Tuesday, September 25, 2007

Wal-Mart: Measuring Just How Green

The retailing giant launched a potentially groundbreaking initiative to measure suppliers' energy use. How hard will it push for change?


In a move with potentially far-reaching consequences, Wal-Mart Stores (WMT) says it will begin to measure the amount of energy used to manufacture and distribute some of its products, and it will launch a pilot project with certain suppliers to look for new ways to cut their energy use. The effort will begin with suppliers in seven product categories: DVDs, toothpaste, soap, milk, beer, vacuum cleaners, and soda.

The retailing giant announced the initiative Sept. 24 in partnership with the Carbon Disclosure Project (CDP), a nonprofit group supported by institutional shareholders that focuses on climate change and carbon emissions (BusinessWeek, 3/26/07). Wal-Mart says it plans to use the Carbon Disclosure Project's expertise to help set up the new program with its suppliers. "We are working together to measure our global supply chain footprint and to encourage our suppliers to reduce greenhouse gas emissions," said John Fleming, executive vice-president and chief merchandising officer at Wal-Mart.

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