Reducing energy intensity and emissions - Walmart.com
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Wal-Mart Stores, Inc. | 2016 Global Responsibility Report
Reducing energy intensity and emissions
Despite significant efforts from companies, governments, chain reduction commitment, we’re also exploring ways we
nonprofits and individuals around the world, our planet’s might further engage our suppliers to set and meet their own
temperature continues to rise, with increased greenhouse gas goals and join us in reducing our collective footprint.
emissions (GHGs) as a leading contributor. This year, the world As we pursue these goals, their value to both our business and to
reached an important consensus at the United Nations Climate society is clear. Finding more renewable and low-carbon energy
Conference in Paris: that we all must do our part to limit the increase alternatives and reducing energy intensity lowers operating costs
in global temperature to no more than 1.5 degrees Celsius. and can enhance operational flexibility. Many of our initiatives to
At Walmart, we are working hard to be part of the solution and reduce emissions in supply chains, such as optimizing fertilizer
aggressively pursuing our energy and emissions reduction goals. inputs and developing energy-efficient consumer products,
With 153 other companies, we have signed the White House’s help to lower production costs and drive sales. And importantly,
American Business Act on Climate pledge. As part of this initiative, our customers and other stakeholders appreciate our efforts to
each company expressed support for a strong outcome in Paris reduce emissions.
at the U.N. Climate Change Conference, and many announced Walmart focuses on two strategies for reducing our energy
or reiterated pledges to reduce emissions, increase low-carbon intensity and emissions:
investments, and deploy more clean energy projects. These
companies also pledged to pursue further actions to build more • Reducing energy intensity and emissions in our own
sustainable businesses and tackle climate change. As part of this operations
commitment, Walmart is continuing our quest to be powered
• Supporting the reduction of emissions in product supply
by 100 percent renewable energy. We’re committed to ongoing
chains
improvements in the energy efficiency of our operations. With
the reported achievement of a 20 million metric ton GHG supply
Operations Supply chain
Reducing energy intensity and emissions: Progress against commitments
As of Fiscal Year End 2016
Initiative Commitment Progress
To be supplied by 100 percent renewable energy. Supplied by 25 percent.
Drive the production or procurement of 7 billion kWh of Installed or contracted for more than 2.billion kWh from
renewable energy by the end of 2020. more than 470 projects worldwide.
By end of 2020, reduce kWh-per-square-foot energy Reduced kWh-per-square-foot energy intensity by 10 percent,
Reducing energy intensity and intensity of Walmart facilities by 20 percent versus 2010 which represents a 1 percent absolute reduction since the end
emissions in our own operations baseline. of 2014.
Begin phasing out HFC refrigerants as of 2015 in favor of Continued incorporating refrigeration and store designs that
non-HFC where these are legally allowed and available enable the transition to less HFC-reliant systems, while also
for new purchases of point of-sale units and large testing HFC-free systems in several markets.
refrigeration installations.
Double U.S. fleet efficiency by the end of 2015. Achieved in October 2015, saving nearly $1 billion in FY16 and
avoiding CO2 emissions of nearly 650,000 metric tons of CO2.
Engage 70 percent of our China-sourced business in a Trained more than 500 factories in China on RedE tool.
factory energy efficiency program by 2017.
Eliminate 20 million metric tons (MMT) of GHG emissions Surpassed; reported reduction of 35.6 million metric tons.
Supporting emissions reductions from Walmart’s global supply chain by the end of 2015.
in supply chains
Increase transparency into our supplier ability to track Received Index responses covering 77 percent of Walmart
and report Climate Smart Agriculture impacts through food business, with suppliers reporting GHG emissions for
the Sustainability Index. 46 percent of their supply.
Wal-Mart Stores, Inc. | 2016 Global Responsibility Report
Energy and emissions – operations
Reducing energy renewable energy. To reduce 17 U.S. states. Together with and contracted, due in part
our emissions, we’re focused on: renewable electricity from to maintenance outages and
intensity and the grid, 25 percent of our variations in wind profiles.
• Investing in scalable,
emissions in our renewable energy sources electricity needs globally are
own operations supplied by renewable sources. We will continue to focus on
• Reducing our energy demand accelerating our renewable
through energy efficiency As of the end of 2015, we had energy program and that of the
The burning of fossil fuels over 2 billion kWh of renewable industry in a number of ways.
