The 2016 scorecard about the top federal government contracting companies' greenhouse gas (GHG) emissions and climate risk management activities was released today. Like other organizations that purchase a large amount of goods and services (e.g., AT&T, Bank of America, Coca-Cola, Ford Motor, Nike, Walmart)), the federal government asks its supply chain about these sustainability practices.
The CDP's supply chain program is a widely accepted portal through which private companies seek information from their suppliers about their GHG management, climate risk, and other sustainability practices and impacts The GSA and Navy also use the CDP. The CDP supply chain program represents a combined purchasing power of more than $2 trillion US.
Companies (and investors and academic research) have found a close, positive correlation between financial performance from companies with good environmental, social, and governance (ESG) practices. Near the top of the list of environmental programming is GHG management because of its close connection to energy usage and costs. Companies with good GHG management programs and reduction goals can realize significant financial savings--something critical to all federal contractors in these hyper competitive times. For example, those reporting to the CDP for three or more years reported an average annual savings of $1.5 million per initiative. First time CDP reporters had an average savings of $900,000 per initiative.
Stay tuned for more in-depth analysis about the 2016 scorecard in an upcoming post.
The federal government's 2016 supplier scorecard is located here. Does your company have red or yellow scores? Let us help you get to green (and save some green).
Hi. I'm Colleen, Corporate Sustainability Advisor's founder and owner. Blogging about corporate sustainability trends, benefits, and best practices.