Reducing greenhouse gas (GHG) emissions, which fuel climate change, can seem daunting – but it doesn’t have to be. There are time-tested and cost-effective enterprise strategies that are designed to help address this challenge. So what’s stopping your company from taking the next step toward capturing a portion of these savings?
According to a joint report published by the World Wildlife Fund (WWF) and CDP (formerly Carbon Disclosure Project), U.S. businesses that commit to annually cutting their GHG emissions can collectively reap as much as $190 billion in annual savings from reduced energy bills, increased productivity and other associated benefits.
Climate science tells us that in order to avoid the worst potential effects of climate change, it is important to work together, each business doing their share to reduce GHG emissions. From our own experience, we understand that business benefits can also come from developing, setting and pursuing a reduction in GHG emissions. Individual businesses can get started by viewing emissions as another form of waste, with financial value, as a symptom of inefficiency in the value chain. The focus then becomes working toward a reduction in emissions leading to increased ROI, profit and value.
How to Join
Walmart believes in the value of setting ambitious emission reduction goals and announced a science based target to cut our operational emissions 18 percent by 2025. We encourage every supplier to join us and commit to do their part to reduce global emissions.
How do we set an emissions reduction goal? While we encourage you to aim for an ambitious Science Based Target, your goal should reflect the maturity of your company’s sustainability program and at a minimum should be a goal out to 2030.
For example, you could set a goal to:
- Cut carbon intensity per revenue in half by 2030.
- Achieve a 20 percent absolute reduction in emissions by 2030.
- Achieve a science based target by reducing absolute emissions 35 percent by 2030 and 80 percent by 2050.
The above goals are illustrative examples only and by no means the only goal style that could be submitted as part of Project Gigaton – you’ll need to determine the scope, timeline, and type of goal that makes sense for your company and products. After submitting a goal using the button below, you’ll be asked to report on your progress annually so the impact can be recognized and attributed toward the Project Gigaton one gigaton reduction target.
- Practical guidance on developing a program and setting an emissions target
Every company is in a different stage of the emissions reduction journey, so start with what is best for your own operations. Your “own operations” includes Scope 1 and Scope 2 emissions (see figure below). Scope 1 emissions are direct emissions from sources that are owned or controlled by your company such as factories, office buildings, and company-owned fleet vehicles. Scope 2 emissions are indirect emissions resulting from the generation of purchased energy, primarily electricity.
Strategy frameworks such as the Carbon Productivity Portfolio can be useful when developing your company’s emissions reduction plans and goals. Organizations like Climate Corps Graduate Fellowship Program and many consulting firms offer professional and technical services to help you develop goals and expand your program.
Tools such as the Carbon Target and Profit Calculator can also be used to quickly estimate the potential value of goals for your company. Reviewing case studies can provide additional insights into how other companies think about goal setting and their implementation plans.
When it comes to setting Science Based Targets (SBT) there are several methods available to you. The method a company chooses to use depends on its particular circumstances. Find out more about the different methods here or even go straight to the complete SBT manual to begin setting your own SBT.
Several organizations work with businesses in their efforts to build or improve emission reduction strategies. Some of these organizations include:
- What will you report each year?
Each year, you’ll be asked to submit data points to Walmart. This information will be used to track the greenhouse gas reduction achieved by your company.
If your company already reports a goal to the CDP Climate Investor Questionnaire, or the CDP Supply Chain program at Walmart’s request, data points collected for CDP questions CC3.1, CC3.1a, CC3.1b, CC3.1c and CC3.1e of the 2017 CDP Climate Change Information Request can be used to respond to Project Gigaton. For emissions goals, you'll be asked to submit:
- Type of Emission Target (Absolute or Intensity) (CDP CC3.1a,b)
- Scope (Scope 1, Scope 2, Scope 1 & 2, Scope 3, etc) (CDP CC3.1a,b)
- [For intensity targets only] Metric (Eg. Metric tonnes CO2e per unit revenue) (CC3.1b)
- % reduction (or anticipate for intensity targets) in absolute emissions from base year (e.g. 35%) (CDP CC3.1a,b)
- Base year emissions or Normalized base year emissions covered by target (metric tonnes CO2e) (CDP CC3.1a,b)
- Base year (e.g. 2015 if setting new target) (CDP CC3.1a,b)
- Target Year (e.g. 2030 if setting a new target) (CDP CC3.1a,b)
- Is this a science-based target? (CDP CC3.1a,b)
- % complete (time) as of end of reporting year (CDP CC3.1e)
- % complete (emissions) as of end of reporting year (CDP CC3.1e)
If you haven’t received a request to disclose from CDP but would like to volunteer to do so, please contact email@example.com and CDP will help you get started. For more information and technical guidance, please refer to the CDP Climate Change Reporting Guidance for 2017.
Reducing emissions in your business is a journey. Whether you are just starting out or have many years of experience, we hope you will join us as we work toward a better tomorrow. If you are not ready to set an emissions goal for your operations or supply chain, please consider making a commitment with one or more of the six pillars of Project Gigaton listed below.
For additional information about Project Gigaton, refer to the Frequently Asked Questions.