Wal-Mart - The Green Giant?

Indeed Wal-Mart is the retailing giant, but what about their sustainability initiatives? Wal-Mart CEO, Lee Scott, would like us to believe Wal-Mart will invest $500 million in sustainability projects and will become the leader in green retailing. It is one thing to sell green products to the masses. What about their business practices? Wal-Mart is already the leader in organic milk sales and is the largest buyer of organic cotton. But how are these products and supplies shipped to their suppliers and their stores? A company can’t simply offer to sell green products and call themselves eco-friendly.

A recent visit to the union funded website, walmartwatch.com, I found the following stats. “The company is the biggest private user of electricity in the U.S.; each of its 2,074 supercenters uses an average of 1.5 million kilowatts annually, enough as a group to power all of Namibia. Wal-Mart has the nation�s second-largest fleet of trucks, and its vehicles travel a billion miles a year.” Before we begin to praise Wal-Mart for their environmental initiatives we must look at the full picture.

Critics will point out that Wal-Mart’s same-store sales are down, trailing companies like Target and Costco. As well, since Lee Scott took over in 2000 as CEO the company stock price has declined 30%. Is Wal-Mart’s new green initiative real or simply a marketing ploy to wake the retailing giant’s sales?

I view Wal-Mart’s green rhetoric as a mere marketing ploy they are using to capitalize on the trend in green living. If fuel costs were not soaring and the heightened awareness on global warming not present, would Wal-Mart be interested in saving the world? Where were these initiatives 10 years ago? The bottom line is Wal-Mart’s business is selling products and they are always looking for new trends to capitalize on. In a recent article, posted in Fortune, it states, “The bigger idea here is that poor and middle-income Americans are every bit as interested in buying green products as are the well-to-do, so long as they are affordable.” I am all for people having access to green goods and I strongly feel that we need more eco-friendly choices that are both readily available and affordable. However, I have a strong issue with companies who are simply trying to cash is on the emerging green trend.

Companies like Wal-Mart have an enormous influence on the world, their suppliers, their employees and their customers and should look to provide education and leadership in ways to reduce waste and conserve energy. There is no doubt about the power and influence of Wal-Mart and I truly believe they can make a positive difference in the world. My only concern is their motives for turning green, is it dollar signs or ethics? We can only wait and see what the almighty giant will do next. Come back to EcoSherpa for updates on Wal-Mart and their push for greener pastures.

Written by steve on July 26th, 2006 with 2 comments.
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