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Could Climate Change Affect Your Bottom Line

Could Climate Change Affect Your Bottom Line?

Could Climate Change Affect Your Bottom Line?
Image via Flickr by DaveBleasdale

According to the latest Carbon Disclosure Project Report, 70% of global corporations and suppliers believe that climate change could significantly impact their revenues in the near future. Extreme weather conditions are the biggest concern, already affecting nearly a third of the organizations included in the report.

Within five years, climate change will negatively impact more than half of the businesses. Tomorrow’s corporate leaders are implementing sustainable supply chain models to save their bottom line.

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About Carbon Disclosure Project

A global non-profit, the Carbon Disclosure Project (CDP) launched in 2008 to give corporations and government entities an effective model to create a more sustainable supply chain. 54 organizations with a collective spending power of nearly $1 trillion are presently members of CDP, including global leaders like Bank of America, Wal-Mart, PepsiCo, and Dell. 52 members, along with 2,363 of their suppliers, responded to this year’s study, entitled Reducing Risk and Driving Business Value.

Suppliers Fall Short in Sustainability

Member corporations contacted more than 6,000 suppliers, but less than half of them participated in this year’s research. Of those suppliers, only 38% have goals to cut their emissions and just 27% are investing in carbon reduction activities, compared to 92% and 69% of corporations, respectively.

CDP CEO Paul Simpson says, “This research illuminates fragility in the global supply chain model.  The marked difference in the sustainable actions of companies and their suppliers highlights a missed opportunity for suppliers to reduce energy costs and risks.  The 61 percent of suppliers that failed to provide information through CDP are an even greater concern since they and their clients are unable to make a full assessment of the substantial climate risks or opportunities they face.”

The report is a collaboration between CDP and management consulting firm, Accenture. Accenture’s Gary Hanifan says, “Those who are most transparent about their climate change risks are more likely to achieve the greatest emissions reductions. They are also more likely to enjoy monetary savings as a result of their responses to climate change risks. But the return on investment by the most proactive companies will not reach its full potential unless those companies can encourage their suppliers to follow their lead.” [/show_to]

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