Climbing Toward Corporate Sustainability, Even Walmart Can’t Do It Alone

ElizabethSturcken-(2)_287x377Ten years ago, the CEO of Walmart and the president of Environmental Defense Fund hiked together on Mount Washington in New Hampshire. Along the way, Lee Scott of Walmart (now retired) and Fred Krupp of EDF talked about climate change and the environmental challenges of our time. They also talked about ways that Walmart could drive positive environmental change in its product lines and operations.

The hike turned out to be the start of a ten-year journey of collaboration between Walmart and EDF, one that has helped define a new model of corporate sustainability.

In a speech that year, Lee Scott laid out three aspirational goals:

“Our environmental goals at Walmart are simple and straightforward:
1. To be supplied 100 percent by renewable energy.
2. To create zero waste.
3. To sell products that sustain our resources and environment.

These goals are both ambitious and aspirational, and I’m not sure how to achieve them…..at least not yet. This obviously will take some time…”

Lee Scott, Oct. 23, 2005

Now, on the ten-year anniversary of the 21st Century Leadership speech, EDF is taking a moment to take stock of how far this journey has taken us and the distance left to travel.

First, what have we achieved? Here are three of our proudest accomplishments:

EDF and Walmart - removing 20MMT of GHG from its global supply chain

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1. Today, Walmart is announcing that it will surpass its aggressive goal of reducing 20 MMT of greenhouse gas emissions from its supply chain. In total, Walmart will reduce 28 MMT of GHG from its supply chain by the end of 2015. To achieve this goal, Walmart tackled a diverse range of projects: from helping end consumers through improving products like LED light bulbs; to creating a Closed Loop Recycling fund, and changing food date labeling to reduce waste; and working with EDF to conserve fertilizer use on over 20 million acres of U.S. farmland.

Overall, the 20 MMT reduction of GHG from Walmart’s supply chain is the equivalent of getting almost six million cars off the road.

Yes, EDF pushed Walmart to set this goal; but we also worked side by side with them to achieve it. It is this type of long-term collaboration that drives results at scale, an achievement foreshadowed by EDF president Fred Krupp when he said, "When you can get big companies to do important things, you can change the world."

2. In 2013, Walmart put a chemicals policy in place that is phasing out chemicals of concern in over 100,000 home and personal care products like laundry soap and shampoo. Private brand products now list all of their ingredients online so consumers have more transparency into what chemicals they are using in their home and on their bodies.

3. EDF and Walmart helped create the Sustainability Index, a tool powered by The Sustainability Consortium (TSC) that has evaluated billions of dollars of products on Walmart shelves. To date, 70% of Walmart suppliers have filled out the Index. Read more

How Campbells is Helping to Make Sustainable Growing the New Normal

There’s a lot of momentum in the sustainable agriculture world. We helped Walmart discover that fertilizer runoff is a significant source of greenhouse gas emissions in its supply chain, and they’re now working with suppliers to improve the way grain is grown across the U.S. That’s because half of all fertilizer applied to crops runs off the field, leading to water pollution, aquatic dead zones that kill marine life, and contributing to climate change – since the nitrogen in fertilizer runoff converts to nitrous oxide, which is 300 times more powerful than carbon dioxide.

Major food companies are also recognizing that increased weather variability from climate change can cause supply chain disruptions, that their customers are demanding transparency for how their food was grown, and that it’s in their best interest to meet retailers’ demands for sustainably grown grain.

Campbells

That’s why Campbell’s Soup has focused on growing its vegetables as sustainably as possible, and why its Pepperidge Farm subsidiary is now investing in wheat sustainability in their Ohio and Nebraska sourcing areas.

My colleague Suzy Friedman, director of agricultural sustainability at EDF, recently interviewed Dan Sonke, manager of agricultural sustainability at Campbell’s, to get his take on this unprecedented momentum. Below are the highlights of their conversation on why his company is working with farmers to reduce environmental impacts, what they’re hearing from customers, and about why sustainable grain is becoming the new normal. Read more

Powerful Business: The Lever for Change Across the Supply Chain

Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.
-Archimedes

Sometimes when a problem seems too big, too ugly and too complex to handle, you need a lever to help move things along.  All of the big environmental problems we currently face fall into this category.

When it comes to tackling our planet’s biggest problems, there is a full spectrum of approaches and many different leverage points. For me, the most important lever is business. A thriving planet and a thriving economy don’t have to be at odds. EDF is focusing on helping businesses make their supply chains cleaner, more efficient and more profitable.

Working with powerful business has been a cornerstone of EDF’s approach ever since we launched our 1st partnership with McDonald’s 25 years ago. Since then, we have kick-started market transformations in fast food with McDonalds and Starbucks, shipping with FedEx, retail with Walmart, and private equity with KKR. With each partnership, we’ve worked to create new, sustainable demand signals that extend across the supply chain. When powerful business speaks, suppliers listen. EDF is helping the most impactful companies commit to selling sustainably-produced products, encouraging every supplier and producer contributing to those products to also adopt more sustainable practices. Read more

Campbell’s Soup Expands Fertilizer Optimization Programs

There’s a new reason to celebrate your favorite sugar cookie. The Campbell's Soup Company has committed to fertilizer optimization in its sourcing areas in Ohio and Nebraska – which provide wheat for Campbell’s subsidiary, Pepperidge Farm – and the company will enroll an additional 70,000 acres into its fertilizer optimization programs by 2020.

220px-Campbell_Soup_Company_logo.svg_Campbell's will work with EDF to create additional fertilizer optimization and soil conservation programs for farmers, and will deploy United Suppliers’ SUSTAIN platform in these sourcing areas to help ensure for farmers that changing their practices will not only reduce nitrogen runoff, but also protect yields and farm income.

With this announcement, the momentum for sustainable agriculture is higher than ever. Campbell’s is the latest company to participate in EDF’s Sustainable Sourcing Initiative, joining Walmart, Smithfield Foods, General Mills, and United Suppliers to make fertilizer efficiency and soil health the norm in U.S. grain production. Read more