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Innovation Program:
Guidance Document
Version 1.0
August 3, 2010
This document summarizes the Walmart supplier GHG reduction goal and the guidance to
submitting projects to contribute to this goal. For questions about this document, please contact
James Stanway: James.Stanway@wal-mart.com or (479) 204-0334.
Contents
Contents ....................................................................................................................................................... i
Acknowledgements.................................................................................................................................... 1
Part 1: The Program .................................................................................................................................. 4
Walmart’s Impact on the Environment ................................................................................................ 4
Walmart’s Supplier GHG Reduction Goal .......................................................................................... 5
Selection of Projects .............................................................................................................................. 5
Project Teams......................................................................................................................................... 7
Carbon Reduction Claims ..................................................................................................................... 9
Assessing Claims ................................................................................................................................. 10
Program Timeline ................................................................................................................................. 10
Unintended Consequences ................................................................................................................ 11
Part 2: Project Accounting Guidance .................................................................................................... 11
Qualification of Emissions Reduction Projects ................................................................................ 11
Types of Projects that Qualify ........................................................................................................ 11
Qualification Criteria............................................................................................................................. 12
Timing ................................................................................................................................................ 12
Additionality ....................................................................................................................................... 14
Beyond BAU...................................................................................................................................... 14
Quantification of Emissions Reduction Projects.............................................................................. 15
Uncertainty ........................................................................................................................................ 15
Product Quantification (Track 1) .................................................................................................... 15
Facility/Process Quantification (Track 2) ...................................................................................... 22
Financial Values of Projects ............................................................................................................... 24
Part 3: Submission How-To .................................................................................................................... 25
General Questions ............................................................................................................................... 25
Who Submits the Documentation? ................................................................................................ 25
How Do I Submit A Project? ........................................................................................................... 25
Qualification........................................................................................................................................... 25
If my project does not fit the two tracks, does it qualify?............................................................ 25
Does a Walmart store reduction count? ....................................................................................... 25
Does a reduction at a Sam’s Club or an international store count? ......................................... 25
Page i
What are the dates for a project to “count” toward the goal? .................................................... 25
What does it mean to “start” a project?......................................................................................... 26
Would a project that focuses on reductions from consumers (Walmart customers) count? 26
(Track 1) Product Quantification ....................................................................................................... 26
How do I select a methodology?.................................................................................................... 26
What do I need to include in my methodology documentation? ............................................... 26
What is a Product Life Cycle Assessment? ................................................................................. 27
How do I determine boundary conditions?................................................................................... 27
How do I account for loss rates?.................................................................................................... 28
(Track 2) Facility/Process Quantification......................................................................................... 28
What is the “type of footprint?” ....................................................................................................... 28
What methodology should I follow for facilities or processes?.................................................. 28
What are the boundaries to consider in a facility/process quantification calculation?........... 28
Why do I need to show the baseline calculation per emission source? .................................. 29
Part 4: Post-Submission.......................................................................................................................... 30
Step 1. Project Application Package Submitted ............................................................................. 30
Step 2. Package Stored in Database............................................................................................... 30
Step 3. Quality Assurance (QA) of Application............................................................................... 30
Step 4. QA Report Generated........................................................................................................... 30
Step 4a. Feedback Provided to Project Champion.................................................................... 30
Step 4b. Application Package Resubmitted................................................................................ 31
Step 5. Assessment of Completeness and Accuracy of Claims.................................................. 31
Step 5a. Feedback Provided to Project Champion & Team..................................................... 31
Step 5b. Close Project.................................................................................................................... 31
Step 6. Project Accounted in Database........................................................................................... 31
Step 7. 12-Month Adjustment............................................................................................................ 31
Step 8. Review (QA) of Application .................................................................................................. 32
Step 8a. Feedback Provided to Project Champion.................................................................... 32
Step 8b. Application Resubmitted ................................................................................................ 32
Step 9. 12-Month Assessment .......................................................................................................... 32
Step 10. Adjustment at Program Conclusion.................................................................................. 32
Step 10a. Review (QA) of Application.......................................................................................... 32
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Step 10b. Feedback Provided to Project Champion.................................................................. 33
Step 10c. Application Package Resubmitted.............................................................................. 33
Step 11. Final Assessment ................................................................................................................ 33
Step 12. Close Project........................................................................................................................ 33
Part 5. Glossary and Reference Materials .......................................................................................... 35
Glossary................................................................................................................................................. 35
Reference Materials............................................................................................................................. 39
Attachment A. Product Carbon Reduction Worksheet ......................................................................... 1
Walmart Information............................................................................................................................... 1
Supplier Information............................................................................................................................... 1
Project Information ................................................................................................................................. 1
Qualification of Project............................................................................................................................... 3
Step 1. Qualification (Track 1)............................................................................................................. 3
Step 1a. Influenced Product Design............................................................................................... 3
Step 1b. Influenced Sales ................................................................................................................ 3
Quantifying Carbon Reductions ............................................................................................................... 4
Step 2. Describe Life Cycle Assessment .......................................................................................... 4
Step 3. Carbon Reduction effect......................................................................................................... 5
Step 4. Carbon Footprint Calculation: Continual Effect Carbon Reduction From Products ...... 5
Step 5. Carbon Footprint Calculation: One-Time Effect Carbon Reduction From Products ..... 6
Step 6. Sales of the Product................................................................................................................ 7
Step 7. Financial Value of Project ...................................................................................................... 7
Step 8. Product Trends ........................................................................................................................ 7
Step 8a. Raw Materials .................................................................................................................... 7
Step 8b. Manufacturing .................................................................................................................... 7
Step 8c. Consumer Use ................................................................................................................... 8
Step 8d. End-of-Life.......................................................................................................................... 8
Step 9. Statements ............................................................................................................................... 8
Step 9a. Uncertainty ......................................................................................................................... 8
Step 9b. Validity................................................................................................................................. 8
Step 9c. Claims ................................................................................................................................. 9
Attachment B. Facility/Process Carbon Reduction Worksheet ........................................................... 1
Page iii
Walmart Information............................................................................................................................... 1
Supplier Information............................................................................................................................... 1
Project Information ................................................................................................................................. 1
Qualification of Project............................................................................................................................... 3
Step 1. Describe Facility or Process Carbon Reduction Project ................................................... 3
Step 1a. Facility/Process Improvement ............................................................................................. 3
Step 1b. Energy Management ............................................................................................................ 3
Quantification of Reductions..................................................................................................................... 4
Step 2. Carbon Emissions Calculations Methodology..................................................................... 4
Step 3. Carbon Footprint Calculation................................................................................................. 4
Step 4. Financial Value of Project ...................................................................................................... 5
Step 5. Technology Trends ................................................................................................................. 5
Step 6. Statements ............................................................................................................................... 6
Step 6a. Uncertainty ......................................................................................................................... 6
Step 6b. Validity................................................................................................................................. 6
Step 6c. Claims ................................................................................................................................. 6
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Walmart Supplier GHG Innovation Program Guidance Document
Acknowledgements
Walmart would like to acknowledge the significant contributions the following organizations and
individuals who were instrumental to this guidance document’s creation:
ClearCarbon Consulting
ClearCarbon staff who contributed to this document include: J. Renee Morin, Kyle Tanger,
Sarah Matheson, and Anna Nicholson.
In 2005, EDF partnered with Walmart to measurably reduce its environmental impacts.
Environmental Defense Fund experts, Elizabeth Sturcken, Andrew Hutson, Maria Harris and
Andy Wunder were key contributors to the development of this document.
