We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Wal-Mart's green label and you
Perspective

Wal-Mart's green label and you

December 16, 2009
James A. Cooke
No Comments

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.

In case you missed it, this past July, Wal-Mart Stores Inc. announced that it would require its suppliers to provide information about their environmental practices. 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 its 100,000 suppliers worldwide. The 15-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.K. government launched an initiative to create a label that would show consumers the amount of greenhouse gases expended in bringing a product to the store shelf. 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. We must ensure that sustainability metrics and pollution-reduction targets affecting the supply chain make sense for all companies—including Wal-Mart.

    • Related Articles

      Join the "Green Team"

      "Green" supply chains are still too costly

      Global warming and you

    James A. Cooke is a supply chain software analyst. He was previously the editor of CSCMP's Supply Chain Quarterly and a staff writer for DC Velocity.

    Recent Articles by James A. Cooke

    Getting smart about using software intelligence

    The payback challenge

    A farewell, with thanks

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing