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In today’s volatile world, companies that disclose their environmental impact are not just doing the right thing, they’re doing the smart thing. Through CDP’s global disclosure system, businesses are turning transparency into opportunity, managing risk and building resilient supply chains, while opening up powerful opportunities for growth, innovation and investment.
As we near the end of 2025, whether you are reading this in Hong Kong or Tokyo, every business has felt the pressure of a turbulent global economy. From inflation and energy price spikes to material shortages and unpredictable geopolitical shocks, the headwinds companies face are compounding. And layered across all of this is an even greater systemic threat: environmental risk.
Environmental risk is financial risk
The hidden threat: supply chains
For most companies, those financial risks lie deep in their supply chains, where each environmental disruption translates directly into increased costs or even failure to deliver, hitting customers and profits. Scope 3 emissions are on average 26 times greater than a business’s operational emissions, while around 90 per cent of consumer goods companies’ environmental impacts come from their supply chains. And yet, firms are twice as likely to focus on measuring only their operational emissions.
This creates dangerous blind spots, leaving businesses exposed to hidden vulnerabilities and regulatory pressure. In a world of complex, interconnected value chains, what you don’t measure can, and will, hurt you.
The solution: measure, manage, disclose
So what’s the solution? The first step towards managing risk is understanding it. Environmental disclosure is the foundation for action. From this can flow all the decisions you need to make to manage risk and grasp opportunities, from accessing capital to boosting your business competitiveness.
The resulting data provides actionable insights for businesses, that is used to inform procurement decisions, strengthen supplier engagement and benchmark performance across value chains.
Streamlined, standardised, strategic
We also work hard to ensure a strong return on investment in reporting efforts, by enabling the data to have the greatest possible impact.
Our questionnaires are aligned with the world’s most relevant environmental frameworks – such as those of the International Sustainability Standards Board (ISSB) and the Taskforce on Nature-related Financial Disclosures (TNFD) – ensuring that one disclosure through CDP delivers many uses, for many stakeholders, from customers to investors, and data that’s comparable, decision-ready and recognised worldwide.
CDP data drives change – and savings
For 18 years, CDP has worked with companies to uncover and address hidden supply chain risks, helping them see the full picture, act faster and build supplier resilience at scale.
CDP Supply Chain Programme members use this data to build credible Scope 3 inventories, embed sustainability directly into procurement, reward suppliers driving progress and support those who need to catch up. It helps companies future-proof their supply chains, with our research showing that large organisations have saved $54 billion by cutting emissions through supplier engagement.
This is the power of data-driven decision making: tangible change, an enhanced reputation and stronger, more resilient supply chains.
A new era of business resilience
The time for thinking environmental action is a barrier to growth is over. As environmental impacts and their costs accelerate, business bottom lines are being hit across the globe. The companies that disclose data, manage their impact and act are not just mitigating harm, they are gaining a competitive edge.
Transparency builds trust. Data drives innovation. And disclosure transforms risk into resilience for companies. Together, we are driving systemic change and building resilient, future-ready supply chains, proving that Earth-positive economics is just good economics. We’d love you to join us on this journey as a member of our Supply Chain Programme.
You can find out more about joining CDP’s Supply Chain Programme here.
By Jose Ordonez, Global Chief Revenue Officer & APAC Managing Director, CDP
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