In a recent report from CDP, an international, not-for-profit organisation providing the only global system for companies and cities, to measure, manage and disclose vital environmental information, CDP has made a direct call for sustainability to move beyond organisational boundaries into the supply chain.
LRQA, one of the world's leading providers of professional assurance services, is a verification partner of CDP and as a result is heavily involved with the development and promotion of the verification strategy, which aims to drive awareness amongst CDP participants.
Key highlights from the CDP report include:
In 2016, over 2000 suppliers reported cost savings of US$12.4 billion from cutting carbon
Supplier disclosed reductions equivalent to 434 million tonnes of CO2
Average savings per supplier is US$2 million with several larger suppliers reporting cost savings of US$100 million or more
As CDP states, the supply chain is the new frontier in environmental responsibility - an area rich with opportunity that remains mostly unexplored. Large public and private sector organisations have enormous purchasing power, often engaging with thousands - or tens of thousands - of direct and indirect suppliers. Among these large organisations there is now a broad recognition that within their vast, complex and sometimes opaque supply chains there are a number of sustainability challenges, resource risks, and efficiency opportunities.
According to CDP, despite this awareness, most have not been taking sufficient action to address them. However, this is starting to change. Today a growing number of leading organisations, such as CDP's supply chain members, are developing an emerging body of knowledge and best practice on how to increase visibility and have a positive impact on their supply chain. Sharing these effective strategies as widely as possible could be the missing link in creating a sustainable, low carbon economy.
Last year, LRQA broadened their verification collaboration with CDP, including deepening its working relationship globally and increasing focus on providing best practice resources for companies.
Vincent Doumeizel, LRQA Vice President Food, Beverage and Sustainability said, "Independent verification is fast becoming an integral part of global corporate carbon reporting, and LRQA's independent sustainability and climate data verification services lend support to CDP's aim of putting relevant climate information at the heart of business, policy and investment decisions. LRQA's work in the verification arena is today synonymous with our strategic alliance with CDP, and we look forward to building on the good progress we have made as long-term verification collaborators."
Paul Simpson, CDP's CEO said, "For companies reporting through CDP, the value of independent, third-party verification lies not only in the trust that stakeholders can then place in that data, but also in the improvement opportunities that this process can highlight."
Please note that as of January 2018, we have moved to the Lloyd's Register brand and retired the LRQA name.