
Credit: Inhabitat.com
As October 1 marked the “official” start of Walmart’s Sustainability Index, I have been wondering about the eventual outcome and current progress of this first phase. As you may know, by that date, Walmart’s “top-tier” consumer product companies should have returned a 15-question assessment form, detailing information about their carbon footprint, resource use and ethical business practices.
According to an article by GreenBiz.com, the sheer size of Walmart’s reach and influence makes the initiative a big deal – few other companies can even come close to the power that Walmart can yield as one of the world’s biggest customers. Which in itself makes Walmart an essential part of any conversation about the future of sustainable business practices.
But this is just the first step and the index itself remains a work in progress. Rand Waddoups, Walmart’s senior director for sustainability, admits that the retailer doesn’t have it all figured out, but notes that they don’t want to have it all figured out right now – and they’re working with their suppliers to find the best way to move forward.
This is undoubtedly the best approach – reportedly, only 10 percent of Walmart’s approximately 100,000 global suppliers had already been tracking this data and many Walmart suppliers remain in great need of assistance with preparing their responses. Consultants have emerged specifically to target these needs, including ClearGreen Advisors, the “Walmart Sustainability Experts.” Marc Major, cofounder of ClearGreen Advisors, says, “The majority is unprepared. It seems like suppliers are waiting for some kind of signal from Walmart that this is serious. I don’t know what it’s going to take for some to figure it out.”
Hopefully time is on their side – Walmart’s sustainability initiative is broken into three phases:
- The first phase is the supplier assessment, a survey of the company’s 100,000 global suppliers with 15 questions. Walmart’s top-tier suppliers in the U.S. must complete the survey by Oct. 1; timelines for the remaining suppliers have not been announced.
- The second phase involves the creation of a lifecycle analysis database by a consortium of universities that will work with suppliers, retailers, government and nonprofits. Arizona State University and the University of Arkansas will jointly administer the consortium.
- The third and final step calls for delivering the information to the consumer on how products rank, possibly through a numeric score, color code or other label.
There are three “scores” for the supplier assessment: Suppliers will be rated either “above target,” “on target” or “below target.” Walmart suppliers can fill those questions out online at Walmart’s Retail Link and once the questions are answered online, suppliers will get instant feedback. Suppliers will be able find out how their operations measure up, how they compare to other suppliers in their category and they’ll also be provided with “tips on how a company can improve their performance.” Waddoups notes, “We want to know if you’ve measured it; if you’ve measured it, that’s important. If you’ve measured it and you’re making progress, that’s even better.” Interestingly, Walmart does not intend to “own or manage” the index itself – that will be left to Sustainability Consortium.
So what exactly with the index measure and what purpose will it ultimately serve? The index will serve as a way for the retailer to “measure the sustainability of every product it sells.” Over the next few years, labels will begin to appear on products – allowing consumers to compare and navigate the increasingly confusing world of sustainable/eco-friendly/”green” claims of various products. Is this the end of greenwashing?
So will Walmart be able to “sustain” this initiative, or will it go the way, as others have noted, of their RFID (radio frequency identification) and “Made in America” requirements?