Climate change is a business issue and the UK government expects that its suppliers should be taking it seriously. That is the message of a new report published today by the Carbon Disclosure Project (CDP) which reveals the need for better integration of carbon reduction strategies within suppliers' organisational policies.
The report, CDP 2009 Public Procurement Report for the government, written by leading climate change consultancy AEA, is the result of an unprecedented collaboration on climate change undertaken by 14 departments and executive agencies, including the Cabinet Office, Department of Business Innovation and Skills, Ministry of Defence, Office of Government Commerce, to encourage their suppliers to disclose their greenhouse gas (GHG) emissions and climate change related risk.
Speaking on the launch of the report, business secretary Lord Mandelson said: "Involvement in the CDP Public Procurement Programme provides government and its suppliers with the opportunity to work together to bring about real reductions in carbon emissions through joint working and sharing of best practice. I would like to thank participants in this initiative and would commend future involvement to all those concerned with effecting change in this important area."
Just over 80% of the 164 supplier companies taking part in the report were able to disclose their emissions, with around 77% disclosing their scope 1* and 2 emissions - direct GHG emissions, from onsite energy usage, production and other industrial activities.
However, the report identified the need to understand all aspects of Scope 3 emissions (indirect), such as supply chain and product emissions for organisations to fully understand and appraise their potential weaknesses.
In addition, while two-thirds (66%) of organisations have put in place carbon reduction targets demonstrating an intent to reduce emissions, the majority of these are short-term and not in line with the aspirational targets that the UK has set itself.
The report highlighted that progress has been made by government departments during the past year in communicating with suppliers that climate change is a business issue and that accountability at the highest level is vital. 68% of organisations responded by saying that the board or executive committee had overall responsibility for carbon reductions, yet only 32% of those questioned were able to say how responsibility for carbon reductions had been assigned.
