Wal-Mart to Test Energy Efficiency with Key Suppliers

BENTONVILLE, Ark. -- Wal-Mart Stores, Inc. said yesterday it will work with the Carbon Disclosure Project (CDP) to measure the energy used to make and move products through the supply chain, then look for new way to make the process more efficient.

Wal-Mart will measure energy use in product procurement, manufacturing, and distribution, then initiate a pilot test with a groups of suppliers to find efficiences.

"This is an important first step toward reaching our goal of removing non- renewable energy from the products Wal-Mart sells," said John Fleming, e.v.p. and chief merchandising officer, Wal-Mart Stores Division, in a statement. "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."

The pilot will focus on seven product categories -- DVDs, toothpaste, soap, milk, beer, vacuum cleaners, and soda -- chosen because they are products that customers commonly use, Wal-Mart said.

"The partnership between CDP and Wal-Mart is a significant milestone in corporate action to mitigate climate change," said CDP chief executive Paul Dickinson. "By engaging its supply chain in the CDP process, Wal-Mart will encourage its suppliers to measure and manage their greenhouse gas emissions, and ultimately reduce the total carbon footprint of Wal-Mart's indirect emissions."

One 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 supplied detailed information on their energy use and greenhouse gas emissions.

Fox said it 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.
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