Wal-Mart is asking its suppliers to provide information about the life cycle and environmental impact of the goods sold at its stores. On July 16, Wal-Mart announced its Sustainability Product Index, a 15 question questionnaire covering the following topics: (1) Energy and Climate: Reducing Energy Costs and Greenhouse Gas Emissions; (2) Material Efficiency: Reducing Waste and Enhancing Quality; (3) Natural Resources: Producing High Quality, Responsibly Sourced Raw Materials; and (4) People and Community: Ensuring Responsible and Ethical Production.
Notably, questions include whether suppliers measure their greenhouse gas emissions, have a process for managing social compliance at the manufacturing level, and set publicly-available water use reduction and solid waste reduction targets. In addition, Wal-Mart plans to create a consortium of universities that will collaborate with retailers, suppliers, non-governmental organizations, and governments to develop a database about the lifecycle of products. Suppliers’ answers to the questionnaire will be used as the basis of the database, which customers will ultimately be able to utilize to evaluate the sustainability of the products they buy.
At Wal-Mart’s “Sustainability and Milestone Meeting,” Mike Duke, the President and CEO of Wal-Mart, stated that if done correctly, “the index will drive higher quality and lower costs . . . [and create] more innovative products that lower carbon output . . . that promote clean air and water . . . and that create a more transparent and responsible supply chain.” Wal-Mart’s top tier, U.S.-based suppliers will be asked to complete the questionnaire by October 1. The company will develop timelines for its out-of-country suppliers on a country-by-country basis.
Wal-Mart’s Sustainability Product Index and information about the “Sustainability and Milestone Meeting” are available here.