– mainly coal, petroleum energy contracted on an annu- This year we completed over
and natural gas – accounts • Improving refrigeration
systems in our stores alized basis. While this is more 80 new on-site solar and fuel
for more than 80 percent of than double our total in 2012, it cell renewable energy projects
the world’s energy use and is less than what we reported at our facilities in multiple
ranks as the primary source of • Maximizing the efficiency of
our fleet last year. The reasons for the de- countries and brought a large
carbon dioxide emitted into cline are tied to changes in pol- wind farm online in Texas (see
the atmosphere. Renewable icy and certification of sources, sidebar). We are also working
energy sources – hydropower, Renewable energy
Walmart is committed to particularly in the U.K., timing with developers and utilities
wind, solar, geothermal and of projects coming online and on new project opportunities
biomass – offer cleaner, more expanding the development of
on-site and off-site solar power, varying production from a few in regulated and deregulated
sustainable alternatives, but large wind projects. In the U.S., markets, and we are engaging
often at higher prices and with wind power, fuel cells and other
technologies to meet our goal we discontinued a renewable with trade and advocacy
varying availability. contract knowing we would be groups, such as the Corporate
of producing or procuring 7
billion kilowatt hours (kWh) of replacing it with a larger wind Renewable Energy Partnership
Fossil fuel-based energy project, but this new contract and RE100. These groups are
continues to be a significant renewable energy by the end
of 2020. At the end of 2015, we didn’t come online until late in striving to remove barriers to
driver of GHG emissions in 2015, resulting in a dip in the renewable energy at the state,
Walmart’s operations. We are had more than 470 on-site and
off-site projects in operation or actual renewable energy we federal and international levels.
committed to changing this acquired this year. Additionally,
trend through our aspiration under development in seven
international countries and a few wind farms in Mexico pro-
to be supplied by 100 percent duced less than we expected
Carbon Emissions (Scope 1 and 2) vs. Retail Area
Carbon emissions (million tonnes CO2e)
Retail area (million sq. ft.)
Over the period from 2005-
2014, Walmart has limited 36 1,200
1,102 1,134
34 1,072 1,100
our emissions growth to 32
1,037
985
less than one third of our 30
921
952 1,000
28 867
business growth rate during 900
26 805
the same period. 24 740 800
20.6 21.2 21.0 21.9
22 20.8 20.3 20.8
19.3 20.1 700
20 18.9
18 600
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GHG Emission Contribution by Source Onsite Renewable Projects Total Renewable Energy*
(GWh)
New projects installed during fiscal year
Existing projects in operation Contracted**
Actual***
Purchased energy – 69%
Refrigerants – 18% 467 3,000
Transport fuel – 5.9% 389 2,500
Onsite fuel – 7% 326
2,000
Mobile refrigerants – 0.1% 256
1,500
152 1,000
70 152 387
104 256 326 500
82 70 61 80
0
FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15
*Totals represent the renewable energy from all
Walmart-driven projects (i.e. off-site and on-site)
only. This does not include the renewable energy
2015 Global renewable energy use received from local utility grids.
Walmart buildings
Electricity use Energy use **Contracted - This represents the annualized
amount of renewable energy that was under
6% 5% contract as of the end of the calendar year. This is
19% 15% projected amount for a 12 month period and can
vary from actual amount received.
***Actual – This represents that actual amount
of renewable energy received during the
calendar year indicated. The actual amount
can be different than the contracted/projected
amount for a number of reasons including; the
timing of project start and end dates, production
interruptions due to maintenance, and
variability in production due to meteorological
phenomenon (e.g. wind speeds, solar intensity).
Actuals are used to estimate the percentage of
our electricity supplied by renewable sources
and Scope 2 greenhouse gas emissions.
■ Walmart-driven renewable energy projects
■ Renewable energy from grid
■ Nonrenewable energy
Wal-Mart Stores, Inc. | 2016 Global Responsibility Report
Energy and emissions – operations
Measuring and managing emissions: Walmart’s CDP climate disclosure
Walmart tracks our Scope 1 (direct), In 2015, Walmart received a being the best) and measures aspects of Disclosure and even
Scope 2 (indirect) and some Scope Disclosure Score of 96 and how effectively a company is more so on Performance. Our latest
3 (other indirect) GHG emissions Performance Band “B.” The addressing climate risk. response, along with all previous
according to the World Resource Disclosure Score ranges from responses to the Climate Investor
Institute’s GHG Protocol. Since 0-100 and measures the level According to FirstCarbon Solutions, Questionnaire, can be found at the
2006, we’ve publicly reported of transparency a company has an independent analyst, Walmart CDP website: https://www.cdp.
