Tag: sustainability

Guest Post: Drinking Graywater Beer?

Prof. Misty Blessley, at Temple U., raises an interesting sustainability issue.

Every drop of water on Earth is part of a continuous cycle. The same water brewed into beer eventually  travels through wastewater systems before being treated and returned to the environment, ready to be consumed again. Gray water is defined as: wastewater from showers, baths, bathroom sinks, and washing machines, excluding toilet water (blackwater) and water from kitchen sinks/dishwashers.

A San Francisco firm, Epic Cleantec, makes this cycle explicit by brewing beer with recycled graywater from showers and laundry. Buildings globally use 15% of all potable water, yet almost none reuse it. Partnering with nearby Devil’s Canyon Brewing Company, it created two beers—Shower Hour IPA and Laundry Club Kölsch, using water purified through a multi-stage system until it meets or exceeds potable water standards. Their approach demonstrates how scarce resources can be sourced in new and innovative ways.

Reusing waste water can help counteract climate change

The supply chain implications are significant. Brewing is water-intensive, requiring several gallons of water for every gallon of beer produced. As climate volatility and drought increasingly pressure municipal water supplies, integrating recycled water helps mitigate supply risk. Pairing this with drought-tolerant barley and hops further enhances supply chain resilience by mitigating upstream agricultural vulnerabilities.

Epic Cleantec’s model represents circular economy principles in action: closing loops, recapturing resources, and turning waste streams into valuable inputs. Many other food and beverage companies are embracing similar strategies. Rubies in the Rubble (UK) creates condiments from surplus produce that would otherwise be discarded. Upcycled Foods, Inc. (U.S.) produces SuperGrain flour to make bread from spent brewing grain. Planetarians (U.S.) transforms spent yeast and soybeans into a vegan meat product that is competitively priced compared to chicken and below beef.

Epic Cleantec emphasizes the circularity of its inputs to build consumer acceptance, hoping customers celebrate the closed loop. For details on the “circular economy” see Supp. 5 of your Heizer/Render/Munson text.

Classroom Discussion Questions:
1.  Forecasting is covered in Ch 4 of the Heizer/Render/Munson textbook. How would you forecast demand for beers made with recycled graywater, given potential consumer hesitation?
2.  TQM Tools are covered in Ch 6. Which tools should the two firms use to ensure water quality and process reliability throughout treatment and brewing?

OM Podcast #39: AI, Sustainability, Cybersecurity, & Blockchain in Operations

We’re back with another exciting episode of the Heizer Render Munson OM Podcast! Today, Barry Render sits down with Dr. Subodha Kumar, Paul Anderson Distinguished Chair Professor at Temple University and Founding Director of the Center for Business Analytics and Disruptive Technologies.

Barry and Subodha dive into the transformative role of artificial intelligence in operations management, exploring how AI is reshaping sustainability practices, enhancing cybersecurity, and driving innovation in blockchain applications. Subodha shares real-world examples from industries like retail, dairy, and luxury goods, and discusses how AI is helping companies tackle greenwashing and improve supply chain visibility.

They also discuss the evolving threat landscape in cybersecurity, especially in logistics and supply chains, and how AI and IoT are both part of the problem—and the solution. Subodha also shares some powerful advice for students preparing for a future where AI will be central to every workplace.

 

Transcript
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Prof. Subodha Kumar
Prof. Barry Render

Guest Post: Mass Timber–A Sustainable Alternative Worth a Closer Look

Temple U. Professor Misty Blessley raises an interesting point in her Guest Post

Mass timber refers to beams, columns, or panels composed of smaller wood pieces bonded together using fasteners, such as nails, or other adhesives. These engineered wood products are increasingly being used in the construction of high-rise buildings, praised for their strength, durability, versatility, and sustainability.

At a time when the U.S. is relying on steel imports to meet demand—and tariffs threaten to drive prices higher, causing delays or cancellations of some construction projects—mass timber presents a compelling alternative that deserves objective evaluation. Mass timber as a building material is gaining traction.

