>> Thompson: THIS SUMMER, WHEN
PRESIDENT TRUMP WITHDREW THE
U.S. FROM THE 2015 PARIS CLIMATE
ACCORD-- A VOLUNTARY PACT TO CUT
EMISSIONS OF GASES THAT CAUSE
GLOBAL WARMING-- SOME OPPOSITION
CAME FROM WHAT IS PERHAPS A
SURPRISING PLACE: BIG BUSINESS.
IN RESPONSE, HUNDREDS OF LARGE
U.S. COMPANIES PUBLICLY PLEDGED
TO REDUCE THEIR RELIANCE ON
FOSSIL FUELS AND INCREASE ENERGY
EFFICIENCY.
IN TONIGHT'S SIGNATURE SEGMENT,
NEWSHOUR WEEKEND SPECIAL
CORRESPONDENT STEPHANIE SY
REPORTS ON SOME BIG COMPANIES
LEADING THE WAY.
THIS STORY IS PART OF OUR
ONGOING SERIES, "PERIL AND
PROMISE: THE CHALLENGE OF
CLIMATE CHANGE."
>> Reporter: WITH SPRAWLING
SUPERCENTERS AND CLOSE TO 12,000
STORES WORLDWIDE, WALMART
MAY BE BEST KNOWN FOR LOW
PRICES THAT LOCAL STORES CAN'T
MATCH.
NOW, THE PLANET'S NUMBER ONE
COMPANY BY REVENUE WANTS TO BE
KNOWN AS A LEADER IN THE FIGHT
AGAINST CLIMATE CHANGE.
>> SUSTAINABILITY IS REALLY
CORE TO OUR MISSION.
>> Reporter: KATHLEEN McLAUGHLIN
IS WALMART'S CHIEF
SUSTAINABILITY OFFICER, SHE'S
CHARGED WITH SELLING WALMART'S
CLIMATE VISION TO SHAREHOLDERS.
>> IT'S CRITICAL FOR BUSINESS.
IT'S IMPORTANT FOR CUSTOMERS AND
FOR COMMUNITIES.
WE'RE SEEING EFFECTS ALREADY IN
THINGS LIKE SUPPLY SECURITY OF
DIFFERENT FOOD COMMODITIES.
>> Reporter: WALMART'S RESPONSE
TO CLIMATE CHANGE BEGAN MORE
THAN A DECADE AGO.
IN 2005, THEN-C.E.O. LEE SCOTT
PLEDGED TO CURB WALMART'S
EMISSIONS OF GREENHOUSE GASES
LIKE CARBON DIOXIDE, WHICH CAUSE
THE ATMOSPHERE TO TRAP HEAT AND
WARM THE EARTH.
SCOTT STARTED MOVING THE COMPANY
TOWARD CLEAN POWER SOURCES LIKE
WIND AND SOLAR, WITH A GOAL OF
EVENTUALLY GETTING 100% OF ITS
ENERGY FROM RENEWABLES.
>> IT WAS A REALIZATION ABOUT
CAPABILITY AND ABOUT SCALE AND
HOW WE CAN USE THAT FOR GOOD.
WALMART HAS UNIQUE ASSETS AS A
RETAILER, JUST GIVEN THE REACH
THAT WE HAVE ACROSS CATEGORIES,
THE REACH WE HAVE ACROSS
COUNTRIES AND ACROSS SUPPLIERS,
AND THE RECOGNITION THAT WE
COULD BRING THOSE CAPABILITIES
TO BEAR ON THE MOST PRESSING
SOCIAL AND ENVIRONMENTAL ISSUES
THAT OUR CUSTOMERS FACE IN WAYS
THAT ARE REALLY RELEVANT FOR
BUSINESS.
>> Reporter: WALMART,
HEADQUARTERED IN BENTONVILLE,
ARKANSAS, BEGAN BY IMPROVING THE
FUEL EFFICIENCY OF ITS VAST
FLEET OF TRUCKS THAT DELIVER
GOODS TO ITS STORES.
>> SO MIKE, WHEN YOU'RE READY,
WE'LL CRANK IT UP.
>> Reporter: USING A SIMULATOR,
WALMART RETRAINS ITS TRUCK
DRIVERS ON GEAR-SHIFTING TO
INCREASE THEIR FUEL SAVINGS.
OPERATORS CAN HAVE UP TO A 30%
IMPACT ON FUEL EFFICIENCY BASED
ON HOW THEY DRIVE, AND THEIR JOB
PERFORMANCE IS JUDGED
ACCORDINGLY.
