At a time when some companies are backing away from their climate pledges, Walmart is setting bold goals. The company aims for zero emissions across its global operations by 2040 and is committed to helping protect, manage and restore 50 million acres of land and 1 million acres of land. By 2030, ocean area will be square miles.
While these efforts make sense for large retailers with huge carbon footprints, small businesses can also learn something from their strategies.
Vishal Kapadia, senior vice president of energy transformation at Walmart, spoke at the recent 2023 ClimateTech conference hosted by MIT Technology Review and offered four takeaways for companies of all sizes.
Configure and control clean energy examples
How can your company change minds and influence consumers? Walmart aims to encourage more customers to buy EVs, with rapid deployment of electric vehicle equipment in stores and Sam’s Clubs. We plan to introduce a charging network.
Kapadia said some potential customers suffer from “range anxiety,” or the fear of not being able to find a charger when they need it. He hopes Walmart’s charging network will help provide peace of mind to potential EV buyers, since most Americans have a Walmart or Sam’s Club within 10 miles.
“There are really serious issues when it comes to anxiety and customer experience. [keeping] Many people have taken the plunge and stopped buying electric cars,” Kapadia said. “If you think about it, [Walmart’s] Given the advantages of proximity and the number of customers we can ultimately reach, we are well placed to address distance anxiety in a way that few others can. ”
This is also a new revenue stream for the company, so it’s a win-win.
“We will be [shifting] “From the model we introduced today, where we actually have a third party own that infrastructure, to a model where we own and operate that infrastructure,” Kapadia said.
Remember that what’s good for the planet is also good for action
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If combating climate change seems like a benevolent abstraction, consider that it’s also good for supply chain stability.
Mr. Kapadia said tackling climate change is about both value creation and value preservation. “He’s one of the issues we’re ultimately going to face from a business continuity perspective as the grid transition begins.” [is] “As a retailer, we need to be ‘always on,’ and that is our goal,” he said.
Clearly, Walmart has a strong mandate to reduce emissions – “Last year I think we used as much electricity as two small countries,” Kapadia admitted – but emphasizes the benefits of value preservation. This could help increase corporate motivation.
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As Walmart aims to become zero emissions, it will first focus on transportation and facilities, where most of its emissions occur. This is difficult because, like most companies, Walmart actually needs to continue business as usual while transitioning to lower-emission processes (in their case, processes that involve vehicles and refrigerants). It is.
Kapadia compared it to performing open-heart surgery on an awake patient. It requires coordination, close cooperation, and the ability to pick your battles.
“This is really important to collaborate across the organization and across all the different functions within the organization. “It requires close collaboration and teamwork with the operators that will become the future. …This is the practice where energy transformation ultimately becomes a function of enterprise transformation,” he said.
To keep things simple, let’s start with the low hanging fruit. For Walmart, that means electrifying its last-mile delivery vehicles. This is an area where “the technology exists, it can be addressed, and it doesn’t interfere with our fundamental operations,” Kapadia said.
incentivize partners
Naturally, Walmart maintains a huge network of suppliers. The company’s Project Gigaton aims to eliminate 1 billion tons of carbon emissions from its supply chain by 2030. Kapadia reported that the company has achieved almost 75%. how? Our efforts include educating suppliers about the impact of emissions on business and society and issues around resilience, as well as demonstrating a clear value proposition.
“[Project Gigaton] “This was actually a mechanism where suppliers could be encouraged to report on the types of projects and initiatives they are undertaking to eliminate emissions from their supply chains,” he said. “As we decarbonize our business operations, [we’re] We create models and templates that suppliers can use to help them move faster, further, and decarbonize their operations. ”
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