🔎 What’s going on?
The Carbon Disclosure Project (CDP) this week reported that there’s been a 24% jump in companies asking their suppliers for environmental data transparency.
👏📊 So let’s break it down...
Publically listed companies are required to disclose their carbon emissions in at least 40 countries, including the UK, many EU states, the US, Australia and Japan. Usually, this refers to immediate company operations (or Scopes 1 and 2 emissions). However, this year, there’s been an increase of 30 additional companies who are not just reporting their own carbon emissions but also asking their supply chain to report emissions. And in terms of environmental data, this extends beyond just carbon emissions to deforestation and water security.
This includes companies such as Nike, Airbus, Sainsbury’s, Lego Group, Orsted and New York Metropolitan Transport Authority (NY MTA).
❓Why should I care?
More than 80% to 90% of a companies carbon emissions or environmental impact actually lies within its supply chain. Supply chain carbon emissions are usually referred to as “Scope 3 emissions” and include business travel, employee commuting, waste disposal, transportation, distribution and purchased goods and services.
🚦 Where do we need to be?
Ideally, every company, no matter the size reports their entire environmental impact - for their own operations and their supply chain. This is important because measuring and reporting (i.e. transparency) are the key first steps to actually reducing impact. Without full transparency of environmental data, it’s almost impossible to reduce emissions.
👤 What can I do about it?
Ensure that any business you buy products and services from is also transparent about their environmental impact.
You can use apps such as CoGo and Provenance to find out the environmental impact of products that you purchase.