Corporate America’s “moon shot”: Walmart’s Project Gigaton

 

At a time when leadership from the federal government is decidedly lacking, today’s launch of Walmart’s Project Gigaton is a cause for celebration. It is proof that companies can step up to advance solutions that will help business, people and nature thrive.

Just like Walmart itself, this is big.

The world’s largest retailer has launched an initiative to remove 1 gigaton (that’s 1 billion tons — billion with a “b”) of greenhouse gas emissions (GHG) from its supply chain by 2030. To put that in perspective, that is the equivalent of removing the annual emissions of Germany — the world’s fourth-largest economy — from the atmosphere. This audacious goal is impressive; it’s corporate America’s “moon shot,” and it shows real leadership.

Why? Because, according to The Sustainability Consortium, the modern supply chain is responsible for 60 percent of all greenhouse gas emissions, 80 percent of all water use and 66 percent of all tropical deforestation. And with the global population projected to swell to 9.5 billion consumers by 2050, it is clear there is not just a crucial opportunity for businesses to meet growing global demand, there is also a real need to protect the planet. Embracing sustainable practices is no longer an option for business. It is an imperative. The planet needs fast action at a massive scale.

So do forward-looking CEOs. Shareholders are rewarding resiliency when companies climate-proof their global operations. And customers, especially millennials, expect sustainability to be baked into the things they buy. In short, business is looking to drive bottom-line value, including growth, with sustainability.

Elizabeth Sturcken, Managing Director, EDF+Business

Which explains the significant Project Gigaton commitments being made by companies like Unilever (20 million metric tons of GHG reduction) and Land O’ Lakes (20 million acres sustainably farmed) and commitments made in the past six months by Apple, Amazon, Google, PepsiCo, Smithfield Foods and others.

Execution and delivery

But setting goals is just the first step. The execution and delivery must follow to complete this journey.

Which brings me back to this moon shot: Walmart cannot do this alone. Project Gigaton will take a village — in this case, the tens of thousands of companies that make up Walmart’s global supplier network — to make this goal a reality. And that’s a good thing: Eliminating GHG emissions at this scale will reverberate across entire sectors and industries. It will be the change to “business as usual” that’s long overdue.

That’s all fine and well, rhetorically. But what if you’re a CEO or CSR exec who’s facing the hard reality of “Where do I start”?

Some new research by Environmental Defense Fund starts to sketch out a roadmap to success — and illustrates the need for supply-chain partners to get on the bus. While we’re just at the beginning of a deep dive into the sustainability of the U.S. retail supply chain, our initial findings show two things:  the complexity and emission hotspots of box chain retailers and three clear, initial areas of focus:

  1. The supply chain is the largest source of emissions. If there was any doubt left, put it to rest: 80 percent of retail emissions occur in the supply chain; 12 percent are associated with the use and disposal of products and 8 percent come directly from retail operations — mostly buildings and facilities.
  2. Grocery is a huge hotspot and opportunity. Are you a retailer? Food company? Agricultural service provider? Farmer? Nearly half — 48 percent — of supply-chain greenhouse gas emissions come from the grocery category, which encompasses everything from fresh meat, veggies and dairy, to bakery, dry goods, beverages, snacks and frozen products. Together, these and other products emits 1.7 gigatons of GHGs (there’s that billion thing again). In other words, food production — and food waste — is definitely a place to make your numbers — and to make a difference. (Talk about low-hanging fruit!)
  3. Electricity is the biggest activity that contributes to emissions. From factories to farmhouses, whether powering a business or refrigerating an item at home, using electricity is the largest activity that produces emissions for consumer packaged goods production. Think about that: by tackling electricity use, whether from conservation or renewable energy, business leaders can not only run a more efficient operation, they can also engage their customers on which products to buy and how to best use them. That’s good business.

For those who have been paying attention to these issues for decades, these big opportunities won’t come as a surprise. But they help sharpen the focus for supply-chain professionals searching to answer the question of where to put effort and investment to get the most emissions-reduction results. Scale and speed are necessary. Knowing where to focus is critical. The EDF research is in the early stages and we plan to release the full results later this year.

In the meantime, kudos to Walmart. As suppliers make commitments for Project Gigaton that will drive reductions from factories to farms to forests to fleets, it will become imperative to identify hotspots to enable the largest impact. That’s exactly what drives innovation and the environmental impact we need.

The supply chain may be complicated, but the rewards are well worth it: thriving companies, thriving communities and a thriving planet.

Jump on the Project Gigaton moon shot. It’s leaving the launching pad, with or without you.


Follow Elizabeth on Twitter, @esturcken


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Consumer Goods Companies: Stand Up For Strong Truck Standards

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(Credit: Union of Concerned Scientists)

Three billion gallons of fuel:  That is what consumer goods companies stand to save annually from strong heavy truck fuel efficiency and greenhouse gas standards, according to a new report from the Union of Concerned Scientists.

$11.5 million dollars: That is how much a large consumer goods company would save annually in 2030 from strong truck efficiency standards.

Consumer goods companies should be at the front of the pack calling for new, protective, and affordable fuel efficiency and greenhouse gas standards for our largest trucks — which will not only protect our air quality and the climate overall, but save companies costs involved in moving freight. Read more

To Drive Down CO2 Emissions, Focus on Freight

Did you know that, as the energy demand for passenger vehicles declines steadily over the next 25 years, the fuel demand for commercial transportation is predicted to increase 40 percent over current levels?

That’s a difference of well over 10 million oil-equivalent barrels per day.

Most of that demand will come from heavy-duty trucks, which account for 57 percent of all logistics-related greenhouse gas (GHG) emissions, and 16 percent of total corporate GHGs.

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As a society, our appetite for goods of all kinds—food, electronics, apparel, housewares – is growing. As the population grows, demand grows, and so does the number of trucks on the road. Read more

The Benefits of Stringent Trucking Standards

by Kate Rack, marketing & communications intern

The Obama Administration is developing new fuel economy standards for trucks, and last week, Ceres and Environmental Defense Fund hosted a webinar outlining how implementing strong federal standards for medium- and heavy-duty trucks would be truly a win-win situation.

Our organizations, along with other leaders, are calling for strong standards that cut fuel consumption by 40%. A recent analysis of such standards shows that they would reduce both greenhouse gas emission levels and expenses to ship goods via freight.

EDF helps freight logistics professionals on the journey to greener freight

Why make truck efficiency a priority?

Currently in the U.S., the trucking sector is the fastest growing single source of greenhouse gas emissions. U.S. businesses spend $650 billion a year on freight trucking services, which equates to over half a billion tons of GHG emissions. It is essential that as fuel efficiency standards for cars becomes more stringent, trucks follow suit, especially since 70% of tonnage shipped within the U.S is by truck. In particular, retail and consumer products are the largest consumers of trucking in the United States. Chances are, the computer screen that you are using right now to read this blog post was brought to you on a truck!

Read more

Changing the Methane Numbers Game

Adding to the drumbeat for action on the supercharged climate pollutant methane, Showtime’s “Years of Living Dangerously” series recently spotlighted methane emissions leaking from America’s oil and natural gas infrastructure.

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One theme of the May 19 episode hinged on a numbers question: Just how much methane is getting out? This question, a common one in the methane arena, refers to the national methane leakage rate for the entire oil and gas supply chain.

Various numbers, as low as 1 percent, were suggested for the national average with 4 percent, 11 percent and even 17 percent reported by scientific studies in some oil-and-gas producing regions. The problem is, it’s the wrong question.

We should stop fixating the debate on just how bad the problem is, when we know there is a problem and we can address it with confidence today.

Read more