CDP Global: global CO2 emissions could be reduced with cleaner supply chains

Investors environmental disclosure nonprofit CDP Global has shown that a billion tonnes of CO2 could be saved if suppliers to the 125 largest companies in the world increased their use of renewable energy by 20%.

The research comes from a survey of 125 corporate buyers that include Walmart, L’Oreal and Samsung. It shows that these companies have on average 11% renewable electricity use.

Between the 125 companies, CDP Global say that they have 7,000 suppliers in their global supply chains, and a collective annual procurement spend of $3.6 trillion.

According to global director of supply chains at CDP Global, Sonya Bhonsle, the amount of money spent between these companies could be a strong leverage toward driving climate action. “Our analysis shows a gigaton of emissions savings up for grabs if suppliers increase their proportion of renewable power by 20 percentage points on average. This would be a big step, but it is achievable,” she said.


Among those surveyed, 70% were actively encouraging suppliers to buy in renewable energy. But Bhonsle said that only 4% of suppliers reporting a renewable energy target: “We’re not seeing that level of ambition yet. We need to see all buyers engaging proactively with their suppliers to unlock this huge opportunity.”

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