Wal-Mart says, “We save people money so they can live better.” Sustainability is an example of how they fulfill this mission. Despite their success and their satisfied customers Wal-Mart is often the butt of jokes and the object of condescension by some.
But for the practical shopper, Wal-Mart is a good bet. This company is also on the forefront of environmental awareness and has implemented programs to move aggressively in a green direction. There are lessons to be learned from the Wal-Mart business model and the green goals that they define very precisely.
Wal-Mart has three goals, which were initially established in 2005:
Goal #1 – Be supplied 100% by renewable energy
Goal #2 – Create zero waste
Goal #3 – Sell products that sustain people and the environment
Regarding the company’s ambitious green program, Michael Duke, President and Chief Executive Officer states, “’Sustainability 360’ is what we call the approach that has guided the expansion of our efforts. It’s a company-wide emphasis on integrating sustainability into our business by engaging the Wal-Mart’s associates, suppliers, communities and customers. Together, our goal is to make an even bigger difference in people’s lives, in our businesses, and in the communities that we touch around the world.”
This is not a stand-alone issue that is separate from or unrelated to the business of Wal-Mart and it’s not an abstract or philanthropic program either. The company doesn’t view this as a corporate social responsibility, which is interesting, but Wal-Mart builds sustainability into their business, because it is actually good for their business.
The Green Business Chamber website has stated that green business programs can be good for business and, based on its recent “Sustainability Report”, Wal-Mart is proving that to be very true.
For example, by using more renewable energy, reducing waste and selling sustainable products Wal-Mart has managed to take costs out of their system. This translates into lower costs to customers, which then translates into more customers.
The company has invested heavily in solar and wind energy in Mexico, Canada and the U.S. toward the goal of being supplied 100% by renewable energy.
The company goal of zero waste has already resulted in a 57% reduction in waste, which would normally go to landfill.
Sustainability, in the words of Sam Walton, has really helped “our people make the difference” in their own lives and in their communities. Whether it’s compact fluorescent light bulbs or organic milk, the company has helped make sustainability affordable and accessible to its customers and members. These products which contribute to sustainability should not be out of reach cost-wise to customers, so the company strives to level the field in this regard.
Despite the fact that we are going through tough times and most companies are cutting back, Wal-Mart has remained committed to their sustainability program and is actually expanding their efforts worldwide. This is a green business program on a grand scale and it is proving beneficial to Wal-Mart as a business and to their customers in cost savings.
Wal-Mart: An Example of an Environmentally Conscious Business
by GBC on July 26th, 2010
Posted in Green Business, Random Thoughts by Ralph Higgins Tagged with no tags
1 Comments
Green Business - October 19th, 2010 at 8:15 AM
Admiring the time and effort you put into your blog!
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