Across businesses of all sizes, the proportion is now almost 61% – up from 41% in 2023.
Environmental disclosure platform CDP published the data this week.
CDP attributes the uptick to a clearer business case for acting on climate-related risks and opportunities, partly due to extreme weather events already impacting supplier operations and transport routes.
Companies disclosing through CDP have collectively identified $162bn in potential financial costs are tied to climate-related supply chain risks.
In the face of this challenge, more businesses have set environmental mandates for key suppliers. 76% of companies indicated to CDP that they have set some requirements – either contractual or noncontractual – for their suppliers, up from 70% in 2023.
Disclosure and data trends
CDP confirmed that, last year, its members collectively requested environmental data from some 45,000 companies across their value chain, spanning 110 countries.
Manufacturing firms were the most likely to request and disclose this information.
Firms were most likely to request data from suppliers based in the US, China or Germany.
CDP concluded that many businesses are now able to move beyond “high-level estimates” of their supply chain emissions, thanks to more granular data. This has helped many of them position decarbonisation as a driver of efficiency, resilience and supplier partnerships, rather than a compliance exercise.
More than two-thirds of the emissions reported through CDP are Scope 3 (indirect).
But CDP has cautioned that many supplier requests for climate-related information begin and end with emissions. This presents risks of nature-related risks and impacts being ignored. Around half of the organisations disclosing through the platform are operating in sectors with significant dependencies on nature, like minerals, food, beverages and apparel.