LRLCY Loreal Co (PK)

   By Maitane Sardon 
 

Global blue-chip companies have been intensifying efforts to increase transparency on their supply chains, according to the latest Global Supply Chain Report by CDP, a nonprofit environmental disclosure platform.

While 10 years ago only 19 companies asked suppliers for information regarding environmental practices, a total of 115 companies--wielding purchasing power of more than $3.3 trillion--requested environmental information from their key suppliers in 2018, CDP said.

All 115 companies--out of a total of 5,500 surveyed--are included on CDP's Supplier Engagement leader board in recognition for their work with suppliers to disclose, measure and act on their environmental impact.

"In the 10 years that we have been working with purchasing organizations, we have seen a fundamental shift in expectations around business action on sustainability," said Sonya Bhonsle, global head of supply chain at CDP.

CDP highlighted nine companies that have been promoting transparency since it launched its supply-chain program: BT Group PLC (BT.A.LN), Johnson & Johnson (JNJ), Kellogg Co. (K), L'Oreal SA (OR.FR), Unilever PLC (ULVR.LN), HP Inc. (HPQ), Juniper Networks Inc. (JNPR), National Grid PLC (NG.LN) and Signify NV (LIGHT.AE).

Last year, a reduction of 633 million metric tons of carbon dioxide emissions--which lead to collective cost savings of $19.3 billion--was reported by suppliers of 115 global organizations sharing their information with CDP.

Meanwhile, CDP said almost three quarters of a subset of 27 major purchasers answering the survey said they are either currently deselecting or considering deselecting existing suppliers based on their environmental performance.

Write to Maitane Sardon at maitane.sardon@dowjones.com

(END) Dow Jones Newswires

February 06, 2019 06:35 ET (11:35 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.