THE COMPANY SAYS IMPROVED
DRIVING AND UPGRADED TRUCKS HAVE
SAVED THE RETAILER NEARLY $1
BILLION SINCE 2005.
>> WALMART HAS BEEN THE DRIVER
OF A LOT OF NEW TECHNOLOGIES IN
THE ENERGY EFFICIENCY SPACE.
>> Reporter: MARK VANDERHELM IS
WALMART'S VICE PRESIDENT OF
ENERGY.
WALMART HAS SAVED ENERGY AND
MONEY IN ITS STORE OPERATIONS BY
DEMANDING MORE EFFICIENT
EQUIPMENT FROM VENDORS THAT
PROVIDE ITS LIGHTING,
REFRIGERATION, AND HEATING AND
COOLING SYSTEMS.
IN ITS PUSH FOR MORE RENEWABLE
ENERGY, THE COMPANY HAS
INSTALLED SOLAR PANELS ON THE
ROOFTOPS OF 364 WALMART AND
SAM'S CLUBS.
THAT'S ONLY ABOUT 8% OF ALL ITS
STORES IN THE U.S., BUT THE
PANELS MAKE WALMART THE
NATION'S SECOND BIGGEST
COMMERCIAL GENERATOR OF SOLAR
POWER.
>> THE BIGGEST CHALLENGE IN THE
U.S. IS MAKING IT ECONOMIC.
WE WOULD LOVE TO SEE MORE
AVAILABILITY OF RENEWABLE ENERGY
SOURCES THAT IS AT PRICE PARITY
WITH OTHER SOURCES.
>> Reporter: IN OTHER WORDS,
WALMART'S AMBITIOUS ENERGY
GOALS AIM ALSO TO SAVE MONEY.
SO, IN ITS HOME BASE IN
ARKANSAS, WHERE A LACK OF STATE
GOVERNMENT INCENTIVES FOR
RENEWABLES MAKE CONVENTIONAL
FOSSIL FUEL POWER CHEAPER, YOU
WON'T SEE ANY SOLAR PANELS ON
THE LOCAL WALMART STORES.
WHILE THE COMPANY HAS PLEDGED TO
BE 100% POWERED BY RENEWABLES,
IT HASN'T SAID WHEN, AND RIGHT
NOW ONLY 17% OF WALMART'S
DOMESTIC POWER COMES FROM
RENEWABLE SOURCES.
TO PROVIDE GUIDANCE IN ACHIEVING
ITS CLIMATE CHANGE GOALS,
WALMART HAS PARTNERED WITH
THE ENVIRONMENTAL DEFENSE FUND,
OR E.D.F.
FRED KRUPP IS THE GROUP'S
PRESIDENT.
IS WALMART DOING ENOUGH?
>> THE SCALE OF WALMART IS HARD
TO WRAP YOUR HEAD AROUND.
THEY HAVE 220 MILLION PEOPLE
SHOPPING THERE EVERY WEEK.
IN THE UNITED STATES, THEY SELL
ABOUT A THIRD OF ALL THE FOOD
THAT WE BUY AT RETAIL STORES.
THEY CAN ALWAYS DO MORE.
BUT WHAT THEY HAVE SHOWN SO FAR
IS A SERIOUS COMMITMENT, AND THE
JOURNEY IS AN ONGOING JOURNEY OF
IMPROVEMENT.
>> Reporter: JENNY AHLEN IS AN
E.D.F. SUPPLY CHAIN SPECIALIST
BASED IN BENTONVILLE, ARKANSAS.
>> THE THINGS THAT WE BUY AND
CONSUME AND HOW THEY ARE MADE
AND USED AND DISPOSED OF HAVE A
HUGE IMPACT ON THE PLANET.
SO, GROCERY IS CONTRIBUTING
NEARLY HALF OF ALL GREENHOUSE
GAS EMISSIONS IN THE U.S. RETAIL
SECTOR.
AND THAT'S DUE TO BOTH THE
VOLUME OF FOOD BEING SOLD, BUT
ALSO THE HIGH LEVEL OF
GREENHOUSE GAS IMPACTS EMBEDDED
IN THAT FOOD.
>> Reporter: AND WALMART IS THE
LARGEST GROCER IN THE WORLD?
>> THEY ARE.
>> Reporter: SO THIS IS A HOT
SPOT.
WALMART'S MISSION HAS GROWN TO
NOT ONLY REDUCE ITS OWN STORES'
IMPACT ON CLIMATE CHANGE, BUT TO
COMPEL ITS TENS OF THOUSANDS OF
SUPPLIERS TO TRANSFORM THEIR
PRACTICES.
AT WALMART'S URGING, E.D.F.
