March 5, 2010
Home Depot Shoots for 20% Reduction in Supply Chain Emissions Over 5 Years
Home Depot has set a goal to reduce its greenhouse gas emissions related to the domestic supply chain by 20 percent over the next five years.
The retailer expects its supply chain to benefit from a move to a centralized distribution network, instead of the mostly supplier-to-store process in place currently, according to a press release.
More efficient routing, scheduling and consolidation of store shipments is expected to equate a reduction of 200 million miles driven a year.
In a review of its progress so far, the retailer said it has saved 2.6 billion kilowatt hours at its U.S. operations since starting an energy efficiency program in 2004. In Canada, the chain has saved 220 million kWh since 2005, according to a press release.
Home Depot said it expects to hit a 20 percent reduction in kWh per square foot in the U.S. and Canada by 2015.
The company said that, since the start of 2004, its stores have seen the energy consumed per square foot decline 16 percent. In 2004, the chain used about 25 kWh per square foot, and now the number stands at 21 kWh. The goal is 20 kWh per square foot by 2015.
To achieve this, stores are shifting from 54 watt lighting to 49 watts, as well as completing HVAC upgrades and adding white roofs.
The stores also will try to save energy by shifting stocking hours more closely to operating hours, allowing the buildings to sit with the lights off longer.
The company is in the process of calculating its overall carbon footprint, based on standards from the World Resources Institute and the World Business Council for Sustainable Development protocol.
Home Depot previously has faced pressure from shareholder groups to adopt more stringent energy efficiency measures.
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Reader Comments
I commend Home Depot commitment to the environment and their efforts to reduce GHG emissions by 20% by 2015. My concern is all of the goals set are how to reduce emissions and cost from logistics and operations. Being GHG-responsible is crucial, and the idea that changing light bulbs and efficiency gains in transportation qualifies as a holistic look at their corporate supply chain is misleading to stakeholders.
The majority (up to 90%) of Home Depot’s GHG footprint is embedded in the products on their shelves. To find real opportunities for stakeholder value and mitigation the footprint of products and materials must be accounted for as part of the carbon calculation.
Andrew Deitz | March 5th, 2010
I would like to see retailers stocking more recycled products and more American made products too!
Dan Weisenbach | March 5th, 2010
Thanks to consumer and shareholder pressure, policy is changing. Home Depot is to be commended for listening to its shareholders. But as those involved with Home Depot in the past know, promises are one thing and follow-through is another.
David Leland Hyde | March 7th, 2010
Energy efficiency in the supply chain makes cents. It makes sense from profit as well as a marketing perspective. I would expect to see more companies making announcements like this. Retailers like Walmart and Home Depot have the most to gain.
Here is an article on my blog to learn more
http://sbcfulfillment.com/component/content/article/81-bschoenbaechler/212-supply-chain-management-greening-the-supply-chain
Brian | March 18th, 2010