PricewaterhouseCoopers
PricewaterhouseCoopers provides
industry-focused services for public
and private clients. Our experienced
staff, combined with our global network, allow us to provide the support you need—wherever
you need it, at home and abroad, whatever the size of your organization.
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Walmart Supplier GHG Innovation Program Guidance Document
Introduction
Walmart believes that much more can be done to reduce the greenhouse gas emissions (GHG)
associated with the materials, manufacture, shipment, and use of the products we sell. We
believe that both cost-saving and revenue-generating GHG reductions can be captured by
reviewing and acting on cradle-to-grave lifecycle analyses of the products on our shelves.
Walmart has several initiatives underway to reduce the emissions from direct sources such as
its fleet and refrigeration units (scope 1) and from its purchased electricity (scope 2), but the
majority of emissions associated with the retail sector are embedded up and down the value
chain within the raw material extraction, manufacture, use, and disposal of the products sold
(scope 3).
To achieve reductions throughout the value chain and our products’ lifecycles, Walmart funded
the Walmart Supplier GHG Innovation Program and Walmart CEO Mike Duke subsequently
announced a GHG reduction goal for value chain emissions. The Program is intended to find,
achieve, and account for GHG reductions by working with suppliers throughout Walmart’s
product categories and departments.
This document describes the Walmart Supplier GHG Innovation Program, the GHG reduction
goal, the accounting guidance for projects as well as the due diligence process for reviewing
these projects. This document is intended for use by Walmart Project Champions, the Walmart
Supplier GHG Innovation Program team, and others within Walmart. In addition, this version of
the Guidance (version 1.0) is likely to evolve as it is road-tested with real projects.
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Walmart Supplier GHG Innovation Program Guidance Document
• Part 4: Post-Submission
A description of what happens after an individual project is submitted to the Program is
included in Part 4. The project will undergo a review and assessment to ensure that it
fits the qualification criteria. In addition, the carbon reduction calculations will be
reviewed.
Walmart is committed to this Program and to the continual improvement and streamlining of the
process described within. As part of this commitment, Walmart will review and update this
guidance document periodically and issue new versions as appropriate. Please check EDF’s
website (http://edf.org/walmartghg) for the most current version of the Guidance Document.
If you have questions about the contents of this document, please contact:
James Stanway
email: James.Stanway@wal-mart.com
phone: (479) 204-0334
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Walmart Supplier GHG Innovation Program Guidance Document
This team works with Walmart to identify projects, quantify reductions, engage suppliers to
implement reductions, and assess claims of reductions.
Rough estimates by carbon emissions experts suggest that Walmart’s value chain (part of
scope 3, discussed below) emits orders of magnitude more carbon dioxide equivalents (CO2e)
during the life cycle of products than Walmart emits selling them. Therefore, Walmart’s largest
potential impact on GHG emissions is to engage suppliers and help them reduce product and
value chain GHG impacts. Walmart has decided to expand its suite of programs intended to
reduce carbon emissions beyond its corporate carbon inventory to emissions reductions in its
value chain.
Value chain emissions are categorized as scope 3, indirect emissions. Scope 3 is a category of
carbon emissions defined by the Greenhouse Gas Protocol (GHG Protocol). The three scope
categories include the following sources of emissions:
• Scope 1: Direct emissions from on-site fuel combustion, refrigerants, and owned
vehicles.
• Scope 2: Indirect emissions from purchased electricity, steam, and chilled water.
• Scope 3: Indirect emissions from commuting, waste disposal, business travel, leased
and franchised operations, and the use of products and services along with upstream
supply chain emissions.
There are programs and projects dedicated to reducing Walmart’s carbon impact in scopes 1
and 2 already in place that continue to evolve such as those listed in the Walmart 2009 Global
Sustainability Report (http://walmartstores.com/Sustainability/7951.aspx). The Program focuses
solely on scope 3 emissions; particularly on those from the use of products and services and
those created upstream in the supply chain.
1
This definition aligns with that from the Scope 3 Accounting and Reporting Standard Draft (January
2010) developed as part of The Greenhouse Gas Protocol Initiative, a project of the World Business
Council for Sustainable Development and the World Resources Institute.
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Walmart Supplier GHG Innovation Program Guidance Document
As part of this commitment, Walmart will work with suppliers to reduce their emissions – which
they otherwise may not do – in some cases resulting in additional positive ripple effects.
Walmart will work to reduce emissions that result in GHG effects from the six primary Kyoto
Protocol gasses:
To achieve the supplier GHG reduction goal, Walmart will identify opportunities to reduce
carbon impacts in coordination with select suppliers. Reductions may be identified in any phase
of a product’s life cycle. A product’s life cycle includes the following primary stages:
In each phase of a product’s life cycle there may be an opportunity to engage with suppliers to
implement carbon reduction efforts. In some cases, Walmart will also have to develop consumer
education materials to affect the way that consumers use a particular product.
Selection of Projects
The carbon reduction goal of 20 million metric tons 4 of CO2e from 2010 to 2015 will be achieved
through the implementation of multiple reduction projects. Walmart will engage suppliers to
achieve this goal.
2
This goal will be referred to as the “supplier GHG reduction goal,” or “the goal,” in this document. The
terms GHG and carbon will be used throughout the document somewhat interchangeably. Since the goal
is in carbon dioxide equivalents (CO2e), it includes the standard six GHGs as defined by the Kyoto
Protocol.
3
For the full text of the Kyoto Protocol, please see: http://unfccc.int/resource/docs/convkp/kpeng.pdf
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Walmart Supplier GHG Innovation Program Guidance Document
To ensure that Walmart is selecting the most impactful projects for carbon reductions, Walmart
commissioned the Applied Sustainability Center (ASC) from the University of Arkansas to
review the carbon emissions intensity of all of the categories of products that Walmart sells.
ASC quantified the upstream life cycle impacts of
Walmart products and scaled the categories to sales Carbon intensity =
data. The carbon intensity is the result of the upstream carbon impact per unit
carbon impacts of a group of products multiplied by the x units sold
sales volume of that category.
The carbon intensity calculation was aggregated at a very high level of Walmart product
categories to understand the top 20 most impactful categories. The study revealed that carbon
intensity is greatest in the following product categories (listed alphabetically): animal feed,
apparel, candy, cheese, frozen food, fruit, grains, household detergents, meat, media, milk,
motor oil, pharmaceuticals, produce, sanitary paper products, snacks, soap & shampoo, soft
drinks & beverages, televisions, and vegetables.
The study specifically looked at the carbon impacts from three phases of the life cycle:
• Raw Materials
• Materials Manufacturing & Transportation
• Product Manufacturing & Transportation
While consumer use and end-of-life are not included in the ASC study, there are significant
impacts for some products in those phases. Walmart will also consider impacts in these two
downstream phases when seeking specific reduction opportunities.
The resulting carbon intensity is a starting point to identify priority categories. These categories
will be a first focus to achieve carbon reductions projects. The carbon intensity ensures that the
team focuses on the categories that have the biggest impact and therefore the greatest
opportunity for reductions.
Once a category has been identified as being “high carbon intensity”, the project team will
(described in the next section) conduct preliminary research to understand specifically where
the impacts are the greatest and what opportunities for reductions exist. In addition to the
carbon intensity research, the team captures the status of Walmart carbon-related initiatives and
identifies new opportunities by meeting with Walmart’s Sustainable Value Network (SVN)
captains, private brands (PB) champions, and others.
