There is huge potential for positive impact. According to CDP, reductions equivalent to over 550 million tonnes of carbon dioxide – more than Brazil’s total emissions in 2016 – were reported by suppliers worldwide in 2017. This is an increase from the 434 million tonnes reported in 2016. There’s a financial, as well as an environmental benefit. Cutting emissions saved suppliers a reported US$14 billion.

This impact is, however, only a fraction of what could be achieved if all organisations at each tier of the supply chain were engaged and working to drive down emissions. Currently, less than a quarter (23%) of supplier respondents are in turn engaging with their own suppliers to reduce emissions. This suggests that many may be missing out on business opportunities and financial savings.

At Unilever, we have begun to examine the wealth of information provided in the CDP data, to understand the upstream supply chain emissions associated with our products. This is leading to insights on where and how we might be able to engage with suppliers to reduce emissions and costs, and mitigate risks.

CDP leverages investor and buyer power to motivate companies to disclose and manage their environmental impacts. As a member of its supply chain programme, Unilever is one of 99 companies with over US$3 trillion in purchasing power working to engage its suppliers and tackle climate, water and forest-related risks in the supply chain.

Last week’s discussions at Davos – concerning international trade and the World Economic Forum’s recently published Global Risks Report 2018 – highlight the importance of addressing supply chains when tackling environmental challenges. This is especially significant because greenhouse gas emissions in the supply chain are on average four times higher than those from direct operations.