WALMART WALMART These are not complicated questions but
WAL-MART
WAL-MART “These are not complicated questions, but we have never systematically asked for this kind of information before ” Mike Duke
TRUCKING EFFICIENCIES 65% improvement fleet efficiency 2010 vs ‘ 05 § Power Units – idling § Truck skirts § Hybrid trucks +57 m cases, 49 m less miles § Better load planning § 7, 600 cars off the road
WAL-MART KID CONNECTION Reduced packaging 497 fewer containers per year $2. 4 m shipping costs Straight to bottom line § 4, 000 trees saved § 1, 000 barrels of oil $60 m sales needed for that much profit Why didn’t we do this sooner? $2. 4 million straight to the bottom line
WAL-MART CFLS Sell 100 MILLION CFLS in a year! Save customers $3 b in electricity 20 millions metric tons of CO 2 Save $40 over life of bulb
WAL-MART DAIRY Don’t make the farmers to bad guy Look at whole supply chain § Grow the crops to feed the cows § Methane from the cows and their manure § On-site power generation § Transport milk to process § Process milk into sour cream § Haul sour cream to Distribution Centers (DCs)
CARBON TRUST Measuring and Reducing GHG
WAL-MART 10% of impact is from stores, trucks, etc. 90% of its impact is from the Supply Chain Fortune 1= 900 lb gorilla § Take the water out of Tide § ¼ the packaging, shipping cost, shelf space 95 million lbs plastic resin saved § 400 m gallons of water § 125 m lbs cardboard § 500, 000 gallons of diesel = 11 m lbs CO 2
WAL-MART LAUNDRY SOAP 128 facings of Tide brand products 13 facings of Coldwater products = 10% of slots NW Reno Wal-Mart, Jan. 2012
TESCO DROPPING CARBON TRUST LABELS
STATUS OF WAL-MART’S INITIATIVE 2005 – 8% of shoppers left, unfavorable views went from 38% down to 20% in 2012. Require top 200 Chinese suppliers to cut electricity by 20% It’s still sold 35% more stuff in the US from 2005 to 2011. Index will NOT account for durability § Carbon footprint per year, assuming it lasts 3 vs 5 years? Index a Long way off Why? § Nobody cares about carbon § Why? § Because there is no price on it
WHY WORRY ABOUT CARBON? Carbon = Energy = Money
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