Fuelish Measures

Safeway is focusing efforts to reduce its environmental impact where the rubber hits the road. The supermarket chain has been a leader in environmentally-friendly efforts, including its Greenhouse Gas Reduction Initiative and strategies to manage its carbon footprint, but one of its biggest moves was completed earlier this year when it converted its entire truck fleet to cleaner-burning biodiesel fuel.

Fueling its extensive transportation fleet with biodiesel “prevents millions of pounds of carbon emissions from being released into the environment,” says Safeway chairman, president and CEO Steve Burd.

Safeway’s trucks use a biodiesel blend that is 20 percent vegetable-based, specifically one that is mostly soy oil produced in the Midwest. “Soy is domestic, it creates jobs, it’s clean and renewable,” says Joe Pettus, Safeway’s senior vice president for fuel and energy.

As with many alternative options, the issue of cost arises, but the National Biodiesel Board cites a number of studies that suggest the environmental benefits outweigh the cost premium. Burd concurs, saying there are fewer maintenance issues with trucks using biodiesel. The fuel is more expensive, but that the wear and tear on engines is reduced so the total long-term costs amount to only pennies more.

Economics aside, Safeway is pushing ahead because it is the right thing to do. “We have to move toward renewables and away from oil and coal as energy sources,” California Lt. Gov. John Garamendi said in praising Safeway at the introduction of the biodiesel trucks. “Safeway is clearly a national leader in addressing the greenhouse gas issue and climate change.”

Regional participation
The biodiesel initiative makes Safeway, the nation’s third-largest grocer, one of the first major U.S. retailers to convert its entire fleet of more than 1,000 trucks to cleaner-burning biodiesel fuel.

Safeway estimates the move will help reduce carbon dioxide emissions by 75 million pounds annually — the equivalent of taking nearly 7,500 passenger vehicles off the road.

In addition to Safeway’s home state of California, events were held with environmental and community leaders in Colorado, Washington, D.C., and Chicago. In Washington, members of Congress and officials of the EPA joined Safeway executives for announcements at stores.

Beyond switching fuel, Safeway initiated an environmental-awareness educational program by placing special decals on all Safeway trucks to tout the cleaner-burning biodiesel.

Industry consultant Allan Mottus says retailers can’t underestimate the impact of these moves. “Americans are not just dabbling with the environment anymore,” he says. “While they may watch their pennies and not always buy ‘green’ products, they will reward the retailers who are doing their share to help and Safeway has been identified as one.”

Doing the right thing
Financial analysts and consultants concur. “Companies respond to consumer and shareholder pressures,” says David Hackett, president of Irvine, Calif.-based fuel consulting firm Stillwater Associates. “They think that their shareholders and consumers want them to do the right thing from an environmental perspective.”

The move to biodiesel is one piece of Safeway’s Greenhouse Gas Reduction Initiative, an overall effort to manage the carbon footprint while addressing climate change and alternative choices in power and construction.

Safeway is part of the Chicago Climate Exchange, the world’s first — and North America’s only — voluntary, legally-binding greenhouse gas emissions reduction, registry and trading program. Membership in CCS commits Safeway to reducing its carbon footprint by 390,000 tons of carbon dioxide from the base year 2000.