Large Companies See Payoffs in Sustainability

From our partners at PBS Newshour Weekend: In June, President Donald Trump announced the U.S. would quit the Paris climate change accord, in which 195 nations agreed to voluntary steps to reduce emissions of gases that cause global warming. Strong opposition to the move came from U.S. companies now pledging to reduce their use of fossil fuels. NewsHour Weekend Special Correspondent Stephanie Sy reports.

TRANSCRIPT

>> 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.