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Wal-Mart's green label and you By James A. Cooke From the Quarter 4 issue Comment Wal-Mart's plans to develop a "green" label for products sold in its stores could become a headache for many supply chain managers —and not just for those in the retail industry.
Wal-Mart's plans to develop a "green" label for products sold in its stores could become a headache for many supply chain managers —and not just for those in the retail industry.
The final implications of the initiative have the potential to reach beyond the superstore and its partners.
The retailer's eventual goal is to develop a new sustainability index, which would provide the basis for a label informing consumers about a product's environmental impact. As a first step toward the development of this index, the retailer will survey all of itssuppliers worldwide.
The question survey asks whether a supplier measures its greenhouse gas emissions, solid waste generation, and water usage, and whether it has established reduction targets in those three areas. The data gathered from those surveys will be used to develop labels for products sold in Wal-Mart's stores.
The company is funding a consortium of universities that will work with the retailer, its suppliers, and governments to develop the label content and design. Chief Executive Officer Michael Duke has said he expects the index to be completed in five years.
Wal-Mart's labeling scheme is not without precedent. Two years ago, the U. But Wal-Mart's plan, with its emphasis on air, solid waste, and water, go far beyond those in the United Kingdom and Europe, which have focused strictly on carbon dioxide.
As has so often been the case in its history, Wal-Mart is being a pioneer.
The retailer no doubt assumes that at some point, governments around the world will mandate that companies generate less waste, water, and greenhouse gases in their supply chains.
When they do, they will need a means of measuring those reductions. Because of its early adoption of an environmental labeling regime, Wal-Mart would be in a position to benefit by offering its model for promoting sustainability to governments for their consideration and possible adoption.
That would, of course, give Wal-Mart a big advantage, as it would already have implemented the standard throughout its supply chain.
In effect, a de facto private- industry label standard would become a de jure standard for the public and industry. When most governments develop regulations, public hearings are required to give all affected parties a voice in the proceedings.
I'm not advocating in any way that any government should get involved at this point. Industry or professional groups, however, do need to step forward and get involved right away.Wal-Mart's Green Strategy: Supply Chain Makeover Targets Chinese Manufacturers Wal-Mart has demanded that its Chinese suppliers adhere to green, environmentally friendly .
kaja-net.com3 In , after Hurricane Katrina, Walmart set audacious and aspirational sustainability goals: to be powered by renewable energy, to reach zero-waste in its operations and to sell greener products that improve lives. Walmart and Sam's Club are calling on suppliers of leafy green vegetables to upload their produce data to a corporate blockchain ledger within a year to enable end-to-end traceability of vegetables back to the farm where they were grown.
Walmart is doing more in sustainability, particularly in the supply chain area, than they are given credit for. In contrast, there seems to be some sort of halo effect surrounding one of Walmart’s biggest competitors, Amazon. enhancing sustainability of operations and global value chains Working with others, we aspire to reshape the way we work to achieve significant and lasting improvement in environmental and social outcomes, in a way that also improves our business.
According to the Supply Chain Management Review, Wal-Mart CEO Lee Scott committed the company to three ambitious goals: to be supplied percent by renewable energy; to create zero waste; and to sell products that sustain Wal .