Multinationals more likely to work with firms with lower carbon footprints

Multinational companies will increasingly choose to work with businesses who have a lower carbon footprint. A recent survey by Carbon Trust Advisory found that 50% of multinationals look set to select their suppliers based upon carbon performance in the future and 29% of suppliers are likely to lose their places on ‘green supply chains’ if they do not have an adequate performance records on carbon.

The research also found that 58% of multinationals will be prepared to pay a premium for low carbon suppliers to reduce their overall corporate carbon footprints in the future.

The research shows that supply chain carbon is the next key area to be tackled to enhance efficiency and reputation, and meet compliance. It found that:

  • 93% of multinationals are addressing their own (direct) carbon emissions now
  • 40% are already addressing the (indirect) carbon emissions of their supply chain now
  • 42% of companies not addressing supply chain emissions, will do so within the next 12 months.
  • A further 42% of companies not addressing their supply chain emissions, will do so within the next two – three years

But there are potential rewards for suppliers who can demonstrate their carbon efficiencies. Of the companies addressing supply chain emissions:

  • 66% are willing to pay a premium of around 10% to purchase a product or service with low emissions
  • 65% sell products and services that reduce the carbon footprint of their customers
  • 71% procure key products from suppliers with lower carbon footprints

Small businesses that need help in reducing their carbon footprint should contact janerayner@luluconsulting.co.uk for further help and advice.

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