Cross-posted at BuyBlue
Grist featured a pretty shocking interview with Wal-Mart's CEO, H. Lee Scott this week.
Wal-Mart has so many black marks against them they serve as the perfect example of what not to do on almost every front from political donations, to labor policy, to environmental policy.
Yet we have an interview by the CEO with a very respected environmental publication laying out an ambitious plan to become sustainable. Should we buy it? I don't know, I've seen footage of Scott standing in front of his entire company lying about things, maybe this isn't any different - but then maybe it is.
Last week, Wal-Mart joined leading energy executives in their startling call for mandatory caps on greenhouse-gas emissions. The heart of this monolithic retail Grinch grew three sizes that day -- or so it seemed to many environmental Who's.
~snip~
But it's precisely Wal-Mart's size and reach that could make it a powerful force for good for the planet, say market observers and a growing number of activists. The company controls so much of the retail market, and has such sway over manufacturers, that any green initiatives on its part have huge ripple effects. And it's certainly CEO H. Lee Scott's intention to make waves.
In October, Scott announced a preposterously ambitious goal to transform Wal-Mart into a company that runs on 100 percent renewable energy and produces zero waste. Since then, he has impressed greens with specific commitments to cut the corporation's greenhouse-gas emissions by 20 percent over the next seven years, double the fuel efficiency of its truck fleet within 10 years, reduce solid waste from U.S. stores by 25 percent in the next three years, and double offerings of organic foods this spring, selling them at prices more affordable to the masses.
Enviros hope Wal-Mart will have the same game-changing effect on mainstreaming environmental strategies that it has had on reducing prices. "Wal-Mart's new commitments to increase efficiency and reduce pollution and waste are important first steps for a company that has such a profound impact on our environment," Sierra Club Executive Director Carl Pope said in a public statement. "More companies should take these positive steps toward safer and healthier communities."
I'm willing to stop and think about that for a minute. The author does have a point, if Wal-Mart were to embrace sustainability and pursue it with the vigor they have pursued lower prices it would rocket the industries involved and the technology to the next level.
Despite all that Wal-Mart does wrong, they are very impressive on some levels. Their supply chain for example is world class, there isn't any other company that does it better and they are out there each day innovating and pushing the envelope. What if they could also do that for the sustainability movement?
Q: Were there bottom-line motives as well?
A: As I got exposed to the opportunities we had to reduce our impact, it became even more exciting than I had originally thought: It is clearly good for our business. We are taking costs out and finding we are doing things we just do not need to do, whether it be in packaging, or energy usage, or the kind of equipment we buy for refrigeration in our stores, that there are a number of decisions we can make that are great for sustainability and great for bottom-line profit.
We've always said that running a sustainable business and treating your people well was good for the bottom line, it looks like Wal-Mart is finally waking up to that fact.
I have to wonder how we got in this situation though. Has Wal-Mart finally caved to all of the pressure from activists or are they just taking their PR blitz to the next level?
The way I see it Scott is now on the public record as committed to very aggressive sustainability goals and we should hold him to it. Wal-Mart's wholesale adoption of sustainability would be a huge win for environmental activists, possibly bigger than anything they've won before. We'll soon know if Scott is being honest with us or if this is yet another clever PR move on their part.
Now personally I have no intention of setting foot in a Wal-Mart store for many, many other reasons but the fact is that a lot of Americans do shop there and this is progress.
So welcome to the party Wal-Mart, we don't mind that you are late - the beer's out back. Don't start any trouble with the guests or you're out.