Signs of Change: Sam Gets Sustainable

Let’s face it: If global retail were a western movie, Walmart would be the guy in the black hat. The enormity of the megaretailer is such that if it were a country, it would be the thirty-first largest in the world, ranked by GDP. With some 2.1 million employees, it is the biggest employer in Mexico and one of the biggest in the U.S. and Canada. Add to that brawn a reputation for bullying suppliers, destroying Main Streets, and stiffing employees on healthcare and other benefits, and you have a company that’s catnip for critics. And so it was no surprise in 2005 when the public reacted skeptically (to put it mildly) to Walmart’s announced plans to become a positive force for environmental and social change. Yet five years down the road—under CEO Lee Scott and his successor, Mike Duke—the company has emerged as a bona fide leader in sustainability. It has reduced both its own carbon footprint (redirecting 57% of waste in its Walmart and Sam’s Club locations in the U.S., for instance) and the footprints of many of its customers (for starters, by selling them 350 million CFL light bulbs and stocking only concentrated laundry detergents to cut down on packaging). And it has been a perhaps unlikely proponent of transparency, applying pressure for clearer sourcing of goods ranging from gold to cotton.

Now, the company is putting the squeeze on its 100,000 suppliers—in effect forcing them to go green, too. In partnership with a consortium of universities, Walmart is creating a global database of information detailing every aspect of the lifecycle of products, from raw materials through to disposal. Just what is the environmental and human cost of that pack of gum or pair of jeans? Which tube of toothpaste does the least harm to people and the planet? The envisioned result is a comprehensive index that will rate products according to their impact, giving consumers a quick and easy way to make choices based on sustainability measures.

There are some who continue to dismiss the rise of eco-consciousness and the broader movement toward mindful consumption as no more than a fad. We say that when a company as powerful as Walmart doesn’t simply inject itself into the movement but actually grasps for the reins, it is a clear sign that big business has come to recognize the financial and reputation benefits to be reaped by driving positive change. Some consider it ironic that the world’s largest seller of disposable goods has turned into arguably the most powerful promoter of conscious consumption. We see it as an indication of a better way forward—and as further evidence that the mindless hyperconsumerism of the last half century will not return to previous levels no matter how strongly the economy rebounds. Times have changed—and so have the attitudes of people, from customers in the checkout line to members of the C-suite. As British economist E. F. Schumacher said, “Infinite growth of material consumption in a finite world is an impossibility.” Even Sam—or at least his heirs—has caught on to that.

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6 Responses to “Signs of Change: Sam Gets Sustainable”

  1. Ann O'Reilly says:

    For more on Walmart’s sustainability initiatives, check out this new post on Treehugger.com: http://www.treehugger.com/files/2010/06/walmarts-sustainability-initiatives-explained.php?campaign=TH_rotator

  2. Cindy Fazio says:

    The big issue with CFL bulbs that no one seems to be addressing is that they contain mercury and although consumers are supposed to dispose of them properly, they do not because there are no collection sites. After a few years when they burn out, there will be massive amounts of mercury going into landfills. And, if the bulbs break in the garbage or in transit, the danger of the inhaling mercury vapors is far worse than eating fish laden with mercury. Here’s a link to an old article on CFL bulbs http://www.npr.org/templates/story/story.php?storyId=7431198

  3. Ann O'Reilly says:

    From what I’ve read, it takes about 125 CFL bulbs to equal the mercury in an old thermometer. Still too much, I realize…I have zero desire to be a Walmart apologist (I’m a Target fan:-)), but it seems they’re working to deal with that issue. From a 3/10 article:

    “Wal-Mart said it estimates a third less mercury will be used in the production process of the bulbs it buys, effectively removing an average of 360 pounds of mercury per 100 million CFLs sold in its stores.

    “‘People concerned about the environment and their health can buy these CFLs with a clear conscience,’ Noah Horowitz, senior scientist with the Natural Resources Defense Council, said in a statement released by Wal-Mart.

    “‘In fact,’ he added, “the energy savings delivered through the use of CFLs will actually reduce more mercury pollution from coal-fired power plants than is added through manufacture of the bulbs.’”

    Full article here: http://www.msnbc.msn.com/id/17831334/

    Is anyone talking about a better alternative? LED? Something else?

  4. Ann O'Reilly says:

    Has hell frozen over? Seventh Generation to stock Walmart shelves: http://online.wsj.com/article/SB10001424052748704421304575383271764631764.html?mod=dist_smartbrief

  5. CJamieson says:

    An insightful post from Joel Makower: http://www.greenbiz.com/blog/2010/07/19/walmart-and-sustainability-index-one-year-later?page=0%2C0. WM’s progress on the so-called “index” is slower than most of us hoped but at least they’re still advancing the process. Frustrating but at least big companies are having the conversation.

  6. Ann O'Reilly says:

    Look who’s getting transparent! WM has released the specifics of its GHG accounting: http://www.greenbiz.com/blog/2010/08/05/walmart-releases-its-roadmap-ghg-accounting.

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