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Major Brands' Suppliers Haven't Capitalized On Emission Reduction Efforts

While most companies have begun to embrace green technologies and more sustainable business models, many have failed to meet targeted carbon emission reductions in their supply chains.

According to a report released this week by the Carbon Disclosure Project and Accenture, while 43 percent of surveyed companies have achieved year-on-year emissions cutbacks, only 28 percent of their suppliers have done so. The study included major brands such as  L'Oreal, Philips and Walmart, among others.

The findings are particularly troubling when considering how much carbon emissions and energy efficiency standards have been found to reduce costs. Thirty-nine percent of respondents say they have reached monetary savings from their reduction efforts, and more than one-third have benefited from new revenue streams as a result of their suppliers' emission reduction activities.

"Companies are evolving the way they operate to better capitalize on the opportunities presented by carbon efficient supply chains," said Frances Way, program director for CDP, "Such a large shift in companies' procurement models is encouraging but since these trends are only now emerging, we are yet to see a transformational impact on suppliers' emissions."

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