cdp supply chain
TRANSCRIPT
www.cdp.net | @CDP Page 1
CDP Supply Chain:
Reporting Water Management
To Your Customer
Dexter Galvin
Head of CDP Supply Chain
www.cdp.net | @CDP
2016 supply chain members: 89 companies requesting 8000+ suppliers
www.cdp.net | @CDP
2016 supply chain members: 8 Automotive Members
www.cdp.net | @CDP
Automotive industry suppliers asking their suppliers – Tier 2+
www.cdp.net | @CDP
Water in the supply chain
Many risks facing businesses on water stewardship from their own
operations.
Even more are presented with risks in their supply chain – especially
where failure to deliver impacts day to day working.
However companies taking action on engaging suppliers on the topic
of water are increasingly highlighting the opportunities to gain a
competitive edge coming from this work.
Launched CDP’s water supply chain program in 2013
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www.cdp.net | @CDP
2016 supply chain water members: 5 industry leaders asking suppliers for their water information
www.cdp.net | @CDP
Standardized disclosure platform; reduced reporting burden
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US$67trillion
in assets
617 investors
>US$1trillion in purchasing power
24 Water Supply Chain members
One supplier asked to disclose
water information through CDP
by 16 customers
www.cdp.net | @CDP
Supply Chain Questionnaire
Co
re
Qu
esti
on
nair
es
Water questions
Current State: Growth strategy & experienced detrimental impacts
Risk Assessment & Implications: Risk assessment, exposure and
opportunities
Water Accounting: Water consumption, discharge, withdrawals and
recycling
Corporate Response: Governance, strategy, targets and initiatives
Su
pp
ly c
hain
mo
du
le
Customer Specific Information
• Highlighting facilities at risk with customer spend
• Collaborative opportunities
• Product (goods & services) intensity data
CDP’s Water Supply Chain Questionnaire
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www.cdp.net | @CDP
Stanley Black & Decker uses
CDP’s water questionnaire as a
framework to assist in setting
strategic and tactical initiatives
on water stewardship that will
lead to more responsible use of
freshwater resources and to help
ensure the right to water for
current and future generations.
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CDP Supply Chain: Taking suppliers on a journey
Supplier - Beginner:
Unaware of water impacts.
Potentially an unknown business risk for your
company – reputational or failure to deliver.
Unable to collaborate on action to reduce
Supplier - Intermediate
Water secure
Engaged on issues and
actively managing them
Ability to collaborate
and generate mutually
beneficial opportunities
Moving suppliers from a state of low awareness and high risk, to active environmental management
and potential collaborative partners in future actions.
www.cdp.net | @CDP
Supporting suppliers disclose
Questionnaire guidance (multiple languages)
CDP scoring methodology
Reporting roadmap
Technical guidance
FAQ’s
Upcoming free webinars & events (multiple languages)
Email support: [email protected]
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Used by companies
across more than 80
countries
Online and in person support is available to suppliers throughout the disclosure process:
www.cdp.net | @CDP
Examples of best practice on water stewardship
Suppliers that disclose to CDP get access to feedback and training
Supporting suppliers improve year on year
CDP Water Scoring (new 2015)
Score for water disclosure
sent to each discloser.
30min free debrief with
scoring partner
Capacity Building Webinars
13 webinars
4 languages
http://globalwaterresults.cdp.net
www.cdp.net | @CDP
Progression towards stewardship – KPI Tracking
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Disclosure •Suppliers response rate
Awareness •Suppliers able to provide basic water accounting information
•Suppliers reporting procedures assessing operational water risks
Management •Number of suppliers with water integrated into business strategy
•Suppliers that report company wide water policy
Leadership •Suppliers reporting targets &/or goals
•Who require their own key suppliers to report on water stewardship
The CDP questionnaire is structured to support suppliers
build and improve their strategy year on year. These
metrics can be tracked by customers.
www.cdp.net | @CDP
Engaging and training L’Oréal buyers has made it
possible to mobilize suppliers…Suppliers’
performance on climate change is fully included in
supplier relationship and challenged during business
reviews
Using Water Data: Engaging Procurement Professionals
• Effective supplier evaluation framework: realizing the importance
of collaboration
• Supplier selection based on the specific water consumption of
the supplied product in order to quantify its impact on water
resources and to focus action plans.
• Buyers are provided with one page summaries to discuss
progress – celebrating success and highlighting areas for
improvement.
www.cdp.net | @CDP
Using Water Data: Integration into purchasing processes
Dell’s guidelines for suppliers:
Report GHG emissions via CDP (minimum
scope 1 and 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 publicly states:
Failure to meet these requirements
can impact your supplier ranking and
potentially diminish your ability to
compete for Dell's business.
Proportion of key
suppliers %
Total procurement
spend % Rationale for this coverage
76-100 76-100
Our key suppliers make up a very significant
portion of our total suppliers. Most of these key
suppliers participate in CDP.
www.cdp.net | @CDP
Summary – Reporting Water Management To Your Customer
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5 Automotive industry leaders asking suppliers for
their water information – BMW, GM, Ford, Nissan and
Toyota
CDP has a standardized disclosure platform so
suppliers only have to disclose once
The CDP water questionnaire is structured to support
corporate water stewardship strategy development.
Participants get free feedback and access to best
practice / shared learning.
Data is used to track progress and generate
opportunities for collaboration.
Forward-looking companies – such as
the members of CDP’s supply chain
program – also appreciate that
successful, resilient suppliers are good
for business. Suppliers that are better
able to tackle sustainability challenges,
such as climate change and water risk,
are simply better business partners.
www.cdp.net | @CDP Page 16
Thank you for your attention!
Dexter Galvin
Head of CDP Supply Chain