United Utilities recognized as global leader for engaging its supply chain on climate change

Posted: Thursday 13th February 2020

UNITED UTILITIES has been identified as a global leader for engaging with its suppliers on climate change, being awarded a position on the Supplier Engagement Leaderboard by global environmental impact non-profit CDP. United Utilities is among the top 3% of organizations assessed by CDP, one of almost 160 companies on the Leaderboard this year.

The North West based water company has been recognized for its actions and strategies to reduce emissions and manage climate risks in its supply chain in the past reporting year. Over 4,800 companies in total were assessed by CDP and given a Supplier Engagement Rating, based on answers to selected questions about governance, targets, scope 3 emissions, and value chain engagement of their response to the CDP 2019 climate change questionnaire and their overall CDP climate change score.

Martin Gee, Commercial Director at United Utilities, said: “As a purposeful business we must not only look to reduce our own environmental impact but also encourage sustainable ways of working across our broader value chain. Just because we are not directly responsible for a supplier’s greenhouse gas emissions and environmental impact does not mean we choose not to influence them.

We are very happy to have received this recognition for the way we engage with our supply chain, our customers and other partners on climate related matters. Our approach has been varied and involves activities that help us understand and incentivise the behaviour of suppliers, employees and customers. Our guiding principle is that Water for the North West need not cost the earth.”

Dexter Galvin, Director of Corporates and Supply Chains at CDP said: “Congratulations to all the companies on the CDP Supplier Engagement Leaderboard for this year. They are showing leadership on engaging their suppliers to manage climate risk and cut emissions. Given that supply chain emissions are on average 5.5 times as high as a company’s operational emissions, this couldn’t be more crucial. If we are to achieve the goals of the Paris Agreement and decarbonize the economy, then other companies learning from these leaders and engaging their suppliers is going to be vital”.

The Supplier Engagement Leaderboard is available on CDP’s website. It follows on from CDP’s most recent supply chain report, Changing the Chain, which showed the vast potential for driving climate action at scale in the supply chain. The report found that major companies working with CDP have potential to cut a gigaton of emissions by driving their suppliers to increase their average proportion of renewable power by 20 percentage points.

CDP is a global non-profit that runs the world’s leading environmental disclosure platform. In 2019, over 8,400 companies disclosed environmental data through CDP at the request of 125 major purchasing organizations with US$3.6 trillion in purchasing spend, and 525 investors with US$96 trillion in assets, making it the gold standard in corporate environmental reporting.

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