Environmental greenwashing or legitimate concern?
Is there such a thing as a sustainable corporation?
From an admittedly biased perspective, the word ‘corporation’ generally elicits images of large factories, smog, environmental degradation, assembly lines, CEOs, CFOs, shareholders, hazardous working conditions and so on. Ideas on the opposite end of the spectrum qualify ’sustainable’: local, small-scale, regeneration, preservation, organic, green technology, renewable energy, etc. However, this is not always the case for either term.
Recently, I was “strongly encouraged” to open up my mind to the concept of a sustainable corporation. Honestly, I chuckled out loud when I heard those words together. I laughed even harder when I learned that I was to investigate the sustainability of the largest retailer in existence, Walmart. After all, who hasn’t heard of The Walmart Effect?
Despite the relative evils associated with Walmart, their sustainability goals and achievements are quite admirable, especially when compared to other companies. The corporation has broad but straightforward goals with regard to sustainability:
- To be supplied 100% by renewable energy;
- To create zero waste;
- To sell products that sustain people and the environment
With 7,400 stores worldwide, are such goals even achievable?
(The answer is “Yes”).
Last July, Walmart unveiled a plan for a new Sustainability Index. The purpose of the Index is to measure the sustainability of every product the retailer sells. It will be implemented in three distinct phases, with the final phase resulting in “greater transparency into the quality and history of products” so that customers can consume in a more sustainable way. The following description of the phases come from an article I wrote for Leonardo Academy a few weeks ago.
Sustainable Corporation?
Phase One of the Sustainability Index will require Walmart suppliers to dig deep into the sustainability of their products, analyzing all aspects of each product and measuring its environmental footprint. To help suppliers embark on this journey, Walmart designed a 15-question assessment to evaluate supplier energy efficiency. The survey questions focus on four main themes: energy and climate, material efficiency, people and community, and natural resources. Top-tier suppliers were asked to complete the survey by October of 2009, while smaller suppliers were given longer timelines.
The second phase of the Index is the Lifecycle Analysis Database. It involves the creation of a consortium of universities to collaborate with key players, including suppliers, retailers, non-governmental organizations, and government officials. The objective is to establish a global database of product information, including commodity chains and cradle-to-grave—or, hopefully cradle-to-cradle—lifecycles. While Walmart provided the initial funding and resources for the consortium, it is not the company’s intention to administer it. That task will be shared by the University of Arkansas and Arizona State University.
The third phase of the Index is arguably the most important when words turn into actions. When the two phases are completed, the Sustainability Index should function as a valuable resource for customers, providing them with the necessary information to consume in a more sustainable way.
If all goes according to plan, this system will allow both wholesale purchasers (like Walmart) and retail purchasers to drive advances in sustainability by suppliers and manufacturers.
Let us know your thoughts: Does Walmart have what it takes to lead a new era of sustainability or is this campaign simply another form of greenwashing?
