Introduction
The occurrence of changes in climate is common and has a significant impact on the strategic policies and strategies of the organizations. Walmart is one of the leading companies in the retail sector with the highest revenue over US$500 billion. Climate change impacts Walmart in different ways, for example, it creates an issue of fluctuation of costs and changes in buying habits and risks. The mitigation of the issue of climate change is important because it can cause significant and high disruption in the strategic system of Wal-Mart.
Drivers of Climate Change
There are three main categories of drivers of climate change. These include regulatory drivers, physical drivers, and market drivers. Decarburization of the supply chain, carbon footprint, carbon management and volatility of fuels and energy prices are some of the examples of regulatory drivers of climate change. Workforce attendance, shortage of raw materials and extreme patterns of weather are examples of physical drivers of climate change. Increased demand for green products and customer sensitivity regarding the environment are examples of market drivers of climate change.
Strategies of Walmart to Mitigate the Issue of Climate Change
The temperature of our planet is rising in the rapid way, despite the efforts made by individuals, governments, and companies around the world. This increase in temperature is resulting in increased greenhouse gas emissions. The emission of gases is considered a leading contributor to climate change. Different steps are taken in tackling and mitigating this global issue of climate change (Walton, 2016). The contribution of Walmart is based on the creation of emission and energy reduction goals. To show its commitment to the reduction of climate change, Walmart has signed the White House’s American Business Act, developed for pledging the climate issue. By signing the act, Walmart has announced to deploy more clean projects, increase low carbon investments and reduce emissions.
By this commitment to mitigate climate change, the Company has set the target of reducing the emissions in its operations by 18% by the end of 2025 to mitigate the impact of climate change. The company has developed a plan for using renewable energy, and another important aspect of mitigating the impact of climate change is that more efficient lighting systems have installed by the company in its stores and parking lots (Corporate Wal Mart, 2016).
Key Steps are Taken to be Effective in the Mitigating Climate Change Issue
- Reduction of greenhouse gas emissions by setting an emission reduction plan. This step was taken in 2016 by approving the plan by Science-Based Targets initiative.
- Mounting more reasonable, renewable energy sources because the company has realized that the natural gas, petroleum, and coal are important elements of fossil fuels that are considered as the main source of greenhouse gases when they burn out.
- Increasing the efficiency of energy in the company’s operations. Walmart is considering focusing on renewable sources like biomass, geothermal, solar, wind and hydropower to contribute to mitigating the global issue of climate change.
- The development and increase in the performance and functions of refrigeration systems by improving efficiency in current systems of the company and by using refrigerant gases, apply new systems to air cooling equipment’s which have a lower level of environmental impact.
- Increasing the safety and sustainability of trucking fleet of the company by increasing the proportion of fuels that have a lower emission footprint. The change management at Walmart is considering implementing the fleet technology within the organization, and by this change policy, the company will upgrade the cooling and heating systems of the company (Wal Mart, 2018).
The Role of Leadership and Change Management to Mitigate Climate Change
There is no doubt that climate change is one of the issues that require urgent policies for the management of companies like Wal-Mart. The role of leadership and change is important in mitigating climate change issues because according to classical study, leadership is needed to realize useful change. In the context of mitigating the global issue of climate change, Walmart often requires a change in current practices and policies that could only be contributed by leadership management. The role of leadership and change management is important because it helps in the successful adaptation of strategies and to manage the conflicts that are occurring in the context of adaptation and mitigation measures (Meijerink & Stiller, 2011).
How Walmart can Measure the Effectiveness of Mitigating Climate Change
Walmart management can compare the actual achievement and target of a reduction of emissions from its operations to measure the effectiveness. In the context of measuring the effectiveness, the role and use of the KPIs (Key Performance Indicators) would be very important. Walmart managers can measure effectiveness by selecting proper KPIs. It would be a way of confirming that what is going well in mitigating the issue of climate change, identify those areas where problems are still facing, and all negative trends in mitigating climate change would be proactively resolved by use of proper KPIs (Bedore, 2017).
Conclusion
Climate change is one of the environmental consequences that could be faced by Walmart. These consequences include the melting glaciers, elevated temperatures, and rising sea levels. Climate change can pose a threat to the supply chain of Walmart, which could be the reason for an increase in costs. The leadership management in Walmart is focusing on making changes to policies regarding the reduction of carbon emissions.
References
Bedore, F. (2017, February). How We’re Staying On Track to Fight Climate Change. Retrieved 2018, from Wal Mart.
Corporate Wal Mart. (2016, November 2). 2016 Globa lResponsibility Report. Retrieved from Wal Mart.
Meijerink, S., & Stiller, S. (2011, August 27). What kind of leadership do we need for climate adaptation?
Wal Mart. (2018, November 22). 2018 Global Responsibility Report. Retrieved from Wal Mart.
Walton, R. (2016, December 15). Why Walmart is doubling down on its commitment to climate change. Retrieved from CNBC.
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