Climate Change Data

Supply Chain Management Association (SCMA)

Climate Impact & Sustainability Data (2016)

Reporting Period: 2016

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • CN Rail reduced locomotive emissions intensity by 17% since 2005
  • Telus saved $1.2 million in cardboard costs, $260,000 in direct freight costs, and 68 tonnes less of CO2 emissions through less trailer shipments in 2015
  • Ontario’s Beer Store developed a return-to-retail recovery system, refilling the average beer bottle 15 times, saving money and reducing waste

Social Achievements

  • Canadian Tire performed 558 audits of factories in 2015, ensuring compliance with its Code of Conduct and working with partners to improve factory conditions in Bangladesh
  • Tim Hortons Coffee Partnership improved economic, social and environmental performance of small-scale coffee farmers, resulting in an 80% increase in yield per hectare
  • RBC is planning responsible procurement training sessions for all procurement managers and developing a three-year plan to expand its Supplier Diversity Program

Governance Achievements

  • SCMA was among the first supply chain associations to require all members to adhere to a code of ethics
  • Many Canadian companies implemented strict Supplier Codes of Business Conduct
  • Companies are developing cross-functional teams to develop products and services, pulling together the brain power of all parts of the business to deliver a sustainability strategy

Climate Goals & Targets

Environmental Challenges

  • Lack of visibility beyond direct suppliers in global supply chains
  • ESG risks arising from suppliers, leading to reputational damage
  • Disconnect between vision from the top and execution of supply chain sustainability strategies
  • Difficulty in addressing issues within supply chains due to their complexity and global reach
Mitigation Strategies
  • Developing a sound business case for supply chain responsibility
  • Establishing codes of conduct based on respected standards
  • Improving supply chain visibility to identify risks and opportunities
  • Setting ambitious targets and metrics, and reporting supplier performance
  • Forming partnerships to share best practices and resources
  • Engaging suppliers through providing resources, guidance, and training
  • Conducting audits and independent assessments to measure performance

Supply Chain Management

Supplier Audits: 558 audits performed by Canadian Tire in 2015

Responsible Procurement
  • Codes of Conduct
  • Supplier Codes of Business Conduct
  • Conflict mineral screening

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact