Eaton Corporation is a leader in the power management sector with diverse markets ranging from aerospace to food and beverage. The complexities and geographic scope of their supply chain makes engaging and managing their supply chain risks and opportunities associated with climate change an undertaking. Eaton has selected GZA to assist with their supply chain program since 2015 to better engage, manage, and report on their supply chain environmental progress.
Eaton has selected the CDP Supply Chain program as the method for engaging with its suppliers. Accordingly, GZA developed a CDP supply chain program for Eaton which included the following aspects: support for data solicitation and collection; strategic supplier engagement, supplier technical support and training; review and analysis of supplier responses; and, reporting on supplier opportunities and risks. Notably, GZA strategically engaged with a subset of suppliers to provide individualized guidance and recommendations for improved disclosure and corporate environmental progress. GZA’s support has helped improve the responsiveness of Eaton’s suppliers while also providing technical assistance allowing those suppliers to improve the quality of their disclosure and performance.
Eaton has consistently demonstrated a leadership position within the CDP Supply Chain program based on the level of supplier responsiveness and quality of responses received on an annual basis. In 2018, 85% of requested suppliers voluntarily responded to Eaton’s request which outperformed its corporate peers who achieved an average response rate of 47%. Eaton is also utilizing the collected data as inputs in their calculation of relevant Scope 3 emissions categories. GZA has also evaluated the information reported by suppliers and determined that suppliers improved their disclosure and performance across nearly all categories and Key Performance Indicators (KPIs).