After understanding the carbon opportunities within a category, the team begins to identify
potential projects through industry and technology reviews and works with Walmart to
understand the feasibility of the projects. Feasibility includes (1) understanding the carbon
impact potential (magnitude), (2) identifying a Walmart lead, (3) determining activity in that
supplier category, and (4) estimating the practicality of implementation possibilities. Armed with
4
For this document and for all calculations related to this program, carbon measurements will be in metric
tons of CO2e. A metric ton = 2,205 pounds. From this point forward, the term “tons” will mean metric
tons.
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Walmart Supplier GHG Innovation Program Guidance Document
this information, the Program team then makes recommendations on which projects can begin
implementation.
The process of finding and selecting projects is outlined in Figure 1, Opportunities Identification,
Prioritization, and Engagement Process.
Project Teams
For each project, a team will be identified to lead implementation of the carbon reduction. The
roles will include:
• Walmart Champion: The Walmart Champion (Champion) will be responsible for taking
the lead for the project, including documenting the project and quantifying the carbon
reductions.
• Supplier contact: The Walmart Champion will work with one or several suppliers to
achieve the carbon reduction. This supplier contact(s) will be involved in implementation
of the project and providing data to help to quantify the reductions. Such data may
include energy use for a facility, material weights and dimensions of the product, etc.
• Research Team & Program Management: Walmart is supported by ClearCarbon on
this project through identification of carbon reduction opportunities and review of all
carbon reduction claims for completeness and soundness of methodology. In addition,
Environmental Defense Fund (EDF) assists with research, guidance, and support for the
projects.
• Assessors: After paperwork is completed, PricewaterhouseCoopers (PwC) 5 will
perform certain specified consulting procedures related to the assessment of the
process and methodology surrounding the measurement of the carbon emissions
reduction claims for use by Walmart management (see Part 3). PwC is performing these
procedures under consulting standards and will not be providing an opinion or any other
form of assurance relating to the claims.
5
“PricewaterhouseCoopers" and "PwC" refer to the network of member firms of PricewaterhouseCoopers
International Limited (PwCIL). Each member firm is a separate legal entity and does not act as agent of
PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not
responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of
their professional judgment or bind them in any way. No member firm is responsible or liable for the acts
or omissions of any other member firm nor can it control the exercise of another member firm's
professional judgment or bind another member firm or PwCIL in any way.
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Walmart Supplier GHG Innovation Program Guidance Document
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Walmart Supplier GHG Innovation Program Guidance Document
For each of these two primary categories of projects, the reduction achieved must also be
“additional” and beyond business as usual (BAU) in terms of emissions accounting.
Specifically, the activity must:
1. Demonstrate that the initiative is truly additional, meaning that the action would not have
otherwise happened without Walmart’s influence, and
2. That the initiative represents performance beyond BAU, indicating that the improvement
is well beyond existing business trends and has the overall impact of emissions
reductions within a product category.
Walmart is accounting for carbon reductions that occur by comparing a new product, or change
to a facility, to a baseline. The baseline is determined by an assessment of the “business as
usual” (BAU) case. BAU is defining what would have been the carbon emissions of a product or
a facility if Walmart had not encouraged, introduced, or catalyzed the implementation of an
innovation. From this baseline, Walmart will then project the savings from the implementation of
facility-level carbon efficiency, or from the time that a product first is sold from Walmart’s stores,
until December 2015.
Carbon reductions on a per-product or per-facility level are then scaled to account for the
volume of sales or production. In a simplified example, if each t-shirt that Walmart sells were to
save 1 pound of carbon emissions when compared to a baseline product and 2,000 t-shirts are
sold in one year, then the savings for one year would be 2,000 pounds of carbon. If sales were
to remain consistent for five years, then over five years 10,000 pounds of carbon would be
saved.
Additionally, the carbon reduction claims may not be “exclusive” to Walmart. It may be the case
that Walmart will help a supplier, through this Program, to achieve a carbon reduction project
that the supplier also wants to report publicly. In this case, both parties (Walmart and the
supplier) may state a claim of reduction. Since the reduction is not being sold or traded there is
no legal claim over the reduction that would make it exclusive to Walmart or to the supplier. The
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Walmart Supplier GHG Innovation Program Guidance Document
supplier may monetize (sell, trade, etc) carbon reductions at their discretion, though Walmart
will not be involved in these transactions. 6
Assessing Claims
Carbon reductions are accounted for by the Walmart Champion with the help of the supplier(s)
involved in the project. The completeness of the claims and the soundness of the methodology
are reviewed by ClearCarbon Consulting through a formal quality assurance (QA) process.
ClearCarbon will review the submittal for appropriateness of methodology, completeness, and
calculations. If the claims that are stated meet the QA check, they will then be assessed by the
third party assessors (PwC) for consistency with the standards.
After a project is initially submitted, it will be re-assessed and adjusted as needed after twelve
months and, the reductions claims will be reviewed by ClearCarbon and the assessors (PwC).
Project claims will again be adjusted and re-assessed at the conclusion of the project or
December 31, 2015, whichever comes first. The full description of the assessment of project
claims is described in Part 4: Post-Submission.
Program Timeline
In addition to reviewing each individual project, the portfolio (collective of all projects) will be
assessed by the third-party assessor (PwC) in January 2011, in October 2013, and again at the
2015 conclusion, assessing the reported results against these guidelines and standards. The
results from this assessment of the portfolio will be reported to the Walmart executive team. The
Program timeline is shown in Figure 2, Program Timeline.
2010 2015
Figure 2. Program Timeline
6
It is important to note that the carbon reduction claims, rules for quantifying reductions, and monetization
within this document are written under current regulatory standards in the U.S. If Federal or other laws
change that effects the guidance prescribed in this document, they will be re-assessed at that time. This
includes, but is not limited to: public reporting on carbon emissions regulated by the SEC, regulations set
by FTC for marketing claims, carbon tax or cap and trade legislation or regulation by EPA, or carbon
reporting by EPA.
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Walmart Supplier GHG Innovation Program Guidance Document
Unintended Consequences
The possibility exists that a product or process that is intended to have a carbon reduction on a
per-unit, or per-production output basis, elicits a net impact that overall increases total carbon
emissions. This would likely be due to increased sales or production that exceeds the expected
carbon savings from prior sales growth. Walmart has put in place a “sales trigger” to indicate
that an additional analysis needs to be conducted. The trigger for a study is a 10% increase in
sales growth year over year. The next step in evaluating the triggered project is to assess the
carbon efficiency gain. If the increased efficiency (or carbon reduction) is greater than the
increased sales percentage, then a further market analysis is not warranted. If, however, the
converse is true, as is described fully in Part 4, the team would conduct a market analysis of the
changes in sales to determine if there is indeed a net increase in carbon emissions due to the
project itself.
This document lays out both the types of emissions reduction opportunities that exist within the
life cycle of products sold by Walmart (and/or product categories) and the criteria used to
account for the reductions as part of Walmart’s product life cycle and supplier GHG reduction
goal. It outlines:
Instructions for submitting a project in conformance with this guidance are provided in Part 3 of
the document.
1. Inspire the creation of and/or increase the sales of new “lower-carbon” products,
2. Improve existing products and/or sell more of improved-version products, or
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Walmart Supplier GHG Innovation Program Guidance Document
As seen in the qualification decision tree in Figure 3, the three project types align either with a
product reduction (Track 1) or a facility/process reduction (Track 2). Figure 3 shows these two
separate tracks and the qualifying questions used to determine if a project qualifies for the goal.
