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It's Getting Harder to Hate Wal-Mart

by Lloyd Alter, Toronto on 05.17.06
Business & Politics

sam%20walton.jpgWhether or not we shop there, we all feel the Wal-Mart Effect as it changes the way everyone buys and everyone sells. We don't shop there, and we also just read Michael Pollan's The Omnivore's Dilemma, which demolishes any belief in the idea that big organic is any better than big industrial food production, so we are not particularly concerned about Wal-marts entry into this market. We do note that TreeHugger has done 9 posts this year about Wal-Mart going with Green Roofs, Bullfrog Power, Corn based plastics, sustainable fish and buying forests. They are replacing their trucking fleet to double its fuel efficiency. What's going on? Is this for real or greenwashing? Can we reconcile it with our world view of Wal-Mart as a union-busting, supplier-abusing, smalltown-destroying behemoth?

lee%20scott.jpgWe recently read Wal-Mart President Lee Scott's October "secret" speech to employees on "21st Century Leadership" where he lays out his plans to make Wal-Mart radically different. He asks the rhetorical question:

"What would it take for Wal-Mart to be that company, at our best, all the time? What if we used our size and resources to make this country and this earth an even better place for all of us: customers, Associates, our children, and generations unborn? What would that mean? Could we do it? Is this consistent with our business model? What if the very things that many people criticize us for – our size and reach – became a trusted friend and ally to all?"

Environment

"As one of the largest companies in the world, with an expanding global presence, environmental problems are OUR problems. The supply of natural products (fish, food, water) can only be sustained if the ecosystems that provide them are sustained and protected. There are not two worlds out there, a Wal-Mart world and some other world.....

Our environmental goals at Wal-Mart are simple and straightforward:
1. To be supplied 100 percent by renewable energy.
2. To create zero waste.
3. To sell products that sustain our resources and environment."

strong stuff, but Scott explains the economic rationale:

"There is a simple rule about the environment. If there is waste or pollution, someone along the line pays for it. For example, if our trucks are inefficient from a fuel standpoint, we’ll pay for that at the diesel pump. If the dumpsters behind our stores fill up with trash, you can be assured that we paid someone to send that trash to us, and we will pay someone to take it away."

Trucks

"We will increase our fleet efficiency by 25 percent over the next 3 years and double it within ten years. If implemented across our entire fleet by 2015, this would amount to savings of more than 310 million dollars a year. Compare that to doing nothing."

Stores

"We are looking at innovative ways to reduce our greenhouse gas emissions. This used to be controversial, but the science is in and it is overwhelming. Climate change doesn’t cause hurricanes, but hot ocean water makes them more powerful. Climate change doesn’t cause rainfall, but it can increase the frequency and severity of heavy flooding. Climate change doesn’t cause droughts, but it makes droughts longer. We believe every company has a responsibility to reduce greenhouse gases as quickly as it can."

"we are committed to the following:
Aggressively investing approximately $500 million annually in technologies and innovation to do the following:
-Reducing greenhouse gases at our existing store, club and DC base around the world by 20 percent over the next 7 years.
-Designing and opening a viable prototype that is 25-30 percent more efficient and will produce up to 30 percent fewer greenhouse gas emissions within the next 4 years.
-Increasing our fleet efficiency by 25 percent in the next 3 years, and doubling efficiency in the next 10 years."

Waste:

"We are committed to:
1. Reducing our solid waste from U.S. stores and clubs by 25 percent in the next 3 years.
2. Working with suppliers to create less packaging overall, increase product packaging recycling and increase use of post-consumer material.
3. Replacing PVC packaging for our private brands with alternatives that are more sustainable and recyclable within the next 2 years."

And more on product sourcing, health care, employee wages and working with communities- "We will adopt a siting and construction policy in the next 12 months that addresses environmental, social and historical considerations."

If these words came out of the mouth of Yvon Chouinard or John Mackey, everyone would stand up and cheer- it is a remarkable speech that all should read and hold up as a standard for any company. That it comes from Wal-Mart? We will wait and see. ::Read PDF here

Comments (37)

Walmart is doing exactly what a lot of folks have been saying for a while. If you take steps to become greener as a company you gain massively from the efficiencies involved. So don't applaud them for being green, just acknowledge that they are good at what they do.

