It doesn’t seem too long ago that the business practices of Wal-Mart were widely criticized by groups ranging from workers’ rights activists to environmentalists, from trade unions to anti-globalization demonstrators and to those increasingly concerned with the state of American urban sprawl. Yes, many of us took well advantage of Wal-Mart’s very low prices, but, still, it is obvious their image had to change. Enter former CEO H. Lee Scott’s increasing personal and professional “revelations” about the positive impact Wal-Mart could have on the planet, and the growing efforts Mr. Scott pushed toward reducing the company’s operational footprint.
For CEO Scott, it started with a 2005 post-Hurricane Katrina speech highlighted by Wal-Mart’s new commitments to: doubling the fuel efficiency of its massive shipping fleet; to Wal-Mart, eventually, “creating zero waste;” for the company “to be supplied 100% by renewable energy” (currently, the company will source about 1% of its energy in the U.S. from renewables in 2009); and to invest $500 million annually in various energy saving programs. Then, the world’s largest retailer cemented – at least in their eyes – their commitment to green business practices and environmental concerns with their recent dramatic release of Wal-Mart’s “Sustainability Product Index” on July 16 of this year.
As Greg previously remarked here on Source and Resource, the company’s new audacious and ambitious Sustainability Index involves 15 questions to approximately 60,000 to 100,000 suppliers around the world. The Index “will serve as a tool for Wal-Mart’s suppliers to evaluate their own sustainability efforts… (focusing) on four areas: energy and climate; material efficiency; natural resources, and; people and community.”
Naturally, environmentalists and green business experts were healthily cautious before jumping to applaud the release of this index. However, after further assessment of the sustainability criteria, experts have generally agreed that, although it has its faults – such as a lack of clear metrics, data, and interim milestones in some areas – the Sustainability Questionnaire is a bold move forward that could lead to an increased demand for transparency across all global businesses. And, I say, that if this intense scrutiny successfully increases the environmental sustainability of the Wal-Mart supply chain, which reportedly touches 1/3 of the world’s productive capacity, then the efforts will truly yield a new, positive “Wal-Mart Effect.” The ripples caused by the Sustainability Index may reverberate a newfound, widespread urgency for Life-Cycle Assessments and supply-chain environmental impact assessments for numerous products across retail sectors.
Therefore, your company may need assistance in readying itself for answering such questions and applying these new metrics to its products or services offered. This is true whether you currently sell to Wal-Mart, are planning to sell Wal-Mart, or are rightfully intrigued by the fact that such “sustainability questions” might, soon, apply to other buyers of your products or services. It is especially imperative to be familiar with the new rubrics and manners of reporting if your company is either a supplier to, or a partner with, consumer-goods companies Procter & Gamble, Tyson foods, Unilever, General Mills, and the other enterprises that have partnered with Wal-Mart to create their new Sustainability Consortium led by academics from the University of Arkansas and Arizona State University.
There is an upcoming workshop and conference in the Boston area that aims to provide answers, support, and guidance in these areas. The workshop is entitled “Wal-Mart Supplier Readiness Workshop” and the accompanying conference the following day is called “Greening the Supply Chain.” The two events are being created by the highly reputable “all things green” media outlet, Greentech Media, and their partner sponsor, Groom Energy, on September 16 and 17. The two-day affair will be located at the Embassy Suites by the Boston-Logan Airport and will discuss opportunities such as The Carbon Disclosure Project, green certification systems, and managing “social compliance.” The sponsors describe the workshop as a “time- and cost-effective way to gain confidence with your submittal (to Wal-Mart) and to gauge investment levels in sustainability programs.” They recommend the two-day event to not only Wal-Mart suppliers, but also to suppliers who want to network with experts and other suppliers. In addition, Sean Stephan, the Senior Director of Packaging and Sustainability at Wal-Mart International will be on hand to speak and answer a direct Q & A session.
Thus, it may be worthwhile for yourself or a representative from your business to go to the conference if not to network then to learn something about sustainability and supply chain issues, especially if your company can handle the $495 registration fee.
