Wal-Mart goes off the deep end

This was sent to us via e-mail by a person we know well. My heart is broken.

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Last October, Walmart CEO H. Lee Scott pledged to transform his sprawling company, which employs 1.8 million people worldwide and ranks No. 2 on the Fortune 500 list, into a lean green machine powered exclusively by renewable energy, producing zero waste, and selling sustainable products. Those goals are so lofty they sound downright deluded, but Scott has followed them up with specific, seemingly achievable commitments and timetables. He aims, for example, to reduce greenhouse-gas emissions at Wal-Mart's existing stores and distribution centers 20 percent by 2012, and invest $500 million in environmental improvements each year.

Andy Ruben, Wal-Mart's vice president for corporate strategy and sustainability, reasons that the 100 percent renewable-energy goal could be met largely with greater efficiencies. "We can use 70 percent less energy to do what we're doing today, and supply the rest with renewables," Ruben suggested at last week's meeting.

The gathering brought forth more green goals from divisions throughout the company. In the area of seafood, Wal-Mart is working with the World Wildlife Fund to identify, and purchase exclusively from, sustainable fisheries. It's moving toward organic cottons in its apparel and bedding lines. The jewelry division is developing a sustainable certification program for the gold mines it works with, and exploring outlets for recycled gold. The transportation division is planning to double the efficiency of its truck fleet, one of the largest in the U.S., within a decade. The construction division is developing prototype stores that are 30 percent more energy-efficient than current stores, and the company also aims to improve efficiency at existing stores by 20 percent. The packaging department is working to eliminate its waste stream by 2015, using reusable, recycled, and biodegradable containers.

The produce division is ramping up its organic offerings, and plans to move toward more local farm purchases in order to save money on truck fuel costs and refrigeration. Ron McCormick, an executive in Wal-Mart's produce division, said he plans to purchase a broader variety of produce based on what's available in each region, rather than insisting on a "monoculture" of produce at stores nationwide. "Our whole focus is: How can we reduce food-miles?"

These internal aims aside, Scott said Wal-Mart's most meaningful environmental impact will be in nudging its 60,000 suppliers toward more eco-friendly practices -- working with them, for instance, to reduce packaging, which in turn would mean fewer raw materials consumed, less energy expended in transit, and, in the end, lower prices for consumers. "Ninety percent of the impact Wal-Mart can have is on the supply chain," he said.

Wal-Mart's Ruben, who this spring testified before a Senate committee in favor of federal greenhouse-gas regulations, also acknowledged that in addition to the 23 million tons of CO2 equivalent that Wal-Mart emits each year, there are an estimated 220 million tons of annual greenhouse-gas emissions in the company's supply chain.

Scott's grand goal, as he explained it in an interview with Grist this spring, is to "democratize sustainability." To wit: He wants to use Wal-Mart's unparalleled economies of scale to put everything from organic T-shirts to compact fluorescent light bulbs to pesticide-free foods within reach of the masses.

Of course, he believes this green push will make the company money. "The benefits of the strategy are undeniable, whether you look through the lens of greenhouse-gas reduction or the lens of cost savings. What has become so obvious is that [a green strategy] provides better value for our customers."


http://www.grist.org/news/muck/2006/07/19/gore-walmart/index.html?source=weekly