Green Options

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My editorial work keeps me hopping, so I’m a bit late getting started on reporting about my trip last week to Bentonville, Arkansas, for Wal-Mart’s annual Media Day and Shareholders’ Meeting. As always, it was a whirlwind of activity combining trips to company stores in the area, press meetings with company executives, and a little entertainment thrown in. I skipped the Carrie Underwood/Keith Urban concert Thursday night, but did see Joss Stone, Jennifer Hudson and David Cook perform early Friday morning… with Queen Latifah handling the MC duties.

Yes, Wal-Mart does a fantastic job entertaining the troops, but my real interest was in further news on company sustainability initiatives. Over the next week or so, I’ll be reporting on those. Today, I just wanted to provide some initial thoughts, and perhaps get the conversation going.

In case you haven’t noticed, the economy’s in a bit of slump… and that means more people are turning to discount retailers for their basic needs and luxuries. Sales figures are up for the company, and all of the executives that spoke at various portions of the media conference noted the company’s founding value of saving people money. At some points, I began to wonder just a bit if the much-heralded sustainability initiatives of the past few years were taking a back seat to it’s ability to provide goods (and services) at low prices.

The question has been on every environmentalist’s mind since Lee Scott announced Wal-Mart’s sustainability initiatives in 2005: how much of Wal-Mart’s green efforts are genuine, and how much are just greenwashing?

Two articles from Advertising Age this week provide some insight. Both pieces examine the relationship between Wal-Mart’s advertising firms and its sustainability initiatives. The first article, “‘Come as You Are’ to Help Environment”, reveals that Wal-Mart’s green initiatives did indeed start as a marketing campaign and [...]

It will take more than promises and glossy marketing campaigns to convince consumers that Wal-Mart is green, a recent study has found.

The largest retailer on earth finds itself the subject of Environmental Leader’s latest study on green marketing. Despite Wal-Mart’s massive green marketing campaign over the last year, consumers still don’t consider the retailer a sustainable company, explaining:

Brands that have spent significant marketing dollars communicating green initiatives such as Wal-Mart and GE are

[...]

As retailer to over 90% of US households, Wal-Mart is in the unique position of being an excellent compiler of information.

Recently they started tracking shoppers’ green buying habits. Actually all retailers track products their consumers purchase for inventory control. Wal-Mart however was one of the leaders in using this data to tightly control inventory and share information with manufacturers. They retain leadership in this area with RFID tracking systems and well managed JIT manufacturing cooperative programs with their vendors.

Now Wal-Mart is sharing some of this information with the world with the Wal-Mart Live-Better Index .

Wal-Mart’s environmental initiatives have been a major part of the company’s recent attempts to win public favor. The company has made a number of lofty promises aimed at improving its carbon footprint AND its public image. CEO Lee Scott has announced plans to reduce packaging, improve its truck fleet and “green up” the company’s stores. Up until now, the public has bought it.

But an article in today’s Northwest Arkansas Morning News shows that the company’s suppliers [...]

Not one to ever stay out of the news for one reason or another, Wal-Mart this week unveiled what it calls its most energy-efficient U.S. store yet: the HE.5 prototype.

The store, located in Las Vegas, is said to use up to 45 percent less energy than your basic Supercenter. It’s also designed specifically for the Southwest’s typical climate conditions.

Wal-Mart CEO Lee Scott attended the ECO:nomics conference in California this week. Wal-Mart has been heralded as a forerunner of corporate environmentalism: in 2005, the company announced big plans to “green up” its act. But when Scott was asked when Wal-Mart expects to achieve the environmental goals it set forth in 2005, Scott answered bluntly: “I have no idea when that will be.”

It’s the first time anyone from Wal-Mart has admitted so candidly that the company [...]

