO 3