Debra Lynn Dadd

"Sustainable Consumption"...coming to a Wal-Mart near you

This past week, Wal-Mart, the world's largest retailer, announced that they are developing a "sustainability index" to measure the environmental impacts of the products that they sell. Their 100,000 suppliers will now be required to provide data on the environmental impacts of their products, which will be condensed into a rating that will appear on the shelf next to the price information.

The New York Times calls this "the green equivalent to nutrition labels." Michael T. Duke, Wal-Mart’s president and chief executive, said, “We have to make consumption itself smarter and sustainable.”

What?!?!?!?! I think it's a great idea that Wal-Mart wants to sell greener products, but, to me, consumption and sustainability are polar opposites. One of the basic ideas of sustainability is to fulfill one's needs to survive in a way that also sustains the surrounding environment. The definition of consumption is to consume--to destory or expend by use, to use up, or to spend wastefully. It is simply impossible to both sustain and consume.

But, that aside, there's no harm done by knowing the environmental and social impacts of the products being sold at Wal-Mart.

The program will be developed over the next five years. All the major retailers are being invited to use Wal-Mart's rating system so there will be on universal system for manufacturer's to use in developing and rating their products.

Wal-Mart plans to begin the process by asking their suppliers to answer 15 simple questions about the sustainable practices of their companies:


Sustainability Index: Supplier Assessment Questions

Energy and Climate -- Reduce energy costs and greenhouse gas emissions
1. Have you measured your corporate greenhouse gas emissions? (Y/N)
2. Have you opted to report your greenhouse gas emissions to the Carbon Disclosure Project (CDP)? (Y/N)
3. What are your total greenhouse gas emissions reported in your most recently completed report? (Enter total metric tons CO2e, e.g. CDP6 Questionnaire, Section 2b – Scope 1 and 2 emissions)
4. Have you set publicly available greenhouse gas reduction targets? If yes, what are those targets? (Enter total metric tons and target date; 2 fields or leave blank)

Material Efficiency -- Reduce waste and enhance quality
Scores will be automatically calculated based on your participation in the Packaging Scorecard in addition to the following:
5. If measured, please report total amount of solid waste generated from the facilities that produce your product(s) for Wal-Mart Inc for the most recent year measured. (Enter total lbs)
6. Have you set publicly available solid waste reduction targets? If yes, what are those targets? (Enter total lbs and target date; 2 fields or leave blank)
7. If measured, please report total water use from the facilities that produce your product(s) for Wal-Mart Inc for the most recent year measured. (Enter total gallons)
8. Have you set publically available water use reduction targets? If yes, what are those targets? (Enter total gallons and target date; 2 fields or leave blank)

Natural Resources -- High quality, responsibly sourced raw materials
9. Have you established publicly available sustainability purchasing guidelines for your direct suppliers that address issues such as environmental compliance, employment practices, and product/ingredient safety? (Y/N)
10. Have you obtained 3rd party certifications for any of the products that you sell to Walmart? If so, from the list of certifications below, please select those for which any of your products are, or utilize materials that are, currently certified.

People and Community -- Responsible & ethical production
11. Do you know the location of 100% of the facilities that produce your product(s)? (Y/N)
12. Before beginning a business relationship with a manufacturing facility, do you evaluate their quality of production and capacity for production? (Y/N)
13. Do you have a process for managing social compliance at the manufacturing level? (Y/N)
14. Do you work with your supply base to resolve issues found during social compliance evaluations and also document specific corrections and improvements? (Y/N)
15. Do you invest in community development activities in the markets you source from and/or operate within? (Y/N)
Hmmm, well, all but three of these questions are yes or no, not actual measurements. But it's a start.

A few years ago, Wal-Mart required suppliers to report on and reduce their packaging. Because of Wal-Mart's packaging requirements, virtually all laundry detergents sold everywhere, for example, are now sold in concentrated form in smaller plastic bottles. That's a good step in the right direction, and it shows Wal-Mart can make a difference. Perhaps now they will address the detergent in those bottles.

With 130 million customers, even a small change can make a big difference.

But sustainability is about more than small changes from big companies. The most sustainable products are made by small local businesses that cannot begin to supply Wal-Mart or Target. Nor should they. Sustainability will happen with small businesses making products from local materials, in appropriate quantities, selling to their communities.

The problem I have encountered over and over since I started trying to get detailed lifecycle information from companies in 1990 is that most companies don't have the information and those that do don't want to give it out.

But some companies are beginning to communicate more about their products. A notable example is Patagonia Footprint Chronicles.

I'll be following this story as it unfolds. Please post any thoughts you have or interesting links you find.


