OREANDA-NEWS. August 29, 2014. At today’s Walmart Supplier Summit in Shenzhen, Walmart announced a new commitment to further strengthen the sustainability of its global supply chain by advancing the energy efficiency of its China-based manufacturers.

The commitment states that suppliers representing 70 percent of Walmart’s business sourced in China will be invited to participate in an energy efficiency program by the end of 2017. As a result, Walmart forecasts significant potential savings over the next 3 years.  An improvement in energy efficiency by 10 percent would translate to lowering greenhouse gas (GHG) emissions by more than 1 million metric tons; that is the equivalent of taking over 200,000 cars off the road for 1 year. 

“We hope that today’s announcement will continue to pave the way for our operations to become more sustainable in China and globally, as well as continue to set the tone for the industry as a whole,” said Ignacio Lopez, Senior Vice President, who leads Walmart’s Global Sourcing Operations. 

To date, 40 factories in China have participated in a 2014 pilot program, and approximately 500 factories will be invited to participate in the program by the end of 2017. In order to reach the 2017 goal set forth for China-based manufacturers, Walmart will assist in providing tools and resources that will help suppliers identify energy efficient projects tailored for each facility, coordinating relevant training when needed to overcome barriers with implementation.  Walmart will also track overall project performance and impact.   

“China is a key market for Walmart’s long-term sustainability strategy, and as a company, we’re focused on being part of a solution to help improve environmental issues facing the country,” said Sean Clarke, CEO of Walmart China. “Walmart has made significant progress in advancing factory efficiency in China in recent years, and today’s announcement is an expansion of our efforts to drive a larger impact.”