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Wal-Mart Stores Inc plans to massively cut greenhouse gas
emissions from its global supply chain within five years -
an effort the retailer said is equivalent to taking more than
3.8 million cars off the road for a year.
Wal-Mart will reach that goal by having its suppliers reduce
emissions involved in the sourcing, manufacturing, transportation
and disposal of the thousands of products it sells in its
stores.
The plan to eliminate 20 million metric tons of greenhouse
gas from its supply chain by the end of 2015 was announced
in a Webcast last month. Chief Executive Mike Duke said the
effort would cut energy use - which, in turn, would mean lower
costs for Wal-Mart and lower prices.
"We do plan and want to continue to build stores. We want
to add square footage. That's the reality of our business,"
Duke said. "Yet, we know we need to get ready for a world
in which energy will only be more expensive and that there
will only be a greater need to operate with less carbon in
the supply chain."
The move is part of broader goals Wal-Mart has outlined to
one day use only renewable energy and create zero waste. It
has increased its use of solar power and announced plans to
roll out an index that will measure the environmental impact
of the products it sells in its stores.
The United States is the world's second-leading emitter -
after China - of greenhouse gases that scientists blame for
warming the planet. US carbon dioxide emissions from fossil
fuels like coal and oil should rise this year and next as
the economy recovers, according to the Energy Information
Administration.
However, corporate announcements of plans to cut those emissions
have become more rare as a climate bill in the Senate faces
tough opposition from lawmakers in energy dependent states
and as rich and poor countries struggle to share the burden
of taking action on global warming.
Experts have said that some companies are afraid to promise
reductions because they fear they will not be rewarded for
their early action in government-run carbon markets.
Duke said America needs "comprehensive legislative policy
that addresses energy, energy security, the country's competitiveness
and reducing pollution."
However, he said companies can take steps now to cut energy
use. He said the greenhouse gas emissions it aims to eliminate
represent one-and-a-half times Wal-Mart's estimated global
carbon footprint growth over the next five years.
Wal-Mart, which collaborated with the Environmental Defense
Fund on the effort, said it would work with suppliers to focus
first on products where it has the biggest opportunity to
take carbon out of the system.
For instance, Matt Kistler, its senior vice president of
sustainability, said suppliers could make clothes that can
be washed in cold water instead of hot water, or accelerate
the innovation of fabrics that dry faster.
Wal-Mart is already enforcing stricter quality and environmental
standards for its Chinese suppliers - looking at factories'
air emissions, management of toxic substances and disposal
of hazardous waste.
Some of Wal-Mart's actions have been criticised by groups
that contend the company is squeezing suppliers who cannot
pass on higher prices to offset the investments needed to
meet Wal-Mart's standards.
Wal-Mart said it wanted to pursue projects that are "economically
viable" and would reduce costs, not raise them.
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