Suppliers Get On Board Wal-Mart's Environmental Program

Last updated Thursday, March 2, 2006 10:44 PM CST in Business

By Anita French
The Morning News

Pope went on to add that the Sierra Club hoped Wal-Mart would be just as responsive when it comes to future environmental issues.

Where consumers play at part is in buying the environmentally friendly products Wal-Mart now carries or plans to offer in its stores -- starting with organic cotton yoga outfits at 290 Sam's Clubs last year.

Wal-Mart customers bought virtually all 190,000 outfits in just 10 weeks, Scott said. The company then expanded its organic products to include bath, bed and baby products.

"From just these few orders in a limited number of stores, the Organic Exchange has informed us we will have saved more than 500,000 pounds of pesticides and herbicides from being used and have become the largest single purchaser of 100 percent organic cotton products in the world," Scott said.

Wal-Mart has shared its environmental goals with local suppliers, who, for the most part, reportedly are enthused about the project.

Patrick Sbarra, president of New Creature ad agency in Rogers, whose company makes point-of-purchase displays for Wal-Mart suppliers, said environmental sustainability is "on the tips of the tongues of every supplier to Wal-Mart right now."

"New Creature has been serving suppliers to Wal-Mart and Sam's Club for over seven years, and I can not recall an initiative that has spread more quickly than this collective concern for environmental conservation. The tipping point that elevated the environmental sustainability movement to its current top-of-mind position may be that Wal-Mart has become its most vocal and passionate advocate," Sbarra said.

Kimberly-Clark and Pepsi are among the suppliers who have signed on to Wal-Mart's environmental program. Tony Dunning, team leader of the local Kimberly-Clark office, said his company believes Wal-Mart's program will "transform the retail industry."

"We also believe this will have a significant positive impact on the supply chain and therefore transforming the major consumer product suppliers. We are working closely with Wal-Mart ... to advance the agenda," Dunning said.

Kimberly-Clark, in business since 1872, has been consistently recognized by various organizations for its pioneer work in producing environmentally safe products. The company has its own program, which sets environmental objectives every five years.

All of Kimberly-Clark's objectives -- including usage reductions in energy, water, landfill and packaging materials -- are "well-aligned with Wal-Mart initiatives," Dunning said.

Wal-Mart spokeswoman Tara Stewart said the company is planning a suppliers' summit in the coming months to get their input and feedback on the environmental program.

"We're looking at ways to work with our suppliers to make existing products better, less harmful to the environment. We're looking at the life cycle of various products and their packaging to determine how we can make small changes that will have a big impact on the health of our environment," she said.

Pepsi spokesman Tony True said one of his company's divisions, Aquafina, has partnered with Wal-Mart's Sam's Clubs and the Keep America Beautiful program by encouraging children to recycle 30 million plastic bottles from their communities.

Aquafina and Sam's Club plan to donate 100,000 fleece jackets made of recycled plastic material to children in need as well as reward the top 50 collecting schools with a $1,000 Sam's Club gift card, True said.

"This is the first year our companies have joined forces for such a unique program," he said. "We expect to make the donation of fleece jackets to coincide with the start of the school year at local Sam's Clubs throughout the country. In addition, we expect to continue this program in the fall."

The collection program kicked off Wednesdayand wraps up May 31.

Wal-Mart is working with the Center for Environmental Leadership and Business in Washington in developing its environmental sustainability program. Kai Robergson, a spokeswoman for the center, said the organization believes Wal-Mart has made a serious commitment to improving its operations.

"Wal-Mart can take action because of its position in the marketplace, where others can't. It can really be a catalyst for real environmental sustainability," she said.

Wal-Mart Chairman Rob Walton, who serves on the board of the Center for Environmental Leadership and Business, was instrumental in having the organization work with Wal-Mart on is program, Robergson said.

Wal-Mart and it suppliers can, of course, fill stores with environmental friendly products, but their program won't succeed unless customers feel they should buy the items, and, more importantly, can afford them. Dunning said "consumer relevance" has to be foremost in Wal-Mart's and Kimberly-Clark's environmental programs.

Robergson said most consumers, herself included, "want to be able to get our fish or buy a new T-shirt, if these products are sustainable.

"Most consumers assume they're not doing harm in their purchasing, that the retailer has been screening (the products.) They look at retailers as gatekeepers. From a business perspective, what Wal-Mart is doing is critical ... if the ecosystem's not healthy, there is a big problem in the supply chain," she said.

Stewart said Wal-Mart believes its customers shouldn't need a greater income to have access to organic products.

"We want our customers to feel comfortable shopping with Wal-Mart, and that we have worked hard to give them a better, more sustainable choice, at the always low prices that they have come to expect," she said.

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