Tracking climate change

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Summarize what you understand from the article and the main idea of it.
Tracking climate change-

A new supply cham challenge
A new study byllccenture and CDP shows companies are
increasingly aware of climate risk in their supply chains.

But spending on emissions reductions is going down.
DOES REGULATORY UNCi~:R‘rAIN1‘t discourage corporate tions. It reflects a rise in participation of more than
investment in sustainable supply chains? When it a fifth since last year. These produced 14 percent of
comes to addressing climate risk, a new study suggests 201 3’s global industrial emissions.
that the answeris yes According to recently published The 64 CD}? supply chain members behind the
research by Accenture and the Carbon Disclosure request represent a combined annual spending
l’roject(CUP),conipanies areincreasinglyrecognizing power of almost $1.15 trillion. Almost three quar-
climate risk in their supply chains. But investment in ters of companies identified a current or future risk
emissions reductions programs is down. related to climate change, according to the report,
CDP is an international, not-for-profit organiza- while 56 percent of companies said that consumers
tion providing a global system for companies and are becoming more receptive to low-carbon products

cities to measure, disclose, manage, and share vital and services.
environmental information. According to
the report, C’gHal7()n,;t11}e Action on Gimme Companies identify changing consumer behavior
Ruiz’ more companies than ever are repo]_1;- 35 the biggest opportunity fl‘OITI climate change

ing on their emissions reduction programs, (ToP3dFiVeF5 07 Climate Change OSJPOITUNT-Y}
and there are clear financial benefits from %ofcompanies Identifying Optiortunitv driver
investments in sustainability measures. But
there are also challenges to taking action. 56% _ A
This report establishes that although
companies recognize that climate and i
water risks are on the rise, a mixed regu-
latory regime is making decisive action 7% 0

difficult,” says Paul Simpson, CDP’s chief – 5/”
executive officer. “However, growing par-
ticipation in our supply chain program and ggfigfggr Soflfggggggnic H’l’J‘E_‘[’1f:r‘::’1′:i‘-in
the positive reception to Action Exchange Be;-1aV.or co.-,d.t.on5 , Demands
demonstrates that businesses want to lever» 7

Source Accenturev’CDP
age their relationships with their suppliers
-to realize opportunities and minimize climate and Regulatory uncertainty is “making companies
water-related risks. ” » cautious about investmg in emissions reductions
Simpson adds that when governments introduce and supply chain sustainability. Ninety percent of
A “a more realistic”global price on carbon, supply chain companies that identify a current or future risk
managers may expect significantly more investrnent cited, regulatory risk as a barrier to investment.
‘in emissions reductions from their corporations. Investment in emissions reductions programs
At present, however, average monetary savings has declined in the past year and is shorter term
from these efforts have fallen 44 percent in the past in focus, according to respondents. Seven out of
K 12 months. The report points to an ever widening 10 sectors report investment falling from earlier

gap-highlighted last -year-between measures taken years. Shorter pay-back initiatives (less than three
by large corporations who are members of CDP’s years) are on the rise, with these almost doubling
supply chain program and those by suppliers The between .2011 and 2013. The average sum invest-
research is based on information from 2,868 compa- ed per reporting company has dropped 22 percent
nies, including some of the world’s largest corpora- ‘ since last year.

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