How can you use the CDP Supply Chain program to engage suppliers in climate action?

1 What is the CDP Supply Chain program?

The CDP Supply Chain program is a platform that enables companies to collect and analyze data from their suppliers on their climate risks, opportunities, strategies and actions. By participating in the program, you can request your suppliers to respond to the CDP climate change questionnaire, a standardized and widely recognized tool that covers topics such as emissions, targets, governance, risks and opportunities, and low-carbon transition. The CDP Supply Chain program also provides you with tools and guidance to benchmark, engage and support your suppliers in improving their climate performance.

2 Why join the CDP Supply Chain program?

The CDP Supply Chain program can help your business and suppliers in various ways, such as reducing costs and risks, increasing transparency and trust, driving innovation and growth, and contributing to the global goals. By identifying climate risks and inefficiencies in your supply chain, you can reduce operational costs, enhance resilience, and mitigate potential disruptions. Additionally, disclosing your climate data and actions to stakeholders can demonstrate your commitment to sustainability, improve your reputation, and strengthen relationships with customers, investors, and regulators. Engaging with suppliers on climate solutions can also foster innovation, create business opportunities, access new markets, and align your climate strategy with the Paris Agreement and the Science Based Targets initiative to support the effort to limit the rise in global temperature.

4 What are the best practices for the CDP Supply Chain program?

To maximize the benefits of the CDP Supply Chain program, you should follow some best practices that can enhance your results and impact. Communication is key; make sure to keep your suppliers informed about the purpose and benefits of the program, the expectations and requirements for participation, and the resources and support available. It's also important to educate them about climate action, the risks and opportunities for their business, and the best practices from other suppliers and sectors. Incentivizing your suppliers to participate and improve their performance can be done by linking the program to procurement decisions, offering rewards and recognition, and facilitating access to finance and markets. Finally, collaborate with your suppliers to identify and implement climate solutions, share knowledge and expertise, and leverage synergies and partnerships.

5 What are the challenges and solutions for the CDP Supply Chain program?

The CDP Supply Chain program can present some challenges, such as data quality and availability, supplier engagement and response rate, and supplier performance and improvement. To overcome these difficulties, you can adopt solutions like providing your suppliers with tools and guidance to measure and report their emissions, communicating the value proposition of the program to your suppliers, offering incentives for participation, providing feedback and recommendations based on their responses, setting targets for future performance, and supporting them with training and resources. All of these solutions can help you and your suppliers succeed in the program.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?