
When Walmart greens its business practices, do we all benefit?
Recently, Walmart announced a new sustainability goal for its supply chain: Reducing the greenhouse gas emissions from the lifecycle of its products by 20 million metric tons (22 million US tons) by 2015--a figure roughly equal to the company's current annual emissions, and about one and a half times the company's projected carbon footprint growth in the same time period.
Skeptics may question the motivation, but the company is up front about its intent. According to Walmart SVP of Sustainability, Matt Kistler, "Carbon is a cost," If we can remove carbon from a supply chain, ultimately they (suppliers) become more competitive. If they can use less energy in the manufacturing of the product, or if the consumer uses less energy, they are certainly reducing their costs or putting dollars in the pockets of their customer." More of that story atTreehugger (http://bit.ly/aI4dwX).
This is a noble measure, and as one of the wolrd's largest retailers, certainly sets an example that responsible environmental practices can be taken to scale.
But it begs the question, who is actually absorbing the cost? Wal-Mart is clear that their customers will not shoulder the cost of their bold initiative. After all, this is a supply-side measure. So what does this mean for small business?
The retailer is already known as a category-killer and has changed the face of local commerce in many towns across the country. Will these new commitments shift all of the cost-burden to businesses that are already pinched to provide the chain with 'everyday values'? Or will Walmart step up to the plate and add 'socially responsible' to their sustainability mantra? True sustainable development recognizes the balance of economy, ecology and equity.
In addition to Wal-Mart's carbon-cutting measures, will the super-size retailer implement training programs or other technical support to assist existing U.S. suppliers, or nascent suppliers with tools needed to curb their carbon footprint? Certainly this move opens the door for green businesses to woo Wally World. But what happens to the suppliers lacking in the technical expertise or capital to invest in carbon-cutting emissions?
Walmart deserves kudos for its bold commitment, but until there are more socially responsible business practices in place, I'll choose to shop local.

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