What is Walmart Project Gigaton?
In 2017, Walmart set an impressive target of reducing one billion tons of greenhouse gas emissions from its supply chain by 2030 as part of their initiative 'Project Gigaton'. To reach that ambitious aim, they have been working with suppliers to implement a range sustainability options including optimizing energy efficiency and minimizing waste production while utilizing sustainable packaging methods.
In an interview, Ariane Grazian, Walmart's global program lead for Project Gigaton, said, "Having Project Gigaton on our buyer's agenda is a really powerful lever. Of course, they're important suppliers to us, and we're important buyers for them. Sustainability is a great way to be a differentiator when we look at who we're buying from." This statement underscores the importance of sustainability in Walmart's business strategy and the impact that suppliers can make by participating in Project Gigaton.
How Walmart is helping and incentivizing Project Gigaton suppliers
One of the benefits of Project Gigaton is the Gigaton PPA (power purchase agreement) initiated by Walmart in October 2022. A collaboration with Schneider Electric which provides suppliers access to renewable energy and educates them on better energy purchases. This program gives suppliers the opportunity to buy renewable energy at competitive prices, which can help them in decreasing their greenhouse gas emissions and fulfilling their sustainability objectives.
Another benefit for suppliers is early payment on their invoices approved by Walmart, with the pricing on the financing linked to the supplier's CDP scores, set targets, and reported impact. This financing assists suppliers in investing in sustainable operations, which can improve their profits and lessen their environmental effects.
The strong interest and commitment among suppliers to sustainability is reflected in the fact that over 4,500 Walmart suppliers (and counting) have already signed up for Project Gigaton. In addition to reducing their environmental impact, participating in Project Gigaton can help suppliers differentiate themselves in the marketplace and attract new customers who prioritize sustainability.
As of the end of 2022, Walmart has reached 75% of its 2030 target by having reduced or avoided a cumulative 750 million metric tons of emissions since the inception of Project Gigaton.
The benefits of Project Gigaton go beyond financial incentives. Participating in the program can also help suppliers enhance their brand reputation and attract socially conscious customers. Walmart's Chief Sustainability Officer, Kathleen McLaughlin, has stated that "customers care about sustainability, and they want to know that the products they buy are made in a way that is good for the planet".
Moreover, by taking part in Project Gigaton, suppliers have a real chance to make meaningful progress toward their individual sustainability objectives while also helping Walmart reach its ambitious emissions reduction targets across the entire global supply chain. It's a win-win for businesses and customers alike!
Six Areas of Focus
This initiative is a major step forward in commitment to drastically reduce Scope 3 emissions and Walmart has identified six areas critical to reaching zero emissions:
1) Energy
Energy, usually in the form of electricity for day-to-day operations or vehicle fuel, can make a big impact on businesses' bottom lines, so energy efficiency and renewable power should be top priorities. Making the shift towards sustainability begins with understanding the business case for investing in better energy management - saving money now while creating long-term value.
2) Waste
A shocking 10% of global emissions can be attributed to unconsidered food waste. An astonishing statistic, that would make such 'waste country' the third largest emitter after only The United States and China! It's clear this needs addressing - not just for our planet but all its inhabitants too. There are several ways to affect a real change in regards to GHG reductions; from source-reduction strategies within the supply chain through sustainable practices like recycling.
3) Packaging
Despite the global efforts to recycle plastic packaging, the reality is that only less than 14% of these materials were actually collected for recycling in 2016 with the rest ending up in landfills, rivers or oceans with devastating consequences for our planet, according to a study by the Ellen MacArthur foundation. Walmart has provided ambitious yet achievable guidelines for sustainable sourcing and packaging. With a focus on design optimization, responsible procurement practices and increased recycling efforts, suppliers can make meaningful change towards achieving zero plastic waste.
4) Transportation
Walmart has a plan to achieve zero-emissions from their vehicles by 2040, an incredible ambitious and encouraging goal, considering the company has one of the largest feel of trucks and vehicles. To aid this effort, suppliers are asked to review a new transportation pillar as well as set specific goals for Project Gigaton.
5) Nature
Project Gigaton is helping to provide a solution for unprecedented threats facing our environment, such as species loss and deforestation. Through its dedicated nature pillar, suppliers are empowered with the resources needed to set achievable goals in improving their sustainability journey and make tangible progress. Walmart is calling on suppliers to make a meaningful impact in the fight against climate change by reducing harmful emissions and participating in reforestation initiatives.
6) Product Use & Design
Walmart is inviting its suppliers to take a proactive stance in reducing the carbon footprint of their products, from design and raw material choices all through to end-of-life product impact. As part of this initiative, they are encouraging more sustainable materials — such as recycled content – be incorporated at early stages so that Project Gigaton targets may be achieved. By proactively embracing sustainability throughout the supply chain process can manufacturers truly create positive change for our planet’s future.
How can suppliers participate
Walmart is striving to be a leader in sustainability and has invited its suppliers to join them on this journey with the Project Gigaton initiative. Organizations that partner up are given an opportunity not only to help achieve ambitious environmental targets set by Walmart to but also reap rewards from taking additional steps towards improving their own organization’s sustainability practices.
Sign up for participation
To join Project Gigaton, suppliers should visit Walmart's Sustainability Hub and create an account to manage their participation.
Set goals
Suppliers must work with their company to establish achievable targets for reducing their emissions.
Report progress to Walmart
Suppliers will return to the Sustainability Hub to report their progress. Walmart will acknowledge suppliers' annual achievements.
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