this information annually to CDP, shared through its response. ranked well above our industry net/en-US/Pages/HomePage.
formerly known as the Carbon The Performance Band issues group’s average, and well above aspx
Disclosure Project. letter grades from A to E (A the CDP program average on all
The road through Paris: Walmart and climate change
In 2005, Walmart’s then-CEO Paris for COP21, the United Nations advances that produce faster And we do believe that an
Lee Scott said: “Every company Climate Change Conference. results as we move closer to GHG international agreement has the
has a responsibility to reduce emissions levels that may cause potential to provide businesses
greenhouse gas emissions as The conference helped affirm the irreversible change with greater certainty when it
quickly as possible.” Since then, opportunities for businesses in comes to this issue. Given the
• Retailers specifically have a
Walmart has set aggressive targets addressing the challenge of climate risk that climate change poses in
significant opportunity to use
related to renewable energy change: general, a unified international
their broad reach to affect change
and energy efficiency within response gives businesses more
• By taking action now to reduce across our supply chain and to
our operations as well as GHG confidence in making plans, and it
GHG emissions, companies can educate customers
targets within our supply chain. gives financial institutions greater
see a positive impact to their Walmart regards the coming
We have also joined the We Mean confidence to make loans.
bottom lines, while mitigating together of world leaders to
Business coalition and – along risks
with 115 other companies – have take action combating climate Walmart is striving to lead by
committed to set science-based • Businesses must leverage their change as a positive development example on this issue and send the
emissions reduction targets for considerable assets in conjunction that we support. While the Paris right signals to all our stakeholders.
Scope 1, 2 and 3 emissions. with key stakeholders Agreement largely speaks to the In many cases, leading through
actions of nations, the sections intentional action is a powerful
• Companies must also drive
In December 2015, Walmart relating to non-state actors affirm proof of concept for the business
for technological innovation,
representatives, including board what we have already been doing, community.
improved processes and scientific
member Rob Walton, traveled to and will continue to do.
9,000 construction jobs, as Wal-Mart de México's goal is to
well as 5,000 permanent jobs, procure 3,000 million kilowatt-
for American solar companies hours by 2020.
since 2010. The commitment of
Walmart and other companies Scaling renewable energy
to source energy from solar also requires innovation,
projects creates more certainty so we frequently pilot new
Efficiency improvements in
in the marketplace and technologies to test their
South Africa and Argentina
Doubling on-site solar encourages others to invest, performance and suitability
In 2015, Walmart ranked as helping to lower the cost for for adoption. For example,
In our South African business, we
the leading commercial solar everyone. this year in South Africa, we
are continuing to prioritize efforts to
energy user and the largest fulfilled a 2013 commitment
make our operations more energy
on-site renewable energy Scaling renewables globally we made to identify and efficient. Throughout our stores,
user in the U.S., with more Wal-Mart de México is more pilot a commercially viable we’ve been introducing a range of
than 340 solar installations than halfway to their goal renewable energy project at energy efficient technologies, such
throughout the country. In of being powered by 100 one of our stand-alone stores. as LED lights, building management
support of a 2014 initiative by percent renewable energy. We successfully identified two systems and high performance
the White House to increase With nearly 51 percent of their potential solar photovoltaic refrigeration plants.
the country’s generation of electricity needs supplied by (PV) pilot opportunities. These
In a similar effort to improve
clean energy, we’ve committed more than 1,100 million kWh include a 150 kilo volt amp (kva)
energy efficiency, Walmart
to doubling the number of from five renewable projects, PV plant that will be installed
Argentina’s Home Office
on-site solar energy projects they’re powering more than in our most efficient Builders conducted a study in 2015 to
at our U.S. stores, Sam’s Clubs 1,100 stores with cleaner Warehouse store, and three determine the extent to which
and distribution centers by energy. When combined with 700kva plants earmarked for associates in Supercenters were
2020 compared with our 2013 the renewable energy they our Makro Woodmead and using energy-saving strategies
baseline. When completed, we receive from the national Carnival Mall stores. We expect in daily operations. The results of
will have more than 480 solar grid, Wal-Mart de México is these projects to come online the study have formed the basis
meeting 60 percent of their in the second quarter of 2016 for an energy-efficiency initiative
installations across the U.S.
electricity needs today through fulfilling a commitment we set launching in 2016 that will seek
Walmart’s investment in solar to understand each associate’s
energy has led to an estimated renewable energy sources. in 2013.
energy-use habits and to reduce
total kWh used throughout the
stores.
