Friday, February 19, 2010

INDUSTRY/SUPPLY CHAIN NEWS: Walmart Canada's Sustainability Initiatives

Last week, Walmart Canada announced a host of sustainability initiatives at the Walmart Green Business Summit in Vancouver, which brought together more than 300 of Canada's largest corporations, NGOs, academics and government leaders to share the business case for sustainability. Notably, Walmart Canada announced plans to launch a Sustainable Product Index (as reported by ihr last year) that will aim to help Canadian consumers evaluate the sustainability of the products they purchase, from raw materials to disposal. In addition, Walmart Canada also announced plans to conduct two significant wind and solar power projects, which the Company will own and finance. Power generated will be returned to the electrical grid under Ontario's feed-in tariff program for renewable energy; and, in turn, investigate the possibility of using this energy to power the Company's stores in the future. The Company further announced that it will open its first sustainable refrigerated distribution centre in Alberta, and announced the launch of a website to share sustainable business practices across the Canadian business community.
On a large- or small-scale, retailers can work towards efforts in sustainability. What are some of your sustainability practices? What are your sustainability goals?
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Walmart Canada announces plans for Sustainable Product Index

Index to measure product sustainability

VANCOUVER, Feb. 10 /CNW/ - Walmart Canada announced plans today to launch
a Sustainable Product Index that will ultimately help customers across Canada
evaluate the sustainability of the products they purchase, from raw materials
to disposal. Announced by Walmart in the U.S. this past summer, Walmart
Canada is the first Walmart operation outside of the U.S. to initiate the
process for the product index.
The announcement was made at the Walmart Canada Green Business Summit in
Vancouver today, a high-profile event which brought together more than 300 of
Canada's largest corporations, NGOs, academics and government leaders to
share the business case for sustainability.
"Customers want value and quality when buying products," said David
Cheesewright, President and CEO of Walmart Canada. "They also want to know
that products are being made in a responsible way. Once launched, the
Sustainable Product Index will give customers transparency into the entire
lifecycle of the products they buy, so they know they're safe, made-well and
produced responsibly."
The company will introduce the Sustainable Product Index initiative in
three long-range phases:

- Phase 1 - Supplier assessment
- Phase 2 - Creation of database
- Phase 3 - Development and launch of customer tool

Phase 1 - Supplier Assessment
-----------------------------

Beginning in the summer of 2010, Walmart Canada will provide its top
suppliers with a survey of 15 simple questions to evaluate their
sustainability efforts. The questions are divided into four areas: energy and
climate; material efficiency; natural resources, and; people and community.
The survey will be an important first step in assessing the sustainability of
suppliers and their products.

Phase 2 - Creation of Database
------------------------------

The second step will include the creation of a Sustainability Index
Consortium and the database that will house information on the lifecycle of
products. Wal-Mart Stores, Inc., Walmart Canada's parent company, will
initially fund and help create the Consortium, which will include
universities, other retailers, suppliers and non-government organizations
(NGOs).
The Consortium will take a research-driven approach to developing the
database, that will drive the Index, and will look at the full lifecycle of
products, from the use of raw materials to the way a product can be recycled
or disposed of.

Phase 3 - Development and Launch of Customer Tool
-------------------------------------------------

The final step will include the development and launch of the Sustainable
Product Index tool, which will help customers identify the sustainability of
a product with a simple and convenient rating system. How that information
will be delivered to customers is still to be determined, but it may take the
form of a numeric score, colour code or some other type of label. The
Sustainability Consortium will help determine the scoring process in the
coming months and years.
Timing for phases two and three of the initiative will be determined
later this year.

Source: Walmart Canada Press Release

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