Last week Walmart announced it will eliminate 20 million metric tons of GHG emissions from its global supply chain by the end of 2015. This goal represents one and a half times the company’s estimated global carbon footprint growth over the next five years and is the equivalent of taking more than 3.8 million cars off the road for a year, according to a press release issued by Walmart and the Environmental Defense Fund (EDF).
Walmart worked with EDF to develop an approach that looks at their supply chain on a global scale. Other advisors have signed on to identify projects, track and measure reductions, engage suppliers and ensure proper procedures are followed for each GHG claim. The program has three main components: Selection, Action and Assessment. For the Selection component, Walmart will focus on product categories with the highest embedded carbon. For the Action component, products must reduce GHGs in either the sourcing or end-of-life disposal, Walmart must demonstrate it had direct influence on the reduction, and show how the reduction wouldn’t have occurred without Walmart’s participation. For the Assessment component, suppliers and Walmart will jointly account for the reductions, and ClearCarbon will perform a quality assurance review of those claims to ensure the process is correct. PricewaterhouseCoopers will then assess under consulting standards to make sure the process is correct.
This announcement by Walmart is a clear indication that suppliers need to act fast in order to compete in their supply chain. President and CEO Mike Duke made several statements about energy efficiency and carbon reduction being central issues in the world today, and that their GHG reduction goal comes down to the customers. By helping suppliers reduce energy use, costs and their carbon footprint, Walmart will help customers do the same thing.
Sustainability can begin with carbon reduction, but it is an ongoing process. Embarking on such a journey can be daunting, but BrownFlynn has helped many companies along the way for years – and is poised to answer your company’s call at any time.
Statement from the most senior decision-maker of the organization about relevance of sustainability to the organization and the organization’s strategy for addressing sustainability
Name of the organization
Primary brands, products, and services
Location of organization’s headquarters
Number of countries where the organization operates, and names of countries with significant operations or that are specifically relevant to the sustainability topics covered in the report
Nature of ownership and legal form
Scale of the reporting organization
Total workforce by employment type, employment contract, and region, broken down by gender
Percentage of total employees covered by collective bargaining agreements
Description of the organization’s supply chain
Significant changes during the reporting period regarding organization's size, structure, ownership, or supply chain
Whether and how the precautionary approach or principle is addressed by the organization
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
Memberships in associations and/or national/international advocacy organizations
Entities included in the organization consolidated financial and nonfinancial reports
Process for defining report content
Material aspects identified in the process for defining report content
For each material aspect, the aspect boundary within the organization
For each material aspect, the aspect boundary outside the organization
Explanation of the effect of and reasons for any restatements of information provided in earlier reports
Significant changes from previous reporting periods in the scope and aspect boundaries
List of stakeholder groups engaged by the organization
The basis for identification and selection of stakeholders with whom to engage
The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns
Date of most recent previous report
Contact point for questions regarding the report or its contents
‘In accordance’ option and GRI Content Index
Policy and current practice with regard to seeking external assurance for the report
Governance structure of organization, including committees of the highest governance body
The organization’s values, principles, standards, and norms of behavior such as codes of conduct and codes of ethics
Disclosure on Management Approach for Aspect
Coverage of the organization’s defined benefit plan obligations.
Financial assistance received from government.
Significant indirect economic impacts, including the extent of impacts.
Total number and rates of new employee hires and employee turnover by age group, gender and region.
Average hours of training per year per employee, by gender and by employee category.
Percentage of employees receiving regular performance and career development reviews, by gender and by employee category.