CDP Supply Chain Report 2018

Detailed Description

This year, CDP collected primary data from over 4,800 companies on behalf of 99 supply chain members. This represents the largest data set ever collected by the CDP supply chain program. This data comes from companies across 51 different industry groups/segments and based in 86 different countries.

More suppliers than ever are being recognized for their water stewardship, demonstrating an increased awareness of water risks, and setting company-wide water targets in response to these risks. The number of supply chain members requesting their suppliers to report water information has reached a new high this year, with nearly 1,500 suppliers disclosing water data through the CDP supply chain program, out of 4,850 companies that were engaged. Moreover, 58% of all responding suppliers report integrating water risk management into their business strategies, while 62% report company-wide water-related targets. The number of suppliers awarded the highest score for their water disclosure also rose, with 41 suppliers figuring on the Supplier Water A List in 2017, highlighting companies that have taken an active approach towards water stewardship. However, suppliers demonstrate low levels of awareness and maturity vis-à-vis deforestation risks, highlighting the need for deeper supplier engagement. In 2017, the CDP supply chain program collected data from suppliers on their management and risk assessment of forest-risk commodities for the first time. In total, 88 suppliers disclosed information as part of a pilot disclosure request through the supply chain program and indicated their commitment to limit deforestation in their operations. Generally, disclosure demonstrates the need for deep and meaningful supplier engagement leading to improved awareness of the risks and capacity to realize opportunities. CDP and McKinsey conducted analyses on responses from companies in eight select countries. It found that 33% of suppliers perceived risks arising from a changing regulatory environment, while 29% reported corresponding benefits. Against the backdrop of the global sustainability agenda, this report notes large variations in country-level disclosure and performance on climate change, water and deforestation.