Lowe’s Takes Action to Reduce Scope 3 Emissions Through Supplier Education and Collaboration
In recent years, there has been a growing emphasis on the need for businesses to reduce their greenhouse gas emissions and work towards sustainability. Lowe’s, a well-known home improvement retailer, is no exception to this trend. Like many other companies, Lowe’s is facing pressure from shareholders and activists to track and reduce its greenhouse gas emissions, particularly its Scope 3 emissions which come from its suppliers.
To address this challenge, Lowe’s has taken a unique approach by engaging with its suppliers through a series of webinars hosted by Campbell Weyland, a senior analyst in sustainability and compliance for the company. These webinars, which began in January 2023, have aimed to educate suppliers on emissions reporting, help them gather data related to their emissions, and find ways to become more energy-efficient.
The results of Lowe’s efforts have been promising. Approximately 160 of Lowe’s suppliers have attended the webinars, learning how to calculate their own Scope 1 and Scope 2 emissions. As a result, the number of suppliers reporting emissions to Lowe’s has more than doubled. This proactive approach by Lowe’s is part of the company’s larger goal to reach net-zero greenhouse gas emissions by 2050.
In 2021, Lowe’s emitted a total of 1,552 tonnes of CO2 equivalents, according to GlobalData. Scope 3 emissions, also known as value chain emissions, are particularly challenging for Lowe’s to address as they are outside of the company’s direct control. Many suppliers were initially unprepared to provide the necessary information on their emissions, prompting Lowe’s to take action to support and guide them through the process.
Chad Sanders, a merchandising vice-president for Lowe’s, highlighted the initial challenges faced in engaging suppliers on sustainability issues. However, through a more targeted and simplified approach, Lowe’s was able to effectively communicate its expectations to suppliers and encourage their participation in emissions reporting.
One example of a supplier that benefited from Lowe’s outreach efforts is CM Tucker Lumber Co., a family-owned business in South Carolina. Despite their long-standing commitment to sustainability, CM Tucker realized through the webinars that there were areas where they could improve, such as reducing their Scope 1 emissions from energy consumption.
In addition to educating suppliers on emissions reporting, Weyland also acted as a consultant to help vendors identify opportunities for improvement. For example, he suggested cost-effective solutions such as switching to LED lights or applying for state grants to support the transition to more sustainable practices.
Furthermore, Lowe’s has been actively working with suppliers to map their value streams and identify areas for efficiency gains. By rethinking processes and materials, suppliers like M-D Building Products have been able to reduce waste, lower emissions, and improve overall operational efficiency.
Looking ahead, Weyland’s focus will shift towards addressing suppliers’ Scope 3 emissions, which are often more challenging to quantify and mitigate. Lowe’s has also committed to releasing more emissions data about the products it sells, demonstrating a continued commitment to transparency and sustainability.
Overall, Lowe’s efforts to engage with suppliers on emissions reporting and sustainability have been met with positive results. Suppliers are beginning to see the benefits, both environmentally and financially, of examining their carbon footprints and making changes to reduce their impact. By fostering a culture of sustainability and collaboration, Lowe’s is paving the way for a more sustainable future within its supply chain and beyond.