by Shane Henson — October 12, 2011—For manufacturers, reducing the carbon footprint of their products is not only needed to protect the environment, but their bottom line as well. The Carbon Trust Advisory’s new study of senior managers, called Cutting Carbon in the Value Chain, has found that 50% of multinationals look set to select their suppliers based upon carbon performance in the future.
According to the research, 29% of suppliers are likely to lose their places on “green supply chains” if they do not have an adequate performance record on carbon. Conversely, the research finds that 58% of multinationals will in the future pay a premium for low-carbon suppliers to reduce their overall corporate carbon footprints.
The research also found stark differences in the attitudes of U.K. and U.S. supply-chain decision makers towards carbon in the supply chain. In the U.K., 56% of multinationals say that in the future they expect to drop suppliers based upon low-carbon performance, while in the United States, just 28% anticipated suppliers would be deselected on that basis.
Fortunately for suppliers, of those organizations tackling their indirect emissions, 43% currently provide training and education to help their suppliers improve efficiency. However, this type of support is expected to rise by only 18% in the future. According to the report, this indicates that suppliers are more likely to be expected to drive their carbon stewardship independently to retain their place on supply chains in the future.
