Wal-Mart to Calculate Products' Total Energy Use

Sept. 24, 2007 Wal-Mart has partnered with the Carbon Disclosure Project to measure the amount of energy used to create products throughout its supply chain, including the procurement, manufacturing, and distribution process.

The project will focus on seven product categories DVDs, toothpaste, soap, milk, beer, vacuum cleaners, and soda to determine the overall environmental impact of products and look for innovative ways to drive energy efficiency. The product categories were chosen because they are ordinary products that customers commonly use.

Wal-Mart says it hopes the energy data will inspire suppliers to find ways to make products more energy efficient. For example, one Wal-Mart supplier, News Corp.'s Twentieth Century Fox Home Entertainment, initiated a supply chain analysis of the carbon impact of the production, manufacture, and distribution of its DVDs. More than 20 of Fox's key suppliers embraced the study by supplying detailed information on their energy use and greenhouse gas emissions. Fox found an eagerness among suppliers to share their emissions, initiate projects to reduce their climate impact and save money. The analysis led to an industry standard for measuring the carbon impact of DVDs and instructed the methodology for other consumer packaged goods.

"This is an important first step toward reaching our goal of removing non- renewable energy from the products Wal-Mart sells," said John Fleming, executive vice president and chief merchandising officer, Wal-Mart Stores Division. "This is an opportunity to spur innovation and efficiency throughout our supply chain that will not only help protect the environment but save people money at the same time."

Last July, Wal-Mart kicked off its Supply Chain Scorecard initiative, which encouraged suppliers to measure and reduce the environmental footprint of their product shipping processes.

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