Seven companies have been certified under a new standard that recognises their efforts to reduce carbon emissions from their supply chain.
ABP Food Group, Aviva, Central England Co-operative, Deloitte UK, Nationwide, PwC UK and Willmott Dixon have achieved the certification. The Carbon Trust says the standard is the world's first independent certification to recognise organisations that are measuring, managing and reducing carbon emissions that are outside their direct operational control.
Emissions from supply chains dwarf direct emissions of companies in most sectors, according to Darran Messem, managing director of certification at the Carbon Trust. "Large organisations often harness their procurement power to secure better quality or lower prices. But if they also engage and demand higher environmental standards, they can change the behaviour of both direct and indirect suppliers, helping them to become more sustainable," he said.
To achieve the Carbon Trust standard for supply chain, organisations need to complete a detailed hotspot analysis to identify the most significant areas of carbon emissions in their supply chain. This is then used to determine a quantitative baseline for emissions reduction and prioritise suppliers for future engagement.
Organisations must demonstrate evidence of engagement with suppliers, reductions in specified parts of their supply chain and then expand their approach to engage different areas of suppliers, the Carbon Trust said.
Measuring the carbon footprint of a supply chain and engaging with suppliers can have other benefits, the trust pointed out. These include highlighting areas of inefficiency and risk from threats such as resource scarcity and regulatory change, it said.