Qualification Criteria
Qualification criteria must be met specific to each project type (product or facility/process).
Walmart has created the qualification decision tree to show each of the project types (illustrated
as decision tracks) and the questions and measurements that are used to validate Walmart’s
involvement. In addition to the questions posed in the decision tree, a project must meet the
following criteria to fully qualify under this program:
1. Have start and end dates within the goal period (see Timing)
2. Demonstrate the project is due to Walmart’s influence (see Additionality)
3. Demonstrate that the reductions are above and beyond normal trends in the market (see
Beyond BAU).
Timing
For a project to count toward this goal, the implementation start date must be within January 1,
2010 and December 31, 2015. The end date for all projects for carbon accounting purposes is
December 31, 2015. Therefore, a project that starts on December 31, 2015 will only have one
day of savings that can contribute toward this goal.
Though many carbon reduction projects may be underway and will continue to be developed
and encouraged, projects that begin before 2010 or after 2015 will not be included in this goal.
The “start date” for products coincides with the product’s point of sale or initial sale date. A start
date for a process or facility reduction is the same date that the process change is in effect and
is implemented, defined as, point of implementation.
7
A facility or process improvement may include transportation, logistics, or actual changes to a facility.
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Walmart Supplier GHG Innovation Program Guidance Document
Is the carbon
reduction at the
product or
facility/process
level?
PRODUCT FACILITY / PROCESS
Was facility or
Is product newly
process improve-
designed or
ment a direct result
improved?
of Walmart activity?
YES NO YES NO
Did Walmart directly
Did Walmart
influence the NOT
QUALIFIED influence energy
development or QUALIFIED
management?
design or redesign?
YES NO YES NO
Did Walmart
NOT
QUALIFIED influence increased QUALIFIED
QUALIFIED
sales?
YES NO
NOT
QUALIFIED
QUALIFIED
Track 1 Track 2
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Walmart Supplier GHG Innovation Program Guidance Document
Additionality
GHG reduction protocols cite two core criteria for proving that the activity is “additional” and
beyond business as usual (BAU) in terms of achieving emissions reductions.
For a project to qualify, it must have happened because of Walmart’s influence, showing
additionality. This does not exclude projects that were also influenced by other entities,
programs, incentives, etc.
However, the Walmart Project Champion must be able to prove that the project would not have
happened at the time it did without Walmart’s involvement. In this project, Walmart’s influence
on the project is deemed as “additionality.” Additionality for products means that for a lower-
carbon product:
Influencing the product directly means that Walmart engaged with a supplier to design or
influence the design of a new product that is more carbon efficient. For instance, if Walmart
encouraged a supplier to re-design laundry detergent to have a lighter-weight package than is
currently offered, this would be influencing the redesign. If Walmart sought out a new detergent
that was concentrated or eliminated specific raw materials that are more carbon intensive to
extract, then this would also be an influence of the redesign.
Beyond BAU
For both product and facility-based reduction projects, proving that the project is beyond
“business as usual (BAU)” is part of the qualification criteria.
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Walmart Supplier GHG Innovation Program Guidance Document
efficiency improvement). The facility may have had an energy audit which revealed
significant energy management opportunities and it implemented those changes.
• Walmart’s Supplier Energy Efficiency Program (SEEP) initiatives can meet a beyond
BAU test if the technologies used are improvements over typical operations within that
industry.
• For transportation gains, there must be documented fuel efficiency improvements
beyond industry average. Similarly, changes to alternative fuels and mode of
transportation must be clear improvements from the industry average baseline.
In all cases, the submitted documentation, including life cycle assessments (LCAs) and facility
footprints, will be considered. At several points in time during the project's life, the assessors
(PwC) will perform consulting procedures, for the benefit of Walmart management, to assess
Walmart's process and methodology surrounding the measurement of carbon emission
reductions and related financial benefits against these guidelines.
Below is guidance on factors that need to be considered during the quantification of the
proposed reduction projects for products and facilities.
Uncertainty
For all data submitted, the Champion must disclose the uncertainty associated with the data.
Specifically, the Champion must describe the range of uncertainty in the data and the main
sources of uncertainty. This will be used as part of the project assessment.
Product-based reductions require that a complete LCA be executed by either the supplier or as
part of an industry effort. To claim a reduction, the LCA must be compared against a defined
baseline of a reference product. The difference between the reference product’s GHG footprint,
adjusted to reflect trends in energy efficiency, and the new product’s GHG footprint represent
the potential carbon reduction for the implemented project. Part 3 includes guidance on LCA
accounting in addition to parameters to consider when defining the baseline for the reduction.
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Walmart Supplier GHG Innovation Program Guidance Document
Some guidelines and frequently asked questions that will help to complete the Product Carbon
Reduction Worksheet (Attachment A) are included in Part 3.
Part of the functional unit includes losses of the product for the supplier and for Walmart. This
should be embedded in the functional unit definition. Losses occur regularly from new products
and existing products due to take-back, lack of sales, damage or breakage, etc.
For example, a project that is based on a concentrated detergent might consider a cleanser that
is not concentrated as a reference product. Although the products may come in bottles of
different sizes, they provide the same function – the cleansing provided during a wash. In this
case, the functional unit could be one load of laundry (which would be defined as well).
Because less concentrated cleanser would be needed to provide one wash than the reference
product, its carbon impacts would potentially be lower on a per-wash basis. Carbon impacts will
be calculated on the basis of this functional unit, so it is important to keep this in mind when
selecting the reference product.
• Wall paint: A 10 ft2 surface area when comparing the amount of paint needed to provide
full coverage on a wall,
The Champion must explain the start and end of the project. A project claim can be made from
the start of a project until the completion of the project or December 31, 2015, whichever comes
first. The start of the project is defined as the “point of sale”. The end of a project would be the
end of sales of that product. Emissions reduction accounting begins at the point of sale of the
new or improved product, or at the point of implementation of the facility project.
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Walmart Supplier GHG Innovation Program Guidance Document
As shown in Figure 4, the projections of carbon reductions achieved on a per project basis start
at the point of sale for products or the point of implementation for facility-level innovations and
extend to 12/31/2015, the end date of the goal.
Reduction Projections
Point of Sale
2010 Point of Implementation
2015
Figure 4. Timing of Reduction Projections
The Champion should include the life cycle phases appropriate for the methodology. All phases
of the life cycle of the product must be addressed (unless sufficiently justified for exclusion) and
an appropriate methodology used for the assessment. Either an individual supplier or an
industry effort could produce the LCA documentation. In all cases it should be fully transparent.
• Raw material extraction: The raw material product phase relates to the GHGs
embodied within the raw material inputs that compose a product, the emissions
associated with their extraction, and transportation to a processing plant.
• Manufacturing: The manufacturing phase relates to the emissions released while
transforming raw materials and other inputs into a finished product, such as those
resulting from electricity generation and fuel use.
• Distribution: The distribution and retail phase details emissions from transporting
finished goods to distribution centers and final retail locations and captures the
emissions from fuel combustion, truck and in-store refrigeration, store electricity
consumption, etc.
• Consumer Use: Any emissions resulting from using the product, such as electricity
consumption, should be taken into account in the consumer use phase.
• End-of-life / new life (recycle or other): The end-of-life product phase captures
product disposal and accounts for emissions from landfilling, incineration, composting,
and recycling.
