GCI Magazine

Management Sponsored by

Email This Item!
Increase Text Size

Walmart to Develop Sustainable Product Index

Posted: July 16, 2009

Walmart announced plans to develop a worldwide sustainable product index during a meeting with 1,500 of its suppliers, associates and sustainability leaders. The index will establish a single source of data for evaluating the sustainability of products.

“Customers want products that are more efficient, that last longer and perform better,” said Mike Duke, Walmart’s president and CEO. “And increasingly they want information about the entire life cycle of a product so they can feel good about buying it. They want to know that the materials in the product are safe, that it was made well and that it was produced in a responsible way. We do not see this as a trend that will fade. Higher customer expectations are a permanent part of the future. At Walmart, we’re working to make sustainability sustainable, so that it’s a priority in good times and in the tough times. An important part of that is developing the tools to help enable sustainable consumption.”

The company will introduce the initiative in three phases, beginning with a survey of its more than 100,000 suppliers around the world. The survey includes 15 questions that will serve as a tool for Walmart’s suppliers to evaluate their own sustainability efforts. The questions will focus on four areas: energy and climate; material efficiency; natural resources, and; people and community.

“The survey will include simple but powerful questions covering familiar territory, such as the location of our suppliers’ factories, along with new areas such as water use and solid waste,” said John Fleming, chief merchandising officer, Walmart U.S. “The questions aren’t complicated, but we’ve never before systematically asked for this kind of information. The survey is a key first step toward establishing real transparency in our supply chain.”

Fleming also said the company will ask its top tier U.S. suppliers to complete the survey by Oct. 1. Outside the U.S., the company will develop timelines on a country-by-country basis for suppliers to complete the survey.