Companies Integrate Climate Risk into Supply Chains, but Remain Wary of Regulatory Policies

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January 23, 2014 /3BL Media/ - Companies are increasingly including climate risk as an important factor in their supply chains, but their investment in emissions reductions programs is decreasing. That’s the conclusion of a new report from Accenture and CDP, “Collaborative Action on Climate Risk.” Where’s the disconnect? The research makes a direct link to uncertain regulatory policies. Almost three-fourths of the 2,800 companies surveyed identified a current or future risk related to climate change.

However, savings from their emissions reductions programs have dropped by 44 percent in the last year, due to falling levels of investment. Ninety percent of companies named regulatory risk as the number one barrier to increased investment in reduction programs. The report concludes that the most important missing element in improving emissions control performance is comprehensive collaboration across supply chains.

To address this issue, a new CDP supply chain initiative has been launched to incentivize suppliers. CDP’s Action Exchange will drive targeted action on the most cost effective emissions reductions practices. Bank of America, L’Oreal, Philips, and Walmart are among the first companies to sign on to this promising effort.

I’m John Howell for 3BL Media.

Video Source: Companies Integrate Climate Risk into Supply Chains, but Remain Wary of Uncertain Regulatory Policies

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