Summary
This report from CDP, drawing on data from over 23,000 company disclosures in 2023, examines the business need for enhancing supply chain sustainability in response to climate-related risks. The findings indicate that companies estimate $162 billion in potential costs from supply chain climate risks, significantly exceeding the $56 billion required for mitigation efforts. However, as the report notes, only 1 in 4 companies currently integrate supply chain climate risks into their risk management. CDP’s analysis also highlights the emissions reduction initiatives have generated $13.6 billion in combined savings for companies, largely driven by voluntary actions rather than regulatory mandates.