Farm-grown renewable energy
In 2015, Walmart contracted with Comanche County, Texas. Our
a wind farm that will offer a clean facilities in central Texas will
source of power to more than receive more than 25 percent
380 Walmart stores, Sam’s Clubs of their energy needs from this
and distribution centers in Texas. renewable alternative. The power
Through a 10-year purchase from Logan’s Gap represents
agreement, Walmart will gain nearly 18 percent of the U.S.
58 percent of our expected portion of our goal to produce
energy from Logan’s Gap, or procure 7 billion kWh of
an 87-turbine wind farm in renewable energy by 2020.
Wal-Mart Stores, Inc. | 2016 Global Responsibility Report
Energy and emissions – operations
Energy efficiency • Accelerating tomorrow’s food, our need for efficient
and demand technologies: Maintaining refrigeration equipment is
Walmart owns or leases more our focus on testing and growing as well. We look at
than 12,000 buildings around experimenting with next- refrigeration through a holistic
the world. As of year-end generation technologies lens and make decisions
2015, we were well on our way to accelerate the future of based on both the total
toward reducing the energy energy efficiency. cost of ownership and total
intensity of our global facilities energy savings throughout
by 20 percent compared with Taking efficiency through the life of the equipment. In
our 2010 baseline. Thus far, we the roof addition to striving to reduce
are operating with 10 percent In 2015, Walmart received an our energy use and prevent
less energy per square foot, award for installing the highest energy from being wasted,
which represents a 1 percent number of high-efficiency we’re transitioning away from
improvement since the end rooftop heating and cooling high Global Warming Potential
Imagining a more of 2014. units (RTUs) in the previous refrigerants (GWP) to using new
efficient business year. Walmart had replaced refrigerant gases with lower
Walmart continues to leverage more than 10,000 RTUs in 2014, overall environmental impacts.
Walmart and GE are teaming up our global size and scale with an estimated energy
to advance our shared goals of to invest in and implement savings of 89 million kWh/ Transitioning away from HFCs
promoting renewable energy technologies that reduce year, which led to an estimated In 2010, the Consumer Goods
sources and enhancing resource energy consumption and $8.9 million in cost savings and Forum (CGF) made a commit-
productivity across the commercial 135.4 million pounds of CO2e
transform the retail industry. ment to tackle the growing cli-
sector. In our Ecomagination 2020
We accelerate our efficiency of emissions avoided annually. mate impact of the refrigeration
collaboration, GE and Walmart
are working together to innovate worldwide by: The award was given by the systems used by its members.
novel energy and water solutions Advanced RTU Campaign, The refrigerant gases used in
to enhance business performance • Scaling technologies: a collaboration between the majority of systems – known
and environmental outcomes. Continuing to scale market- industry groups and the U.S. as hydrofluorocarbons (HFCs) –
The collaboration will begin by ready efficiency technologies, Department of Energy. are powerful greenhouse gases.
testing new solutions within our leveraging our global demand Since 2011, Walmart, along with
own operations and then scale to provide scale and certainty Improving refrigeration systems our CGF peers, has been incor-
promising solutions across our to our suppliers. in our operations porating refrigeration needs
networks in order to magnify The refrigeration systems that into store designs that will
the impact. store the food we sell account for
• Transferring technologies facilitate the transition to less
globally: Piloting proven as much as 30 to 50 percent of HFC-reliant systems. Through
technologies in new the energy consumption of our 2014, we had completed over
geographies, store formats buildings. As our business grows 200 stores that implemented
and customer demographics. globally, especially with our these technologies.
expansions in fresh and frozen
This work has taught the Efficiency in our U.S. fleet of almost 650,000 metric tons
industry valuable lessons about In 2005, Walmart committed to of CO2. Moving ahead, we are
the equipment options, costs, a momentous goal: doubling folding our fleet goals into
energy demands, performance the efficiency of our fleet by the our broader goal of using 100
capabilities and maintenance end of 2015. By working with percent renewable energy, and
needs of these new low- our associates to establish more we will continue to look for
carbon technologies. These efficient techniques for loading, innovative ways to improve our
learnings have been captured routing and driving, as well fleet efficiency.
