According to a study just published many multinationals have a blind spot in judging the environmental impact of their suppliers’ operations, adding to corporate risks linked to climate change.
The report was prepared by non-profit consultancies CDP and BSR working with 75 companies such as Dell, Unilever and Wal-Mart Stores on environmental risks.
“If you are a large multinational company and you have a blind spot in your supply chain you are likely to be at greater risk,” Paul Simpson, head of CDP, told Reuters.
CDP was formerly known as the Carbon Disclosure Project.
Still, he said it was positive that ever more multinationals were seeking environmental information about supply chains, such as greenhouse gas emissions, water use or the impact of their business on tropical forests.
It said suppliers, such as packaging, agricultural ingredients, coolers and vending machines, caused two-thirds of that footprint.
The report did not name companies with good or bad overviews of their suppliers but Mr Simpson said CDP would publish a ranking in 2017.
Last month, almost 200 nations agreed at a United Nations sponsored summit in Paris to phase out net greenhouse gas emissions this century to limit rising temperatures blamed for causing everything from more heat waves to downpours.
“Everyone is under starter’s orders including multinational organizations and their worldwide supply base” to implement the Paris agreement, Christiana Figueres, head of the UN Climate Change Secretariat, wrote in a preface to the CDP report.
You can find the full CDP Report here.