Sourcing is the engine of Walmart\u2019s business model.\u00a0 As a retailer, Walmart finds products from around the globe to bring into its stores and sell.\u00a0 Put simply, if Walmart gets cut off from sourcing product, either because of climate change regulation (e.g. can no longer sell products packaged in plastic because of environmental impact) or because of the actual impact of climate change (e.g. certain foods no longer grow because of climate change) then it suffers revenue loss.<\/p>\n
To combat this risk, Walmart began working with suppliers across its supply chain to make changes to both product packaging and ingredient sourcing.\u00a0 One key example of this was partnering with laundry detergent suppliers to switch from regular formulas to concentrated formulas.\u00a0 By doing this Walmart helped reduce the number of plastic bottles that were produced and eventually thrown into landfills.\u00a0 Walmart began working with suppliers to make this change during the 2000\u2019s [2], and by its own measures the initiative was a success. [3]<\/p>\n
From an ingredient sourcing perspective Walmart has transitioned 27% of its private label food products to use only sustainably sourced palm oil [4].\u00a0 Non-sustainable Palm oil harvesting contributes to deforestation [5] so making this change should have a positive impact on the environment.<\/p>\n
While I applaud the changes that Walmart has made, I think there is more they can do.\u00a0 For example, why stop with just reducing the number of detergent bottles that end up in landfills – why not work to eliminate the problem altogether by championing a fully compostable bottle?\u00a0 As far as its palm oil initiative, 27% is a good start, but that still means that 73% of its oil is coming from non-sustainable sources.<\/p>\n
Energy Consumption<\/strong><\/p>\n Walmart is estimated to consume over 29,000 gigawatt hours of energy each year [6].\u00a0 Rising energy costs, either from more expensive energy sources or higher regulatory costs, could have a big impact on how it keeps the lights on at each of its 11,500 retail locations.\u00a0 Walmart has made two big moves to start reducing the amount of non-renewable energy it consumes.\u00a0 The first is switching to LED lights in its new and remodeled stores.\u00a0 LED lights consume less electricity per hour than more traditional fluorescent lights [7].\u00a0 A second initiative is installing solar panels in some of its stores to help offset its dependence on non-renewable sources of energy [6].<\/p>\n While these are moves in the right direction they have been done on a small scale, the LED\u2019s for example were only done in 150 stores out of 11,500 (as of the press release). \u00a0Why hasn\u2019t Walmart moved to do anything with its other 11,350 stores yet?<\/p>\n Branding<\/strong><\/p>\n One of the largest drivers for retail sales is foot traffic.\u00a0 The more consumers that walk through a Walmart store, the more revenue Walmart generates.\u00a0 Intuitively then, to attract customers Walmart is concerned about creating a brand that shares the values of its target customers. \u00a0A recent poll done by Statista showed that millennials do care about shopping at retailers that share their values (e.g. sustainability); however, it was only number 12 on a list of 14 reasons.\u00a0 Carrying affordable products was the most important thing for millennials.\u00a0 Maybe this explains why some of Walmart\u2019s improvements in sustainability seem half hearted?<\/p>\n What matters most to Millennials when choosing where to shop?<\/strong><\/p>\n <\/p>\n [8]<\/p>\n Walmart has done much more in the sustainability space than I gave it credit for my first day in Arkansas.\u00a0 As the largest corporation in the world though, its work is not over and there is more that can be done to set the pace on sustainability for everyone else.\u00a0 What else do you think Wal-mart should do?<\/p>\n [790 words]<\/p>\n <\/p>\n <\/p>\n Citations<\/p>\n [1] \u201cOur Story.\u201d Walmart Corporate<\/em>, 3 Nov. 2016, http:\/\/corporate.walmart.com\/our-story<\/a><\/p>\n [2] Rosenbloom, Stephanie.\u00a0 \u201cEnvironmental sustainability, now at Wal-mart.\u201d The New York Times,<\/em> 5 Feb. 2009, http:\/\/www.nytimes.com\/2009\/01\/25\/business\/worldbusiness\/25iht-25walmart.19647095.html<\/a><\/p>\n [3] \u201cWal-Mart Completes Goal To Sell Only Concentrated Liquid Laundry Detergent.\u201d Walmart Corporate<\/em>, 29 May 2008, http:\/\/corporate.walmart.com\/_news_\/news-archive\/2008\/05\/29\/wal-mart-completes-goal-to-sell-only-concentrated-liquid-laundry-detergent<\/a><\/p>\n [4] \u201cSustainable Food.\u201d Walmart Corporate, <\/em>3 Nov. 2016, http:\/\/corporate.walmart.com\/global-responsibility\/environment-sustainability\/sustainable-agriculture<\/a><\/p>\n [5] Moulds, Josephine.\u00a0 \u201cPalm oil risk to Africa as prospectors eye swaths of land.\u201d The Guardian<\/em>, 15 Jan. 2015, https:\/\/www.theguardian.com\/sustainable-business\/2015\/jan\/15\/palm-oil-risk-to-africa-forest<\/a><\/p>\n [6] Helmann, Christopher.\u00a0 \u201cHow Walmart Became A Green Energy Giant, Using Other People’s Money.\u201d\u00a0 Forbes. <\/em>23 Nov. 2014, http:\/\/www.forbes.com\/sites\/christopherhelman\/2015\/11\/04\/walmarts-everyday-renewable-energy\/#5ca4a28e4894<\/a><\/p>\n [7] \u201cWalmart and GE Transforming Retail Lighting with Energy-Efficient LEDs Globally\u201d Walmart Corporate, <\/em>9 Apr. 2014 http:\/\/corporate.walmart.com\/_news_\/news-archive\/2014\/04\/09\/walmart-and-ge-transforming-retail-lighting-with-energy-efficient-leds-globally<\/a><\/p>\n![\"picy2\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/picy2.jpg\")
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