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Companies Fail to Engage Suppliers on Nature, Climate

Data from a report by non-profit CDP had revealed the just 41% of companies disclosing to the organisation reported on any of their supply chain emissions. This is despite their impact being more than 11 times higher than their direct emissions. In total 18,600 companies disclosed data on climate last year – representing a 42% year-on-year increase – but less than half of these firms disclosed on biodiversity. Nearly 70% of companies told CDP that they did not assess the impact of their value chain on biodiversity in 2022, despite impending mandatory regulations on nature being adopted at COP15. The data shows the majority of companies are prioritising climate disclosure, with only 915 of the firms disclosing on water security and 500 on deforestation. The report said that “leadership in disclosure on environmental impacts is not happening at the scale and scope required”. Additionally, only one in every 10 companies include climate-related requirements in their contracts with suppliers. Sonya Bhonsle, Global Head of Value Chains & Regional Director Corporations at CDP, said: “We need to see environmental leadership from companies right now by tackling their impacts on climate change and nature together, working with their suppliers in an integrated way that includes nature as standard, and incentivising this engagement within their organisation.”

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