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Wal-Mart to Push Suppliers to Cut Emissions

In a press release on Feb. 25, 2010 it was announced that Wal-Mart Stores Inc. wants its suppliers to reduce 20 million metric tons of greenhouse gas emissions by the end of 2015. The retailer's push goes beyond its efforts to date to reduce its own emissions by designing more energy-efficient stores and pursuing alternative fuels for its fleet of trucks.

The goal is equivalent to taking 3.8 million cars off the road for a year, the company said.

Wal-Mart is collaborating with the Environmental Defense Fund and other environmental experts to measure reduction. It said it won't force suppliers to make changes but will work with them on projects that will reduce both emissions and costs.

In the past few years, the company has been working with suppliers to reduce packaging, which has translated into such changes as more concentrated detergent products and toothpaste that's no longer in a box.

Wal-Mart CEO and President Mike Duke says that the company needs to push for greater efficiency to maintain a competitive edge as it expands globally amid higher energy costs. The 20 million metric tons represents one and a half times the company's estimated global carbon footprint growth as it expands over the next five years.

A spokeswoman for Procter & Gamble Co. says that it has been working with Wal-Mart on its environmental efforts and P&G's own sustainability plans.

"We need to continue to build stores and add retail selling space. Yet we know we need to get ready for a world in which energy will only be more expensive and there will only be a greater need to operate with less carbon in the supply chain," Duke says.
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