Decoding CDP's Climate Disclosure: A Deep Dive into Section 12.a

The Carbon Disclosure Project (CDP) has long been a benchmark for environmental transparency, guiding companies worldwide in their sustainability reporting. One section that has garnered significant attention in recent years is Section 12.a, dedicated to supplier engagement on climate issues. Let's delve into the intricacies of this section and understand its significance.

The Essence of Section 12.a

At its core, Section 12.a seeks to understand how companies are engaging with their suppliers on climate-related matters. Given that suppliers often play a pivotal role in a company's carbon footprint, especially in the realm of Scope 3 emissions, this section is crucial for a holistic understanding of a company's environmental impact.

Key Activities Highlighted in Section 12.a

1. Awareness Raising: This activity focuses on initiatives taken by companies to inform their suppliers about the importance of climate-related issues and the role they play in addressing them.
2. Providing Training: Here, the emphasis is on the resources, workshops, or training sessions offered to suppliers to help them understand and reduce their emissions.
3. Collaborative Target Setting: This activity delves into the joint efforts between companies and their suppliers to set shared emissions reduction targets.
4. Innovation & Collaboration: Companies are asked about joint projects or initiatives aimed at reducing emissions or innovating sustainable solutions.
5. Monitoring & Reporting: This section evaluates the systems companies have in place to track, verify, and report on supplier emissions data.

Why Section 12.a Matters

Supplier engagement is more than just a checkbox for sustainability reporting; it's a reflection of a company's commitment to genuine climate action. By actively engaging with suppliers, companies can drive collective action, foster innovation, and ensure transparency in a significant segment of their emissions profile.

Moreover, with the increasing emphasis on Scope 3 emissions in the regulatory landscape, Section 12.a serves as a precursor to the kind of detailed scrutiny companies can expect in the future.

In Conclusion

Section 12.a of the CDP's climate disclosure questionnaire underscores the importance of supplier engagement in the broader context of climate action. As companies worldwide strive to reduce their carbon footprint, understanding and effectively reporting on Section 12.a will be pivotal in showcasing genuine commitment and driving impactful change.

Audit Alert: The Scope 3 Challenge and Why Businesses Must Rise to Meet It

Scope 3 emissions, often making up 80% of a company’s carbon footprint, are now a prime focus for audits. As regulations tighten, supplier engagement and transparency in reporting become pivotal. Companies unprepared for rigorous Scope 3 audits risk both compliance and reputation

Scope 3 CollectiveMark Perera