The burning of fossil fuel is a leading cause of global emissions and the business case for renewable, more efficient energy, is clearer than ever.
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 we’re committed to doing even more. The strong business case associated with energy makes this the entry point into sustainability for many companies.
As part of your Project Gigaton™ efforts, consider two main ways to address energy-related emissions: 1) reduce energy demand through optimization and efficiency and 2) transition to energy sources that are renewable and emit little to no carbon.
For example, you could commit 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.
- Reduce energy consumption in operations by 20% by 2027.
The above goals are illustrative examples only. You’ll need to determine the scope, timeline and type of goal that makes sense for your company and products. After joining Project Gigaton™, you’ll be asked to report on your progress annually so the impact can be recognized and attributed toward the Project Gigaton™ target.
- Practical guidance on setting an energy target.As you consider your goal, make sure to check out the Project Gigaton™ Calculators, which may help you identify potential goal areas in each pillar and estimate the emissions impact of your work.
The U.S. Environmental Protection Agency’s (EPA) Energy Star Program for Buildings and Plants is a great resource 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™. 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 operational 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.
There are several organizations that work to remove the barriers to achieving a low-carbon, affordable future. Some examples include:
· Alliance to Save Energy (ASE)
· American Council for an Energy Efficient Economy (ACEEE)
· Better Buildings Alliance (BBA) Initiative of the DOE
· Clean Energy Buyers Association
· Business Renewables Center (BRC), an RMI initiative
· Corporate Renewable Energy Buyers' Principles, a WWF initiative
· Charge, a WRI initiative
· Future of Internet Power, a BSR initiative
· Future of Fuels a BSR initiative
· Green Freight an EDF initiative
· SmartWay, an EPA program
· NACFE, a RMI initiative
As stated in the CDP Climate Change Reporting Guidance, there is no precise, generally accepted definition of what “low carbon energy” is. No definition is found in either the GHG Protocol standards or ISO. For the purposes of Project Gigaton™, “low carbon energy” is any type of energy that will have no direct emissions and only negligible indirect emissions during the life cycle of the given technology. This includes power technologies such as wind, solar, tidal, geothermal and most hydro power. Project Gigaton™ also includes nuclear energy in its definition of “low carbon energy”. Natural gas, combined cycle gas turbine and Combined Heat and Power (cogeneration), despite being less carbon intensive than other means of electricity production, like coal, are not considered in Project Gigaton™’s definition of low carbon energy.
- Are your goals SMART?Are your goal(s) SMART — Specific, Measurable, Achievable, Relevant & Time limited? Watch this video to learn how to set formal, specific goals that lead to substantially better returns. In addition to being SMART, consider whether your goals are ambitious enough to address global environmental challenges.
- How to calculate and report emissions saved.Each year, you’ll be asked to submit data points to Walmart based on the Project Gigaton™ pillars you’ve joined (Energy, Waste, etc.). For every pillar you report to, you’ll be asked to submit the impact of improvements you’ve achieved in the reporting year. There are three options for submitting data to Project Gigaton™ reporting:
Option 1: For companies that need help calculating the greenhouse gas impact of their initiatives, let the Project Gigaton™ Calculators help! These calculators are available to help you report your progress during the annual Project Gigaton™ reporting period. They may also help you identify and estimate the emissions impact of future Project Gigaton™ goals.
Option 2: If your company already reports to the CDP Climate Change Questionnaire each year, your disclosure can be leveraged to report emissions reductions to Project Gigaton™. To report to Project Gigaton™ using your CDP disclosure, you must grant permission through your company’s Project Gigaton™ account for Walmart to use your CDP data and all CC4.3b fields must be completed in your CDP disclosure. If you haven’t received a request to disclose to CDP but would like to volunteer to do so, or have questions about disclosure, please contact email@example.com.
Option 3: For companies that do not use the Project Gigaton™ Calculators or report their emissions reductions to the CDP Climate Change Questionnaire each year, you can still report your already calculated aggregate greenhouse gas emissions reductions to Project Gigaton™.
For additional questions about Project Gigaton™, refer to our FAQs.
Need a deep dive into calculating emissions? Check out our Project Gigaton™ Accounting Methodology.
Is your company interested in sourcing your electricity from renewable energy sources? Walmart has collaborated with Schneider Electric to launch Gigaton PPA (GPPA), a new initiative aimed at accelerating the adoption of renewable energy for companies in Walmart’s supply chain by reducing some of the barriers that may prevent many companies from participating in the market today.