New group targets supply chain emissions

Several of the world's leading multinationals yesterday announced they are banding together to promote better environmental standards among their supply chains.

Dubbed the Supply Chain Leadership Coalition, the group includes major players such as Procter & Gamble, Unilever, Tesco, Nestlé, Imperial Tobacco Group and Cadbury Schweppes. It will be run in partnership with influential environmental reporting body the Carbon Disclosure Project (CDP).

Under the initiative, the companies will engage with their various supply chain partners and encourage them to report their greenhouse gas emissions and develop climate change strategies to limit their environmental impact.

The CDP said it expects the strategy to allow the companies involved to better measure their carbon emissions and ultimately reduce the carbon footprint of their "indirect emissions".

Steve Driver, president of global supply chain at Cadbury Schweppes, said the coalition would help drive carbon savings across entire industries.

"By joining forces with peers and partners throughout the supply chain we hope to reduce the carbon footprint of the food manufacturing sector," he explained.

The launch of the new group is part of a wider trend that has seen numerous multinationals increase pressure on suppliers to cut emissions and disclose environmental information. Most notably, retail giant Wal-Mart last month announced it is working with the CDP to cut the carbon footprint of its supply chain.