Wal-Mart Stores, as most know, takes all this sustainability stuff pretty seriously. Also, as its support for legislation that would mandate employers provide health insurance demonstrates, the company likes to get out front and influence issues before they compromise its competitive position.
Those factors seem to be behind a decision by a new environmental labeling program unveiled by the retailer that would require suppliers to calculate the full costs associated with the manufacture of products. Wal-Mart plans to take that information and boil it down to a simple rating system that would be displayed like price tags on the shelves of its stores.
While Wal-Mart has indicated the development of the program, The Wall Street Journal reports that it will likely take years before any show up in stores. The program is not likely to get into full swing mode until 2011 at the earliest.
"I envision the day that you look at a piece of apparel, you flip a tag over, and learn about how sustainable it really is," John Fleming, chief merchandising officer for Wal-Mart, told the Journal. "It would be like nutritional labeling is today. But there is some standardization that needs to take place."
Len Sauers, Procter & Gamble's global vice president for sustainability, said similar programs in Europe have not fulfilled their promise "because they have not really provided the consumer with information that makes sense."
"A lot of suppliers are scared, but there is an opportunity here for them," said Michelle Harvey of the Environmental Defense Fund, which is working with Wal-Mart on the project. "I think the most significant improvement will come before the consumer ever sees a score."
According to the Journal, Wal-Mart is making this move as environmental labeling regulations are being put in place in Europe and Japan. The thinking is that the U.S. will follow and the retailer can determine the standard for all others to meet with early action on its own. The retailer disputed this assertion.
Discussion Question: What is your take on Wal-Mart's plans to require suppliers in the future to provide an accounting of the environmental impact of their products?