The Benefits:
Mass timber offers a significantly smaller carbon footprint compared to traditional materials like steel. As a renewable resource, wood supports sustainability goals, and “track and trace” technologies now enable end-to-end transparency, from forest to finished product. Notably, mass timber is reported to match steel in strength and is fire resistant. Additionally, clear-cutting practices, which involve harvesting most or all trees in an area simultaneously, allow for high productivity. Once harvested and processed, the prefabricated nature of mass timber allows for faster construction and shorter project timelines.

The Trade-Offs:
Despite its advantages, mass timber comes with concerns. Critics have raised the issue of greenwashing, questioning whether its environmental claims are justified. Also, building codes, historically designed with steel in mind, can lengthen project times because they are still evolving to accommodate this new material. Finally, while competitive, costs have been reported to be marginally higher than conventional options.

Classroom discussion questions:

  1. In Supplement 5 of the Heizer/Render/Munson textbook, sustainability is defined as meeting the needs of the present without compromising the ability of future generations to meet their needs. Consider the trade-offs of clear-cutting through the lens of environmental sustainability.

    2. Seven TQM tools are discussed in Chapter 6. As a project manager of a new building using mass timber, create a cause-and-effect diagram and conduct an initial analysis of what should be considered in preparing to embark on the project. Include all of the four M’s – material, method, manpower, and machine.  

 

OM in the News: The Biofuel Controversy

The battle lines are being drawn on the alternative fuel debate and the steps that will contribute to the International Maritime Organizations’s (IMO) emission reduction goals, reports The Maritime Executive (Feb. 17, 2025).  Major shipping lines and non-government groups are calling for the IMO to exclude biofuels from its list of green alternatives to traditional fossil fuels. They argue it would be unsustainable and could produce more harm than good.

Nearly a third of global shipping could run on biofuel in 2030– up from less than 1% today. But the price advantage of biofuels would result in unsustainable demand. Carriers have invested in the use of biofuels derived from used cooking oil and animal fats. With the supplies limited, just 2.5 – 3% of shipping could run out of used cooking oil and animal fat biofuels by 2030. Two interesting facts:

  • The vast majority of biofuels will come from palm and soy (60%), which are heavily linked to deforestation.

  • Close to 300 millions bottles of vegetable oil could be diverted to powering ships every day in 2030, putting pressure on grocery prices.

(There was a doubling of the use of palm oil biofuels in the EU between 2010 and 2020 following the introduction of a law promoting biofuels in cars.)

There is a debate in the EU on the competition for food supplies if the oils were also to be used as biofuels. “As things stand the IMO risks doing more harm than good. Palm and soy biofuels are devastating for the climate and they take up vast amounts of land,” argues one shipping exec. The fuel-intensive shipping industry would need farmland about the area of Germany to produce enough crops to meet its increased biofuel demand.  Land that could be used for farming would need to be converted to growing biofuel crops, while burning vegetable oil in ships will deprive supermarkets of a staple food item.

This could pose a serious climate problem, as palm and soy are responsible for 2-3 times more carbon emissions than even the dirtiest shipping fuels today, once deforestation and land clearance are taken into account.

Classroom discussion questions:

  1. We open the Supp. to Chapter 5 (Sustainability in the Supply Chain) with an example of airlines switching to biofuels. Is this a realistic approach given the above article?
  2. Make the case for and against shippers switching to biofuels.

Guest Post: The Global Initiative for Green Shipping Corridors

Our Guest Post comes from Dr. Drew Stapleton, Professor of Operations Management at the U. of Wisconsin-La Crosse

Last year, the US Department of Energy and the UK Department for Transport simultaneously requested information relating to the establishment of a green shipping corridor (GSC) between the countries. The GSCs are “maritime routes that showcase low- and zero-emission lifecycle fuels and technologies with the ambition to achieve zero greenhouse gas emissions.”

