By Rob Starr, Content Manager, Big4.com
According to research published by the Carbon Disclosure Project (CDP) and Accenture (NYSE:ACN), seventy percent of companies believe that climate change has the potential to significantly affect their revenue, a risk which is intensified by a chasm between the sustainable business practices of multinational corporations and their suppliers.Climate change presents near-term risks to businesses, according to the report. Fifty-one percent of the risks that disclosing companies associate with drought or extreme rain are already having an adverse effect on company operations, or are expected to within five years, say those businesses.
Most of the positive actions responding companies say they have taken in response to climate change are attributable to organizations that have been using CDP’s unique global system for at least two years, demonstrating that customer pressure is driving change. However, the report identifies a performance gap between companies and their suppliers, and it claims that this is intensifying climate risk in the global supply chain models according to Accenture.
Gary Hanifan, global sustainability lead for supply chain, Accenture comments:
“This report provides clear evidence that those who are most transparent about their climate change risks are more likely to achieve the greatest emissions reductions”,he says. “And they are also more likely to enjoy monetary savings as a result of their responses to climate change risks. But the return on investment by the most proactive companies will not reach its full potential unless those companies can encourage their suppliers to follow their lead.”
The report is freely available from the CDP and Accenture websites. It provides advice on how companies can use data, process and governance to create a more sustainable supply chain and capitalize on the correlations between climate risk, performance and accountability to realize financial benefit.