Walmart China has announced a goal to reduce greenhouse gas emissions in its China value chain by 50 million tonnes by 2030 – equivalent to the emissions associated with the average annual electricity consumption of 40 million Chinese households.
To do this, the company aims to enroll all its export and domestic suppliers, starting with 100 of its top suppliers, into an emissions reduction program. Walmart president/CEO Doug McMillon announced the China launch of the Project Gigaton program in a speech at Tsinghua University.
“As a global company, we are proud to use our reach to help create a more sustainable future, for our customers, associates and the communities we serve,” he said. “We believe business can accelerate environmental progress while delivering economic growth.”
Expanding Project Gigaton into China is part of Walmart’s global approach to sustainability. Through the project, Walmart aims to work with its suppliers to reduce emissions in its global value chain by one billion tonnes (a gigaton) by 2030, equal to the emissions from more than 211 million average passenger vehicles in a year.
“Integrating more sustainable practices into our work, resource management and sourcing efforts can spur technological innovation, inspire brand loyalty and increase associate engagement,” says Walmart China CEO Wern-Yuen Tan.
More than 400 suppliers in China, India, the US and other countries have joined Project Gigaton, and Walmart plans to continue to expand the program. To help provide resources to suppliers in China, Walmart has created a digital resource centre in Mandarin and English with tools, case studies and program resources on emissions reduction in the value chain.
China’s Project Gigaton goal builds upon Walmart’s longstanding Factory Energy Efficiency Program through which the company is working with its suppliers in China to promote energy efficiency.
Walmart launched this program in 2014, with a commitment to have 70 per cent of its China-sourced export businesses participating by the end of last year. The company has exceeded the goal with more than 800 factories joining the program already, reporting savings of US$40 million in running expenses and emissions reduction of more than 270,000 tonnes a year.
Meanwhile, Walmart China plans to open 30 to 40 stores this year including five Sam’s Clubs and a new supermarket format.