in the all-new Refrigeration as through collaboration with
Booklet, which highlights over tractor trailer manufacturers
a dozen real-life examples on new technologies, we have
from the CGF’s retailer and achieved this goal on schedule.
manufacturer members, who, With these new efficiencies, our
like Walmart, are phasing out year-end results were a 102.2
HFCs and successfully piloting percent improvement over our
and implementing natural 2005 baseline, with associated
refrigeration alternatives. savings of nearly $1 billion
annually, and avoided emissions
Improving our fleet’s efficiency Fleet efficiency contributors
Over the past 10 years, we have can play a role, there is no greater
tracked our U.S. efficiency based controllable impact on a truck’s
MPG
on the number of cases of efficiency performance than Routing
22.1%
products shipped per gallon of the driver of that truck. Through 39.2%
fuel burned, and we’ve employed weekly reporting, we are able to
a number of complementary monitor a driver’s performance in a Loading
strategies to improve our variety of driving categories. Their 38.7%
fleet’s performance. These have techniques – from how they idle,
included increasing our trailer fills, to how they accelerate – have a
decreasing the number of miles direct impact on the performance
per route and investing in more of the truck. Tracking them allows us
efficient equipment. to have well-informed conversations
with our drivers to better manage
Several factors account for a the things they can control while
truck’s fuel efficiency. While delivering a load of freight.
changing terrain and weather
Wal-Mart Stores, Inc. | 2016 Global Responsibility Report
Energy and emissions – supply chain
Supporting the suppliers and stakeholders, now established baseline
we’re helping to enhance measures of GHG emissions,
reduction of efficiency both upstream and water use and farm yields. By
emissions in product downstream by: encouraging measurement,
supply chains disseminating best practices
• Promoting reduced emissions and reporting aggregate
in agriculture progress through CSA, Walmart
Walmart recognizes that hopes to accelerate the
addressing emissions across • Promoting reduced emissions adoption of better practices
the global supply chain is in manufacturing in our food supply chain and
as significant an issue as the broader food system. We
addressing them in our own • Supporting design of smart, believe this effort will improve
operations. In fact, 90 percent efficient home products environmental outcomes
of our environmental impact as well as the well-being of
exists beyond the footprint of Reducing emissions farmers and consumers. (For
our stores and facilities. That’s in agriculture more on reducing emissions in
why we’re engaging directly As part of our 20 MMT agriculture, see pg. 98 for our
with suppliers and investing in emissions reduction goal, we efforts in improving agricultural
efficiency worldwide to create are pursuing projects within productivity.)
more impact than would be our agricultural supply chain
possible on our own. Through that improve efficiency and Optimizing row crop production
our work with Environmental productivity. Through our Through joint support with
Defense Fund (EDF), we’ve Climate Smart Agriculture our suppliers, we expect by
successfully met our goal of Platform (CSA), we’ve asked the 2020 to see the elimination of
eliminating 20 million metric suppliers and growers in our an estimated 9 MMT of GHG
tons (MMT) of GHG emissions food business to measure and emissions in our agriculture
from our supply chain. In fact, report farm impact through supply chain through efficiency
we far exceeded the goal – our Sustainability Index. With improvements on 23 million
eliminating a reported 35.6 the participation of suppliers acres of land that use row
MMT since we began the who provide 70 percent of crops. We’re working with
initiative. Together with our our food sales volume, we’ve Field to Market: The Alliancefor Sustainable Agriculture to a new program, MB Grain progress with our manufac- operations and create strategies
support efforts to encourage Agronomics (MBGro), which turing suppliers, especially to reduce those emissions. In
adoption of best practices by provides free agronomic advice through our supply chain work this effort, we’ve been success-
farmers and track and measure to grain growers in Smithfield’s with CDP (formerly the Carbon ful in spurring a culture of sus-
continuous improvement in grain-sourcing regions. The Disclosure Project). The CDP tainability and climate change
environmental outcomes. Our program also connects growers Supply Chain program enables awareness among our suppliers
goal is to continue to support with technology trials at a companies to engage with through their own CDP reports.
