March 17, 2010
Walmart recently announced a goal to eliminate 20 million metric tons of greenhouse gas (GHG) emissions from its global supply chain by the end of 2015.
Walmart's innovative program to reduce GHGs has three main components:
- Selection – Walmart will focus on the product categories with the highest embedded carbon (defined as the amount of life cycle GHG emissions per unit multiplied by the amount the company sells), thus creating the greatest opportunity for reductions
- Action – For a project to be included as part of this goal, it must reduce GHGs from a product in either the sourcing of raw materials, manufacturing, transportation, customer use or end-of-life disposal.
- Assessment – Suppliers and Walmart will jointly account for the reductions.
Because the footprint of Walmart's global supply chain is so much larger than its operational carbon footprint – one and a half times – it represents a significant opportunity to reduce emissions.
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