By Paul Simpson

This article originally appeared in CDP and is republished with permission.

Drawing on the climate disclosures of more than 4,000+ suppliers, the latest CDP research links annual climate reporting by companies with improving climate performance.  Put quite simply, it shows that disclosure works.

From Disclosure to Action presents how some of the world’s biggest brands – including The Coca-Cola Group, General Motors, Goldman Sachs, and Wal-Mart – are working to achieve sustainable supply chains and reduce greenhouse gas emissions.  These major purchasers use our global environmental disclosure platform to seek data from thousands of their key suppliers on carbon emissions and climate risk.

Suppliers that have disclosed to CDP for at least the past three years demonstrate a more robust approach to climate management than those disclosing for the first time.  Around three quarters of the repeat participants have climate risk management procedures in place and are actively reducing emissions.  Fewer than half the first time disclosers can claim these advantages, demonstrating that measurement and reporting lead to better management.

Regular disclosers are also better at realizing financial benefits.  Repeat participants achieve an average of US$1.5 million in annual savings for each carbon cutting project, compared to first time disclosers, who average annual savings of US$900,000 per initiative.

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Supplier participation in our program has increased annually in response to growing customer demand for vital environmental information.  In this way, the members of our supply chain program are using scalable solutions that drive climate disclosure and action. With supply chains responsible for up to four times the GHGs of a company’s direct operations, these leading companies could be the blueprint for turning global climate agreement into action.

CDP research shows that disclosure is beneficial - how can supplier participation be further encouraged?

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