On average, refrigeration systems account for 30 to 50 percent of the energy consumption of our buildings. As demand for our retail services expands globally, especially for fresh and frozen food, the need for refrigerated equipment will grow. We look at refrigeration through a holistic lens and prioritize action based on potential to reduce environmental impacts. Our actions are focused on:
In 2011, we began incorporating refrigeration and store designs that would enable the transition to less HFC-reliant systems. We continue to test HFC-free systems in several markets, which will allow us to validate system efficiency, total GHG impact and quality functionality.
Refrigeration equipment and parts make up a large portion of our capital spend. Inefficiencies within these systems push that annual spend even higher, while unnecessarily drawing from precious energy resources and emitting GHGs. For years, Walmart worked tirelessly across markets to identify efficient and sustainable solutions.
Conversations and collaboration with industry experts led to the development of new, energy-efficient refrigerant technology that we recently tested at an Asda facility in the U.K. We’re now trialing this technology at a select few stores in the U.S., Mexico and the U.K. Among the highlights, we’ve reduced the number of individual parts, potentially reducing energy consumption.
As we continue testing, we’re looking for ways to align technical engineering to create a scalable solution across markets. We intend to increase standardization of our display refrigerant equipment while preserving flexibility to accommodate specific market needs. This would represent an important step forward for Walmart, as well as the retail and refrigeration industries in general.
Two-thirds of the greenhouse gas emissions associated with refrigeration comes from the energy used to run the system itself. At this time, more energy is required to use “natural” refrigerants. Designing new systems that are less prone to leakage and consume less energy would be a faster, more affordable way to reduce associated greenhouse gas emissions. As the industry works toward the development of an optimal, long-term solution, we continue to work within and across the industry to focus on the entire life cycle.
In addition, we face gaps identifying properly trained and certified people to certify new refrigeration technology. Collaboration between manufacturers, service industry groups and system owners will help deliver a sustainable long-term solution.
As a retailer, our direct water intensity is relatively low when compared to mining, manufacturing or agribusiness. Still, we estimate that more than 20 percent of our operations around the world are, or will be, located in regions facing high levels of water stress. We are actively working to raise water-use efficiency in our operations around the world by:
Surpassed goal by reducing water consumption by 8 percent.
34 percent of water is currently recycled in store operations.
Walmart Mexico, one of our largest operations, is a leader in water stewardship in our company and has water initiatives in operation and under development in multiple locations. In 2014, we increased our number of on-site water treatment plants to 665. Those plants treat more than 2.5 million cubic meters of wastewater, 34 percent of which was reused for irrigation.
Reduced water consumption by 29 percent compared with our 2010 baseline. This was achieved by adding low-flow water nozzles in our store kitchens, defrosting frozen items in the refrigerated cases, and better managing overflow and leakage.
In an effort to more accurately quantify water consumption, we transitioned from tracking by cost to kiloliters consumed in 2014 and installed independent water check meters at select Makro, Builders Warehouse and Cambridge stores. In addition, we estimate that the rainwater harvesting and condensation capturing initiatives at 75 of our Makro and Builders Warehouse stores have reduced water consumption by 7,750 kiloliters.
In 2008, Walmart U.S. partnered with Phigenics, an independent water management company, to develop a process that utilizes real-time monitoring and independent validation to ensure efficient water consumption across Walmart’s portfolio of 403 utility water cooling systems at 227 stores. It consists of a standardized system for automatic sensor monitoring, secure wireless data communications and program oversight by experts in water management. Through the development and implementation of this approach, we’ve reduced water consumption by an average of 25 percent per open-recirculating system over the past six years. That’s the equivalent of 660 million gallons of water saved.
The significant underpricing of water in many geographies lowers the financial payback of water projects. In the coming years, as water rates are expected to increase and water regulations continue to grow tighter, Walmart is well-positioned to effectively manage costs and operational efficiencies. Further, our use of smart technology and industry best practices helps Walmart to reduce our water footprint today and adopt new measures that make sense for our operations going forward.
