It's pretty common for big manufacturers and retailers to suggest that their supply chain partners improve energy efficiency, cut carbon emissions or reduce water consumption. Examples of initiatives that move beyond the power of suggestion into meaningful action are far rarer.
So, it was with interest I read about Walmart's new commitment to involve up to 70% of its suppliers in China as part of an energy efficiency program before the end of 2017. To be clear, it is "inviting" suppliers to participate, not mandating that they do so. At least not yet.
"Walmart has made significant progress in advancing factory efficiency in China in recent years, and today's announcement is an expansion of our efforts to drive a larger impact," said Walmart China CEO Sean Clarke, in a statement.
You'll notice he said "factory efficiency" not energy efficiency, which is one hallmark of success in this area: making it part of overall operational concerns, not something separate.
In any case, Walmart already has piloted the initiative with 40 factories; the extended effort will eventually reach approximately 500. The retailer doesn't name an explicit target, but offers that improving energy efficiency with this group by 10% over three years would reduce greenhouse gas (GHG) emissions by more than 1 million metric tons.
Walmart's work in its own China facilities since 2008 has already resulted in a 20% reduction in 210 factories, along with a $279 million cut in energy costs. Some of the measures that helped get there (and that provide a hint of what's to come with suppliers):
- More than $16 million in LED lighting replacements for conventional fluorescent light bulbs
- Refrigerator retrofits at 250 stores that replace existing doors with glass ones (believe it or not this cuts energy consumption by 30%)
- Solar energy investments, including the first non-state-owned rooftop installation sanctioned under China's Golden Sun Solar Program
Walmarts overall sustainable business goals are admirably ambitious, including a target to be 100% supplied by renewable energy (there's no specific date) and a zero waste policy. Of course, all this must be judged in the context of ongoing criticisms over its labor policies.
