Walmart Reveals 1st Cohort of Renewable-Energy Supply Chain Program Participants
Walmart Inc., renewable-energy company Ørsted and Schneider Electric have convened the first cohort of suppliers participating in Walmart’s renewable-energy accelerator, Gigaton PPA (power purchase agreement).
Amy’s Kitchen, Great Lakes Cheese, Levi Strauss & Co., The J.M. Smucker Co., and Valvoline Inc. have signed on to execute an aggregated purchase of renewable energy from Ørsted’s Sunflower Wind Farm, in Marion County, Kan. Over the 12-year agreement, the purchase is expected to generate approximately 250,000 megawatt-hours annually of new renewable power, or the equivalent of avoiding the carbon emissions from 458,000-plus gasoline-powered passenger cars driven for one year, or the annual electricity consumption of more than 413,000 homes, according to the EPA Greenhouse Gas Equivalencies Calculator.
These purchases will directly support Walmart’s Project Gigaton goal, which aims to reduce or avoid 1 gigaton (1 billion metric tons) of greenhouse-gas emissions from the global value chain by 2030. Gigaton PPA was created jointly by Walmart and Schneider Electric in 2020 under Project Gigaton to boost renewable energy market access for companies that have historically been limited in their procurement opportunities. So far, the program has helped 250-plus Walmart suppliers learn about renewable energy procurement.
“It is very exciting to see these companies come together with their collective purchasing power to bring clean energy to market and take actionable steps toward reducing their carbon emissions,” said Jane Ewing, SVP, sustainability at Walmart. “We developed Project Gigaton to help accelerate our suppliers’ zero-emissions efforts, and the Gigaton PPA program is a key example of how we are making progress by harnessing the collective to make renewable energy more accessible to more companies. We are proud of our collaboration with Ørsted, Schneider Electric and this initial cohort of valued suppliers.”
Walmart has worked with suppliers, NGOs and climate action leaders to effect positive change across global value chains since 2005. In its own operations, the retailer has established a goal to be powered 50% by renewable energy by 2025 and 100% by 2035. More than 4,500 suppliers globally are participants in Project Gigaton and as of 2021, these suppliers report having reduced or avoided a cumulative 574 million metric tons of carbon emissions since 2017 by implementing various sustainability strategies.
The Sunflower Wind Farm is being developed by Ørsted, which aims to have its own carbon-neutral supply chain by 2040 and recently extended its 100% renewable electricity target to all suppliers.
“Ørsted welcomes the opportunity to work with Walmart suppliers participating in Project Gigaton and Schneider Electric on this unique initiative which sets the standard for helping companies achieve a sustainable supply chain,” noted Ben Pratt, VP and head of markets and revenue at Gentofte, Denmark-based Ørsted. “This effort aligns with Ørsted’s own net-zero by 2040 supply chain initiative – we understand firsthand that in the realm of decarbonization there are no competitors, only partners. Ørsted looks forward to seeing this type of collaborative agreement trend across the industry.”
With U.S. headquarters in Andover, Mass., Schneider Electric, a leading consultant to corporations on renewable-energy procurement and carbon management, is the Gigaton PPA program manager and supported Walmart in its development. Schneider was also the advisor to program participants throughout the PPA procurement and negotiation process. The company has its own commitment to reduce the emissions of its top 1,000 suppliers 50% by 2025.
“It has been our pleasure to work with Walmart, its suppliers and Ørsted on this groundbreaking program,” said Steve Wilhite, president, Schneider Electric’s sustainability business. “Decarbonization and the transition of our energy system to more sustainable and resilient forms of power generation is a critical challenge for companies today. We applaud these companies for coming together to find common ground and develop solutions that will have industry-leading impact. We’re honored to have played a role in the conceptualization and realization of this program.”
Each week, approximately 230 million customers and members visit Walmart’s more than 10,500 stores and numerous e-commerce websites under 46 banners in 24 countries. The Bentonville, Ark.-based company employs approximately 2.3 million associates worldwide. Walmart U.S. is No. 1 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.
