Wal-Mart Newest Green Goal: Cleaner Supply Chains

Source: GreenBiz.com

As part of a new partnership with the Carbon Disclosure Project, Wal-Mart announced yesterday that it will measure the energy use and emissions of the entire supply chain of seven product categories (DVDs, Toothpaste, Soap, Milk, Beer, Vacuum cleaners, Soda), and find ways to increase their energy efficiency.

The announcement came alongside the release of the CDP's fifth annual report, a survey of the risks the world's largest companies face from climate change, an analysis of how they are responding to those risks, and an accounting of those companies' emissions.

"This is an important first step toward reaching our goal of removing non-renewable energy from the products Wal-Mart sells," said Wal-Mart executive vice president John Fleming. "This is an opportunity to spur innovation and efficiency throughout our supply chain that will not only help protect the environment but save people money at the same time."

Wal-Mart's partnership with CDP will examine the supply chains for seven categories of products: beer, DVDs, milk, soap, soda, toothpaste and vacuum cleaners. The company said these categories were good choices to begin with because many customers regularly purchase products in these lines.

In addition, 20th Century Fox Home Entertainment, one of Wal-Mart's biggest DVD suppliers, announced that it has already begun its own supply chain analysis.

"The partnership between CDP and Wal-Mart is a significant milestone in corporate action to mitigate climate change," said CDP Chief Executive Paul Dickinson. "By engaging its supply chain in the CDP process, Wal-Mart will encourage its suppliers to measure and manage their greenhouse gas emissions, and ultimately reduce the total carbon footprint of Wal-Mart's indirect emissions. We look forward to other global corporations following Wal-Mart's lead and partnering with CDP."