Fast Company

What Will Wal-Mart's Sustainability Index Look Like?

wal-martA few days ago, we took a look at some of the rumors surrounding Wal-Mart's proposed Sustainability Index for every product on the retailer's shelves. And even though Wal-Mart has now publicly revealed its plans for the Index, details on what it will look like for consumers and how Wal-Mart will use it internally remain unclear.

What we do know is that Wal-Mart plans to ask all of its suppliers 15 questions about sustainable practices. Among them are questions about corporate greenhouse gas emissions, waste reduction targets, and water use. Top tier U.S. suppliers will be required to answer the questions by October 1, with international suppliers given a bit more leeway.

So what will happen to these questions? That's still up in the air, but Matt Kistler, Wal-Mart's senior vice president for sustainability, hinted that the Index could be used to choose suppliers. "It will be a way of making a final decision beyond cost," he said. On the consumer side, so-called "nutrition labels" for sustainability won't be available for at least five years. Wal-Mart won't say if it plans on offering a rating system for sustainability-hunting shoppers, but the big box retailer is working on some sort of simple tool to help customers sift through supplier information.

Wal-Mart isn't working on the Index of its over 100,000 suppliers alone, natch. The company is establishing a consortium of universities, NGOs, suppliers, retailers, and government agencies to help develop a lifecycle database of its products. While Wal-Mart is providing the initial funding for the Sustainability Index Consortium, it ultimately plans to hand it off to a third party group--probably an NGO.

The massive Sustainability Index sounds like something cooked up in some idealistic college student's dorm room at 2 a.m., and at this point, no one is too sure if it will pan out as planned. But who knows--maybe Wal-Mart will actually lead the sustainable product revolution.

[Wal-Mart]

Related:
Wal-Mart Developing "Audacious" Sustainability Index for Every Product it Sells

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3 Comments

  • Zachary Cohen

    As irresponsible as Wal-Mart has behaved in the past with regards to its environmental record, shady business practices, and influence peddling in Washington should not stop sustainability advocates, or anyone else for that matter, discount, right out of the gate, Wal-Marts attempt. This move has the power to fundamentally alter consumer behavior in America for the next 50 years...I blogged about this here: http://www.zacharyadamcohen.co...

  • Michael Lum

    Pardon my skepticism, but Wal-Mart and sustainibility seem like two inherently competing interests in my book. There have been too many criticisms of low wages, poor benefits, and predatory business practices to give them any ounce of credibility in this department. The truly sustainable option is to find another place to shop.

    That being said, anytime I do enter a Wal-Mart, I am always blown away (and somewhat frightened) by their ridiculously low prices.

    --
    My Blog on Society/Technology:
    http://www.mikailum.com