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Walmart Supplier GHG Innovation Program Guidance Document
Note: Transportation must also be included in each stage, such as raw materials that require
transportation to a processing facility and transportation at end-of-life to a municipal solid waste
processing facility.
For example, if a product sold in US Walmart stores was redesigned to be made with a
compostable material, Walmart could work with a supplier to label the product “compostable.”
However, it is essential to understand how the consumer actually follows the label. There is
limited composting at a commercial level throughout the US and while it is becoming more
popular, it is also limited on a per-household level. Therefore, to understand how the product is
being disposed of at its “end-of-life” phase, Walmart would need to conduct a market analysis.
The market analysis would examine the behaviors before and after the product label was
changed. This analysis is essential for supporting a claim of a carbon reduction.
When changing products for the consumer use and end-of-life phases, Walmart must work to
educate customers when appropriate to impact the behavioral changes needed.
As part of the Program, Walmart will fund these studies when other resources are not available.
It is essential that a Walmart Champion contact James Stanway early into the project if the
project has downstream effects (consumer use or end of life) so that a baseline can be
established.
• Energy Efficient Appliance: If Walmart sells an appliance, such as a toaster, that is 20%
more energy efficient than the reference product, it is demonstrating a continual effect
for each time the consumer uses the product. While calculating the emissions, it is
important to note the use phase considerations beyond a single use. This is a continual
effect change.
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Walmart Supplier GHG Innovation Program Guidance Document
• Reduced packaging for tissues: If Walmart works with a supplier to significantly reduce
the packaging for tissues; this would be a one-time effect change since there are no
savings in the use of the product itself.
The effect will need to be calculated appropriately when submitting the calculations for carbon
reductions achieved in Steps 3 and 4 of the Product Worksheet.
The BAU is established on a per product or per facility basis (for Track 2). For example, if
Walmart works to change the energy efficiency of a microwave (Track 1), then the Champion
must include baseline accounting for technology of a microwave. This would include projections
of how the microwave energy efficiency is improving compared to the projections without
Walmart’s influence through this project.
ClearCarbon will quantify the difference between a “BAU” case and the impact of the project
from a product improvement perspective solely. The difference between the two, or the delta,
will be calculated at the initial submittal based on projected trends for five years or until
December 31, 2015, whichever comes first. An example of product emissions reduction
accounting with the BAU baseline in place follows (and demonstrated in Figure 5):
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Walmart Supplier GHG Innovation Program Guidance Document
100
tons CO2e
Product A
Product A (BAU)
80 Product B
60
2010 2011 2012 2013 2014 2015
• Product A is the original (reference) product against which the new or improved product
is compared.
The BAU baseline adjustment is NOT sales dependent; it is the measurement of the original
product’s likely increases in energy efficiency or other changes that decrease the amount of
GHG’s produced per unit over time based on business as usual.
If technological improvements are expected for a typical product that affects energy or carbon
efficiency, then the baseline will need to be adjusted. The resulting five-year reduction is
represented by the shaded area under the BAU baseline (assumes 2010 start date in Figure 5).
To assess if BAU trends exist for a given product, the Walmart Champion, in coordination with
the supplier, will supply the following information in their submittal for the reduction period (point
of sale to December 31, 2015):
• Are there any existing trends in material light-weighting expected for a typical product?
Explain.
• Are there any trends in material switching (e.g., more or less carbon intensive plastics)?
Explain.
• Describe any trends in recycled content or recycling rates of the comparison product.
• Describe any use phase energy efficiency trends (e.g., more energy efficient hair
dryers).
• Are any changes in waste handling or disposal that are carbon related expected?
Explain.
• Where feasible, please supply expected percent changes for the given product category.
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Walmart Supplier GHG Innovation Program Guidance Document
Here are some examples that would provide evidence of a trend. Note that this is not a
complete list.
This information would need to be tracked over a minimum of a year, with ideally three years of
data that will help to establish a trend. If the product is new and no trend information exists,
then trends for a similar product category might be used.
These questions may be adapted to suit a particular project in advance of submission, or follow-
up questions may be posed after the project package is received to gain further clarity
surrounding the specific project’s BAU trends.
ClearCarbon will review responses to the BAU baseline trend questions and evaluate the
expected changes to typical products based on external research conducted by ClearCarbon or
Walmart, but not by the supplier. The following issues will be considered:
• If a product assumes more than 10% of the marketplace, it will be considered as the
baseline scenario and therefore no additional reduction claims can be made.
• Baselines will only be adjusted at the initial submission of the project, at the 12-month
review, and at Program completion (2015).
• Baseline adjustments will be documented by ClearCarbon and will include references to
any resources used to determine the new baseline. This information will be included as
part of the project package and will be heavily reliant on third-party sources.
In the event that the BAU baseline changes, ClearCarbon and Walmart will adjust the BAU
baseline.
Walmart will provide feedback to the supplier on findings. Any increase in carbon efficiency will
then be documented and adjusted accordingly. ClearCarbon will then re-calculate the submitted
emissions reduction based on the approved baseline.
One year after initial submittal of the project, the emissions reduction projections and BAU
assumptions will be adjusted to reflect any historical data available at that point, as shown in
Figure 6. Any new information on the reference BAU baseline (e.g., all air conditioners now fall
under mandatory Energy Star rule) for the product or facility against which the reduction is
compared will need to be incorporated at this time.
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Historical Forecasted
Year 1 re-submittal
2010 2015
Figure 6. Reduction Projections Resubmitted
Timing
Financial accounting begins at the point of sale for the new or improved product or at the point
of implementation for the facility or scope 3 project. Financial projections include any potential
financial impact until December 2015. When the project Package is resubmitted (at 12 months
and at the 2015 project close out), the financial projections will be adjusted to reflect any
“historical” data available at that point. This is illustrated in Figure 7.
Financial Projections
Point of Sale
2010 Point of Implementation
2015
Historical Forecasted
Year 1 re-submittal
2010 2015
Figure 7. Financial Projection Timing
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Walmart Supplier GHG Innovation Program Guidance Document
Facility or company level emissions reductions will require a facility or process GHG inventory
that quantifies energy efficiency and carbon-related improvement efforts and the resulting
emissions. Facility- and process-based inventorying guidance for completing the
Facility/Process Worksheet is provided in Part 3. Just as with product-based reductions, facility
and process reductions require documentation of an appropriate baseline to calculate the
resulting emissions reduction. A baseline may be a publically reported facility footprint for a
particular base year, for example.
The Champion must transparently show all emissions on a per source level. Scope 1 emissions
should be broken into each emission source as well as for scope 2. A supplier’s scope 3
emissions will as a general rule not be included in this project. The supplier should work with the
Walmart champion to ensure that data are able to be assessed by a third party. These
emissions reductions will be considered, but are not encouraged since the data availability
presents a challenge for assessing and updating.
While the Champion will be responsible for submitting responses to inform the baseline, the
actual BAU baseline adjustment will be calculated by ClearCarbon for this project. This is to
ensure that there is no bias in the Champion’s calculations and to also allow for additional
research on an industry-wide basis.
Questions specific to a facility carbon reduction that will be answered by the Walmart Champion
include the following:
• Are manufacturing energy efficiency gains expected in your industry? If so, explain and
supply expected percent improvements over time and provide evidence.
• Are transportation efficiency trends related to the submitted project expected for your
industry? Explain and provide evidence.
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Walmart Supplier GHG Innovation Program Guidance Document
• Are organic wastes handling methods expected to change for your industry (e.g.,
movement toward composting, biodigestion)? Explain and provide evidence.
