SlideShare a Scribd company logo
Taking suppliers on a
sustainability journey
Varsha Doshi, Account Manager,
CDP Supply Chain
Customers
{ Identify strategic
suppliers
{ Evaluate climate,
forests and water
risks
CDP Supply Chain program
2
125customers
13,000suppliers
Questionnaires
Request
information
Data and insights
Information
Suppliers
{ Disclose qualitative and
quantitative information
{ Improve performance and
learn best practices
Taking suppliers on a journey
Pathway for engaging your suppliers
3
Set clear
expectations for
your suppliers
• Onboard suppliers
• Prioritize KPIs
• Communicate expectations
Phase 1:
Establish foundation
Improve my
suppliers'
emissions
performance
Phase 2:
Build capacity
• Provide education and
training
• Highlight areas of
improvement
• Feedback to suppliers
Track emission
reductions in my
supply chain
Phase 3:
Incentivize action
• Collaborate
• Embed in procurement
standards to boost engagement
and set higher expectations
• Reward suppliers
• Track progress towards goals
Setting a roadmap for your suppliers
Assessing where suppliers are on their journey to a low carbon
economy
4
Suppliers disclose
information via CDP
Calculate and
report emissions
Set an
emissions
reduction target
Report activities
to reduce
emissions
Cascade the action ask
suppliers to engage with their
suppliers
Collaborate with customers to
reduce emissions
Phase 1: Establish foundation Phase 2: Build capacity Phase 3: Improve performance
Reduce emissions
and advance low-
carbon economy
Report purchasing
renewable electricity
Dell: Setting clear expectations and
integrating into procurement standards
5
{ Report GHG emissions via CDP (minimum Scope 1 &
Scope 2 - Scope 3 encouraged)
{ Set public goals to reduce operational GHG impacts
{ Tier 1 suppliers to establish GHG management and
reporting requirements for their suppliers
{ Report on water via CDP Water
{ Publish a GRI-based sustainability report
Dell’s guidelines for suppliers Failure to meet these
requirements can impact your
supplier ranking and potentially
diminish your ability to
compete for Dell's business.
L'Oréal: Scorecards and buyer engagement
6
{{
Engaging and training L’Oréal buyers has
made it possible to mobilize suppliers and
convince that measures aimed at reducing
greenhouse gas emissions play an
inevitable part of a company’s global
performance. CDP’s supply chain scoring is
then part of supplier’s evaluation.
Suppliers’ performance on climate change
is fully included in supplier relationship and
challenged during business reviews.
Miguel Castellanos, Director of
Global Safety, Health &
Environment, L’Oréal
{ {
Incomplete
response
scorecard
Complete
response
scorecard
MetLife: Supplier feedback through review meetings
Developing internal capacity to drive action
{ Reward supplier through awards
or other incentives
7
Following completion of the CDP Supply Chain survey, annual
sustainability review meetings are scheduled to discuss
the supplier's GHG emissions data, environmental cost saving
strategies, best practices and potential collaborative
opportunities moving forward.
Supplier who meet specific criteria for disclosing KPIs such as:
risks, GHG emissions, collaborative opportunities, are selected
to receive an award at MetLife’s annual supplier recognition
ceremony
{{
CDP’s globally recognized
questionnaire is the primary tool used
to measure our suppliers’ climate
change and GHG emissions
strategies.
{{
WWW.S U STA INA BLEP U RCH A S ING .O RG

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SPLC 2019 Summit: Sustainable Purchasing 301: Measuring Impact: Using a Roadmap Approach to Develop KPIs and Metrics for your Highest Priorities

  • 1. Taking suppliers on a sustainability journey Varsha Doshi, Account Manager, CDP Supply Chain
  • 2. Customers { Identify strategic suppliers { Evaluate climate, forests and water risks CDP Supply Chain program 2 125customers 13,000suppliers Questionnaires Request information Data and insights Information Suppliers { Disclose qualitative and quantitative information { Improve performance and learn best practices
  • 3. Taking suppliers on a journey Pathway for engaging your suppliers 3 Set clear expectations for your suppliers • Onboard suppliers • Prioritize KPIs • Communicate expectations Phase 1: Establish foundation Improve my suppliers' emissions performance Phase 2: Build capacity • Provide education and training • Highlight areas of improvement • Feedback to suppliers Track emission reductions in my supply chain Phase 3: Incentivize action • Collaborate • Embed in procurement standards to boost engagement and set higher expectations • Reward suppliers • Track progress towards goals
  • 4. Setting a roadmap for your suppliers Assessing where suppliers are on their journey to a low carbon economy 4 Suppliers disclose information via CDP Calculate and report emissions Set an emissions reduction target Report activities to reduce emissions Cascade the action ask suppliers to engage with their suppliers Collaborate with customers to reduce emissions Phase 1: Establish foundation Phase 2: Build capacity Phase 3: Improve performance Reduce emissions and advance low- carbon economy Report purchasing renewable electricity
  • 5. Dell: Setting clear expectations and integrating into procurement standards 5 { Report GHG emissions via CDP (minimum Scope 1 & Scope 2 - Scope 3 encouraged) { Set public goals to reduce operational GHG impacts { Tier 1 suppliers to establish GHG management and reporting requirements for their suppliers { Report on water via CDP Water { Publish a GRI-based sustainability report Dell’s guidelines for suppliers Failure to meet these requirements can impact your supplier ranking and potentially diminish your ability to compete for Dell's business.
  • 6. L'Oréal: Scorecards and buyer engagement 6 {{ Engaging and training L’Oréal buyers has made it possible to mobilize suppliers and convince that measures aimed at reducing greenhouse gas emissions play an inevitable part of a company’s global performance. CDP’s supply chain scoring is then part of supplier’s evaluation. Suppliers’ performance on climate change is fully included in supplier relationship and challenged during business reviews. Miguel Castellanos, Director of Global Safety, Health & Environment, L’Oréal { { Incomplete response scorecard Complete response scorecard
  • 7. MetLife: Supplier feedback through review meetings Developing internal capacity to drive action { Reward supplier through awards or other incentives 7 Following completion of the CDP Supply Chain survey, annual sustainability review meetings are scheduled to discuss the supplier's GHG emissions data, environmental cost saving strategies, best practices and potential collaborative opportunities moving forward. Supplier who meet specific criteria for disclosing KPIs such as: risks, GHG emissions, collaborative opportunities, are selected to receive an award at MetLife’s annual supplier recognition ceremony {{ CDP’s globally recognized questionnaire is the primary tool used to measure our suppliers’ climate change and GHG emissions strategies. {{
  • 8. WWW.S U STA INA BLEP U RCH A S ING .O RG