May 1, 2008 - In an overwhelming majority, suppliers to major corporations including Nestle, PepsiCo, Procter & Gamble, and Unilever say looming regulations on greenhouse gas emissions pose significant risk to their business, according to initial findings from a new global survey.

The figures come from the first-ever survey of 144 participants in the Supply Chain Leadership Collaboration (SCLC), a project of the Carbon Disclosure Project. SCLC encourages suppliers to report on key climate information such as greenhouse gas emissions, emissions-reduction targets, and climate change strategy.

According to the survey, a whopping 96% of suppliers see climate change regulation as a potential risk, primarily from emissions taxes and caps. Many suppliers also foresee extreme weather conditions adversely affecting their operations and slowing productivity.

Fifty-eight percent of respondents identified reduction in energy consumption as the best means of managing climate change related risks. Only 26% say they have established specific greenhouse gas reduction targets.

In the area of climate reporting, 58% of responding suppliers currently disclose emissions that result directly from company operations (Scope 1 and 2 emissions under the Greenhouse Gas Protocol international reporting standard). Twelve percent report their indirect emissions from production partners' activities (Scope 3 emissions).

A number of new corporate partners have joined SCLC since the first phase of the project began. For the second phase, the group is sending an additional information request to more than 1,000 suppliers. Findings will be announced in January 2009, according to SCLC.