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Article

25 Feb 2016

Author:
Maria Gallucci, Intl. Business Times

Carbon Disclosure Project finds few companies are working with suppliers to reduce carbon emissions

"Companies Fighting Climate Change Are Missing One Of The Biggest Culprits: Their Supply Chains", 26 Jan 2016

Dell is working with more than 100 of its top manufacturing suppliers to cut fuel and electricity use, adopt renewable energy and track carbon output. The company says the effort is part of Dell’s broader mandate to slash inefficiencies in its supply chain and curb unnecessary costs.“We encourage them to look at energy savings as a business advantage, and not just a nice thing to do to please an environmentally conscious customer,” Bruno Sarda, Dell’s director of corporate responsibility, said...[Few] businesses are addressing the supply chain emissions, which can contribute up to four times more carbon pollution than the company’s direct operations...[Yet, Paul Simpson, CEO of Carbon Disclosure Project,] “[m]any multinational companies have more emissions in their supply chains than in their own operation.”...Last month, nearly 200 nations forged a pact to reduce carbon emissions, a move that could make it harder and more expensive to use fossil fuels and waste energy as nations adopt stringent climate regulations...Beyond the rules, their brands are at risk. Watchdog groups are increasingly scrutinizing companies...that rely heavily on coal and petroleum or fail to meet their highly publicized environmental goals...[W]asteful energy use or high emissions are only a slice of the issues that multinationals have to manage in their supply chains. Human rights violations, toxic dumping in waterways and poor working conditions can all plague companies that outsource production to lower-wage contractors in far-flung parts of the world...Starting next year, CDP will begin ranking companies based on how well they work with their suppliers on climate-related risks... [Also refers to Amazon, Walmart]