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Wal-Mart Clarifies its Supply Chain Emissions Intentions

By Daniel Stouffer

Republish: EasyPublish™ Published: 30May2010 Word count: 506 Viewed: 648 time(s) Get Free Content For Your Site

When Wal-Mart introduced its Sustainability index in 2009, the world's largest retailer made a significant statement in the global war against carbon emissions. Due to its sheer size and reach, Wal-Mart has the power to make considerable "waves" in the retail world and thereby directly affect the carbon footprint of the country as a whole. Wal-Mart's landmark decision clearly identifies that the most significant part of the carbon emission problem may be within supply-chain emissions.

Giant retailer Wal-Mart estimates that fully 90% of its carbon emission liabilities lie within its supply-chain emissions. This statistic should be of interest to organizations, as they awaken to the need to become sustainable. Wal-Mart is clearly saying that it only has total control over 10% of its carbon emissions and must work aggressively with its suppliers regarding the lion's share.

When Wal-Mart introduced its Sustainability index in 2009, the world's largest retailer made a significant statement in the global war against carbon emissions. Due to its sheer size and reach, Wal-Mart has the power to make considerable "waves" in the retail world and thereby directly affect the carbon footprint of the country as a whole. Wal-Mart's landmark decision clearly identifies that the most significant part of the carbon emission problem may be within supply-chain emissions.

In the spring of 2010, Wal-Mart has issued another environmental push by calling for a reduction of 20 million metric tons of greenhouse gas supply-chain emissions over the next five years. All of Wal-Mart's suppliers are now considering what this push actually means to them and are working with the retailer to move forward.

Wal-Mart understands that there is a lot of work to do before any meaningful changes can be made in its supply-chain emissions and has pledged to work with suppliers to help them reduce their individual energy use, costs and subsequent emissions. Wal-Mart has partnered with the Carbon Disclosure Project, the Environmental Defense Fund and others to help them with this task.

It is recognized that supply-chain emissions, also sometimes referred to as "scope three" emissions, are the hardest to accurately gauge and therefore reduce. Supply-chain emissions refer to carbon emissions produced as a result of the energy used by suppliers as they source, produce and transport raw materials and products to the user, in this case Wal-Mart.

Wal-Mart's sustainability Index, issued in 2009, was designed to grade suppliers and products based on a number of different sustainability factors. Wal-Mart's biggest push here it is in the area of education, as it has said that it will not "force" any of its suppliers to make changes.

Within its supply-chain emissions, Wal-Mart does, however, expect suppliers to identify and try and reduce emissions related to products with the highest carbon footprint, first. The company is doing a considerable amount to help educate the business world as a whole to the way that carbon emission reduction should be approached.

To underline Wal-Mart's willingness to get involved in this area, it's existing Supplier Energy Efficiency Project has already helped its suppliers reduce greenhouse gas emissions by over 3000 metric tons since its inception.

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