Walmart’s U.S. private fleet operates approximately 6,000 trucks, pulling millions of loads each year. While the U.S. fleet accounts for the largest portion of company-owned trucks and trailers, we also maintain other private fleets around the world and work directly with third-party transportation providers to keep store and club shelves stocked. We recognize the opportunity to set the course for a sustainable future by driving fleet efficiency. Every gallon not burned means emissions avoided and dollars saved, which translate into a cleaner environment and lower prices for our customers. Safety, reliability and efficiency are the keys to a sustainable fleet, so we're focused on innovation in:
We’ve increased our fleet efficiency by 3.2 percent in 2014, accounting for an 87.4 percent improvement over our 2005 baseline.
In terms of transportation as a whole, we delivered nearly 161 million more cases, while adding just 24 million new miles in 2014, as compared with 2013. Every mile not driven is fuel not burned. That efficiency saved the company nearly $11 million, which has a direct impact on our ability to offer customers everyday low prices on the products and services we sell. The efficiency has helped us avoid more than 15,000 metric tons of CO2, the equivalent of removing more than 3,000 cars from the road.
While miles per gallon serves as an indicator of effective driving, it doesn't tell the entire story. Factors such as weather, terrain and load can easily impact fuel economy by up to 30 percent. While the driver has very little control over these factors, the use of techniques such as avoiding unnecessary idling, limiting over-rev and increasing the use of top gear allows the drivers to increase their fuel economy.
Introduced in early 2014, the Walmart Advanced Vehicle Experience concept truck represents the latest in our fleet efficiency program. This one-of-a-kind prototype — built in the U.S. in collaboration with Peterbilt Motors and Great Dane Trailers — offered a package of firsts, ranging from the latest in aerodynamics and electrified auxiliaries to a microturbine-powered hybrid powertrain and lightweight composite materials. The trailer is made almost exclusively with carbon fiber, saving around 4,000 pounds in vehicle weight. Both projects showcased the possibilities and benefits of advanced aerodynamics, and the large weight reduction achieved in the trailer proved that with advanced composites there is still room for lightweighting. We learned that the powertrain, although not ready for the demands of over-the-road applications, is prime for off-road operation like yard trucks. Walmart and our partners learned a great deal from the design, build and component integration of this bold prototype. And while we increased our technical knowledge, probably the most important things we learned are that the trucking industry is eager for innovation, there is potential for greater fuel efficiency, and the supplier base has the ingenuity to deliver. The process of collaboration, testing new ideas and pushing boundaries will be incorporated into our next-generation prototype and will contribute to our ability to transition to alternative fuels. Every investment takes us multiple steps closer to unveiling a concept that will not only push Walmart forward, but will also improve the trucking and transportation field in general.
In a company as large as Walmart and an industry as fast-paced as retail, we’re often required to make quick decisions to meet customer needs. At times, however, quick solutions cause inefficiencies in merchandising, operations and logistics. Better coordination between the logistics and merchant teams, as well as better data utilization, improves the quality and speed of decisions. Supplier alignments are a great example. Buying decisions are based, in part, on the number of miles and cost to get a product from the supplier to the stores.
Based on nearly 10 years of collaborating with stakeholders to improve the fuel efficiency of Walmart’s U.S. fleet, we’ve identified several key success factors for driving greater efficiency across the industry.
Each year, we move millions of products from manufacturers to Walmart distribution centers, and from distribution centers to the shelves in our stores. Our logistics network operates one of the largest and safest fleets in the U.S. and our drivers clock thousands of miles to make millions of deliveries to our stores and clubs.
Walmart drivers were recognized at the 2014 American Trucking Association Safety and HR National Conference and Exhibition as the industry’s safest fleet in its class for 2013. In 2014, seven Walmart drivers advanced to the finals at the American Trucking Association’s National Truck Driving Championship (NTDC), where accident-free driving and safe driving are prerequisites for participation.
George Hart isn’t just a truck driver. He’s a Walmart truck driver, and, since being hired in 1981, he has exemplified the company’s commitment to safety on the road. In fact, Hart — who has been based in both Hopkinsville, Ky., and Bentonville, Ark., became the latest Walmart driver to reach 4 million consecutive safe miles earlier this year.