They couldn't have gotten as big as they have without some strategic thinkers.

jump to top seth vidal says:

Sometimes you have to let these things flow over you, instead of being so cynical. They explained that money-wise, they will save a lot of money being fuel-efficient. So let's sit back and watch while they single-handedly reduce carbon emissions from their trucks by a huge percent. Great! Let's applaud their efforts. They still do a lot of things that aren't earth-friendly, but they ARE doing some earth-friendly things. Let them do so, and encourage it. On a personal note, I despise WalMart and what they stand for in many ways, but I'm all for anyone who wants to do something about the environment, whether it's for greedy corporate reasons or not.

jump to top Don B [TypeKey Profile Page] says:

Not sure about this...WalMart's foundation is built upon a global network of transporting cheaply produced goods to weathly consumers through the use of petroleum fuel. This creates a huge, huge corporate ecological footprint. Not that WalMart is the only company doing this, but it is one of the largest. The kinds of activities WalMart is engaging in that TreeHugger has reported, are small frills around the core of their business. It seems to me that WalMart could so, so much more to address the fundamental unsustainable nature of its transport system.

jump to top Doug says:

Allright haters, bring fourth your venom. (just kidding)

This is very pragmatic. They realize that the current situation makes it necessary for them to change, and therefore continue to make money. Seems the market works after all. Yep, measures like this put your precious Whole Foods to shame (maybe not in the human compassion market). So they'll get a few of my shekels for their effort.

jump to top Chingy says:

More on Walmart:

VANCOUVER, B.C. — The Oppenheimer Group and Earthcycle Packaging announced today the availability of their new line of completely compostable kiwifruit packaging at Wal-Mart Supercenters and Neighborhood Markets in the U.S. With the introduction of this completely compostable kiwifruit packaging.

The Earthcycle tray is a moulded pulp package made from palm fiber of the Empty Fruit Bunch (EFB), a waste product left over after the palm fruit is harvested and pressed for oil. Previously incinerated or landfilled, this fiber is now made into FDA food grade packaging which is certified compostable.

Read more at ENN.com

jump to top Pat O says:

They're doing the best they can to a) become richer b) do it as ethically as possible. The real question is what happens if/when a) and b) contradict each other.

Buying more fuel-efficient trucks when your current fleet is worn out satisfies both a) and b). Green roofs help b) without really hurting a). Hiring old folks to watch for shoplifters and say hello also helps b) without really hurting a).

Nothing surprising here.

The real question is: do you want to buy cheap plastic junk from China? Sometimes I do, sometimes I don't. You'll never see me buy a piece of safety-equipment (motorcycle helmet, webbing for a climbing-harness) from Wal-Mart, but I do buy trashcans and fiberglass bits there.

jump to top Anonymous says:

All this is great and all, BUT, what about buying locally?

Walmart will STILL buy junk made in China where the manufacturing pollution is out of sight and out of mind, and less regulated. And they will STILL have to ship it half-way across the world using gallons and gallons of fuel.

Imagine what a boost to our economy it would be if Walmart decided to buy more and more American goods instead of what is cheapest. Sure, it would cost the consumer more. But it would also create more jobs in THIS country.

I think they're taking steps in the right direction but i think they could do even more good with their power.

jump to top Word says:

Word,

You're right. They could do more. But they're doing something, which is better than nothing. So let's applaud their efforts, take a deep breath, and still not shop there.

I've seen so many posts on Treehugger where they'll say "Hey, this car company is taking this little step to be a better global citizen, but you know, we really hate them because the cars have big engines." Let's reward them with praise for the steps they're taking instead of the backhanded compliments. We don't have to buy the cadillac, but let's at least applaud the effort to improve mileage or efficiency.