GSCs have been gaining popularity in recent years. In 2021, nearly two dozen nations expressed their support for the zero-emission routes by signing onto the Clydebank Declaration, which sets the goal of establishing at least five GSCs by 2025. Since then, development has begun on two such corridors—one between LA and Shanghai, and the other between Montreal and Antwerp. By sharing cost and risk burdens by the key stakeholders in the production of zero-emission ships and the use of green fuel oils, the GSC is conceived as an effective policy mechanism and logistics strategy to reduce GHG emissions at sea as well as to mitigate business risks in the value chain.

The ports of LA, Long Beach and Shanghai have announced the creation of the first- ever green shipping corridor designed to accelerate emissions reductions at three of the world’s largest container ports and from vessels in transit from China to Southern California. Leaders from the globe’s largest carriers are on board. Maersk, CMA CGM, Hapag-Lloyd and other shipping lines called for an end date to building vessels powered only by fossil fuels.

Maersk established a net-zero emission target to be reached in 2040. The Danish ocean carrier also aims to procure 100% net-zero steel by 2050 for use in its vessels. CMA CGM’s goal to reach net-zero emissions in its operations is set for 2050. As part of its decarbonization efforts, the French ocean carrier launched a program that incentivized shippers to return their containers early in exchange for carbon credits. Hapag-Lloyd has a goal to reach net-zero emissions in its operations by 2045. MSC has set up a goal to reach net-zero by 2050.

The U.S. believes GSCs are a key means of spurring the early adoption of zero-emission fuels and technologies that will help to achieve zero emissions no later than 2050, and calls on all countries to adopt ambitious actions to create a clean maritime future.

Classroom discussion questions:

  1. Are the emission targets realistic?
  2. Provide details regarding the Clydebank Declaration.

OM in the News: Kicking the Plastic Can Down the Road (Again)

In 2020, dozens of major companies joined the U.S. Plastics Pact, signaling a commitment to minimizing plastic waste. Their goals included phasing out plastic straws, cutlery and intentionally-added PFAS, also known as “forever chemicals”; recycling or composting half of their plastic packaging; and making sure 100% of plastic packaging would be reusable, recyclable or compostable—all by 2025.

A NYC parade participant wears plastic bottles to raise awareness of recycling

Signatories include major brands like General Mills, Nestlé, Kraft Heinz and Coca-Cola, the largest known contributor to global branded plastic waste. Retailers like Walmart and Target and packaging and materials suppliers also signed.

Now, with the 2025 deadline close at hand, the U.S. Plastics Pact has pushed back to 2030 many of the target dates, writes The Wall Street Journal (June 11, 2024). It is not the first time companies have pushed back timelines for aggressive recycling targets. Coca-Cola and Nestlé both made public promises as far back as 2007 that didn’t come to fruition.

Today, less than 10% of plastic waste in the U.S. is recycled annually. While companies frequently tout pilot projects for plant-based plastics or paper bottles, the problem is expected to get worse in the future. Companies had hoped to collectively hit 100% reusable, recycled and compostable packaging by 2025, but the numbers remained below 50%. As for the target aimed at eliminating “problematic and unnecessary materials” including cutlery and plastic straws, not a single one of 11 materials singled out for elimination was confirmed for across-the-board removal in time for the deadline.

Three of the five targets outlined in the new road map are very similar to the 2020 version. Commitments to recycle 50% of plastic packaging, produce 100% recyclable packaging and use 30% recycled content in packaging have been pushed to 2030. Some companies cited an unrealistic time frame and potential increased costs as reasons why deadlines are being missed.

Classroom discussion questions:

  1. How can alternative product designs help meet the U.S. Plastic Pact goals?
  2. What international quality standards relate to sustainability? (See Supp. 5 in your Heizer/Render/Munson text).

 

OM in the News: Building Sustainability Into Product Design

Did you know 80% of a product’s environmental impact is determined in the design phase? With so much dependence on design, it is critical to start thinking about the environmental impact of a product as early as possible, alongside the traditional drivers of cost, quality, and time. To overcome resource scarcity and meet emissions targets, manufacturers are steadily increasing their environmental consciousness, writes Industry Week (April 26, 2024). Those set to succeed are doing so from the very start of their development processes.

