If you're a supplier, do you know where your company falls? A new report from the Carbon Trust Advisory highlights the growing importance a business’s ability to track, report and manage carbon emissions can have on their relationship with multinational buying organizations.

The report found that:

• 56% of multinationals expect to drop suppliers based upon low carbon performance
• 66% are willing to pay a premium of around 10% to purchase a product or service with low emissions
• 40% are already addressing the (indirect) carbon emissions of their supply chain now
• 42% of multinational companies not addressing supply chain emissions, will do so within the next 12 months

The findings of this report are significant in that the growing trend of supply chain sustainability has been reported anecdotally for years, but this report is one of the first to quantitatively assess the significance and impact for suppliers that sustainability will have in the modern supply chain.

While the report does not specifically cite which multinational buying organizations they surveyed, organizations across a wide range of industries have already started assessing suppliers based on key sustainability metrics. A few of the higher profile organizations include Walmart, Ford, Nokia, IBM, AT&T, Honda, Dell and Toyota.

Here are a few additional resources to help you learn more about supply chain sustainability requirements:
Watch: Essential Elements of Sustainability Scorecards
Watch: CDP Reporting
Download: Sustainability Briefcase