Progress is progress. Most people who want to make lifestyle changes to be more earth-friendly don't sell their house, move to the country and go off the grid. They reduce what they can and encourage others to do the same, moving towards their ultimate goal. It all helps.

jump to top Don B [TypeKey Profile Page] says:

If walmart decides to reduce packing materials and it works everyone reduces packing materials. I don't have to love walmart or even shop there ever but they have an enormous footprint on American Consumption and they are making strides to do better.
I don't think the answer is to tell hippies to consume more at walmart because they have a green roof. But if people are buying a 12.00 microwave then the cleaner the better I say.

jump to top Adam says:

Again I say, the market will work. Soon enough the cheap plastic junk from China will be expensive plastic junk from China due to rising fuel costs. Then it will make simple economic sense to go local, and Wal-Mart will do so. Or they'll invest some big money in alternate shipping methods: those huge kite sails for big ships, huge cargo dirigibles, maybe some civilian nuke container ships? ;) Either way is good.

jump to top Chingy says:

Other commenters have touched on it, but I will re-state it. Regardless of what energy-saving, cost-saving, and PR-generating steps Wal-Mart takes, "at the end of the day," they still push suppliers to provide the cheapest, crappiest stuff possible. Stuff that is shoddy and breaks and fills up landfills. And they've forced many American companies out of business by pressuring vendors to move to China. Until I see some manufacturing moving back into the U.S. (where it can be regulated and where it can be shipped via more energy-efficient means) and Wal-Mart stops selling cheap quality crap at outrageously high margins, then they're still going to be evil to me.

jump to top Lesley says:

Wow. 9 comments already and so generous and loving! Wow. a TH WM lovein? wow wow. Neat.

see Mr. Lee Scott (if you happen to read this)? We are all into you changing becomeing leaner & greener! Props!

[many peeps here prolly haven'ty been to a WM as many times as they have fingers, you'll get our money now too!]

jump to top earthchange, too! [TypeKey Profile Page] says:

This is nothing more then a trend bandwagon that Walmart is jumping on. Had they been the first I would "applaud" it; but, they're not.

I'm reminded of the "Buy American" campaign back in the early 90's with Walmart. They got all this flak for buying everything from China, and yadda yadda. So, they started buying as much USA made products as they could, putting big American flags on products that were USA made so everyone could see and be happy. Then, over time, American's stopped caring and they slowly phased it all out. Now, you're hard pressed to find anything in Walmart that's USA made.

This is nothing more then a ploy to get you to like them and think of them as friendly. In time, we'll see all these "green" movements vanish just as history has shown. Walmart in the mean time will still come out on top as profitable and destructive as ever.

I'm hard pressed to applaud anything they do, and it will take decades of change and reinforcement in order for me to view them as anything but a vial and evil company.

jump to top brenton says:

Who cares about reduced emissions when they run sweat shops. Who cares about bioplastics when they are sexist and racist. Who cares about them saving money when they cost the states money by not paying employees enough to support themselves, when the company makes massive profits. http://www.walmartmovie.com/

jump to top who cares says:

Until they commit to return to local purchasing, and to get out of politics in cheap-labor nations, there is no change. They are just doing things that either save them money or can be written off as marketing expenses.

More efficient trucks? Rising oil prices dictate this - saves them money.
100% renewable energy? Buy green tags and mention them in their regular ads - marketing expense.
Reducing waste? Classic Philip Armour obsessive industrial efficiency - again, saves them money.
Sell products that sustain resources? That is so vague and arbitrary, it's not even worth doting upon till we see it actually happen.

I see nothing here that speaks to a change of heart.
They will still remain ruthless to manufacturers, who will pass it down the line to the workers, while Wal-Mart brokers deals with foreign governments to keep their own people poor and desperate.
Their presence will still crush local economies and force most people to have to shop with them, because there will be no affordable options.

jump to top Carl [TypeKey Profile Page] says:

Pressuring suppliers to green their operations in the interest of efficiency is something Wal-Mart will do as well. It's a step in the right direction, and eventually high petroleum costs will lead to less plastic, fewer 3000-mile salads, more local suppliers and local agriculture; at some point Wal-Marts may even become the new farmers' markets. In a world that may become, as we slip down the energy slope, very decentralized and local (read: ineffective central goverments) local Wal-Marts may transform into real community hubs...stranger than fiction.

jump to top AJ Kandy [TypeKey Profile Page] says:

"In a world that may become very decentralized and local (read: ineffective central goverments) local Wal-Marts may transform into real community hubs"

Wal-Mart would effectively replace that central government, and that government would have a clear mission to exploit workers and customers for as much profit as possible. It would squash any quality of life trend that threatened to cut into their profits, and no one would be able to stop them.