HELPED PORK PRODUCER SMITHFIELD
TO OPTIMIZE FERTILIZER USE ON
CROPS USED TO FEED ITS PIGS,
REDUCING THE AMOUNT OF THE
GREENHOUSE GAS NITROUS OXIDE
RELEASED INTO THE ATMOSPHERE.
THE REDUCTIONS BY SMITHFIELD AND
OTHER SUPPLIERS CONTRIBUTED TO
WALMART TAKING CREDIT FOR
MEETING A GOAL, IN 2015, OF
REDUCING EMISSIONS BY 20 MILLION
METRIC TONS, THE EQUIVALENT OF
TAKING NEARLY FOUR MILLION CARS
OFF THE ROAD FOR A YEAR.
WALMART'S NEWEST INITIATIVE IS
CALLED "PROJECT GIGATON," WHICH
AIMS TO PERSUADE SUPPLIERS TO
REMOVE 50 TIMES MORE GREENHOUSE
GASES, OR ONE BILLION METRIC
TONS, BY 2030, ABOUT THE SAME
AMOUNT OF POLLUTION AS GERMANY
EMITS IN A YEAR.
WALMART, KNOWN FOR SQUEEZING
SUPPLIERS TO KEEP PRICES LOW, IS
PUTTING A GREEN SQUEEZE ON THEM
NOW, THOUGH ONE THAT'S
VOLUNTARY.
>> IT SENDS A MESSAGE TO THEIR
100,000 SUPPLIERS ALL AROUND THE
WORLD: IF YOU WANT YOUR PRODUCTS
ON OUR SHELVES, CUT YOUR
POLLUTION.
>> Reporter: 90% OF WALMART'S
OVERALL GREENHOUSE GAS IMPACT
COMES FROM ITS SUPPLY CHAIN, AND
DOZENS OF ITS MAJOR SUPPLIERS
HAVE ALREADY SIGNED ON TO
PROJECT GIGATON.
WALMART HOPES THAT ENCOURAGING
ITS SUPPLIERS TO CUT EMISSIONS
WILL HAVE A MULTIPLIER EFFECT.
ONE OF THOSE PARTICIPATING
SUPPLIERS WAS ALREADY FORGING
ITS OWN PATH TO SUSTAINABILITY.
THE CANDY MAKER MARS, INC, BEST
KNOWN FOR M&Ms AND SNICKERS
BARS, HAS SET AN AGGRESSIVE
TARGET OF USING "ZERO CARBON" IN
ITS OPERATIONS BY 2040,
ELIMINATING ALL GREENHOUSE GAS
EMISSIONS.
>> FIELD IS ACTUALLY 18 ACRES,
SO IT'S PRETTY BIG.
>> Reporter: BARRY PARKIN,
MARS'S CHIEF SUSTAINABILITY
OFFICER, SHOWED US THE VAST
SOLAR FARM IN NEW JERSEY THE
COMPANY BUILT EIGHT YEARS AGO.
IT NOW PROVIDES ABOUT 5% OF THE
POWER USED BY THE MARS CHOCOLATE
FACTORY IN NEARBY HACKETTSTOWN,
WHICH CHURNS OUT HALF OF THE
M&Ms SOLD IN THE U.S.
PARKIN SAYS THE FALLING PRICE OF
RENEWABLE ENERGY TECHNOLOGY,
LIKE SOLAR, MAKES THE
INVESTMENTS PAY OFF.
>> WE'VE DONE THIS AT COST
PARITY OR BETTER.
IN SOME CASES, OUR COSTS ARE NOW
LOWER AS A RESULT OF USING
RENEWABLE ENERGY.
>> Reporter: SO, WE'RE NOT GOING
TO SEE THE PRICE OF M&Ms
SKYROCKETING BECAUSE MARS HAS
MADE COMMITMENTS TO THE
ENVIRONMENT?
>> NO, ABSOLUTELY NOT.
SO, THIS IS NOT JUST GOOD FOR
THE ENVIRONMENT.
IT'S GOOD FOR MARS.
IT'S GOOD FOR CONSUMERS, AND
IT'S ALSO GOOD FOR THE
LANDOWNERS THAT WE'RE WORKING
WITH.
>> Reporter: MARS HAS A LONG-
TERM CONTRACT TO BUY THE POWER
PRODUCED BY THIS MASSIVE WIND
FARM IN WEST TEXAS-- ENOUGH TO
OFFSET THE ELECTRICITY USED IN
ITS ENTIRE U.S. OPERATION.
