Energy, it powers our economy – and it’s often produced through the burning of fossil fuels, a leading cause of global emissions. The business case for renewable, more efficient energy is clearer than ever. What’s stopping your company from taking the next step toward a low-carbon, resilient energy system?
Energy, usually in the form of electricity for day-to-day operations or vehicle fuel, often comprises one of the highest costs a business incurs. At Walmart, we’ve seen the bottom line benefits of energy efficiency and renewable power and have committed to do more in the future. The strong business case associated with energy is often why this is the first entry point into sustainability for many companies.
How to Join
Energy related emissions can be addressed in two main ways. The first way is to reduce energy demand through optimization and efficiency. The second way is to transition to energy sources that are renewable and emit little to no carbon. To join the Energy pillar of Project Gigaton, your company should set a goal to reduce the emissions from energy use through optimization, efficiency, and/or the use of renewable energy sources. If your company has made substantial progress in your direct operations, consider setting a target for your suppliers.
For example, you could submit a goal to:
- Reduce energy intensity per square foot by 30 percent in all facilities by 2030.
- Source 50 percent of electricity from renewable energy sources by 2030.
- Work with your suppliers to have energy efficiency programs that include targets out to 2030.
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 reduction target.
- Practical guidance on setting an energy target
There are several programs like the U.S. Environmental Protection Agency’s (EPA) Energy Star Program for Buildings and Plants and Retail Industry Leaders Association’s (RILA) recent Retail Energy Management Leadership Model that provide roadmaps to help energy managers optimize their energy programs.
After identifying where you are on your energy journey and general opportunities for improvement, set a goal and submit it to Project Gigaton using the link at the bottom of this page. Remember, energy goals can be focused on reducing energy demand (i.e. efficiency), low-carbon or renewable energy sourcing, or both. Goals focused on your direct operations emissions, from both fleet and facility, are a great place to start. However, as you move further down your energy journey, consider working with your upstream value chain suppliers. Walmart has engaged with its suppliers in China using RedE, a digital tool developed by McKinsey that provides a systematic approach to identify, size and track implementation of energy efficiency initiatives. More information can be found in the Resources and Downloads section at the bottom of this page.
There are several organizations that work to remove the barriers to achieving a low-carbon, affordable future. Some examples include:
Renewable Energy Buyers' Alliance (REBA)
Business Renewables Center (BRC) a RMI initiative
American Council on Renewable Energy (ACORE)
Global RE100 an initiative of The Climate Group in partnership with CDP
- What will you report each year?
Each year, you’ll be asked to submit data points to Walmart based on the specific goal you submit. This information will be used to calculate the greenhouse gas impact of the energy improvements you’ve achieved. If your company already responds to the CDP Climate Investor Questionnaire, or the CDP Supply Chain program at Walmart’s request, data points collected for CDP questions CC3.3b and CC10.1a of the 2017 CDP Climate Change Information Request can be used to respond to Project Gigaton.
For energy efficiency goals, you’ll be asked to submit:
1. Units of energy saved from projects implemented in the reporting year (CDP CC3.3b)
2. Specify type of energy (electricity (kWh), diesel (gallons or liters), natural gas (MCF, mmBTU, or therms)) (CDP CC3.3b)
3. Location (country/region)
4. Overall % change in efficiency (optional input)
For renewables goals, you’ll be asked to submit:
1. MWh of low-carbon electricity, heat, or steam energy purchased and consumed (wind, solar, or geothermal) (CDP CC10.1a)
2. Location (country/region) (CDP CC10.1a)
3. Overall % energy from renewable sources (optional input)
For more information and technical guidance please refer to the CDP Climate Change Reporting Guidance for 2017
- How will your reported information be converted to greenhouse gases?
Calculations are currently in development and will be shared later this year.