Summary: A group of multinational companies, including Proctor & Gamble, Unilever, Tesco PLC and Nestle SA, are pressing their suppliers to report greenhouse gas emissions and climate-change mitigation strategies. The efforts are likely related to the concern over stricter climate-change legislation coming in the next several years. Also, companies are trying to market their concern over the environment to their customers. This comes just weeks after Wal-Mart announced a similar plan. Another one of the aims is to more accurately assess emissions of manufacturers in developing countries.
My Take: Two great forces are at work here. First, the government’s intervention (or pending intervention) is forcing companies to be smart about carbon emissions. Second, the general public’s strong opinion on global warming (and the Nobel Peace Prize goes to…) is also driving companies to be smart about carbon emissions. And what a great point made by an associate director at P&G – “Everybody who uses energy will be impacted if energy prices go up, from the oil wells, through the farms and factories, all the way through the retailers to our consumers.” That’s the right attitude, action is going to be taken and one simple truth exists: we are all in this together. Lastly, monitoring cradle-to-consumer emissions (the entire process of making and selling a product) should be more common. For example, your car might give off less carbon than average when you drive it, but how much carbon was already emitted to make and sell that car before you drove it? In other words, what is the total amount of carbon given off from inception to disposal of your car? That is the question we need to ask and the answer is what we need to monitor.
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