farmers and their communities reduced price and assists them suppliers to understand climate Through this program more
improving productivity and in purchasing cover crop seed change risks and formulate than 700 of our suppliers have
farmer livelihoods. at wholesale prices. In 2015, strategies to reduce emissions reported. Many suppliers have
the first full year of MBGro within their supply chain. reported reductions, collective-
Optimizing fertilizer use implementation, more than Walmart has worked with CDP ly driving the elimination of 125
In response to Walmart’s 200 farmers, who farm more to encourage our network of million tons of CO2 emissions in
focus on promoting fertilizer than 90,000 acres, improved suppliers to take the first step 2015. (For Walmart’s own CDP
optimization in its supply their fertilizer application toward improvement and be- disclosure, see pg. 62.
chain, Smithfield Foods, a practices. gin measuring their greenhouse
major U.S. supplier of pork, set gas impact. Through measure-
an ambitious goal to engage Reducing emissions in ment and disclosure, suppliers
75 percent of their grain manufacturing can understand their own
sourcing acres – half a million In addition to pursuing emis- Reduction in carbon
emissions profile, identifyemissions
areas
acres – by 2018. Smithfield sions reductions in agricul- in of high
metric tonsemissions within their
collaborated with EDF to build ture, we’ve made significant
Collaboration with EDF
Walmart’s association with EDF global GHG emissions by 20 MMT Reduction in carbon emissions
began 10 years ago with three by the end of 2015. Working in metric tons
sustainability goals: to be supplied with EDF experts to identify key
by 100 percent renewable project areas and implement
energy, create zero waste and sell science-based solutions, Walmart
products that sustain the world’s was able to meet and exceed this
2.4
resources and environment. At goal with a 35.6 MMT reduction in .5
that time, EDF challenged Walmart GHG emissions along the supply 7.0
1.0
to create more specific and chain. EDF continues to work with 1.9
measurable goals addressing the Walmart to supply strategic advice 22.8
8.5 Palm oil & Brazil beef
central issue of climate change, and science to help Walmart set 8.2 Fertilizer
and in 2010 the Walmart team and reach sustainability goals. 10.7 Food waste & date labeling
.9 Other
announced a goal to reduce 2.9 Packaging & manufacturing
68.4 Smart & efficient home products**
2010-2015 2016-2020*
MMT MMT
(million metric tons) (million metric tons)
*Represents cumulative effect of changes made to products between 2010 and 2015 and extrapolated to 2020;
2020 projections don’t account for any future initiatives
**Includes items like refurbished electronics, LED Light Bulbs, coldwater wash detergentWal-Mart Stores, Inc. | 2016 Global Responsibility Report
Energy and emissions – supply chain
We’ve also focused on efficiency and renewable 20 MMT of greenhouse gas
promoting efficiency within the technologies to transform the (GHG) emissions within the
factories in our supply chain, energy use in those factories. supply chain. This project
with a particular emphasis Given the focus on training focuses on increasing sales
on those in China. Since we to use the RedE tool since through strategic marketing of
announced our Chinese program launch, we don’t products designed to reduce
supplier initiative in August have all factories actively using energy consumption at home
2014, Walmart has trained RedE, and the full value of this for consumers when compared
more than 500 factories to initiative is yet to be realized. If with similar products in the
use the Resource Efficiency we’re able to achieve consistent market. The products range
Deployment Engine (RedE), a adoption by target factories from light bulbs to laundry
Web-based tool that guides we’ve trained, this would result detergent. In support of the
the identification of energy- in a GHG emissions reduction project, we conducted in-store
efficiency improvement of nearly 1 million metric tons marketing of home energy-
Sustainable manufacturing initiatives. From program (MMT). As we look forward to saving products, lowered
in Dongguan launch through 2015, RedE has 2016 and beyond, our focus will product price points and also
facilitated the completion of shift from training the factories conducted online marketing
In China, local relationships 118 individual factory efficiency on the RedE tool, to tracking through various communication
are important in promoting projects, with reported factory and encouraging improvement channels. Since we launched the
sustainability efforts. Through cost savings of more than $2.8 in our most strategic factories project in 2012, it has eliminated
collaboration with EDF, Walmart million, energy savings of more across the business. more than a reported 22 MMT
is supporting the efforts of the than 45 million kWh and GHG solely for this S&E project – the
city council in Dongguan, a emission reductions of more Supporting design of smart, equivalent of taking 4.8 million
major manufacturing hub in the than 33 thousand metric tons. efficient home products cars off the road.