• Are facility recycling percentages expected to improve in your industry? Explain and
provide evidence.
Timing
As part of the baseline setting, the Champion must explain the start and end of the project. A
project claim can be made from the start of a project until the completion of the project or
December 31, 2015, whichever comes first. Emissions reduction accounting begins at the point
of implementation of the process or facility improvement.
• The start of the project is defined as the “point of implementation”. This is when the
process or facility improvement comes on line and is first measurable.
• The “end” is defined as when a process or facility improvement ends, the facilities are
not in operation, the relationship between the supplier and Walmart no longer exists, or
December 31, 2015, whichever happens first.
As shown previously in Figure 5, the projections of carbon reductions achieved on a per project
basis start at the point of sale for products or the point of implementation for facility-level
innovations and extend to December 31, 2015, the end date of the goal.
GHG reductions that come from facility or process based projects require different financial
value accounting than product GHG reductions. Quantifiable financial value to customers may
include the following:
• Savings to the customer on energy or resource consumption during use of the product,
resulting in lower energy bills and lower carbon emissions.
• Fuel or electricity savings at a factory or facility level translated into cost savings through
industry averages (e.g., average price of kWh x total kWh saved), or
• Material savings from reduced input purchases or a switch to cheaper materials/inputs.
In some instances either product or project based initiatives will result in a savings to the
customer or a benefit to Walmart that are not financially measureable. In these cases, a
qualitative description of the positive impact should be included in the worksheets. Benefits to
suppliers and businesses may include:
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General Questions
During the first half of 2010, submissions will be handled primarily via email correspondence.
However, a centralized database and webforms are under consideration and may be launch
under this Program. When the submission process changes, this section will be updated to
reflect the current status.
<Future guidance will include database location and instructions to assist in answering
worksheet question.>
Qualification
What are the dates for a project to “count” toward the goal?
The project must have been started after January 1, 2010 and before December 31, 2015. Any
reductions achieved after December 31, 2015 will not count towards this goal.
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• Determine the boundaries of the analysis according to the primary phases of a supply
chain: raw materials, manufacturing, distribution & retail, consumer use, and end-of-life.
• Determine the types of greenhouse gas (GHG) emissions to be included in addition to
carbon dioxide.
• Determine if a full life cycle analysis is warranted: It may not be necessary to include
emissions from all phases. For example, the consumer use phase for a napkin would
not have any associated emissions and therefore could be omitted from the analysis.
Additionally, if the new or improved product does not have any change in emissions from
the baseline product in a particular phase, these emissions could be omitted.
• Determine emissions sources: in general, emissions should be captured from raw
material inputs, facility operations and transportation links between facilities. All facility
footprints and the product emissions attributions must be documented. Where primary
data collection is not feasible, secondary sources such as LCI database modules may
be used. However, in order to differentiate between a baseline product and the new or
improved product, including some portion of primary data collection is critical, especially
if the manufacturing phase is integral to the emissions reduction claim.
• Where gaps in primary data exist, LCI databases such EcoInvent, Earthster, USLCI, can
be used to generate estimates. Transparency in the emissions factor sources is critical.
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1. Determine a functional unit (how is the product ultimately consumed? e.g. # of cans, # of
cases, etc.)
2. Product bill of materials: types and quantity of materials used to manufacture product
(e.g. raw materials, packaging materials, etc.)
3. Identify activities and processes involved in producing and consuming product
4. Types and quantities of all inputs and outputs (raw materials and energy sources) used
in processing, distribution/retail, consumer use)
5. Identify and quantify all transportation links throughout product life cycle
6. Identify and quantify energy and raw materials consumed during consumer use phase.
7. Discuss any by-products created during product manufacturing (e.g. other products,
direct gas emissions from manufacturing)
8. Discuss accounting for waste streams and their emissions
9. Describe data and emission sources used (e.g. company-specific data versus industry
proxy data, IPCC 2007 GWP 100a)
Resulting Carbon Emissions in kg CO2e for each phase for a SINGLE Product:
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For example, Sam’s Club launched a milk jug redesign in 2008 that resulted in significantly less
plastic in jugs. However, there was an increased loss rate due to breakage. The loss rate must
be incorporated into the analysis to ensure the net benefit is understood and real.
In addition to the basic reduction derived from the emissions difference between the baseline
product versus new product, the supplier must identify whether the new product affects the
product loss rates. For example, a new “low-carbon” packaging solution could reduce the
carbon footprint of a product by 50%, but the product loss rate may increase due to reduced
structural integrity. This loss rate would need to be integrated into the carbon measurement for
the product. Therefore, if the loss rate increased from 1% to 11%, the analysis would have to
show it takes 111 units to successfully deliver 100 units to retail customers. The same issue is
true for packaging or product alternatives that lead to increased thefts.
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Walmart Supplier GHG Innovation Program Guidance Document
either scope 1 or 2 or both may apply. The Champion should strive to be as complete as
possible in either case. The GHG Protocol offers some guidance on this subject.
Facility/
Technology
Scope Scope
1 2
Indication of what type of reduction initiative is being conducted needs to be included as part of
Step 2 along with justification for that reduction initiative category. For example, if multiple
initiatives have improved energy efficiency at a facility that supplies products to Walmart then a
facility reduction initiative would be most appropriate. If, however, only one piece of equipment
was installed and the increased energy efficiency is directly measurable from that installation,
data would only need to be supplied for that individual technology.
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Part 4: Post-Submission
After the Champion submits the application package, which includes the Product and
Process/Facility worksheets and any required supplemental data/documentation, the project will
go through review to ensure that it is complete. This part describes the process of post-
submission.
A flow chart that describes this process is provided at the end of Part 4, Figure 8.
If the project submittal package is complete, ClearCarbon will then update the package with the
BAU case and generate a QA report. While completeness is one part of the QA review,
ClearCarbon will also review the package to determine if the methodology, boundaries, loss
rates and other assumptions were properly executed.
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Walmart Supplier GHG Innovation Program Guidance Document
If the assessment identifies shortfalls in the quantification and there is an opportunity for
resubmission through clarifying the application, the Application is returned back to the
Champion through step 4a.
If the assessment process determines that the reduction project is ineligible for this program
(e.g., evidence of a reduction cannot be produced) then the following steps apply:
At the 12-month mark for products, the sales of the product must be reported. Because the goal
of this project is to reduce GHG emissions, the volume of products produced and sold must also
be tracked. Though each product will have a different sales growth/decline, it is generally
expected that most products will have a sales increase. Given this, if a product’s sales from
year to year (point of sale to 12-month adjustment) grow more than 10%, then an additional
8
The Point of Sale or Implementation will rarely coincide with the submission date of a project package.
Because the data of interest are the historical emissions and sales data, the 12-month adjustment is tied
to the start of the project, not the submissions date. If the initial submission already includes 12 months
of historical data then a resubmission is not required and the project will only be re-adjusted at the close
of the program.
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Walmart Supplier GHG Innovation Program Guidance Document
investigation must be conducted to ensure that there is a net decrease in carbon. This is known
as the “sales trigger”.
