New project tracks supply chain emissions
Carbon reduction innovators have devised a new initiative to measure and rate the greenhouse gas output of large companies’ supply chains.
A joint venture between FirstCarbon Solutions, pioneers of environmental sustainability solutions, and the Carbon Disclosure Project (CDP), the solution will provide scores on companies’ disclosed greenhouse gas emissions. Using this data supplied by FirstCarbon, the companies’ will then be rated on their carbon management strategies submitted to CDP Supply Chain, a program which works with global companies to measure and understand the impacts on climate change across their supply chain.
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As climate change and sustainability reporting becomes increasingly important to consumers, shareholders and stakeholders, it is more important to create and accurate and comprehensive carbon management inventory. This is challenging, according to CDP, who claimed in their 2011 Supply Chain Report that more than half of the average corporation’s total carbon emission comes from the supply chain rather than operations. The CDP Supply Chain program aims to tackle that challenge, moving beyond the measurement of direct greenhouse gas emissions to include climate change risks and opportunities across the supply chain.
FirstCarbon acts as CDP Supply Chain’s scoring partner, evaluating information provided by participating suppliers which is then used to determine the company’s performance score. Upon request, FirstCarbon Solutions will also provide participating suppliers a summary report with more details regarding their score and additional insights and analysis into the scoring of their submission.
The scores allow 54 CDP Supply Chain members (including Vodafone, Pepsico and Walmart) and their suppliers to benchmark performance, examine practices and develop year-on-year performance improvements based on the sustainability scorecards developed by FirstCarbon.
James Donovan, President and CEO of FirstCarbon Solutions said: "Today, more companies are pursuing strategies and CSR reporting practices to reduce greenhouse gas emissions. Our proven data management and carbon accounting expertise provides CDP Supply Chain participants with standard, practical scoring information that is easy to use and digest and fosters the transparency required for effective carbon management across the supply chain."