What would make this any different from Stalinist Russia, where you had to get everything from the government?

jump to top Carl [TypeKey Profile Page] says:

Unfortunately Walmart is here to stay. If you want Walmart to change, one thing you could do is become a shareholder. You might not have as much pull as some billionaire, but if enough conserned people became shareholders, things would change. Maybe this is too idealistic, but it might just work.

jump to top Word says:

Er, which small town has been "destroyed" by Wal-Mart, Mr Alter?

Care to offer any proof of that?

And no, profiling the grumpy 75 year old guy who sold Zenith TVs on the town square for 30 years for $100 more than what you can buy them in the Bigger City 100 miles away doesn't count.

As for you Wal-Mart haters, why don't you go into any of the other discount department stores and check out where their merchandise comes from? You'll find that a lot of the same stuff sold at Wal-Mart is also sold at Target under a different brand name.

Go into most any clothing store and you'll see garments from Vietnam, Cambodia, and Sri Lanka. Sweatshop labor, anyone?

Wal-Mart is doing what other major department store chains AREN'T doing when it comes to Green Awareness. They are setting the bar. At least clap once to indicate that they're heading in the right direction.

jump to top algibson [TypeKey Profile Page] says:

I like the fact that they are taking steps, however, the fact that they still use US Samoa sweat shops and list the products as "Made in the USA" is repugnant. There should be a restriction that says "To be labeled 'Made in the USA', it should actually be made in the 50 actual states of this great country. Yeah, their product costs will increase, but they'll actually help this country rather than rot it out from the outside.

jump to top Shanti says:

Obviously no one here read the speech. This story was merely an overview.

Here are the salient points on greening china, and encouraging suppliers:

2. Aggressively pursuing regulatory and policy change that will create incentives for
utilities to invest in energy efficiency and low or no greenhouse gas sources of
electricity, and to reduce barriers to integrating these sources into the power grid.
3. Assisting in the design and support of a green company program in China, where
Wal-Mart would show preference to those suppliers and their factories involved
in such a program.
4. Initiating a program here in the U.S. over the next 18 months that would show
preference to suppliers who set their own goals and aggressively reduce their own
emissions.

jump to top daniel says:

Hey algibson, keep that stuff to yourself! We here at Target, Nike, K-mart, Home Depot, Lowes, don't need you rabble rousing! Let these hoi polloi fixate on Walmart. Then they don't bother to really wake up and look around at what's going on. They never realize that Walmart is breaking NO LAWS, and obeying the laws that the government representatives that these hoi polloi voted into office have enacted.

Common, let these hoople heads spin their wheels with their "movements" and "boycotts" against Walmart. See how much good its done them so far.

jump to top Chingy says:

"Unfortunately Walmart is here to stay."

Ya, it sucks that the nations poor are saving billions of dollars a month shopping at Wal-Mart. A crying shame. They are probably sinking that extra cash into crack rocks and fried chicken, so I can see where you are coming from.

jump to top Joel says:

Joel, you seem to base your prejudice against the people who dislike wal mart on stereotypes. How is that better than what you claim to denounce?

Nobody has anything against poor people saving money, but when that is done by exporting that poverty elsewhere (developing countries, wal mart employees, other stores and factories cutting jobs, etc) and destroying the environment, that's not a solution and it's hard to argue that it's a good thing.

