New research shows that one billion tonnes of carbon could be saved if suppliers to 125 of the world’s biggest companies increased their use of renewable electricity by just a small percentage.
As supply chains produce on average 5.5 times more carbon emissions than a corporate purchaser’s direct operations, an increasing number of major companies are looking to suppliers to improve environmental performance.
A new report from disclosure platform CDP analysed data from almost 7,000 suppliers of 125 large purchasing organisations, finding that just 4 per cent had set a renewable energy target.
If these suppliers increased their use of renewable electricity by just a fifth, experts believe this would cut out a gigatonne of greenhouse gas emissions in just one year - equal to the 2017 emissions from Brazil and Mexico combined.
‘Critical tool’
“The trillions in procurement spend by large corporate buyers [is] a critical leverage tool for driving climate action at scale,” explained Sonya Bhonsle, global director of supply chains at CDP.
“Sourcing renewable electricity is one of the swiftest ways to slash emissions. Suppliers just starting out should sign their first renewable electricity contract aiming to source at least 20 per cent of their total power. Meanwhile, corporations should be rewarding suppliers taking this action in their procurement processes, making renewable energy a matter of business competitiveness.”
The news comes after the global RE100 initiative - a group of over 200 global corporates aiming to power themselves with 100 per cent renewable electricity - announced that nearly half of its members were now influencing their suppliers to do the same.