The next component of the analysis will be to conduct a quick comparison of the emissions
reduction percentage per product and compare it against the sales increase. If the reduction
percentage is higher than the sales increase, no further study is warranted. If the converse is
true, then a more in-depth market study will be performed. The analysis will include evaluation
of change in price, population growth, elasticity, market trends and market share. It will evaluate
projected increases of the product category year to year. If this is less than the actual growth of
the product sales, then further investigation is required to quantify the net impacts. There are
two expected scenarios from a growth in sales: either Walmart captures market share or
demand increases. Here are the governing rules for these two scenarios:
1. If the sales increase exceeds growth projections, but Walmart has captured market
share from a competitor or competing product within Walmart stores, then this is not
considered a net increase.
2. However, if through this project Walmart creates new demand for a product, then a full
analysis is required to understand the net impact.
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1. Project
2. Package
Application 3. Review 4. QA Report Package “Owner”
Stored in ClearCarbon
Package Application Generated Complete Legend
Database
Submitted
Price-
4b. waterhouse Walmart
4a. Feedback
Application Package Coopers
to Project
Package Incomplete
Champion
Resubmitted
Capture & Review
Assess & Update
5. Assess
5a. Feedback
Project Complete- Project 5b. Close
to Project
Accepted ness and Invalid Project
Champion
Accuracy
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Term Definition
Functional Unit The functional unit is the quantified performance of a product system for
use as a reference unit (ISO 14044:2006, 3.20), and establishes the
basis for which the GHG inventory is calculated and reported. Some
examples of functional units include drying 1000 pairs of hands; delivery
of 1000 liters of fruit drink; provision of 890 lumens over 1 year; transport
of 6 people and cargo by a vehicle over 100,000 miles; and many others.
(see WRI/WBCSD’s Product Life Cycle Accounting and Reporting
Standard).
Greenhouse Effect Long-wave radiation is prevented from leaving the Earth’s atmosphere
due to greenhouse gases, which contributes to higher temperatures on
the surface of the Earth.
Greenhouse Gases Atmospheric gases that contribute to the greenhouse effect and thus to
(GHGs) global warming. Human activities (particularly burning fossil fuels) are
responsible for the buildup of excessive and fast-increasing levels of
greenhouse gases
Carbon Dioxide (CO2) – The most important and common greenhouse
gas. CO2 emissions result from the combustion of fuel, from land use
changes, and from some industrial processes.
Methane (CH4) – Simplest type of hydrocarbon is the primary component
in biogas and natural gas.
Nitrous Oxide (N2O) – Nitrogen oxides are produced in the emissions of
vehicle exhausts and from power stations.
Hydrofluorocarbons (HFC) – HFCs are emitted as by-products of
industrial processes and are also used in manufacturing. (R-134a)
Perfluorocarbons (PFC) – PFCs are used in refrigerating units and fire
extinguishers. Primary aluminum production and semiconductor
manufacture are the largest known human-related sources.
Sulphur Hexafluoride (SF6) – Mainly used as an insulating medium in the
electrical industry or as an inert gas filling in windows.
GHG Innovation A specific project or activity carried out by a supplier of Walmart focusing
Carbon Reduction on either the product or facility/process resulting in a reduction of the
Project amount of GHG emissions.
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Term Definition
standards These standards include: definition of the goal and scope of the LCA, the
life cycle inventory analysis (LCI) phase, the life cycle impact assessment
(LCIA) phase, the life cycle interpretation phase, reporting and critical
review of the LCA, limitations of the LCA, the relationship between the
LCA phases, and conditions for use of value choices and optional
elements.
Kg CO2e / product Kilogram of carbon dioxide equivalents per product. A unit of measure of
the carbon embedded in a product for each life cycle phase or the
summed life cycle phases.
Life Cycle An assessment of the sum of a product’s effects (e.g. GHG emissions) at
Assessment (LCA) each step in its life including extraction of raw materials, manufacturing,
distribution and retail, consumer use, and the end-of-life disposal.
Operational The parameters that determine the direct and indirect emissions
Boundary associated with operations owned and controlled by the reporting
company.
Organizational The parameters that determine the operations owned or controlled by the
Boundary reporting company.
PAS2050 A Publicly Available Specification (PAS) methodology developed by the
British Standards Institution (BSI) for measuring the embodied
greenhouse gas (GHG) emissions from goods and services.
Point of Sale The start date that a product is sold at Walmart.
Point of The start date for a process change to be implemented at a supplier
Implementation facility.
Project Champion An internal lead responsible for setting up appropriate meetings and
identifying suppliers who would be best suited to implement a carbon
reduction project.
Research Team The Research Team helps to identify carbon reduction calculations and
review all carbon reduction claims for completeness and soundness of
methodology.
Scope 1 (Direct GHG emissions that result from sources owned or controlled by the
Emissions) company. Direct emissions include; on-site fuel combustion, refrigerants,
or fugitive emissions.
Scope 2 (Indirect GHG emissions that result from the generation of purchased electricity.
Emissions) Indirect emissions include electricity or steam purchases.
Scope 3 (Other GHG emissions that result from sources not owned or controlled by the
Indirect Emissions) company, but are a consequence of company activity. Other emissions
include use or disposal of products or services, supply chain or
distribution/logistic emissions, and business travel emissions
Supplier Contact This supplier contact will be involved in implementation of the project and
providing data to help to quantify the reductions from the project.
Sustainability A state or process that can be maintained indefinitely.
Quality Assurance This is a process of reviewing project submittals for appropriateness of
(QA) methodology, completeness, and calculations.
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Term Definition
Supplier Energy This Walmart initiative conducts energy efficiency audits and retrofits of
Efficiency Program participating supplier buildings. The program helps suppliers learn from
(SEEP) Walmart’s experience with energy efficiency and forms the basis of an
energy efficiency model that can be adopted by any private or public
sector organization that manages a supply chain.
Walmart Supplier This program seeks to find, achieve, and account for emission reductions
GHG Innovation by working with suppliers throughout Walmart’s product categories and
Program departments. The initial timeline of this program is between January 1,
2010 and December 31, 2015.
Supply Chain The upstream sequence of events that suppliers undertake such as the
extraction of raw materials, manufacturing of products, and distribution to
retail outlets. The resulting emissions from these processes are
categorized as scope 3, indirect, as defined by the GHG Protocol.
Supplier GHG This commitment by Walmart is to reduce the carbon footprint of its
Reduction Goal supply chain by 20 million metric tons of CO2e between January 1, 2010
to December 31, 2015.
Sustainable Value Strategic networks that bring together internal company leaders, supplier
Networks (SVNs) companies, academia, government, and non-governmental organizations
(NGOs) to help integrate sustainable practices into all parts of Walmart’s
business.
Value Chain In the context of carbon emissions, this term refers to the impact that
goods and services purchased upstream from suppliers and sold
downstream to consumers have on the environment.
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Reference Materials
Applied Sustainability Center (ASC) Lifecycle Assessment Overview:
http://asc.uark.edu/LCA_summary_ver2b.ppt
Earthster: www.earthster.org
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Walmart Supplier GHG Innovation Program Guidance Document
This worksheet is intended to be completed by the Walmart Champion who is working with a
supplier (or suppliers) to achieve carbon reductions from either improving a product or offering
more sales of an improved product. Additional instructions and background on this document
can be found in the Walmart Supplier GHG Innovation Program Guidance Document. If you
have questions while completing this worksheet, please contact Jim Stanway at Walmart
Energy Team.
If your project does not pertain to a product change, but relates to a carbon reduction from a
facility or process from a supplier, complete the Facility/Process Worksheet, not this worksheet.
Please see the attached decision tree to see if your project qualifies before answering
quantification questions.
Fill in all sections that are in gray. Instructions are provided in red throughout.