Combining the real and digital worlds makes it possible to integrate the entire value chain. This delivers a digital thread that serves as the foundation for collective intelligence, connecting workflows and processes along the value chain. It can also provide designers with access to a comprehensive digital twin informed by simulation results and production data, material information, supplier and product carbon footprint data, etc.

This empowers engineers to rethink design, as they have access to a dynamic and iterative process (outlined in the 5 points below) that is never finished and allows for recycling, remanufacturing and reuse. However, for this to work, sustainability needs to be embedded into all phases of the design process. a point we make in both Ch. 5 (Product Design) and Supp. 5 (Sustainability in the Supply Chain).

1. Conceptual Design In addition to traditional design requirements such as performance, durability, usability and cost, designing for sustainable outcomes means meeting new requirements, including carbon emission caps, water use restrictions and recyclability. Capturing these early is critical .

2. Suppliers When sourcing materials and components, it is important to establish communication with suppliers that best comply with sustainability requirements.

3. Detailed Design The right tools will enable engineers to select the best part materials based on required material properties and the associated sustainability scores.  One material may result in a lowered carbon emission rating within manufacturing because it is more recyclable, while another material option might be more durable and extend product life.

4. Validation Validation covers many workflows and engineering domains to ensure the product functions as expected. Innovative materials used to meet sustainability targets might require more thorough testing.

5. Design Improvement This is a continuous journey that extends long after the product is made. Integrating sustainability goals into product design is making that a reality for every company.

Classroom discussion questions:

  1. Why are suppliers an important part of new product design?
  2. Name a product that has gone through these 5 steps.

OM in the News: Construction Firms Go Circular

Recycled concrete being laid at a construction site in Canary Wharf

Hundreds of feet above the British capital’s Canary Wharf financial district, an office tower under construction grows taller as it draws materials from a source just blocks away. Concrete being poured on to the floor of the 52nd story is made partly with concrete recycled from a building being taken down nearby—part of an initiative to decarbonize office spaces through so-called circular construction practices that aim to maximize the reuse of materials. By putting reduced carbon as a requirement from its suppliers, Canary Wharf helped to transform the supply chain as a whole, largely by giving clarity that this was now a key requirement going forward as a developer.

To produce recycled concrete, waste from demolished buildings is broken down and turned into a powder, after which the aggregates and cements are separated. The cements are processed back into a paste, which makes up about 15% of the final product, while the aggregates are used to make the rest of the concrete, replacing the need for new materials like sand.

Buildings account for 39% of global energy-related carbon emissions, with 11% of that coming from materials and construction, reports The Wall Street Journal (March 27, 2024) . Cement and concrete alone account for 9% of total carbon emissions, so as companies look to lower emissions, the embedded carbon from their offices is a growing concern.

With an increasing world population and urbanization, construction activity will continue to increase. It is estimated that the equivalent of the size of New York City would have to be built every 40 days to meet demand.

Moving to more circular construction methods has shown to be an effective way of cutting emissions. Reusing concrete and cement could help abate 600 million metric tons of carbon-dioxide emissions by 2050. Using recycled concrete reduces carbon-dioxide emissions by about 40% compared with ordinary production.

Construction and real-estate companies are increasingly requesting higher levels of transparency and data. They are asking for Environmental Product Declarations which reveal both the positive and negative impacts of each building material’s life cycle, all the way back to the mine. These give specifiers, designers and tenants a transparent view into a building’s full carbon footprint.

Classroom discussion questions:

  1. In what other ways are buildings “going green?” (Hint: see the Orlando Magic case study in Supp. 5 of your Heizer/Render/Munson text)
  2. How can a building being renovated increase its energy efficiency?

