Skip navigation
advertisement

Wal-Mart’s bold environmental move — maybe


< Prev | 1 | 2
  LIVE QUOTE
Quotes delayed 15+ min.
  The Future of Business

Our ongoing series on the future of business focuses on trends and products that could be the next big thing in the work world. Past topics have included the future of aviation and the big business of forecasting the future. This month we take a look at workplace trends, and in September, we focus on the future of retailing.

What’s the next big thing that you see in your crystal ball?   Let us know .

Interactive
Visions of the future
A look at some notable visions of the future of business, technology, and the economy, and how they have fared.

The latest effort was launched in seven product categories in part because suppliers in those categories were willing to work with Wal-Mart and the CDP on the issue. Coca-Cola, News Corp.'s Fox Home Entertainment, and several other companies provided information about how they used energy and efforts to cut back. Fleming said that 20 of Fox Home Entertainment's suppliers got involved to track the emissions associated with the production, manufacturing, and distribution of DVDs. "We're grateful for the efforts that the companies who are participating in conversations with us have made," said Fleming. "Together we are addressing some of the biggest challenges in the world today."

There are plenty of skeptics, however. One questions the seven product categories Wal-Mart decided to track. Heather Rogers, author of Gone Tomorrow: The Hidden Life of Garbage, says that toothpaste, soap, and DVDs are "low tech" products that don't really result in substantial carbon emissions. She argues that it would have been more meaningful to focus on other products that typically do require carbon emissions. "Cell phones and DVD players, for example, are conspicuously absent from the list," she says.

Rogers also says that Wal-Mart's entire business model is built on environmental waste. The company, she says, sells loads of cheap, disposable goods, and emphasizes a business strategy of rapid growth, resulting in so much negative environmental impact that its latest initiatives can make only an incremental impact. "It's an aggressively growing company," she says, "and with this business model you're inevitably going to put ever greater pressure on ecosystems."

Story continues below ↓
advertisement | your ad here

Weigh in on Wal-Mart's green goals

Wal-Mart certainly casts a long shadow. The company is the biggest private user of electricity in the U.S. — each of its 2,074 supercenters uses an average of 1.5 million kilowatts annually, enough by one estimate to power all of Namibia. It also has the nation's second-largest fleet of trucks that travel a billion miles a year. By Wal-Mart's own admission, its U.S. operations were responsible for 15.3 million metric tons of carbon emissions in 2005. That's more emissions that the countries of Bolivia and Cyprus put together.

For some skeptics, the numbers from its environmental efforts just don't add up. "Wal-Mart hopes to cut 2.5 million metric tons of carbon dioxide emissions by 2013, by making its existing stores 20 percent more efficient," says Stacy Mitchell, a senior researcher at the Institute for Local Self-Reliance, an environmental group. "New stores built in 2007 alone, however, will consume enough electricity to add approximately 1 million metric tons of carbon dioxide to the atmosphere. At that rate, by 2013 Wal-Mart will be offsetting its cut of 2.5 million metric tons of carbon dioxide by adding 28 million metric tons of new emissions within the same time period."

Critics openly wonder whether Wal-Mart's steady stream of green initiatives are an effort to deflect attention from its workplace policies as well as its financial performance in recent years. "Wal-Mart needs to invest in its environmental policies as well as its workforce to prove it's not just a PR stunt," says Dave Willett, press secretary for the Sierra Club, the San Francisco-based environmental organization, which provides funding to Wal-Mart Watch, a union-supported group that's critical of the company.

Still, this time Wal-Mart's many critics hope their skepticism is misplaced. They see the latest initiative with the CDP as full of promise, which could be realized if Wal-Mart pushes hard for change. "We love that Wal-Mart has accepted the challenge," says Greenpeace's Davies. "But accounting is not enough. At some point, they have to set targets and actually cut their carbon emissions."

Copyright © 2009 The McGraw-Hill Companies Inc. All rights reserved.


< Prev | 1 | 2

Sponsored links

Scottrade: Trade Stocks
Open an Account Online Today! $7 Trades & Powerful Trading Tools.
www.scottrade.com

Resource guide