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This CDP Supply Chain report looks for the first time at how businesses are responding to the call for action and transparency in managing carbon and climate change in their supply chain.

The Carbon Disclosure Project (CDP) has been asking large global corporations to measure and report the impact climate change will have on their business and their carbon emissions since 2002. In 2008 CDP extended this work with the CDP Supply Chain Project. Thirty four member companies nominated a selection of suppliers to receive a questionnaire on climate change looking at issues related to: carbon risks and opportunities, emissions reporting, reduction targets and plans, governance, supplier engagement and product lifecycles.

Looking at the impacts of carbon and climate change on supply chains, it is difficult to understand why some companies are questioning ‘if' they should do something. The questions to be asked should instead be ‘what' and ‘how'. The reason why is simple; carbon and climate change are serious issues, with critical commercial, financial, operational and brand implications. Therefore it is not an option, it is basic business sense.

No matter how well an organisation manages its direct impacts, if its suppliers are not managing the future challenges around regulation, reporting, scarcity of resource, or the effects that changes in the climate could have on their business, their ability to supply and even operate in the marketplace could be dramatically affected.