Besides, I remember study that showed that Wal Mart prices were not really much lower (if at all) than their direct competitors. They just were really good at framing themselves as the "store with the lowest prices" and did studies that showed that the average person only remember the price of a few items (milk, bread, gas, etc..), so they targeted these items; when people go shop, they check their reference items and if they are cheaper than elsewhere, they'll conclude that *everything* in the store is cheaper even if that's not true.

jump to top MGR [TypeKey Profile Page] says:

read "Natural Capitalism" or "Small is Beautiful".

jump to top chas says:

Aren't they just getting better and better at PR?

jump to top Jack says:

Unfortunately, WM is here to stay, along with its enormous footprint. I don't shop there unless I'm in a part of the country where it is the only option within a reasonable distance (i.e. driving 8 miles instead of 37) and what I want isn't available in town. Part of the impact of that foot print is in its packaging amd display demands it makes upon manufacturers. Those demands ripple into other segments of the market. I despise the Walton family for their business style, even more so that it is working, and that their philanthropic activities are pitiful. Still, they are making changes and that is progress. Yes they are about profit, et al - so, if they are going to make money, yahoo that they are spending some of it on greening up. We cannot forsee what impact it will all have, i.e. WM's demands for packaging (materials and/or styling)gets met by their suppliers, who aren't going to do two versions - one for WM and one for the other market segments. I'll applaud the green steps WM puts out there - it's better than what they've been NOT doing. And I'll anxiously watch for the rumbles from those footprints as they echo throughout the merchandising and manufacturing industries. A forwar step is a step beyond where we've been.

jump to top cilantro says:

I'd be all warm and fuzzy about this news if it weren't for the fact that Wal Mart still kills small town businesses which in turn kill small towns. My hometown no longer has a grocery store because of Wal Mart.

Granted, their prices are cheap. They'd better be when we're all on unemployment.

jump to top Mike says:

I have traveled all over the world and I can say this without any equivocation. Wal-Mart (any "Big Box" business) is helping destroy the middle class. The Middle Class is what makes this country's economy work. When we lose the middle class we will be another Brazil, Mexico, Peru, etc. (pick one) where there are the haves and have-nots (nothing in between). The Rich can fly and buy what they want but that will not sustain the economy;the Poor, well they are poor and can't buy anything...Look at any 3rd World country and see what happens to the environment and population. A small thing in our everyday lives, but are we trading "Everyday Low Prices" for our kid's and country's future? Let's face it, our wealth give us the "soapbox" to get our messages out to the world. It will be our shame if we waste that.

jump to top Globeflyer says:

Wal Mart is a change-engine, a progress-engine. It drives cost cutting strategy and others have to follow them or perish. This is Darwinian and Darwin is in the nature of all living things, like it or not. Is this raw capitalism? Yes it is and we must be proud of it. Wal-Mart is an American example to the world that things can be done better and cheaper.

jump to top MART says:

walmart is, a few fat guys,livin in penthouses or on the beach drinking martinis,while the rest of small town america,degrades,to support them,,,its just that simple,,

jump to top randy says:

To be at Walmart, or not to be at Walmart. That is the question. Ever gone to a place and felt almost like you're nowhere? It's not an uncommom feeling for those who visit the great, white warehouse. But how can you feel empty while shopping? Not having money can do that. Also, being fed mediocre quality mass produced intermediates everywhere you go can attribute. It could be paralleled with taking a tour of botanical gardens, all over the world. Certain types of flowers all specific to their region, and you go to each place to take them in. Daffodils, daylilies, irises, roses. But instead of diversity, and individual quality, you find the same three flowers everywhere you go. They're not ugly, by any means, but they're not beautiful either. They were cultivated because of their ability to grow year round, and always bloom, and require little maintenance. Cost effective, labor efficient, and good enough to suffice the tourists with, at least for a while. Those who have been fed and so frequently impressioned with the "cardboard medium." But even beyond this, there is the "cleaning." When a Walmart is beginning to be built, that's the dusting. Wiping off table tops, lamps, tv screens. To prepare for the vacuuming. As construction is carried on, surrounding businesses ready themselves, for the opening. For the vacuum. For the Super Walmart to glide over them and pick up all that is able to be sucked in. A cultural vacuum. All that has happened in this place, the history of this area, has produced this little pharmacy here. Or this grocery store here. Or this clothing store here, that has been in the family for generations, and the family has been in this area for years. All that was once specific to each and every area, giving them individuality, and certain qualities, and diversity, is now at risk to what could be equated to the most high powered Hoover or Electrolux machine the world has ever seen. There are more than 3000 Walmarts in America. There are upwards of 1000 international. Is saving the twenty five cents on those q-tips really worth sacrificing diversity and quality, and thereby contributing to a loss of priceless culture?

