Additional Guidance for Walmart Suppliers

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Additional Guidance: Reporting to CDP as a Walmart Supplier
Contents
 Walmart’s Supply Chain Sustainability Commitments ............................................. 1
 How can your company help Walmart achieve its goals? ........................................ 2
 What are the benefits for your company? .............................................................2-3
 How do you attribute your emission reductions to Walmart (SM2.2)? ...................3-5
 How do you allocate your emissions to Walmart (SM1.1)? ...................................5-6
 Extra guidance & support for the CDP Supply Chain request: ................................. 6
Walmart’s Supply Chain Sustainability Commitments:
1. Eliminate 20 million metric tons (20 MMT) of
greenhouse gas (GHG) emissions from their global
supply chain by the end of 2015.
2. Develop a worldwide sustainable product index.
Walmart’s 2015 CDP Supply Chain request:
 Addressing our carbon footprint is critical for us. The infrastructure of
CDP allows us to do something that at first seemed very challenging. While
we work to improve our own operations, we know we have responsibility in
our supply chain… We want to say a special thank you to our supplier partners
who have reported to CDP through this request. And for those of you who
haven’t reported yet, we encourage you to start on this journey with us. 
Manuel Gómez Peña
Vice President, Sustainability
Watch Video:
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How can your company help Walmart achieve its goals?
Walmart estimates that over 90% of their overall GHG footprint resides with their suppliers. Walmart has
already made significant progress towards their own corporate GHG reduction goals; in order to have the
most impact they are looking to their most important business partners – you – to collaborate on win-win
sustainability innovation opportunities throughout their supply chain.
To demonstrate your commitment, CDP and Walmart encourage you to complete all parts of the CDP
questionnaire in order to share your overall strategy and actions to measure, manage and reduce your
greenhouse gas emissions and climate change risk exposure.
As a critical supplier to Walmart you can play an important part in helping achieve its goals by focusing
on the following questions in CDP’s 2015 Supply Chain questionnaire:
CDP question
CC8.2 and CC8.3
Topic
Measure your Scope 1 & 2 GHG
emissions
CC3.1 and CC3.3
Set a GHG reduction target and
show progress
SM2.2
Attribute emissions reductions to
Walmart’s 20 MMT reduction goal
SM1.1
Allocate your GHG footprint to
Walmart
SM2.1
Suggest collaborative opportunities
to Walmart
Reason
Know your GHG footprint and develop
an understanding of where efficiencies
can be found
Show ambition to reduce your GHG
footprint and implement emissions
reduction activities
Contribute completed emissions
reduction projects to Walmart’s goal.
Every ton that has been influenced by
Walmart can count (see page 3)
Tell Walmart what part of your
emissions are due to the
goods/services that they purchase from
you. Walmart uses this number to
calculate the magnitude of their
upstream Scope 3 GHG footprint for
their own CDP disclosure (see page 5)
Offer new ideas of how you can partner
with Walmart to further reduce
emissions in the future
What are the benefits for your company?
 Find cost savings by reducing emissions: As reported in Walmart’s Global Responsibility Report,
“In 2014, more than 700 suppliers submitted responses to our request. Of those, 68 percent
reported more than 1,900 greenhouse gas emission-reduction activities.” Many of these companies
have already recouped their investment by now and will save money this and every year going
forward.
 Be recognized by buyers and merchant leaders: You will be contributing to Walmart’s ambitions:
“We are excited about the difference we can make when we lead on the big issues together”
says Manuel Gómez Peña, Vice President, Sustainability, “Measuring and reducing greenhouse
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gas emissions will make a significant difference for customers and communities around the
world, and it will make us a stronger and more competitive businesses.”
 Develop new business with Walmart: CDP’s questionnaire now allows you to communicate any
proposals you would like to make to Walmart for the collaborative development of new GHG
emission reducing projects or products. They state that “all suggestions reported through SM 2.1
will be reviewed and considered by Walmart. We encourage you to share your innovative ideas
with us.”
You’ve reduced your emissions as a company in part or wholly due to
the request from Walmart to help them meet their goal of 20 MMT of
supply chain greenhouse gas emissions. How do you report
corporate or facility-level emissions reductions through
CDP question SM2.2?
Question SM2.2: How to attribute your company’s emission reductions to Walmart
If you have undertaken any emissions reductions at a corporate or facility-level for which Walmart
engagement or interest was wholly or partially responsible, please report them in this question.
Here’s how:
1. Navigate to question SM2: Supply Chain – Collaboration using the navigation headings in the
CDP online response system.
