Source:Five Winds International

The Challenge
One of the top retail stories in July 2009 was the news that Walmart, the world’s largest retailer, planned to develop a worldwide sustainability index for products sold in its stores. Walmart’s Supplier Sustainability Assessment was the first step toward that index, and they asked top tier global suppliers to complete the questionnaire within three months. 
For some suppliers who already had a sustainability strategy and team, filling out the questionnaire – which covers energy and climate; material efficiency; natural resources; and people and community – was a relatively easy task. For others, the questionnaire was a wake-up call.

Our client, a US-based manufacturer of cleaning products1, quickly realized that Walmart wasn’t only asking for transparency. They were looking to screen their suppliers based on sustainability performance. The company contacted Five Winds International for assistance, asking, “Could you help us score well in Walmart’s sustainability assessment?”

Our Approach
Through several discussions about the product portfolio, customers, and the company’s existing sustainability goals, the team quickly zeroed in on the questionnaire’s energy and climate section.

Five Winds identified the data needs and customized its existing carbon footprint templates to efficiently gather and tally the data. A walk-through energy audit of product facilities followed the footprint work, with a view toward identifying both capital improvements as well as “easy fixes”. Five Winds provided the footprint data in a format the company could use to readily substantiate its claims and score. Reduction targets based on ‘business as usual’ projected growth and cost of sales also enabled the client to set meaningful and achievable goals that could also be communicated to Walmart.

Benefits and Value
Prior to its work with Five Winds International, the company scored “below target” on all energy and climate questions. Within two months, the company scored “above target” and was able to satisfy its customer’s request. As an additional benefit from the carbon footprint and energy audit, the company uncovered an opportunity to reduce 4,000 tons of carbon emissions and save $350,000 annually through improved lighting, installation of a proposed wind turbine, and more efficient management practices.