Carbon Disclosure Project: Supplier FAQs

Supplier FAQS

I have been asked to respond to the CDP Supply Chain Questionnaire but I am not familiar with the process. Where do I start?
You are advised to answer the questions as comprehensively as possible based on the information available. If you are unable to supply the required information please explain what action you are taking to enable you to do so. If you can only provide indicative information at this stage this would still be welcome because any information is more valuable to your customer than none. The following guidelines should help you begin:

In order to measure your company's carbon emissions your first step should be to identify greenhouse gas (GHG) emission sources. Such sources could include boilers, furnaces, trucks, aeroplanes, ships, the processing of cement or petrochemicals and the purchase of electricity or heat.
The next step is to select a GHG emissions calculation approach. This is usually based on fuel use data. Responding companies should, ideally, use the methodology set out in the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). This, together with calculation tools, can be found on the GHG Protocol website www.ghgprotocol.org. Please state clearly in your response where sector specific or other methodologies have been used.
Collect activity data from energy bills, electricity meters and transport miles.
Apply calculation tools.

What are CDP Supply Chain’s objectives?
The key objectives are:

To collect information that leads to action by both purchasing and supply companies in respect of climate change.
To leverage the expertise of CDP Supply Chain members to influence international standards and establish a global process for supply chain disclosure
To maximise engagement and dialogue between purchasing organisations and suppliers on climate change issues

What is the difference between the CDP Information Request and the CDP Supply Chain request?
The CDP Information Request is sent on behalf of investors to publicly listed companies. The CDP Supply Chain request for disclosure is sent on behalf of customers to their suppliers.

In what ways do the CDP and the CDP Supply Chain Questionnaires differ?
The early parts of the Questionnaires are identical but the CDP Supply Chain Questionnaire contains an additional section relevant to the customer-supplier relationship. Companies that have already completed CDP6 and are responding to CDP Supply Chain will not need to revisit CDP6 sections 1 to 4.

My company responded to the pilot. Will we be asked to respond again?
The Pilot Questionnaire (SCLC1) represented an extension of 2007’s Questionnaire, CDP5, issued on behalf of investors. The questions have been revised and simplified and SCLC08 is a separate Questionnaire which represents an extension of CDP6. You may be asked to complete this Questionnaire by the same customer or by another member of CDP Supply Chain.

How will I receive the Information Request?
You will be emailed between 1 May and 31 August either by your customer directly or by CDP via your customer's CDP Supply Chain email address. The email will contain a unique Uniform Resource Locator (URL) for your registration and a link to the Questionnaire.

What are the legal/financial implications for responding corporations?
The legal implications are the same as those associated with standard disclosure. There may be some internal costs associated with providing answers to the Questionnaire. Companies that respond to CDP do so without any assertion of ownership of the data provided and on the basis that CDP has license to use the data provided without [any] restriction whatsoever, subject to the comments in the paragraph below.

What happens to the data received in the responses?
We strongly encourage you to make your response publicly available. When you have submitted your response on the Online Response System you will be offered the options, before pressing “Complete Questionnaire,” to make your answers:

Publicly available
Not publicly available but available to all CDP Supply Chain members; or
Available only to requesting CDP Supply Chain members.

In addition the CDP Secretariat will appoint consultancies or researchers to write reports based on company responses. Such responses will be made available to the authors of these reports. If you notify us, at the time of the submission of your response, that you do not wish your information to be publicly disclosed, your data will only be used in the production of aggregate statistics.
If you choose to make your data public it will be made available on the CDP website in 2009.

Why do my customers want to know this data?

To manage the risks and opportunities in their supply chain and be responsible in terms of procurement
As the first step towards calculating their carbon footprint
To encourage you to begin the process of measuring and managing your emissions
To move towards incorporating climate change in their procurement decisions

What are the benefits?
The CDP process has, over a seven-year period, been fine-tuned in order to help companies gather information which will provide valuable insight into their greenhouse gas emissions and management’s strategy in respect of climate change. Many companies have found that the process enabled them to identify areas where there was scope for energy efficiencies which, in turn, lead to emissions reductions and cost savings. CDP’s corporate data also permits companies to benchmark against their peer group. Purchasing companies are interested in assessing suppliers’ emissions management credentials because, as we proceed towards a carbon constrained environment, such skills will lead to competitive advantage.

As a supplier can I become a member of CDP Supply Chain?
Suppliers that respond to customers’ requests for disclosure are encouraged to measure and subsequently manage their own indirect emissions through their own supply chain by becoming a member of CDP Supply Chain. To apply to become a member or request further information please contact membership@cdproject.net

Must I respond?
The Questionnaire is voluntary but if disclosure has been requested by one or more of your customers who are members of CDP Supply Chain we would encourage you to respond. Should you choose not to respond the only parties that will be aware of this are your requesting customers and CDP.

How do I complete the Questionnaire?
You will be sent a Uniform Resource Locator (URL) by CDP or your customer which you should click on at the earliest opportunity to confirm your contact details and register. Once you have registered, CDP will email you a login and password to enable you to respond online. A copy of the full questionnaire and guidance are available on line.

How will my customer know that I am responding?
It is important that suppliers register on the website as soon as possible to ensure that their contact details are correct. Both CDP and your customer will then be able to see that you are responding.

Will I be able to change or update my response?
You can save and return to your response via the online response system at any time before the 31 October deadline.

What are Scope 3 emissions?
According to the GHG Protocol, Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Such emissions are a consequence of a company’s activities but emanate from sources not owned or controlled by the company. Examples include supply chain emissions and emissions associated with product use and disposal.

Will customers use the data to select suppliers with the lowest carbon footprint?
CDP Corporate Supply Chain’s primary purpose is to explain to supplier companies the importance of measuring and managing carbon emissions. Better management not only equates to lower emissions but also to lower costs. What we are working towards is a unified response from industry.
These are early days but, given time, it is almost inevitable that carbon footprints and carbon management strategies will feature in procurement policies.

In what way is CDP useful to companies that respond?
Many companies acknowledge that CDP’s process has proved distinctly beneficial. The following comments speak for themselves.