Wal-Mart Stores Inc. of Bentonville on Monday reaffirmed its goal of eventually being powered 100 percent by renewable energy such as solar and wind power, outlining short-term goals for the next several years.
By Dec. 31, 2020, the company aims to procure or drive production of 7 billion kilowatt hours of renewable energy a year, which it said would be a 600 percent increase over 2010 levels. The company also has set a goal of reducing by 20 percent the kilowatt hours per square foot needed to power its buildings globally.
“The math adds up pretty quickly. When we use less energy, that’s less energy we have to buy, and that means less waste and more savings,” Mike Duke, president and chief executive officer, said in a news release. “These new commitments will make us a stronger business, and they’re great for our communities and the environment.”
The company’s Global Sustainability Milestone Meeting was carried live online via a webcast.
Andrea Thomas, Wal-Mart senior vice president for sustainability, said the company has worked with its suppliers and with nongovernmental organizations that focus on environmental issues to reduce the company’s environmental impact. She said the company is sharing best practices with its operations around the globe.
Wind farms in Mexico now supply 70 percent of the power needs for 350 stores, and more wind power will be added this year, said Leslie Dach, executive vice president for corporate affairs. The company now has nearly 300 renewable energy projects around the globe, he said.
Wal-Mart has more solar power capacity and solar systems than any other U.S. company, according to the Solar Energy Industry Association, with 144 systems installed, followed by Walgreen Co. at 134 and Kohl’s Corp. at 124. In total installed capacity, Wal-Mart also leads with 65,000 kilowatts, followed by Costco Wholesale Corp. at 38,900 and and Kohl’s at 36,474.
“In short, Wal-Mart is leading,” Dach said.
Energy use in stores is the company’s biggest source of emissions, Dach said, but the discharges are down 20 percent from their base as measured in 2005. That goal was met in 2011, a year ahead of schedule, he said.
Duke said on the webcast that the company’s Asda operations in Britain led the company with a 33 percent reduction in greenhouse gases since Wal-Mart started its sustainability efforts in 2005.
Projections show that energy costs could increase twice as fast as the company’s store growth, he said, so finding more affordable sources of energy is critical for the company’s future. Alternative energy sources offer the possibility that the company could trim costs by $1 billion a year globally, Duke said.
“We are going big on alternative energy,” he said. From 2005 through 2011, the company’s square footage increased by 40 percent, he said, but its greenhouse gas emissions grew by only 10 percent. The company is forecasting a decrease in emissions by 2020.
“This truly has been a global effort,” Duke said.
Wal-Mart’s stock closed Monday at $78.47, down 9 cents or 0.11 percent, in trading on the New York Stock Exchange. The stock has traded between $57.18 and $79.28 in the past year.
Business, Pages 26 on 04/16/2013