03 Feb 2010 12:02:09

Suppliers 'risk loss without low carbon targets'

Businesses will lose profits unless they have transparent carbon reduction targets, according to research.

A survey by the Carbon Disclosure Project (CDP) of its member companies found that more than 56 percent would reject firms that cannot meet national targets for managing their carbon emissions.

The UK companies featured included the National Grid, Logica, Unilever and the Vodafone Group.

Big firms were concerned about supplier emissions because of the impact on their green image among customers, increased pressure from investors and stakeholders and higher costs from less energy efficient production, claims the CDP.

However, the report also found that most firms were ignorant about how to ensure that their suppliers were environmentally-friendly.

More than a third (38 percent) of supply chain respondents were committed to carbon reduction plans and most had short-term environmental goals for the next five years.

The CDP concluded that suppliers had to be more willing to disclose data and assure the quality of that information.