Less than half (41%) of companies disclosing to CDP are reporting on any of their supply chain emissions despite their impact significantly outsizing (11.4x) direct emissions Companies are not treating their impact on the environment as a whole, with most not engaging suppliers on climate and vital parts of nature, including water security, deforestation and biodiversity.

COP15 agreement urged countries to encourage and enable all large companies and financial institutions to take measures by 2030 on their risks, dependencies and impacts on biodiversity in their operations, supply and value chains and portfolios. Nearly 70% of companies reported they do not assess the impact of their value chain on biodiversity despite fast approaching mandatory regulations on nature.

In 2022, companies’ suppliers reported saving 70mt CO2 due specifically to CDP supply chain member engagement. New data shows that companies are falling behind on tracking supply chain emissions and risk missing completely mandatory regulation on nature in supply chains. With wide-ranging rules likely to be enforced this decade, companies are being urged to engage their suppliers now on nature and climate in order to be ready in time.

CDP's 2022 supply chain report, Scoping out: Tracking nature across the supply chain shows that leadership in disclosure on environmental impacts is not happening at the scale and scope required, with only 41% of companies reporting on any of their supply chain emissions. Nearly 70% of companies reported to CDP that they did not assess the impact of their value chain on biodiversity in 2022, despite the landmark agreement made at COP15 urging countries to encourage and enable large companies and financial institutions to assess and disclose their risks, impacts and dependencies on biodiversity by 2030. Indeed, disclosure on Scope 3 emissions may be required imminently in the EU (the European Sustainability Reporting Standards which covers both climate and nature), the United States (under the Securities Exchange Commission regulation) and in the International Sustainability Standards Board (ISSB) global baseline standard for climate-related financial disclosure.

For further information visit; https://cdpturkey.sabanciuniv.edu/en/content/new-supply-chain-report-cdp