When we think about greenhouse gas (GHG) emissions in the value chain, the focus is often manufacturing and how we can manufacture products in a more sustainable way. But what about once a product leaves the shelf and goes home with our customer?
Consumer use is an important part of a product’s lifecycle. Designers, manufacturers and brands have a unique opportunity to help customers be more sustainable by delivering more efficient and innovative products to shelf – specifically, products that help the customer lower the greenhouse gas emissions associated with their enjoyment of a product.
How to Join
To join the Product Use pillar of Project Gigaton, your company should set a goal to improve the in-use energy efficiency of your product(s). By making the products our customers know and love more energy efficient, we can help our customers lower greenhouse gas emissions. For example, you could submit a goal to:
- Increase your product(s) energy efficiency by 20 percent by the year 2021.
- Help customers avoid 1 billion kWh of energy use between now and 2025.
- Decrease GHGs emitted through product use by 25 percent by 2030.
- Increase the energy efficiency of half products sold by 2020.
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.
- What will you report each year and how will it be converted to GHGs?
Each year, you’ll be asked to submit data points to Walmart based on the Project Gigaton pillars you’ve joined (Energy, Waste, Agriculture, etc.). For Product Use, you’ll be asked to submit the impact of improvements you’ve achieved in a given calendar year. If you’ve worked to reduce GHG emissions at the customer level through energy efficiency, there are two options for submitting data to Project Gigaton reporting:
Option 1: If you’ve worked to reduce GHG emissions at the customer level through energy efficiency, you'll be asked to submit the following data points for Project Gigaton reporting:
- Energy saved per unit
- Number of units sold
- Type of energy consumed
- Electricity (kWh)
- Gasoline (gallons)
- Natural gas (MCF or therms)
Once data has been submitted, the greenhouse gas equivalency will be calculated using the formula below:
Variable Description Source Energy saved per unit
Energy saved per unit is the difference between the lifetime energy use of the less efficient and more efficient product unit(s), which should be calculated as follows:
Energy saved per unit = Energy use of the baseline product – Energy use of the more efficient product
· Energy use of the baseline product = energy drawn by product per hour customer use x average lifetime hours of product
· Energy use of the more efficient product = energy drawn by product per hour customer use x average lifetime hours of the baseline product
Please note, the “baseline product” must be the product generation immediately preceding the “more efficient” product.
Supplier-reported Number of units sold Units of “more efficient” product sold in the reporting year, not projected sales.
Please note, sales of the “more efficient” product can only be reported to Project Gigaton for five years following its retail date, after which we will consider it business as usual for purposes of Project Gigaton.
Supplier-reported GHG emission factor Emissions factor accounting for the avoided emissions of consuming, versus not consuming, energy during product use will be based on the EPA Greenhouse Gas Equivalencies.
· 1 kWh electricity = .0007 metric tons GHG emissions
· 1 gallon gasoline = .009 metric tons GHG emissions
· 1 MCF natural gas = .055 metric tons GHG emissions
· 1 therm natural gas = .005 metric tons GHG emissions
EPA Greenhouse Gas Equivalencies calculator
Option 2: If your company already reports to the CDP Climate Change Questionnaire each year, this information can be leveraged to report emissions reductions related to consumer product use for Project Gigaton. Specifically, emissions reductions described and quantified in CDP questions CC3.2a and CC3.3b (under “Product design”) can be used to determine the emissions reductions you report to the Product Use pillar. Any emissions reductions reported should be based on units of product sold in the reporting year, not projected sales.
By offering more energy-efficient products, companies can help customers lower the greenhouse gas emissions associated with enjoying those products. There are other product innovations that can provide emissions reduction benefits for the customer, including circular-design products or programs that help customers divert products from landfills toward reuse, refurbishment or recycling. Because much of this work is cutting edge, methods used to calculate the emissions impact of such innovations may need to be developed. If you believe you have an emissions-reducing product or service that should be counted toward Project Gigaton but isn’t covered by the energy-efficient products methodology, please tell us about it by contacting email@example.com.
For additional information about Project Gigaton, refer to the Frequently Asked Questions.