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 +57m cases, 49m less miles Better load planning 7,600 cars off the road

Wal-Mart Kid Connection Reduced packaging 497 fewer containers per year $2.4m shipping costs Straight to bottom line 4,000 trees saved 1,000,000 barrels of oil $60m 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 $3b in electricity 20 millions metric tons of CO2 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 = 11m lbs CO2

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 Because there is no price on it

Why worry about carbon? Carbon = Energy = Money