OM in the News: The Growth of Electronic Waste

Supplement 5 in our text, Sustainability in the Supply Chain, stresses the important roles of  product design and circular economy in protecting our planet. But a new report by the U.N. in Earth.com (March 21, 2024) documents the escalating global challenge of electronic waste (e-waste) generation  and how it significantly outstrips the pace at which we are recycling these materials.

E-waste is defined as any discarded product with a plug or battery that harbors toxic additives and hazardous substances, such as mercury. A staggering 62 million tons of e-waste was generated in 2022 –an amount that could fill a line of 40-ton trucks encircling the equator.

Just 22% of this e-waste is known to have been recycled properly, spotlighting the vast amount of valuable resources – worth an estimated $62 billion – that remain untapped, and highlighting the increased pollution and health risks to global communities. The annual rise of 2.6 million tons in e-waste production, with predictions set to soar to 82 million tons by 2030, underscores the problem.

The widening gap between e-waste production and recycling is attributed to several factors, including rapid technological advancements, higher consumption rates, limited repair options, shorter product life cycles, shifts towards EVs, design challenges, and insufficient e-waste management infrastructure. (It is even worse when the extremely dangerous discharged batteries from EVs, not included in the U.N. report, are considered). This complex web highlights the need for integrated solutions that encompass technological innovation, policy reform, and community engagement.

“With less than half of the world implementing and enforcing approaches to manage the problem, this raises the alarm for sound regulations to increase collection and recycling.” writes the U.N. One of the report’s revelations is the current inefficiency in reclaiming valuable materials from e-waste, which presents both an economic loss and a missed opportunity for reducing reliance on rare earth/mineral extraction. “No more than 1% of demand for essential rare earth elements is met by e-waste recycling,” it states.

The report calls for collective action from policymakers, industry leaders, researchers, and consumers to reimagine our approach to electronics consumption and waste management.

Classroom discussion questions:

  1. Why do EVs pose a major challenge?
  2. Identify a product and how its production, use, and end-of-life could be more sustainable.

Guest Post: Sailing Toward Sustainability Transportation

Temple U. Professor Misty Blessley describes a new technology that will uplift sustainability in the shipping industry.

Chemship B.V., a transporter of bulk liquid via its fleet of stainless steel chemical tankers, is the first of its kind to use wind assisted ship propulsion (i.e., sail toward sustainable transportation). Its MT Chemical Challenger, which covers the Trans-Atlantic route between the East Coast of the U.S and the Mediterranean, is the first chemical tanker to be equipped with sustainable wind technology. In a recent article, Chemship’s CEO writes: “We will use less fuel and thus reduce CO2 emissions. For this vessel, we anticipate an annual CO2 reduction of 850 tons. This is equivalent to the yearly CO2 emissions of over 500 passenger cars.”

The technology behind this is four VentoFoils, which have a 30X30 meter sail equivalent. The VentoFoils create a direct wind surface, which when combined with vacuum technology attenuates the force of the wind. The wind sails offer the benefits of easy installation, no needed reinforcements, push-button folding and sail setting, automatic sensing and folding with wind forces over seven and the sails do not obstruct the crew’s line of sight.

Four 16-meter high sails cut fuel consumption by 10-20%

This initiative by Chemship is not only good for the planet, but good for the shipowner’s profits. Since January 1, 2024, due to the expansion of the European Union’s Emissions Trading System (EU ETS) in the shipping industry, shipowners have been paying for the emissions associated with their sea transported goods coming into and going out of European ports.

Classroom Discussion Questions:
1. In Supplement 5 of your Heizer/Render/Munson text, the objective of the EU ETS to combat climate change is discussed. Consider their expansion into the shipping sector.
2. In what ways does Chemship’s adoption of VentoFoils create a competitive advantage? (Note: Water transportation is often preferred when cost is more important than speed).

OM Podcast #14: Feeding the World Through Complex Supply Chains

In our latest podcast, Barry speaks with F. Scott Fein, Vice President of the Northeast Region of Robinson Fresh, a company that aims to “feed the world through complex supply chains.”  They discuss cold food storage supply chains and operations, the effects of AI, sustainability, and product variety and customization.

