On the road to solid sustainability reporting, Walmart gets one step closer

Last week as environmentalists across the country were getting excited for the 41st annual Earth Day, EDF’s Walmart team was eagerly anticipating another annual event – the release of Walmart’s 2011 Global Responsibility report.

This is Walmart’s fourth sustainability report, and our third year blogging about it, and we are pleased to see that this year’s report shows continued improvements in areas where we’ve been encouraging progress (e.g. transparency, setting meaningful goals, strong metrics).  It was inspiring to read Mike Duke’s introductory message and hear the boss himself emphasize that not only are transparency and accountability part of being a responsible company but they make Walmart “a better company” (his emphasis, not mine).

With the exception of a few projects and stories, there was consistent inclusion of significant metrics for its sustainability projects and goals.  As Walmart continues to move away from anecdotal stories to hard numbers and data, the reporting continues to become more and more meaningful.  We also applaud and appreciate the report’s candor when discussing areas where there is more work to do.  The inclusion of the “Challenges” breakout boxes nicely highlight areas where expectations and goals were not met and explains why.  While it’s not always easy to publicly recognize areas where you fall short, it is important for meaningful and transparent reporting to do so.

Looking forward to next year’s report, we would like to see Walmart consistently provide metrics that place its progress in perspective of its total impact in a given area. For example, it would be helpful to have some sense of progress on their goal towards being powered by 100% renewable energy. We would also like Walmart to ensure that clear baselines are consistently used.  For instance, its goal to reduce phosphates by 70% in laundry and dish detergents in the Americas is still undefined. There are numerous ways to measure a 70% reduction—by weight, by volume, per product, for the region. Clarity is important.

On goal setting, Walmart has continued to take aggressive goals over the last year.  Reading through this report, I was reminded not only of the scope and depth of the work (I counted 47 sustainability goals!), but also of the progress on numerous fronts.  Walmart’s innovative goal to drive GHG reductions from its products’ lifecycles and supply chain is moving forward and its recent goals on sustainable agriculture bring Walmart that much closer to a global sustainability program.  Unfortunately, it’s not all high fives on this front. We continue to be hopeful that Walmart will commit to meaningful goals regarding the chemicals of concern in its products.  Walmart has developed a powerful product screening tool for chemicals, GreenWERCS, and now is the time to make good use of it.  We were excited to see the newly announced pilot to train merchants (the people that select the products Walmart will sell) to utilize GreenWERCS data and output from  The Sustainability Consortium to assess how sustainability information can be integrated into core business decisions.  This is a good start.

When everything is said and done, Walmart has a lot to be proud of.  Over our six years of partnership, we’ve seen this company take a lead in corporate sustainability. With renewed focus and a continued companywide emphasis on the business value of sustainability, the 2012 report will show even further progress.  In fact, a renewed focus on sustainability from Walmart leadership is essential if Walmart is going to continue to help its customers “save money and live better”.

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3 Comments

  1. Clifford Goudey
    Posted May 5, 2011 at 3:46 pm | Permalink

    Andy,

    How much is Walmart paying EDF to do their cheer leading. A lot, I hope.

    "Walmart" and "Global Responsibility" don't belong in the same sentence. You folks are trying to dress up a pig. Shipping junk from halfway around the planet to be used for a year before is wears out or breaks and then gets buried in a land fill is not a business paradigm that can be fixed.

    You claim Walmart has a goal of being powered by 100% renewable energy? How will they do that, shift over to sailing ships? How does anything they do help people “save money and live better" when the hidden costs of their operations on the environment and human health are ignored?

    • Andy Wunder
      Posted May 12, 2011 at 6:32 pm | Permalink

      Hi Clifford,

      Thanks for reading our blog and taking time to give feedback.

      Let me start by making one thing clear – EDF does not accept any money from our corporate partners, Walmart included. By remaining financially independent from Walmart, we retain our ability to be critical when the company does wrong and we retain our credibility when we give praise for its progress.

      It is (fortunately) true that Walmart has taken a leadership role in sustainability. We’ve spent the last 6 years working with this retailer to improve its environmental performance and as a result, Walmart is doing some great work to reduce its footprint. You are correct that Walmart’s business model (indeed, today’s whole consumer society) is far from sustainable. But what sense would it make for EDF to spend time and resources working with a perfect company? By working in “the belly of the beast” we’ve been able to drive real, meaningful change and we are in a great position to begin tackling the unsustainable consumption model our society is based on.

  2. Clifford Goudey
    Posted July 26, 2011 at 6:09 pm | Permalink

    Andy,

    You ask, "what sense would it make for EDF to spend time and resources working with a perfect company?"

    Who said perfect? I merely suggest that nothing in these so called campaigns is going to change Walmart into a sustainable enterprise. This needs to be known by people who shop there. Instead, your campaigns provide a deceptive sense that everything is OK at the massive supercenter out on the edge of town. So they dutifully drive past the boarded-up downtowns.

    Why not teach the smaller stores how to compete. Why not explain to the consumer how buying locally produced goods helps us all.

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