Warning: long(ish) post ahead…

It’s been almost two weeks since I traveled to Kansas City for Wal-Mart’s Year-Beginning Meeting, so that’s probably more than enough time to think about the broad implications of CEO Lee Scott’s “Company of the Future” speech, and the plans outlined for energy efficiency and supply chain sustainability. In that time, I’ve also thought about Enterprise Rent-a-Car’s green initiatives, and Joel Makower and Greener World Media’s State of Green Business 2008 report (and I’ll be writing more about both). I’ve also spent some time at Wal-Mart Watch’s site, and read through some of the sustainability-related criticism that organization has offered.

Each meeting I’ve had with people at Wal-Mart has challenged me: there’s still that activist in me that wants to shout about past and current issues, and he competes with a more pragmatic business thinker who wants to praise the company (and others) for seeing a business case for sustainability. I think we need both voices to be a part of the mix: not just mine, of course, but many activists and business thinkers contributing to the conversation. To add my two cents, I’ll focus on some of the issues raised by the company.

Energy Efficiency: I’m pretty sure it’s universally accepted, even by critics, that Wal-Mart’s moves towards more energy-efficient stores are positive steps. This is also a prime example of good business thinking on sustainability: energy efficiency contributes to a healthier bottom line while also producing lower levels of emissions. Where I get tangled up, though, is the combination of these efforts with the company’s growth plans.

(Image source: www.treehugger.com)

Ecolabelling.org — looking behind the labels
What’s green? And who says so?

Ecolabels are everywhere from Wal-Mart’s “seafood aisle” to my local grocery store. But, at the end of day, what do these labels really mean? Who’s behind them?

And, most importantly, can I rely on them to make my certified no-rainforests-were-destroyed-in-the-making-of-this-latte latte?

Ecolabelling.org – your source on the background of over 285 ecolabels around the world – makes it easier to [...]

As I noted in Thursday’s post, Wal-Mart CEO Lee Scott’s “Company of the Future” speech to executives and store managers contained some intriguing visions for moves that Wal-Mart could make on helping its customers conserve energy. As I expected, several commenters expressed concern about other areas, particularly product sourcing. Conventional business thinking has heralded the efficiency of the company’s supply chain; activists, on the other hand, have noted that Wal-Mart (along with most major retailers) has benefited from more open global trade policies that, generally, have placed little or no emphasis on workers’ rights, occupational safety, or environmental impact.

Numerous companies have taken a beating for problems with factory conditions in the developing world, while the retail sector in general has had to face both PR and legal nightmares related to the movement of American operations to “cheaper foreign markets” (yeah, I’m paraphrasing Lou Dobbs here). Combine that with recent revelations that some goods from Chinese factories have been tainted with everything from lead to antifreeze, one might wonder why more multinationals aren’t racing back to the US and other more regulated markets. But that’s a different post…

Suppliers

Supply chain issues took up roughly a third of Scott’s speech last week, and, again, the CEO presented some bold concepts for how Wal-Mart might address problems raised by sourcing products from the developing world. The first concerned the company’s relationships with its suppliers:

It’s no secret: I hate Wal-Mart. Honestly, I have only been inside a Wal-Mart store four times in my life, including buying batteries in Colby, Kansas on a cross-country childhood vacation, and every time I leave the store, I feel disgusted with American consumerism. This company’s initial practice of establishing stores in small communities to drive out “ma and pa” stores has contributed to the homogenizing of American retail. Furthermore,

Over 70% of products on Wal-Mart’s shelves are made in China. The recent string of product recalls shows the dangerous and even deadly consequences of Wal-Mart’s corporate bullying strategy to drive down the cost of products. Suppliers are forced to ship production to places like China where quality and labor standards are far less stringent.

Wal-Mart’s race to the bottom strategy leads to more than just unsafe products - it forces suppliers to cut corners when it comes to their own workers as well (walmartwatch.com).

I don’t care how green Wal-Mart attempts to be when they still sell dangerous products for children. I was shocked to learn that Wal-Mart is still selling, in some states, PVC vinyl backed baby bibs that contain lead despite a recall in Illinois.