The Walmart chain of department stores is the world’s largest corporation and employer; with annual revenue of more than US$420 billion and over 2 million employees. The first Walmart grocery store opened in Arkansas in 1962. Now, the company operates almost 9,000 stores in 15 countries.
Since 2005, Walmart has become a global leader in corporate sustainability and has made genuine practical commitments for a more efficient, cleaner and healthier operation. Walmart has taken an innovative approach to becoming a more sustainable company that has cut waste, improved energy efficiency and built a more environmentally friendly product line. These initiatives have been universally implemented across the United States and throughout Walmart’s supply chains. These initiatives have benefited the company, its employees and customers.
The company launched its sustainability program in 2005 with three long-term goals: to be supplied 100% by renewable energy, create zero waste and sell products that sustain people and the environment. The initiative’s success has been substantial and the company has reduced its greenhouse gas emissions by 10.61% from 2005 levels. This result has been achieved by both internal changes as well as strict demands from across the Walmart supply chain. While these objectives sound like a distinctly “green” ideology, the decision by Walmart to invest in a more sustainable future was based in the economic advantages this offered.
Walmart’s “green” epiphany was packaging waste. The company discovered that a reduction in size of the cardboard packaging of toy trucks not only stopped hundreds of tonnes of cardboard becoming waste, it also saved millions of dollars. Walmart quickly began to understand the broad benefits of a more efficient and thoughtful approach to business that has meant cost savings for the company, its suppliers and its customers. Now, the company aims to reduce packaging across its supply chain by 5% before 2013. This equates to environmental savings of 660,000 tonnes of carbon dioxide and economic savings of US$3.4 billion every year.
The company’s supply chain represents a much larger environmental burden than the direct impact of the department stores themselves. In a pledge to make a substantive difference to the broader ecological impact of the company, Walmart has acted to improve the sustainability of its business across the value chain of its products.
The transportation of products comes at a significant cost to the environment. Walmart aims to double the efficiency of its US supply truck fleet by 2015 and have already achieved a 65% improvement on 2005 levels. In 2010, by both reducing the distances travelled as well as loading goods more effectively, Walmart’s fleet was able to deliver 57 million more cases while driving 75 million fewer km. This equates to a 40,000 metric tonne reduction of CO2 emissions or the equivalent of taking 7,600 cars off the road. As part of the company’s commitment to innovative, long term sustainable solutions, 2010 saw Walmart collaborate with Dalmler Trucks North America to develop the hybrid electric Freightliner Cascadia.
Walmart’s focus on sustainable business led the company to advocate environmentally beneficial products as well as products sourced from more environmentally responsible sources. This in turn has provided Walmart customers an opportunity to take the environmental initiative. As part of a commitment to reducing energy consumption across the U.S. Walmart has promoted the use of compact fluorescent light bulbs (CFL). The replacement of one traditional bulb with a CFL will save the consumer US $30 in electricity costs over the life of the bulb and reduce green house gas emissions by 200 kilograms. By the end of 2010, Walmart had sold 460 million CFLs. In 2010, the retailer prioritized acquiring its paper and wood products from certified responsibly managed forests. Walmart also recycled 6.5 million kilograms of tyre rubber, including rubber from the company’s fleet, into outdoor mats.
Walmart has worked with its suppliers to improve the environmental efficiency of its existing products. Hot water contributes to 90% of a laundry load’s energy consumption. So, in conjunction with the U.S. Federal Trade commission and the company’s manufacturers, Walmart increased the percentage of clothing labeled ‘Machine Wash Cold’ from 37% to 74%, cutting both household power bills and energy consumption.
In pursuit of zero waste, Walmart’s reduction of plastic bag use has been an ecological revolution. In 2010, Walmart reduced its global plastic bag consumption by 3.5 billion bags, a 21 percent reduction from 2007 levels. Californian stores have seen the introduction of only reusable bags. While Walmart Argentina has introduced “Ecological Checkouts,” that do not stock plastic bags; customers choose to bring their own bags or purchase reusable options at the store.
Walmart’s quest for 100% renewable energy has seen the company promote and develop innovative new technology that has served the community, the company as well as the environment. At stores in Arizona and California, thin-film solar panels are being installed on the roofs. When complete, the project should provide up to 30% of the energy requirements for each store, reduce carbon production by 11,650 metric tonnes every year and create and support 500 “green jobs.”
Walmart’s revolutionary approach to corporate sustainability not only targets the environmental impact of the business, but also the larger economic and social effects of its operation. In January 2011, with the support of First Lady Michelle Obama, Walmart pledged to work with its food suppliers to reduce sodium by 25%, added sugars by 10%, remove all industrial produced trans fats and reduce the cost of fruit and vegetables by $1 billion per year. By 2015 Walmart aims to sell $1 billion of food supplied by community farms. The objective includes training 1 million farmers – half of which will be women – in sustainable farming techniques. This will reduce supply chain waste, pesticide use and water waste while also providing consumers with fresher produce.
In collaboration with their suppliers and customers, Walmart has made significant changes to cut waste and increase energy efficiency across its stores and supply chains. Through the examination of the entire life cycle of its products, Walmart has reached deep into the multiple sources of its environmental footprint and achieved real, meaningful changes. The company’s commitment to sustainable products and produce has changed the ideology of its consumers and the perceived environmental position of the mega-corporation in society. Importantly for both Walmart and its customers, environmental efficiency has lead to large saving for the corporation as well as lower prices for consumers. Walmart’s sustainable focus has proved a win, win situation.