Walmart announces 20 MMT of supplier emission reductions through Project Gigaton
Walmart’s suppliers have reported reducing more than 20mn metric tons (MMT) of greenhouse gas emissions in the global value chain, as part of the company’s Project Gigaton initiative.
Walmart launched Project Gigaton last April, seeking to work with suppliers to reduce emissions from the company’s value chain by a gigaton, or one billion metric tons, by 2030.
The emissions reduction progress was shared at Walmart’s annual Sustainability Milestone Summit, where expanded commitments on solar and wind power, as well as electric vehicle (EV) charging stations, were also discussed.
“In its first year, Project Gigaton has helped to inspire action that has led to the avoidance of millions of metric tons of greenhouse gas emissions and has expanded into an international campaign that includes the participation of several hundred suppliers,” said Kathleen McLaughlin, senior vice president and chief sustainability officer for Walmart.
“The early success of Project Gigaton parallels ongoing progress in our operational efforts that seek to double our U.S. renewable energy use and expand our customer electric vehicle charging hubs to retail outlets across more than 30 states.”
With the recent expansion of Project Gigaton in China and the U.K., more than 400 suppliers with operations in more than 30 countries have joined the program. Suppliers can commit to reductions in any of six pillars that include energy, agriculture, waste, packaging, deforestation and product use.
Approximately 85% of the Project Gigaton emissions reductions reported by suppliers have focused their efforts on the energy and product use pillars, with projects devoted to areas such as renewable energy investments and the development of more efficient products.
“This annual milestone marks a pivot point for Walmart and 400 of its suppliers to share solutions and lessons learned. The next step is to deepen commitments that unlock the potential of this platform,” said Carter Roberts, president and CEO, World Wildlife Fund (WWF).
“We need collaborative initiatives like Project Gigaton and We Are Still In. With sufficient goals and results they can help define our country’s ability to build a sustainable future. And they also shape the world’s understanding of our commitment to solving climate change.”
“With Project Gigaton, Walmart is raising the bar for innovation and collaboration across its supply chain,” said Fred Krupp, president of Environmental Defense Fund. “In Project Gigaton’s second year, we hope to see even more Walmart suppliers setting targets based in science, ensuring that business, people and nature thrive.”
A highlight from the summit was a commitment made by Project Gigaton participant, Procter & Gamble (P&G), to cut 50 MMT of emissions from its operations and value chain by 2030.
P&G will achieve this through inviting customers to join the Tide #QuickColdPledge, switching to quick and cold laundry cycles to use less water, 80% less energy and create 40% fewer emissions in every load, as well as committing to source 100 percent renewable electricity in its North American operations by 2020.
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.