Wal-Mart seeks to reduce carbon footprint

The retailer is asking suppliers to quantify their energy use throughout the supply chain to control costs for customers and the environment.

By Tom Andel, Editor in Chief -- Modern Materials Handling, 9/26/2007

Wal-Mart has announced its first step toward removing non-renewable energy from the processes and supply chains that supply its inventory: it is partnering with the Carbon Disclosure Project (CDP) in a pilot program to measure the amount of energy used to create and distribute the products it sells.

“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,” says John Fleming, executive vice president and chief merchandising officer, Wal-Mart Stores Division.

Focus on specific suppliers and products
Wal-Mart is bringing into this pilot a group of suppliers committed to finding innovative ways to make supply chains more energy efficient.

The pilot will focus on seven product categories—chosen because consumers use them so frequently—to determine their overall environmental impact and to look for innovative ways to drive energy efficiency:

1. DVDs
2. Toothpaste
3. Soap
4. Milk
5. Beer
6. Vacuum cleaners
7. Soda

“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,” says CDP chief executive Paul Dickinson.

Materials handling implications

Commenting on the materials handling implications of this announcement, John Nofsinger, CEO of the Material Handling Industry of America (MHIA), told Modern this could present manufacturers and systems integrators a golden opportunity to add a level of service while contributing to environmental stewardship.

Nofsinger suggests associations like his provide a forum for companies to separate legitimate strategies from marketing hype.

“Once the content analysts go to work there will be a lot of flim flam from people claiming to know all the answers on how to become a favorite Wal-Mart supplier,” he adds. “We’d like to be a sounding board so we can offer the real skinny as far as we can determine it.”

That opportunity will come next March when MHIA brings its NA 2008 material handling show and conference to Cleveland. The keynote speaker for the event will be Andrew Winston, founder of Winston Eco-Strategies and co-author of “Green to Gold,” which highlights what works and what doesn’t when companies “go green.”