2. Select “yes” from the drop down menu provided for SM2.2 “Have requests or initiatives by CDP
Supply Chain members prompted your company to take organizational-level emissions
reduction initiatives?”
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3. This will populate a follow up question SM 2.2a “Please select the requesting member(s) that
have driven a reduction”. This is your opportunity to associate your emissions reductions with
Walmart’s 20 MMT goal. Select Walmart as the requesting member and fill out the rest of the
information in the table. It is important to include a quantity of emissions reduced in metric
tonnes of CO2e in the fourth column.
Walmart
SM 2.2a Please select the requesting member(s) that have driven a reduction
This question only appears if “Yes” is selected in response to question SM 2.2.
Please
select
the
requesting member(s) that
have driven a reduction
Initiative ID
Describe
initiative
the
reduction
Give reduction for the
reporting year in metric
tonnes of CO2e
A text answer of up to 2,500
characters.
Will accept a number up to
and including 1000000000.
Will not accept decimal
places. Enter the number
without punctuation.
Requesting Customer
2015- ID1
Ex: Walmart
2015- ID2
Ex: Walmart
Ex: Following engagement
with Walmart we calculated
our corporate emissions for
the first time. This process
helped us to identify energy
efficiency initiatives in our
buildings. This included
HVAC and lighting refits,
which reduced our
emissions and paid back
costs in under a year.
Ex: Walmart, as one of our
customers, plays an
important role in every
business case we make for
Ex: 232
Ex: 59000
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investing in emissions
reductions. Demonstrating
that we are an efficient and
reliable partner is core to
our climate change work.
Last year we installed a
biomass boiler at our
Smithtown manufacturing
plant. The emissions saved
are based on a comparison
to previous years.
Please note:
1. This table is designed so that only the customer that you select in column 1 will be able to see the data
relevant to them. If you enter an answer without selecting a requesting member, your answer will
not be viewable at all. In this case, please select “Walmart;” if their name isn’t there email
respond@cdp.net and we will add it in for you.
2. Please describe one initiative per member per line in this section – including the quantity of emissions
saved – and how it relates to that member (i.e. Walmart). There are many ways of associating emissions
to a member – it is not asking you to allocate emissions reduction; just provide the link / causality
between the emissions reduction number and the requesting member. You can find examples above.
Question SM3.2: How to attribute your product-level emission reductions to Walmart
If you have undertaken any emissions reductions at a product-level for which Walmart engagement or
interest was wholly or partially responsible, please contact respond@cdp.net for further guidance.
You’ve measured and reported your emissions. Now you can help
Walmart better calculate their own Scope 3 by allocating your
emissions to them.
How do you allocate your emissions to Walmart through
CDP question SM1.1?
Question SM1.1: How to allocate your company wide emissions to Walmart
Emissions from suppliers are often greater than the purchasing organization’s own emissions and Walmart
is no exception. To better understand the carbon footprint in their supply chain, Walmart has been
calculating part of their Scope 3 emissions inventory by using data in SM1.1. In this question you are asked
to allocate your Scope 1, Scope 2, and if possible your Scope 3 emissions to Walmart.
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Scope 1
Scope 2
Scope 3
There are various different types of allocation methods, which will assist in calculating which of your
emissions Walmart were responsible for. You are encouraged to review the various allocation methods set
out by the GHG Protocol Scope 3 Standard (Chapter 8). The most common allocation CDP has seen
suppliers use has been either through the proportion of sales revenue that Walmart are responsible for, or
by mass of products purchased. CDP also provide guidance on allocating emissions through the Supplier
module for your reference.
Extra Guidance & Support for the CDP Supply Chain Request:
Help and Guidance tools and documents to help you register and navigate through the CDP online response
system
 Guidance help page includes detailed guidance documents including:
o
The Climate Change guidance document for questions CC1-CC15
o
The Supplier module guidance document for questions SM1-SM3
o
Using the Online Response System (ORS): How to activate, log in, and navigate the CDP
questionnaire. Also available to as a recorded webinar (watch on Vimeo)
 Additional guidance includes:
o
How to Respond and Submit as a SME: Step-by-step guide to using the online response
system as a small/medium-sized enterprise.
o
How to respond and submit if you are already disclosing under the Investor Climate
Change program: Step-by-step guide to completing the additional 3-question Supplier module
o
Guidance for First Time Responders: A document to help new responders submit information
to CDP
o
Supply Chain Reporting Roadmap 2015: A guide to help responders to move from a basic
response towards complete disclosure
 Any further problems or questions? Please contact us via respond@cdp.net
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