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Greenhouse Gas (GHG) Inventory • GHG Protocol • EU CBAM Declaration • Product Carbon Footprint (PCF) Report • ESG Sustainability Report / IFRS (S1, S2
CDP carbon disclosure and corporate greenhouse gas inventory disclosure
According to a research report by the international organization Carbon Disclosure Project (CDP), the greenhouse gas emissions from corporate supply chains are on average 11.4 times higher than those generated by the company's own operations. This finding highlights the importance of supply chains in carbon emissions, especially for multinational companies. Therefore, more and more multinational companies are realizing that in the process of achieving carbon neutrality goals, they must actively guide their supply chains to participate in emission reduction actions. This article will delve into this issue, with a particular focus on the establishment of greenhouse gas emission data from suppliers and the roles and challenges of Chinese enterprises in this regard. First, let's analyze CDP's research report in detail.
The report points out that the carbon emissions of the supply chain far exceed the company's own emissions, which means that even if the company achieves its own low-carbon goals, if its supply chain still has high emissions, the overall carbon footprint will still be high. This cross-border emission reduction method is classified as Scope 3 emissions, that is, indirect emissions. The first key action mentioned by the World Economic Forum in its report is to establish greenhouse gas emissions data from suppliers. The core idea of this action is that companies must understand the carbon emissions in their supply chains in order to formulate targeted emission reduction strategies. Establishing supplier emissions data requires cooperation and transparency, and companies need to share the latest measurement and monitoring data with suppliers to comprehensively assess the carbon footprint of their supply chains. Taiwanese companies play a key role in this global carbon reduction action. Many large Taiwanese companies have begun to promote emission reduction measures in their supply chains and gradually expand to small and medium-sized enterprises. This gradual approach is key to achieving carbon neutrality goals, as the diversity of companies in the supply chain is vast and it takes time to cultivate sustainable practices. However, Chinese companies face some challenges in establishing supplier greenhouse gas emission data. First, transparency and data sharing may be resisted by some suppliers. Some companies may be reluctant to disclose their carbon emission data due to concerns that it may adversely affect their business.
Therefore, establishing suppliers' emissions data requires negotiation and persuasion to ensure that all stakeholders are involved. Additionally, resource and technology limitations can also become challenges. Small and medium-sized enterprises may lack the funds and technology to monitor and report their carbon emission data, requiring support and investment from governments and large enterprises. At the same time, the consistency of carbon disclosure measurement and measurement methods is also an issue, as different industries and regions may use different methods to assess carbon emissions. In summary, supply chain carbon emission management is a key step in achieving carbon neutrality goals. Multinational enterprises need to establish suppliers' greenhouse gas emission data to reduce carbon emissions in their supply chains in a targeted manner. Chinese companies have made some progress in this regard, but still face challenges, including transparency and resource constraints. To achieve global carbon emission reduction goals, enterprises and governments need to work together to promote carbon emission management in the supply chain and achieve a sustainable future.
Additionally, it is important to note that establishing supplier greenhouse gas emission data is not just an environmental initiative but also has extremely important business value. Here are some key aspects:
1. Risk management: Understanding the carbon emissions of the supply chain helps companies identify potential environmental risks. Climate change, natural disasters, and policy changes can adversely affect the supply chain, so establishing emissions data helps companies develop risk management strategies to address these challenges.
2. Brand value: In today's market, environmental protection and sustainability have become important concerns for consumers and investors. Companies actively participate in emission reduction actions to enhance their brand image, attract more consumers and investors, and thus increase competitiveness.
3. Cost savings: Reducing carbon emissions is often accompanied by energy efficiency improvements. Companies may achieve cost savings in reducing energy consumption and emission reductions. Additionally, governments may provide incentives for green energy and carbon markets to further reduce costs.
4. Supply chain stability: Climate change can cause instability in the supply chain, such as floods, droughts, or traffic disruptions. By reducing carbon emissions, companies can reduce their dependence on fossil fuels, improve supply chain stability, and reduce the risk of being affected by natural disasters and other factors.
5. Regulatory compliance: Many countries and regions have implemented carbon emission limits and regulations, and companies need to comply with relevant regulations to avoid fines and legal issues. Establishing emissions data helps ensure regulatory compliance.
Finally, from a global perspective, having suppliers' carbon emission data is one of the necessary steps to achieve global carbon reduction goals. Countries and international organizations encourage companies to participate in emission reduction actions through means such as carbon markets and green financial institutions. Therefore, establishing accurate, transparent, and credible emissions data is key to ensuring that companies benefit from the global carbon market.
In summary, establishing supplier greenhouse gas emission data is a strategically important initiative that not only contributes to environmental protection, but also helps companies achieve sustainable development and competitive advantage. Chinese enterprises should actively participate in this process, overcome challenges, achieve carbon emission reduction goals in the supply chain, and contribute to the realization of global carbon emission reduction goals. This is not only a moral responsibility but also a manifestation of business wisdom.
The CDP Carbon Disclosure Project is an international organization that aims to promote global companies to reduce carbon emissions and combat climate change. Its core concept is to encourage companies and suppliers to proactively reduce greenhouse gas emissions through information transparency to achieve sustainable development and climate change goals. The following are the processes and steps of CDP's carbon disclosure program:
1.Registration and reporting: Companies first need to register on CDP's website to indicate their willingness to participate in the carbon disclosure program. They are then required to report their carbon emission data and climate-related information annually. These reports cover information on the company's carbon emissions, climate risks, and response measures.
2.Data collection and analysis: CDP regularly collects and aggregates reporting data from participating companies. This data includes carbon emission volumes, emission sources, emission reduction measures, climate risk assessments, etc. CDP's professional team analyzes this data to evaluate the company's performance and progress.
3.Ranking and scoring: CDP usually ranks and scores companies based on their carbon emission data and climate-related information. Rankings and scores reflect the company's performance in reducing emissions and compare it with other participating companies. This comparison helps motivate companies to reduce emissions more actively.
4.Feedback and suggestions: CDP provides feedback and suggestions from individual companies to help them improve their sustainable business practices. This includes emission reduction recommendations for specific emission sources, risk management strategies, sustainability goal setting, etc.
5. Information sharing: CDP publicly publishes aggregated carbon emission data and reporting information to promote information transparency. This information is valuable to investors, government agencies, NGOs, and the public, helping to formulate policies and investment decisions.
6. Incentives and rewards: CDP often organizes carbon emission leader lists and award events to recognize companies that have performed well in reducing emissions. These lists and awards can provide positive incentives, encouraging more companies to participate in projects and strive to improve their sustainable business practices.
7.Cross-border Cooperation: CDP promotes cross-border cooperation, encouraging enterprises, governments, and NGOs to work together to address climate change. This collaboration can help address global climate challenges, including the establishment of carbon markets and the promotion of climate finance.
In summary, the CDP Carbon Disclosure Program encourages companies to proactively reduce carbon emissions and better respond to climate change through information transparency, feedback mechanisms, rankings, and scoring. This process helps improve corporate sustainable business practices, promote global climate action, and promote the realization of a green and low-carbon future. Corporate participation not only helps achieve their sustainability goals but also helps address the challenges posed by climate change.
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