 

 

Transcript

A Word document of this podcast will download by clicking the word Transcript above.

Instructors, assignable auto-graded exercises using this podcast are available in MyLab OM.  See our  earlier blog post with a recording of author and user Chuck Munson to learn how to find these, or contact your Pearson rep to learn more!  https://www.pearson.com/us/contact-us/find-your-rep.html

OM Podcast #12: Data Analytics and Operations Management

Our latest podcast is all about data analytics.  Barry Render speaks with his son, Charlie Render, president of Render Analytics, about his real world experience using data analytics to solve problems around forecasting, sustainability, and quality.  Charlie shares some recommendations for students who are considering studying or about to graduate in the field of data analytics.

 

 

 

Transcript

Word of this podcast will download by clicking on the word Transcript above.

Instructors, assignable auto-graded exercises using this podcast are available in MyLab OM.  See our  earlier blog post with a recording of author and user Chuck Munson to learn how to find these, or contact your Pearson rep to learn more!  https://www.pearson.com/us/contact-us/find-your-rep.html

Guest Post: Pollution as an Operations Management Issue

Prof. Howard Weiss raises an interesting issue that is in the forefront of many student’s minds.

Recently,
 Shell was sued for air pollution from its plastic plant outside of Pittsburgh
 The German government is being sued for allowing high levels of air pollution
 Monsanto paid $100M dollars to settle a pollution suit for contaminating streams and lakes in Pennsylvania.
Your Heizer/Render/Munson textbook has a graphic (Figure 1.5) on transforming Inputs to Outputs– but perhaps one more output should be added – pollution.

Pollution is an ever-growing global concern that adversely affects the environment and human health. Reducing pollution should be part of the feedback loop. Here are 8 different types of pollution:
1. Air Pollution is one of the most widespread and harmful forms of pollution. Sources include industrial processes, vehicular emissions, agricultural activities, and natural events like wildfires and volcanic eruptions.
2. Water Pollution occurs when contaminants enter water bodies, such as rivers, lakes, oceans, and groundwater. It can stem from various sources, including industrial discharges, agricultural runoff, improper waste disposal, and sewage.
3. Soil or Land Pollution involves the contamination of the Earth’s soil with hazardous substances. This can result from improper disposal of industrial waste, agricultural chemicals, and improper landfill practices. Soil pollution negatively impacts plant and animal life.
4. Noise Pollution is the excessive or disruptive noise that interferes with normal activities, causing stress and potential health issues (and is a topic in Chapter 10). It often originates from transportation, industrial processes, urban development, and recreational activities.
5. Thermal Pollution  occurs when there is a significant alteration of water temperature in natural bodies like rivers or lakes. It commonly results from the discharge of heated water from industrial processes, power plants, or nuclear facilities.
6. Light Pollution involves excessive or misdirected artificial light, which interferes with the natural darkness of the night sky.
7. Plastic Pollution is caused by the improper disposal and accumulation of plastic waste. Plastics persist in the environment for extended periods, harming wildlife and marine ecosystems.
8. Radioactive Pollution  involves the presence of radioactive substances in the environment, often from nuclear power plants, nuclear accidents, or improper disposal of radioactive waste.

Addressing and mitigating these various types of pollution is crucial for safeguarding the environment and public health. Implementing sustainable practices, adopting cleaner technologies, and enforcing regulatory measures ( all topics of Supplement 5) are essential steps toward a cleaner, healthier planet.

Classroom discussion questions:

  1. How can operations managers address each of these concerns?
  2. Clearly industrial processes create many different types of pollution. What types of pollution do service organizations create?

Guest Post: Kraft Heinz’s Mission to Reduce, Recycle and Replace its Plastics Packaging

Dr. Misty Blessley is Associate Professor of Supply Chain Management at Temple U.

