From: Reuters
Published January 20, 2008 10:30 AM

Corporations team up to cut supply chain emissions

LONDON (Reuters) - Eleven of the world's largest companies are teaming up to see how they can work with thousands of their suppliers to curb greenhouse gas emissions, a green consultancy said on Sunday.

Cadbury Schweppes, Dell, Nestle, PepsiCo, Proctor & Gamble and Tesco are amongst the companies in the scheme, called the Supply Chain Leadership Collaboration (SCLC).

The venture is being coordinated by the Carbon Disclosure Project (CDP), a UK-based non-profit organization that helps companies and investors to cooperate on fighting climate change.

"Multinationals are seeking to understand where the emissions are lying in their supply chain and what risks and opportunities from climate change will be presented," Paul Simpson, chief operating officer for CDP, told Reuters.

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In the scheme's pilot phase, until the end of March 2008, each organization has selected 50 suppliers to work with, CDP said in a statement.

"We believe that partnerships between companies, suppliers, stakeholders and customers are critical to making a real difference in protecting the Earth," Tod Arbogast, computer maker Dell's director of sustainable business, said in a statement.

The Carbon Disclosure Project will publish a report after the first phase, recommending a standardized approach to emissions cuts and highlighting areas to be targeted.

The CDP will expand the scheme in its second phase, starting in May 2008, to include up to 2,000 suppliers from each participating organization. More major companies will be invited to join in the second phase.

"When it comes to making changes in their supply chains, the purchasing organizations have a great deal of leverage over their suppliers," Simpson added.

To read the CDP's SCLC questionnaire or for further analysis on the carbon markets, log on to http://www.reutersinteractive.com

(Reporting by Michael Szabo; Editing by Anthony Barker)

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