Chain Reference

Learn More About Wal-Mart’s Supply Chain Emissions Intentions

Being the world’s biggest retailer, Walm-Mart’s decision on its carbon emissions war actually creates a significant impact to the reduction of carbon footprint in the entire Untied States. In its Sustainability index in 2009, Wal-Mart has signified that a large part of its carbon emissions problems lies in its 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.

Wal-Mart has issued another call in 2010 for a reduction of 20 Million metric tons of GHG supply-chain emissions within 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.

Referred to as the ‘Scope 3′ emissions, it is recognized that supply-chain emissions would be the most difficult to gauge and curtail. Supply-chain emissions could refer to the carbon emissions which are consequence of energy used by the suppliers as they procure, produce, and move raw materials and the output products to the users like Wal-Mart.

Issued in 2009, Wal-Mart’s Sustainability index is intended to grade its products and suppliers according to different sustainability factors. The biggest push for Wal-Mart lies in the education, as it is said that it will not compel any of its suppliers to do something about their respective carbon emissions.

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 place emphasis in this willingness by Wal-Mart to be proactive in this arena, its current Supplier Energy efficiency Project has helped its long list of suppliers achieve GHG emissions reduction by more than 3,000 metric tons since it was rolled out.

About the Author

Sustainability Resource Planning
(SRP) platform delivers a broad range of enterprise solutions to over 40 global clients with a service network of over 7,500 consultants consisting of 65,000 application users. Verisae’s software manages, and monetizes energy costs and carbon emissions while providing a rapid ROI. Learn more at
http://www.verisae.com/articles

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