Walmart certainly provides cheap prices, and a plethora of items all too conveniently at your disposal. There is the key word. Convenience. Since when did we abandon such concrete values as diversity and quality for a little convenience? Since the media aided and abetted these ideas by frequently showing us what it's like to be inconvenienced, and how horribly awful it is. Having to drive to the movie store to return your rentals. Bah! Having maybe to drive a little further or pay a little more for products that were made by a company that makes only these products. How dare we pay fifteen dollars more on a pair of shoes, or a clock, that will last us longer and prevent us from having to buy more of the same thing in the future! Walmart does have quality items. Shoes, clocks, deli meats, towels, makeup, Playstations, goldfish, the basics. Why go anywhere else? Fifteen cameras just in the ridiculously sized parking lot, clashing with over friendly signs of savings and family atmosphere, meddled with four trees in the center and an overall desolate feeling, and we're not even inside yet. But why go anywhere else? Why fight the feeling of unconsciously putting your blinders on because of feeling like cattle being herded to the neatly stocked shelves in the land of "always low prices." It's good enough. Not the best socks, or ground beef, or 1 hour photofinishing, but good enough. Good enough maybe because you constantly feel, unknowingly even, that you're in the right place doing the right thing because you know it's the cheapest, and easiest. That's a great way to promote individuality and motivate people, don't you think? Walmart has nearly managed to turn itself into not only an up to date, hip, neverending flea market, but also it is now a sense of comfort. Which do you think, is a more powerful marketing tool? 100 million people shop at Walmart stores in this country every week. Surely that can't be because they are all so desperate to save seventeen cents on generic brand hand lotion.

This ever growing chain and brain child of the late Sam Walton is not the only example of a cultural vacuum. Many other large corporations and services are sitting right beside Wallyworld on each of their thrones. It's more of a personal evaluation or awareness, than it is an attack on the corporate monster. These things can benefit our economy, and their right to exist should not be questioned. What should be questioned is why one would want to contribute their well earned money to the oiling of this machine. Please don't say it's because it's convenient, and easy. We all know about the easy way out, don't we? Spending more money will not make your life better. But don't you think preserving culture wherever it may be makes things more enjoyable? There are still other options. Just maybe not for long.

jump to top Jared Comer says:

Concerning walmarts china connection where most of their goods are from. China is an enviromental disaster. Wouldn't it go much further for them to buy goods made in america. Do we all forget that walmart was founded and thrived under the red, white, and blue slogans MADE IN AMERICA? Until greed set in. It's apparant in china they not only support unsound environmental ethics but human sacrifice as well so that each family member smile at one another and can all boast of being a billionaire . Isn't that warm and fuzzy.

jump to top CharlieB says:

Someone from Wal-Mart's sustainability group needs to talk to marketing. Marketing has decreed that all molded fiber apple trays now be black instead of violet or natural gray. This increases the cost of packaging and adds unneeded chemicals to the product which seems counter to the sustainability objectives.

jump to top Gary Apel says:

Walmart is best store in US. I have found great site with some quality articles about walmart.. read yourself Walmart

jump to top Lucas says:

I think that Wal-mart and big stores are destroying the chances for small businesses and they are now starting to control the American businesses and the US, so we need to stop them before things get worst. We should have a good chances for small businesses and making a good money from them but the big stores are destroying that dream. I would recommend to see www.walmartwatch.com and www.walmartmovie.com and the walmart movie and you will know what Wal-mart is really is.

jump to top Jhon says:

I love to shop at WalMart! It's easy to find about everything I need from my wheelchair. Yes, I'm delighted they have decided their "bottom line" will benefit from a green approach. Hope I can soon buy Bison and grass fed beef, wild caught fish & hormone & antibiotic free poultry & eggs. and closer to me grown fruits & vegetables. Then I'll shop there even more!

jump to top MaryElla Adams says:

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