Feb 9, 2021

$120BN; The Heavy Costs of Risk Lurking in Your Supply Chain

Laura V. Garcia
2 min
CDP's Global Supply Chain Report 2020 shows the environmental risks that could total $120bn by 2026 that lurk in supply chains...

CDP has released it’s Global Supply Chain Report 2020, Transparency to Transformation: A Chain Reaction. Drawing on data from over 8,000 suppliers at all stages of the supply chain that disclose information to CDP through their Supply Chain program the report reveals the immense and still growing costs of environmental threats that lay within corporate value chains.

Within the report, the CDP warns that to remain competitive and resilient, companies must address the environmental risks that lay within their supply chains. It’s not enough to simply look at direct emissions and risk the CDP says, to understand environmental impact the entire value chain must be engaged, evaluated and improved upon. 

The report digs into the state of risks in supply chains and the mitigation tactics being used by businesses to tackle them. 

The US$120 bn hit:

Due to environmental supply chain risks, corporate buyers could be faced with $120 billion in increased costs over the next five years. The sectors facing the highest risks are manufacturing ($64bn), food and agriculture ($17bn) and power generation ($11bn.)

The US$1.26 tn impact:

Suppliers reported a total revenue impact of $1.26 trillion is expected over the next five years due to climate change, deforestation and water insecurity.

Although supply chain emissions are shown to be, on average 11.4 times higher than operational emissions, companies are lagging on cutting back on the emissions that lay within their supply chain. Only 37% of suppliers reported they are engaging with their value partners to cut emissions.

The good news? “In aggregate, suppliers undertook activities reducing GHG emissions by 619 million metric tons and saved US$33.7 billion in the process.”

On the high stakes supply chains are facing, Sonya Bhonsle, CDP’s global head of value chains said, “With $120bn at stake, addressing environmental risks through supply chain engagement is vital for companies to be competitive and resilient in the changing market. Leading companies that address these risks will benefit from lower costs and better reputations.

“This gives them a more competitive edge today and helps them become more resilient for the economy of tomorrow. Meanwhile, laggard companies risk being left behind. As the climate and ecological crisis worsens and the economy shifts, it’s essential for both business and society that we have a Green Recovery from Covid-19 and build back better. Smart business procurement is key to that transition.”

To download the full CDP report click here: Transparency to Transformation: A Chain React

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Jun 22, 2021

ASCM: Supply chain pay gap closes in under 40s

2 min
Women under 40 in supply chain now earn more than men, according to ASCM’s 2021 salary and career report, though POC and older women still face imbalance

The pay gap between men and women working in supply chain under the age of 40 has finally reached parity, according to the Association for Supply Chain Management’s latest annual Supply Chain Salary and Career Report

The gender pay gap in this age group had been narrowing over the past two years, the ASCM’s previous surveys show, and in 2021 has closed entirely. Women report a median salary of $81,000 annually, while men earn a median annual salary of $79,000. Across all age brackets, men report a median salary of $82,000 and women $80,000.

Other highlights from the ASCM report

  • 95% of supply chain professionals kept their job through the pandemic
  • The typical starting salary for a supply chain professional is $60,000
  • 48% of supply chain professionals now work from home
  • 88% of survey respondents find supply chain a fulfilling career path


But there is still work to be done in closing the divide in those over the age of 40. Older men are still earning far more than their female peers, with a discrepancy of between $12,000 and $23,000 annually. ASCM’s report does not definitively conclude why this disparity remains, but says women who began their careers several decades ago may have started out on lower salaries. They may also have missed out on steady wage increases and career development after taking time away from work to have and raise families. 

It is also likely that the pay gap in over 40s is affected by a lack of women in executive leadership positions. A recent Gartner study found that, while women now represent 41% of the supply chain workforce - a five year high - only 15% of executive level positions are held by women. That figure is a decline of two per cent on 2020. 

ASCM 2021 Supply Chain Salary and Career Report
Source: ASCM 2021 Supply Chain Salary and Career Report

Supply chain’s racial pay gap remains

For the first time, ASCM’s annual survey also looked into the pay gap between ethnicities, finding that the median salary for black professionals was 12% less than their white peers, and Latinos earned on average 14% less. That represents a divide of between $9,000 and &10,000 in real terms. Asian professionals earned a median salary of $80,000, compared with the $83,000 for white professionals. 

Abe Eshkenazi, the ASCM chief executive, said reporting on and acknowledging lingering wage disparity was not enough: “Supply chain organisations must lead the way by creating environment where diverse talent is valued, included and developed. The need for supply chain professionals has never been greater, so now is the time to expand the aperture to include diversity of thought, influence and input — particularly for women and people of colour.”    

Read the full report: ASCM 2021 Supply Chain Salary and Career Report

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