Wal-Mart, GE, and the Regional Greenhouse Gas Initiative (RGGI)
by John Laumer, Philadelphia 
on 06. 8.06
Wal-Mart has submittted an 11-page position statement to the Regional Greenhouse Gas Initiative (RGGI). You read that correctly. Wal-Mart formally commented on a regional governmental project designed to find acceptable means of setting and achieving greenhouse gas emission reduction limits over a large portion of the US. From the RGGI website: “The Regional Greenhouse Gas Initiative (RGGI or "ReGGIe") is a cooperative effort by 9 Northeast and Mid-Atlantic states to discuss the design of a regional cap-and-trade program initially covering carbon dioxide emissions from power plants in the region. In the future, RGGI may be extended to include other sources of greenhouse gas emissions, and greenhouse gases other than CO2”. The list of organizations sending comments to the RGGI is lengthy, but does not include USEPA or USDOE. As the US Federal government does not yet “do” climate, it falls upon consortia of states and local government, industries, and NGO’s to do the heavy planning.
We looked at several of the submissions: as exciting reading as a pile software user agreements. The Wal-Mart comments, however, had some intriguing background information. See the paraphrased list below for some details. We added the link.
• Over 2,000 Wal-Mart stores have skylights and auto-dimming for interior lights.
• T-8 lighting is standard in all new stores and will be retrofit to older ones. (The best T-8s accomplish a 15 to 20 percent energy savings and have other benefits as well.)
• Where climate is suitable, white reflective “cool roof” membranes are deployed to achieve a 10% reduction in cooling load.
• HVAC units have high SEER ratings.
• New store signs and replacement signs at old stores use LEDs.
• Heavy trucks are getting auxiliary power units so engines can be off when vehicles are not in motion, which will reduce 10,000 metric tons of GHG emission per year when the project is complete.
• The corporate fleet is adding hybrid vehicles and fuel-efficient tires.
• The corporation is funding research and development for added truck efficiency in the areas of hybrid diesel, fuel cell, and biodiesel engines.
• Work is under way to reduce packaging size, which reduces trucking, which lowers GHG emissions.
Based on several of these technologies, industrial engineers might estimate the incremental return on capital employed (ROCE) per square foot of retail space, for example. The driving down of operating cost (and commensurate GHG emissions) through these and other technologies may eventually have to be matched by competing retailers wishing to achieve profits that investors come to expect from Wal-Mart. A full expression could be slow, given its beginnings in the long sleep over energy cost and climate change. As one after another industry sector awakens (call it the Rip Van Winkle effect), they will find that important policy models and technology standards have been developed and proven, giving "first in" advantage to early collaborators.
Perhaps the following quote from the Wal-Mart RGGI submission gives us an insight into a successful business strategy, deployed as eco=efficiency matures from academic theory to powerful driver of competition.
“Wal-Mart wants to work with government at all levels to promote a common, consistent set of policies across the United States that will encourage and reward those businesses that are prepared to act to reduce the threat of global climate change and thereby advance the interests of consumers, the economy and our planet. These comments are offered in that spirit.”
The ‘invisible hand “, un-gloved, may become greener than we imagined. Kudos to "ReGGIe" and encouragement to Wal-Mart. Best of luck, also, to GE, maker of high performing T-8 lights (see GE promotional material here, as PDF file).
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You know what? The devil is in the details. Let me share two Wal-Mart experiences in the last week:
1. I wanted to purchase a multi-pack of ink cartridges for an Epson printer at a local Sam's Club. The only way they came was in a clam shell plastic case that was 4 times the size of the cartridges already encased in cardboard boxes.
2. When I received my monthly Sam's Club statement today, it included 5 pieces of "junk mail" ads.
It appears to me that some "showy" areas are being addressed but the day-to-day problems associated with waste are being ignored. The bottom line is that I have nearly stopped patronizing Wal-Mart and Sam's Club entirely due to their committment to irresponsible packaging.
Wal-Mart has within its power the change this issue paractically overnight. If Wal-Mart tells Proctor & Gamble, HP, or any of the others that their products will no longer be sold in Wal-Mart stores due to irresponsible packaging, most companies will have their products coming off the line in green packaging tomorrow.
===== author's response follows =====
THe bullet list in my original post has to do with things that save money on energy and are fullly within operational control of WalMart. THey own the buildings and have capital invested that has to bep paid back. SO the motive to get more lean is fundamental to traditional business backgrounds.
Over packaged goods are found at all retailers and their mere sight frustrates anyone with an eye open to see such waste. I suspect WalMart execs have noticed it too. ) In fact the reduction of packaging is on their list of to do's...I distilled a large paragraph to a sentence and probably lost the context.) The daunting part of point of purchase blister packs is that they are done that way for two reasons: to reduce theft and to draw your attention. The package is both a billboard and a security device. Take away packing and loss rates go up. One solution is to put a display model in a glass case and require the shopper to take an order slip to checkout to get one out of locked inventory. That reduces impulse buying which again reduces sales at the store. Clearly there are motivations that push and pull the packaging decisions both ways. I unfortunately do not have the background to make a judgement about how reasonable and important some of the factors are.
T8 is so last century, T5 is where its at now, smaller tubes, greater efficiancy and less materials to make it so all round good.