Kraft Heinz, the fifth largest food and beverage company in the world (founded in 2015 with the merger of Kraft Foods and H.J. Heinz companies), is on a mission to reduce, recycle and replace virgin plastics in their packaging, including their tomato ketchup bottles. In 1983, as did many firms at that time, Heinz introduced plastic bottles as the packaging of choice for its famous tomato ketchup distributed to the retail grocery channel.

Virgin plastic is newly produced plastic, and Heinz has a goal of eliminating 100 million pounds by 2030. This is a reduction of 20% when compared to their 2021 baseline. Kraft Heinz recently stated: “When deciding what packages to focus on, we first see if there’s an opportunity to remove any unneeded plastic, then we look for opportunities where we can reduce plastic weight, add recycled content, or replace plastics with other types of materials, while ensuring we do not compromise the product quality and [do] meet consumer expectations.”

Kraft Heinz was able to reduce plastic by simply removing the bag from some products and worked towards their recycling objective by swapping some virgin plastic with recyclable plastic. They are also replacing their plastic ketchup bottles with a paper-based bottle made of 100% sustainably sourced wood pulp. A prototype is currently being tested, for this first of its kind in the sauce category.

Rethinking the Ketchup bottle, Heinz teams with Pulpex to deliver paper-based packaging

The firm is partnering with Pulpex, a packaging technology company focused on delivering sustainability through renewable packaging. If the bottle in the photo looks new yet familiar, it is because Pulpex is innovating with Heinz’s iconic ketchup bottle, the same one seen on Heinz ketchup (at restaurants, as an image on foil packs and dip and squeeze packs, etc.) since 1876.

Classroom discussion questions:
1. Product decisions are fundamental to firm strategy and to competitive advantage (see pages 161 – 162 of your Heizer/Render/Munson OM text). Given the need for sustainability in operations and supply chain management, why and how has packaging become part of the product decision?
2. Why do you think Kraft Heinz and Pulpex both feel that familiar looking packaging is a customer expectation?

Guest Post: Walmart Makes Strides in Reducing Scope 3 Value Chain Emissions

Dr. Misty Blessley is Associate Professor of Supply Chain Management and Academic Director of Experiential Learning at Temple University

Walmart is the world’s largest retailer, with an historically strong brick and mortar presence. According to a recent article in Supply Chain Dive (June  2, 2023), “E-commerce is a growing channel for Walmart, and associated waste and packaging are some of the company’s priority areas as it tackles emissions — particularly Scope 3, or value chain, emissions.”

 But what exactly are Scope 3 emissions, how is Walmart tackling emissions in this category, and why it is important to do so? 

Walmart’s paper bag mailer packaging.

According to the World Resources Institute’s Greenhouse Gas Protocol, Scope 3 emissions are those that occur in the upstream and downstream value chain.(Scope 1 emissions are tied to a firm’s facilities and Scope 2 emissions relate to purchased energy). What makes Scope 3 emissions so important to address is that this category is about ten times the magnitude of Scopes 1 and 2, according to Walmart’s Chief Sustainability Officer.

Walmart is tackling Scope 3 emissions in its e-commerce by replacing all plastic mailers with paper mailers. This one change will eliminate the need for 2,000 tons of difficult to recycle plastic over the next seven months. A change such as this has huge longer-term implications. Additionally, Walmart has invested in technology in about half of its fulfillment network that helps create custom-fitted packaging. This change is estimated to eliminate the need for packing filler by 60%. Following through to the customer’s hands, upon placing an order they have the option to opt out of receiving their pick-up orders in single-use plastic bags, which is expected to keep millions of bags out of circulation.

Walmart has pilots for reusable or refillable packaging in some categories. They “have a goal for all global private brand packaging to be recyclable, reusable or industrially compostable by 2025,” and they are making strides. In viewing themselves as one node in a larger supply chain, Walmart also encourages their suppliers to consider their alternatives for reducing packaging waste.

Classroom discussion questions:

  1. In what ways is Walmart practicing good corporate social responsibility?
  2. How has Walmart looked beyond design and production for sustainability, to include product distribution?