Report shows sustainable procurement yields returns

A recent report has found that 50 per cent of large businesses have saved money as a result of carbon management programmes in their supply chains.

The Carbon Disclosure Project 2011 Supply Chain Report, conducted by AT Kearney found that 50 per cent of large businesses and 25 per cent of their suppliers reduced costs by managing carbon in the supply chain.

More business are also training procurement staff in supply chain carbon management; up to 41 per cent in 2010 from 26 per cent a year earlier.

“Forward looking corporate executives are realising that the implementation of carbon emission reduction programmes deliver significant economic and strategic benefits for their organisations. Close collaboration with suppliers on these efforts multiplies the benefits,” said Daniel Mahler, AT Kearney partner and study co-leader.

More than 79 per cent of the companies in the study are now employing a formal climate change strategy, which has increased from 63 percent in 2009.

Around half of greenhouse gas emissions come from supply chains, the report said.

The report is the result of interviews with 57 global companies and 1,000 suppliers. The Carbon Disclosure Project is a not-for-profit organisation that claims to hold the largest database of corporate climate change information in the world.

Read more here.