Walmart Information
For the person completing this worksheet, please fill in your contact below. You are the
“Walmart Champion.”
Walmart Champion
Name:
Email:
Phone:
Supplier Information
If multiple suppliers are involved, please add additional contacts below.
Company Name:
Contact Person Name:
Email:
Phone:
Project Information
Tell us about the project and what product is being affected by the project.
Project Name:
Product Name:
Date Submitted:
Date of First Sale of Product: Date of Sale Anticipated Actual
(check if actual or anticipated)
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Walmart Supplier GHG Innovation Program Guidance Document
Is the carbon
reduction at the
product or
facility/process
level?
PRODUCT FACILITY / PROCESS
Was facility or
Is product newly
process improve-
designed or
ment a direct result
improved?
of Walmart activity?
YES NO YES NO
Did Walmart directly
Did Walmart
influence the NOT
QUALIFIED influence energy
development or QUALIFIED
management?
design or redesign?
YES NO YES NO
Did Walmart
NOT
QUALIFIED influence increased QUALIFIED
QUALIFIED
sales?
YES NO
NOT
QUALIFIED
QUALIFIED
Track 1 Track 2
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Walmart Supplier GHG Innovation Program Guidance Document
Qualification of Project
Step 1. Qualification (Track 1)
1.1 Provide a brief description of the product.
Briefly describe in box below including size, SKU (store keeping unit) or UPC, fine line
description and prime item 9 , and manufacturer’s specifications.
For a project to qualify, it must either meet the criteria of step 1a or step 1b.
Please read step 1a and 1b and answer the questions.
9
“Fine line” and “prime item” are terms that describe fields in Walmart’s Retail Link.
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Walmart Supplier GHG Innovation Program Guidance Document
1. The standard under which the LCA was conducted (i.e., PAS 2050)
3. Activities and processes in the production and consumption associated with the product
4. Transportation links
8. Data and emission sources used in the calculations (for example primary versus
secondary data).
2.5 What is the number of products needed to fill the New Product Reference Product
functional unit (this includes losses)? (From 1.1)
2.4 Describe how the functional unit was developed including time parameters and packaging
units.
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Walmart Supplier GHG Innovation Program Guidance Document
For the new product and the reference product to be compared, each must follow the same
approach and include emissions calculations for the same life phases. Complete Step 5 if you
have a product that’s carbon impact has a one-time effect.
4.3 What were the carbon emissions from the functional unit of each product per phase?
Life Phase of Product: New Product Reference Product
(kg CO2e/functional unit) (kg CO2e/functional unit)
Raw Materials
Manufacturing
Distribution/Retail (manufacturer to DC)
Consumer Use (for life of product use)
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End-of-Life
5.3 What were the carbon emissions from the functional unit of each product per phase?
Life Phase of Product: New Product Reference Product
(lbs CO2e/functional unit) (lbs CO2e/functional unit)
Raw Materials
Manufacturing
Distribution/Retail (manufacturer to DC)
Consumer Use
End-of-Life
Total Emissions (lbs CO2e)
Total Carbon Reduction/functional unit
= Reference Product Total Emissions –
New Product Total Emissions
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Walmart Supplier GHG Innovation Program Guidance Document
If sales information is available (dependent on when the project is submitted and when the
product is first sold), then please provide data here. If sales data is not available, please include
forecasted sales.
Note that this will be updated twelve months after initial submission and again before project
completion.
6.1 What are the sales (by unit and revenues) of the new product and reference product?
Dates New Product Reference Product
Start/End
Units Revenues Units Revenues
(after 1/1/2010)
Sold (USD) Sold (USD)
Historical Sales
Forecasted Sales
7.0 What financial value does this product offer and who do they apply to? (i.e., Walmart,
customer, supplier, etc).
Answer the questions that apply to the life cycle phases that were affected by the low-carbon
product. Where feasible, please supply expected percent changes for the given carbon
category.
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Walmart Supplier GHG Innovation Program Guidance Document
8d.2 Are any changes in waste handling or disposal that is carbon related expected?
Explain in the box below.
Step 9. Statements
Uncertainty range
Main sources of
uncertainty in data (sales
data, LCA data, etc)
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Name:
Signed:
Date:
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Walmart Supplier GHG Innovation Program Guidance Document
Instructions:
If you are submitting a project that relates to a carbon reduction from a Walmart supplier facility
or supplier process, please complete this worksheet. If your project relates to a carbon
reduction from a product, then please complete the Product Worksheet. Please see the
attached decision tree to see if your project qualifies before answering quantification questions.
Fill in all sections that are in gray. Instructions are provided in red throughout.
Walmart Information
Walmart Champion Name:
Email:
Phone:
Supplier Information
If multiple, please add additional contacts below.
Company Name:
Contact Name:
Email:
Phone:
Project Information
Project Name:
Walmart Supplier
Category:
Facility Name:
Facility Address:
Date Submitted:
Date of Implementation of
Project:
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Walmart Supplier GHG Innovation Program Guidance Document
Is the carbon
reduction at the
product or
facility/process
level?
PRODUCT FACILITY / PROCESS
Was facility or
Is product newly
process improve-
designed or
ment a direct result
improved?
of Walmart activity?
YES NO YES NO
Did Walmart directly
Did Walmart
influence the NOT
QUALIFIED influence energy
development or QUALIFIED
management?
design or redesign?
YES NO YES NO
Did Walmart
NOT
QUALIFIED influence increased QUALIFIED
QUALIFIED
sales?
YES NO
NOT
QUALIFIED
QUALIFIED
Track 1 Track 2
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Walmart Supplier GHG Innovation Program Guidance Document
Qualification of Project
Step 1. Describe Facility or Process Carbon Reduction Project
1.1 Describe the facility/process carbon reduction project that was implemented.
Include a list of processes that were included, technologies that were employed, etc.
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Walmart Supplier GHG Innovation Program Guidance Document
Quantification of Reductions
Step 2. Carbon Emissions Calculations Methodology
For each facility or process change, please explain the methodology employed.
2.1 What methodology was used to calculate the carbon emissions from the facility or process?
Please briefly describe the methodology and attach documentation
3.1 What time period is most appropriate to measure the Start End
carbon emissions BEFORE the project was implemented?
List the start and end dates.
3.2 Why was this time selected?
Explain rationale for choosing the start and end dates in the box below.
3.3 What time period is most appropriate to measure the Start End
carbon emissions AFTER the project was implemented.
List the start and end dates.
3.4 Why was this time selected?
Explain rationale for choosing the start and end dates in the box below.
3.5 What boundaries are included in the carbon footprint calculation for the reference point and
the improved process/facility?
Check all boxes yes or no Yes No
Scope 1 (Direct emissions)
Scope 2 (e.g., electricity)
3.6 Why was a scope excluded from your calculation?
For all “No” responses in 3.5, please explain why this was excluded.
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Walmart Supplier GHG Innovation Program Guidance Document
Please answer the following questions and provide any additional evidence available that
indicates that this project is improving beyond “business as usual.”
5.2 Are transportation efficiency trends related to the submitted project expected for your
industry? Explain and provide evidence.
5.3 Is organic waste handling expected to change for your industry (e.g., movement toward
composting, biodigestion)?
Explain and provide evidence.
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Walmart Supplier GHG Innovation Program Guidance Document
5.5 Describe what general advances in material handling are occurring across the industry.
Explain and provide evidence.
Step 6. Statements
Uncertainty range
Main sources of
uncertainty in data
Name:
Signed:
Date:
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