In partnership with scholars, environmental groups and suppliers, the goal is to create a universal rating scale that indicates a products environmental and social sustainability in the next 5 years. Industry - wide adoption of the rating system is the future hope. '“We have to change how we make and sell products,” Michael T. Duke, Wal-Mart’s president and chief executive, plans to tell about 1,500 of the company’s suppliers and employees on Thursday at a “sustainability meeting,” according to a copy of his prepared remarks. “We have to make consumption itself smarter and sustainable.”'(nyt article - 7/15/09)
The process will begin with the distribution of a simple 15 question survey of Wal-mart's more than 100,000 suppliers located world wide. The concerns from the supplier side will focus on how much more it will cost them to comply. Wal-mart has promised not to penalize the suppliers who do not participate but warn that those not in compliance will become less important in the Wal-mart product offering mix.
It will be interesting to watch this evolve. There have been attempts to do the same by producers such as Timberland and European retailers. No one has had the purchasing power to make the standard universal. Wal-mart might just pull it off.
With Wal-mart in charge, there is always the chance of major 'greenwashing', but since they are the most powerful force in the marketplace there is the potential for major change in our product industries as well. Keep a watchful eye on this.
--till next week Restore, Recycle, Refresh & Renew
4 comments:
Although I don’t always agree with the way Walmart runs its business, I am very excited about their green initiative. As the both the nation’s and the world’s largest retailer, the impact this change will have is extraordinary. Because of Walmarts vast size and popularity, they, more than any other retailer, have the power to change the consumption habits of millions of customers globally and on a level their customers will understand. Because of their size, they may also be able to offer these products, which are usually more expensive, at a price point their customer can afford and therefore will be more willing to try. Additionally, this change has the potential to rub off on other retailers, which carry the same products, so that these retailers can stay on the same page with Walmart and stay competitive. Walmart has the potential to not just change their business and their customers’ lifestyles but also has the power to change over the entire retail industry as a whole.
I read about this new system last week and was very interested in it but skeptical as well. Though I think it is a great idea in theory, I have a hard time believing that all of this will happen in the next 5 years. If the labeling system does become a reality in Wal-mart stores, the next obstacle will be to get customers to not only care about it, but understand it. The system must be extremely straightforward and simple to comprehend. It will be interesting to see which suppliers will comply with the system and which will not. My understanding is that just because a product has a rating, it does not mean the producer has any obligation to find more eco-friendly ways of producing it. A product could have a low rating on the scale and still continue to sell because people don't understand the rating system or because the consumer's desire for the product outweighs their concerns about the environment. All in all, I think Wal-mart is going to come across a lot of obstacles along the way in creating this system and I am skeptical of how effective it will be even if it is created.
I think that its amazing that cheap as can be Walmart is going green! This really does show that society is changing because walmart caters to the masses. And this is a great way to educate all classes of society on how they can stay green and at their price level.
I'm lovin it!!!
I think this is a very interesting idea. Once again to see walmart taking this project on is great and i think important for such a influential company to take the lead, especially since this system should be adopted universally for it to ultamatley work. I too am a little skeptical of this system becuase whos to say the source of the ratings will be accurate, or whos to say that the system although making people aware will change anything in the long run? i do feel it is worth the try and a step in the right direction to sustainability.
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