Overview
This article explains why one of your clients invited you to complete a Greenly evaluation of your climate strategy, the context behind this request, and what you gain by responding to the supplier questionnaire.
1. Introduction
If you believe you already know a lot about this topic, feel free to move on to the next section. Otherwise, it is always good to refresh and expand your knowledge when it comes to life on planet Earth.
1.1 The climate crisis
In 2015, the 192 countries that signed the Paris Agreement set themselves the goal of limiting global warming to 1.5°C by 2100, in order to maintain a desirable world for future generations.
This target is based on the recommendations of the IPCC, the international scientific community dedicated to climate change. The +1.5°C target implies a reduction in emissions of 4 to 6% per year for companies, which requires an ambitious climate strategy that starts with a Carbon Footprint.
1.2 Heat waves and world GDP
July 2023 was the hottest month ever recorded on Earth.
An insurer has put a figure on the global impact of the July heatwave: -0.6 growth points.
When the temperature rises above 32°C, productivity drops by around 40%, and this drop becomes even more pronounced as the mercury rises, reaching up to 66% at 38°C.
Based on figures for 2021, the France Assureurs Federation estimated the cost of claims linked to natural events over the years 2020-2050 at 143 billion euros — almost double the figures for the last thirty years.
According to a recent UNEP estimate, developing nations will require $300 billion yearly by 2050 to mitigate and adapt infrastructures to the effects of climate change. Impacts on biodiversity and health are not accounted for in these estimates.
2. Why did your client ask for a Greenly evaluation?
2.1 To have an even better impact on the transition to carbon reduction
The interdependence between supplier and buyer can be put to good use by launching emission reduction action plans that support the climate ambitions of each actor and enable the achievement of sustainability targets.
2.2 To reduce costs
By analyzing emission sources within their supply chain, companies may identify ways to directly reduce their operational costs on top of reducing their GHG emissions, by adopting better practices to save on materials and energy.
2.3 To mitigate risk
Regarding supply: global supply chains have an impact on climate change, deforestation, and water insecurity, and are exposed to many factors that imply considerable commercial risk: rising energy prices, more volatile raw material prices, etc. The resilience of supply chains and commercial models has never been this essential.
Regarding reputation: working with committed suppliers reinforces the credibility of client companies wishing to differentiate their brand through their environmental ambitions, so that we may all proactively fight for the environment.
2.4 To answer the demands of its clients, consumers, and investors
Committed companies know that today, the risks of environmental impact do not stop at their sector's doorstep. Investors, consumers, associations, and decision-makers want to see companies take responsibility for their value chains and their commercial decisions.
3. Why should you answer the supplier questionnaire?
3.1 To become part of the Virtuous Supplier Directory
By responding to the questionnaire, you have the opportunity to become part of the Virtuous Supplier Directory. This directory is accessible to all Greenly clients and demonstrates your commitment to sustainability.
This allows you to gain visibility among companies that prioritize sustainability. By joining the Virtuous Supplier Directory, you enhance the credibility of your company and earn the trust of both your current and potential customers.
3.2 To achieve the Virtuous Supplier medal
In addition to being listed in the Virtuous Supplier Directory, responding to the questionnaire offers you the chance to obtain a supplier certificate.
This recognition formally acknowledges your commitment to reducing GHG emissions, and you can highlight it in your company's communication. It serves as a valuable element in your relationships with customers, partners, and prospects, potentially fostering collaboration opportunities.