Daily Finance: Wal-Mart's Eco-Labeling Mandate

Market Watch: Wal-Mart Plans Green Labels for Products

New York Times: At Wal-Mart, Labeling to Reflect Green Intent

Harvard Business: Wal-Mart's Environmental Game-Changer

Debra :-)


COMMENTS:

Here's another good comment on Wal-Mart's new sustainability index, from Joel Mackower, a green business expert:

Walmart's Sustainability Index: The Hype and the Reality


Debra :-)

POSTED BY DEBRA LYNN DADD :: DEBRA LYNN DADD :: WWW.DLD123.COM :: FLORIDA USA :: 07/22/2009 7:27 AM


Dear Debra,

Before I comment on Walmart, please know how grateful I am for all you've done to evolve the greening of our lives. Thank you, thank you, thank you!

About Walmart and your post, here's some of my thoughts:

... they are developing a "sustainability index" to measure the environmental impacts of the products that they sell."

THIS IS A GOOD START. I JUST FINISHED READING Daniel Goleman's new book, Ecological Intelligence: How Knowing the Hidden Impacts of What We Buy Can Change Everything. He describes that consumers need to become informed about the impacts of the stuff they buy and use. This isn't always easy because an impact may be out of sight (during the manufacturing, transporting, disposal for example). He also describes a new way to rate impacts ... it's what industrial ecologists do (collect heaps of data and figure out the net impact of a product or activity).

The new categories being used to rate a product's impact are:

GEOSPHERIC AKA ENVIRONMENTAL - impacts on water, soil, air... (which is what Walmart is doing in some way though I wonder if it will be as detailed as an industrial ecologist's rating.

BIOSPHERIC (impacts on life including humans ... how is for example our health impacted by say an air freshener.

SOCIOSPHERIC - includes child labor, benefits to employees etc.

If you go to the goodguide.com you can see what Goleman is describing in beta phase. Look up some product you like and see what the Good Guide says about it.

I imagine Walmart will be drawing from the work that the folks at the Good Guide are collating.

RE: Wal Mart's quote
“We have to make consumption itself smarter and sustainable.”
I agree with you. We all need to REDUCE!

So I say good for them, but I would guess that they found a good thing in the Good Guide.

POSTED BY REENIE :: FLORIDA USA :: 07/28/2009 9:05 AM


Don't get mad, but if you think for one minute that Walmart is doing anything to help this Earth your not doing your homework. I don't care what they come up with,they are still GIANT Corporation. Their main goal is to make money."Profit before people", should be their motto. If this is so great why did they not do it ten years ago! People who shop at Walmart should really take a look at where their money is going.You can make cleaning products yourself or buy them from a company that is family owned. Too little to late Walmart.You can make a difference where you buy your products and from whom! Please think about it. Thanks Jen

POSTED BY JEN :: CALIFORNIA USA :: 07/28/2009 9:21 AM


I agree, Jen. It's still all about the big P, profit. Sustainability is a word that gets kicked around a lot. You notice that WalMart isn't dealing with a product's impact on human health. This is a BIG issue. They sell a bunch of nasties, as do my local Publix shopping center. I asked a manager why mothballs were still on the shelf when they are toxic as all get out. He just kind of shrugged and said mothballs are a popular item. So much for considering health of our bodies and health of the environment.

There's a lot of stuff they should not be made and sold, we at Debra's site are more knowledgeable about these toxins. With this knowledge comes a responsibilitly.

So I don't loudly berate Walmart because so many people are impressed. When I do a local green cleaning workshop, participants make cleaners to take home and try. They get to "prove it" to themselves that simple water and white distilled vinegar do clean, as does baking soda. It's a big big job, and we all have to take up a little piece of the work to make the change.

I read in Goleman's book that WalMart saves 25 million annually by putting small generators in their truckers' cabs. That's a neat little sum. No more running a big truck to heat or cool a cab. Sounds good, huh? My thoughts when I read this, adn concern were: how much can you sleep with a generator running in your cab? What does it do to health of a trucker's body/REM state/senstive ears. So WalMart is polluting less air by not running their diesel trucks while the drivers sleep. Now there's the issue of the driver's quality of life while sleeping.

Picture a star. On the bottom Right point: PRICE. On the bottom left point: QUALITY OF PRODUCT. These 2 are the main considerations when we shop. On the mid left point: ECOSPHERIC IMPACTS (soil, water, air). On the mid right point: SOCIOSPHERIC impacts (how workers are treated, employee benefits, child labor etc.) On the top center : BIOSPHERIC IMPACTS (on the health of all forms of life on Earth including human).

That's a new way to look at each purchase we make, be it product or service. Maybe you are more concerned with human health, another person might be more concerned with the environment. Really we have to develop and use ecological intelligence which includes impacts at ALL phases: manufacturing phase,transportation phase, use phase, disposal phase. Mostly we just think of PRICE and USE. We are in PK when it comes to behaving as responsible consumers, patting ourselves on the back for recycling, for buying something out of Gaiam magazine. These are good baby steps, but we each of us has a long way to travel. Stops and starts are not an option anymore. The Earth's telling us we need to change. Now. I have simplified a lot. In other words, I've REDUCED as much or more as I've RECYCLED. Mostly because the more I research the more concerned I've become that nearly any purchase has unintended consequences as some phase.

POSTED BY REENIE :: FLORIDA USA :: 07/31/2009 7:04 AM


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