PARKIN BELIEVES THAT GLOBAL
EFFORTS TO CURB CLIMATE CHANGE
WILL EVENTUALLY LEAD TO FOSSIL
FUELS BECOMING MORE EXPENSIVE.
>> WE BELIEVE THERE WILL AT SOME
POINT BE A PRICE ON CARBON.
WE'RE THINKING LONG TERM, WE'RE
THINKING THAT IF WE ARE AHEAD OF
THE CURVE HERE AND WE'RE
REDUCING OUR CARBON FOOTPRINT IN
LINE WITH THE SCIENCE FASTER
THAN OUR COMPETITORS, THEN WE
CAN HAVE A COMPETITIVE
ADVANTAGE.
>> Reporter: THIS MONTH, MARS
ANNOUNCED IT IS INVESTING A
BILLION DOLLARS OVER THE NEXT
THREE YEARS, IN PART TO HELP
ITS SUPPLIERS REDUCE CARBON
EMISSIONS, INCLUDING HUNDREDS OF
THOUSANDS OF SMALL FARMERS
AROUND THE WORLD.
MARS HOPES THE EFFORT WILL HELP
THE COMPANY'S SUPPLY CHAIN
REDUCE EMISSIONS BY 67% BY 2050.
THIS INITIATIVE IS PART OF MARS'
PLANNING FOR DISRUPTIONS TO
THEIR AGRICULTURAL SUPPLIES
CAUSED BY CLIMATE CHANGE,
INCLUDING THE COCOA FOR ITS
CHOCOLATE.
>> 70% OF THE WORLD'S COCOA
COMES FROM A SMALL REGION IN
WEST AFRICA AND ALL OF THE
CLIMATE MODELS SAY THAT REGION
IS GOING TO BECOME DRIER AND
THAT IS NOT GOOD FOR COCOA.
SO THOSE MILLIONS OF FARMERS
THERE, ALL THE PREDICTIONS SAY
THEY ARE GOING TO START TO
STRUGGLE.
>> Reporter: THE RISKS OF
CLIMATE CHANGE TO BUSINESS HAVE
NOW LED HALF OF THE WORLD'S 500
LARGEST PUBLIC COMPANIES
TO SET SUSTAINABILITY GOALS.
A REPORT RELEASED THIS APRIL BY
SEVERAL ENVIRONMENTAL
RESEARCHERS FOUND ENERGY
EFFICIENCY PROJECTS SAVED THESE
COMPANIES NEARLY $4 BILLION LAST
YEAR.
IN ADDITION, AFTER PRESIDENT
TRUMP PULLED THE UNITED STATES
GOVERNMENT OUT OF THE PARIS
CLIMATE ACCORDS, WALMART AND
MARS WERE AMONG THE COMPANIES
THAT SIGNED A LETTER PLEDGING TO
CONTINUE TO MEET THEIR VOLUNTARY
TARGETS.
BUT WALMART'S GROWING BUSINESS
MAY BE IN CONFLICT WITH ITS
SUSTAINABILITY MISSION.
WALMART'S TOTAL RETAIL SQUARE-
FOOTAGE HAS EXPANDED BY 43% IN
THE PAST DECADE, AND ALONG WITH
IT, ITS SELF-REPORTED CARBON
EMISSIONS WENT UP 9%, EVEN AS
THE PACE OF ITS EMISSIONS
SLOWED.
WALMART IS STILL BUILDING NEW
STORES.
IT IS STILL INCREASING ITS
CARBON FOOTPRINT.
HOW DO YOU ANSWER THE BROADER
QUESTION OF WHETHER WALMART CAN
EVER BE TRULY EARTH-FRIENDLY?
>> WE'RE EXPANDING OUR
FOOTPRINT, BUT WE BELIEVE THAT
OUR MODEL, SO THE WAY WE MANAGE
OUR OWN STORE OPERATIONS, THE
WAY WE WORK WITH SUPPLIERS,
ACTUALLY OPTIMIZES AND LOWERS
THE FOOTPRINT TO DELIVER THE
SAME AMOUNT OF PRODUCT TO
PEOPLE.
IF YOU LOOK AT THE SCALE AND
AMBITION OF OUR EFFORTS AND WHAT
WE'VE ACTUALLY ACHIEVED, I'M
ACTUALLY QUITE EXCITED ABOUT IT.
>> Reporter: BY 2025, WALMART
SAYS IT PLANS TO REDUCE ITS
CARBON EMISSIONS BY 18% FROM ITS
2015 LEVELS.
AS EVER, THE COMPANY THAT HAS
TRANSFORMED COMMUNITIES AND
CONSUMERS IS STRIKING A PATH,
AND EXPECTING OTHERS TO FOLLOW.