There have been a few posts recently about Walmart. I commented in one and it was followed up with a few questions I didn’t have time to answer so I thought I would respond here in a more thoughtful way. My point is that if the environment or organic food is your primary issue politically or socially, you should relook at Walmart.
Simply put, Walmart is the largest distributor or organic food, and if we survive climate change it will largely be due to actions by Walmart. Their actions are real in these areas and their size alone creates an immense impact.
I am in an awkward position taking up the cause of Walmart as I am, personally, a human rights/labor kind of girl. In no way am I claiming Walmart is good on these particular issues. What is said here in recent diaries covers their abhorrent labor practices:
[http://www.dailykos.com/...]
and
[ http://www.dailykos.com/...]
However, nothing in current corporate governance is simple. The bad guys are not all bad anymore and the good guys are not all good. Walmart’s business plan is to provide every good imaginable to the consumer, at the lowest prices possible. The way they do that is skimping on labor in a variety of ways. However their commitment to the conservation and sustainability within that model is real and admirable. They are NOT greenwashing with their environmental policies. When they took this up around 2005, they did it for real and they went big. The consultants the hired initially were/are respected environmentalists from within the movement. They worked with Joel Makower: in the beginning, and more recently with Paul Hawken and Hunter and Amory Lovins at Rocky Mountain Institute: [http://www.rmi.org/ . You can google Hunter Lovins and Walmart and get a slew of info but here is a quote and article from the NYT: Lovins -“If you are a small business that is any part of the Wal-Mart supply chain or any other large retailer, and you are not focusing on sustainability, you are at risk of losing your biggest customer. These retailers will be looking for some level of green accounting on the products they are buying.”
[http://www.nytimes.com/...]
Disclosure and transparency is key to monitoring the environmental impact of a company.
Think Romney’s unreleased taxes, it is impossible to know what is going on without information. In corporate governance, it is similar, the more progressive companies will release a sustainability report annually, so their impact can be monitored by the public or outside agencies. In fact, many hire third party outside agencies to report for them. During annual shareholder meetings often the resolutions we might make is to commit to reporting this kind of information. Walmart has agreed to one of the more comprehensive reports. It outlines their policies, impact and progress in attaining goals. So, while I am going to link here to Walmart, it is a verifiable report that is reviewed annually by skeptics. Think of reporters if Romney were to release tax returns. Activists do the same with Walmarts annual report.
[http://www.walmartstores.com/...]
Bottom line:
They kept 80.9% of US waste out of landfills and potential to reduce their footprint by 11.8 MILLION metric tons of CO2. In China and Brazil they kept 52% out of landfills (this is much harder in other countries with looser laws and less accessible zero waste options). Their plan is ZERO waste by 2014.
Local grown produce increased 97% last year and they plan to double that by 2015, decreasing CO2 from transportation. Local is defined as grown and sold in same state.
The United States' EPA Green Power Partnership program now ranks Walmart as the second-largest onsite green power generator in the U.S. Renewable projects provide 1.1 billion kilowatt hours annually. The grid supplies another 18 percent, for a total of 22 percent renewable electricity as of 2010. Walmart has 180 renewable energy projects in operation or under development, they continue to test solar, fuel cells, microwind, offsite wind projects, green power purchases and much more. We are learning and making adjustments on our way toward one day being powered by 100 percent renewable energy. 100% renewable for the largest employer and retailer in country is dramatic.
Reduce packaging by 5 percent globally by 2013 (2008 Baseline). Eliminate PVC from private brand packaging in the U.S. by October 2007. Be packaging neutral globally by 2025
Comprehensive electronics recycling program.
Significantly more fuel efficient trucking fleet. See below for details.
Here is the link to the climate and greenhouse details, they are extensive and too much to copy here. To the left on the drop down for Climate it is broken down into 6 pages.
[http://www.walmartstores.com/...]
AND, as Lovins says in her quote, Walmart has created an index and way for suppliers to also reduce their footprint and become more “green”. They will not do business with companies not attempting to reduce their impact on the environment.
I know a little less about their commitment to organics except for whatever Walmart does, the impact is significant and I know they are now the largest seller of organic food often giving access to people where they are the only option. Here is an incredibly interesting article about it:
[http://www.nytimes.com/...]
The reason I am aware of this, and other companies, is I am a financial planner and I help people invest their money according to their political and social values. I am not self promoting here but needed to say that as I say the next part. The other thing to know about Walmart is they are committed to this. They asked about 3 years ago to come speak at our annual conferences. The group of SRI (socially responsible investing) professionals that meet at these conferences are fundamentally activists. We vote proxies for our clients, we work with labor and pensions and non profits and individuals to add resolutions to corporate charters, to vote on behalf of our clts to make sure boards are more diverse, companies commit to sane environmental, labor and community policies and policies of disclosure, same sex partner benefits etc. We are not a naturally friendly group to Walmart. And yet, for the last 3 years they show up and are in a side plenary panel with other speakers (never will they get a keynote unless labor practices change as well). They always present some great environmental, health or child labor thing they did that year. Those are admirable. However, they are also sitting in a room full of activists with an open mic who inevitably hammer them on their labor practices. It is never pretty and they never answer these questions in an overly optimistic way. But, they show up, are respectful and hear what we are saying. It is FAR more than many companies are willing to do.
I am not writing to condone Walmart but I am here to say none of our purchasing or investing decisions are simple. No one is all “wrong” or all “bad”, we all have different values and there are places to choose to shop and invest based on what is important to you. I just wanted to point out, if you are a strong environmentalist or natural foods person, you might want to rethink Walmart. Or at least know some of the facts.
It would be lovely if we could all shop at farmers markets and your local hardware store but the likelihood of that is not reality fro many. For some this is not an option due to cost or access. We live in the world we got and the choices are complicated. There are very very few “pure” plays out there and they are not large companies. When it comes to large companies, most are trying to make some of the changes we have fighting for and it is not an all or nothing game. I think, overall this is a great thing but it takes time. The good news is even companies like Walmart are listening. They all have to start where it makes sense for them.
Peace out.