Guangdong province of southern To further accelerate this work, The Smart & Efficient (S&E)
China, to launch a “Green Supply we’ve worked with the energy Home Products project
Chain” program. The goal of the
experts from EDF to train represents a major contributor
program is to promote sustainable
suppliers on the latest energy to Walmart’s goal of reducing
manufacturing practices that
reduce energy, conserve water
and reduce pollution in China.
To support this effort, Walmart
will be connecting our suppliers’ Making the switch to LEDs
factories in Dongguan with
technical training and insight from
This year, Walmart announced we ability to dim. For our customers,
EDF’s energy experts and other
are transitioning the assortment this means more affordable,
government officials to improve
of compact fluorescent light bulbs energy-efficient and longer-lasting
the efficiency of their facilities
(CFLs) to light-emitting diode bulbs bulbs.
and lower their environmental
(LEDs). Not only have LED prices
footprint.
come down dramatically over the
past five years to be comparable
with CFL bulbs, but also, testing
shows they outperform CFL
bulbs in features such as instant
brightness, light quality and theNotes from the field: Challenges to reducing emissions in our operations
and supply chain
Weather countries and many states price of fossil fuels falls, investing Technological and
Weather conditions often within the U.S., our ability to in emission reductions in our behavioral change
work against our efforts to scale renewable energy projects own operations or in the supply Reducing emissions in our
reduce carbon emissions in is diminished because we’re chain may appear less financially operations and supply chain
our operations and supply not able to sign direct power viable in the short term. While requires continuous changes in
chain. With air temperature and purchase agreements (PPAs). some U.S. states and some technology and behavior. We
humidity correlating directly to We advocate for policies that countries have implemented cannot move toward a low-
energy demand, maintaining allow market-based solutions like carbon markets or tariff schemes, carbon economy by falling back
a pleasant indoor shopping or PPAs, which can lead to greater which put a value on carbon on the ways that things have
working experience in stores price certainty and cost savings. emissions and incentivize always been done. This is often a
or in manufacturing facilities Renewable energy installations lowering emissions, prices challenge as we introduce new
can be challenging. A severe or on roofs, parking lots or land are often volatile, vary widely equipment or processes that
prolonged winter will inevitably also require significant time by market and are at risk by require training, education or
lead to increased usage of to manage permitting rules changes in legislation. simply doing things differently.
natural gas and electricity to and regulatory relationships. In This can apply to anything
heat buildings, while heat waves the supply chain, producers of Offsetting growth from advanced refrigeration
can drive demand for electricity commodities look for a policy Walmart continually looks to equipment in our stores
to power air conditioning and environment that enables them expand our retail offerings requiring new maintenance
refrigerated equipment above to invest in technologies that worldwide, both in stores and procedures, as it does deep
normal levels. Weather can also reduce or convert farm emissions. online. This means more stores, in the supply chain in training
impact our ability to generate Policy also varies widely by clubs, data centers, distribution multi-generational farmers
electricity from renewable country, as emission reductions centers, suppliers, products and on climate-smart agricultural
sources such as wind and solar. strategies in some places are trucks to move products are practices. Furthermore, we need
Renewable energy systems viable without government added each year. In addition to technological innovations in
depend on natural flows, which incentives; in others, incentives building new facilities, we also the places that matter most.
can change throughout the like feed-in tariffs, subsidies and continue to expand grocery Much of our impact occurs in
year and over time, resulting crop insurance help make the offerings in many existing stores agriculture – from methane and
in variable rates of energy projects viable. Conversely, in around the world to meet the fertilizer-related emissions to
production from wind turbines some markets, local laws or demand for fresh and affordable deforested land conversion for
and rooftop solar arrays. import tariffs on renewable and food and produce. These food production. Technological
efficient technologies can slow remodels and expansions require innovation is needed at scale
Policy down project viability. more energy and use equipment to minimize these emissions,
Walmart believes that such as refrigerated cases and to convert them to uses such
businesses must have the Economics freezers. The combination of as anaerobic digestion and to
regulatory freedom to directly The current and projected long- new facilities, new equipment in increase production yields on
source electricity from project term price of fossil fuels is an existing facilities and increasing existing farm land to prevent
developers or independent important financial consideration sales volumes creates an uphill further deforestation.
power producers. In some in reducing emissions. When the battle on reducing absolute
carbon emissions.You can also read
