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July 22, 2009

Walmart’s Sustainable Product Index aims to develop green rating

Walmart Sustainability Index Green ProductsIn its latest effort to go green, Walmart has announced an ambitious five-year plan to develop an eco-rating for all the products it sells. The Benton, Arkansas-based retailer’s Sustainable Product Index is expected to provide a snapshot view of each product’s environmental impact during its life cycle, from raw materials through disposal.

While Walmart’s initiative could eventually provide a new level of transparency that’s scarce in today’s marketplace, much remains to be seen as it unfolds. “This is a bold step for a big company but might  translate to only a small step for sustainability,” says Urvashi Rangan, Ph.D., director of Technical Policy for Consumers Union, the nonprofit publisher of Consumer Reports. “Collecting detailed product information and translating it into a simple green rating is a complex task and, ultimately, only as accurate as the data and evaluation that goes into a life-cycle analysis.”

As a first step, Walmart will assess the sustainability of its more than 100,000 suppliers worldwide. Each supplier will be asked to respond to a 15-question survey (PDF) that covers energy and climate; material efficiency; natural resources; and people and community. The information will help guide Walmart’s store buyers decide which companies to purchase from. Only a few of the questions, however, are specific enough to allow for direct comparisons among companies, and Walmart will not verify every answer for accuracy.

Other, likely more-detailed data will be gathered by a Walmart-convened university consortium that will be directed to collaborate with suppliers, other retailers, government, and nongovernmental organizations to create a global database of product-life-cycle data. While Walmart has provided the initial funding for the consortium, it has also invited all retailers and suppliers to contribute in hopes of making this an industry-wide effort. It’s important to remember that this initiative is  brand new and the first sustainability label has yet to be developed. “With so many variables, it’s hard to judge how credible it might be,” says Rangan.—Kristi Wiedemann | | Twitter | Forums | Facebook

Essential information:
Underwriters Laboratories recently launched UL Environment, a program designed to inform consumers of green claims by manufacturers. The Environmental Claims Validation program evaluates environmental claims, and UL has plans for a certification program that will test and certify products.

Comments

Exactly: "“Collecting detailed product information and translating it into a simple green rating is a complex task and, ultimately, only as accurate as the data and evaluation that goes into a life-cycle analysis.”

And this is why this (not WalMart's fault per se) is totally stupid. When so many of Walmart's suppliers are Chinese - notorious for breaking laws, industrail espionage, etc - no one should seriously consider their replies to be of any value. Just as India, they have recently said they are doing NOTHING to reduce greenhouse emissions, etc because they are building and growing their economy, just like the western world did at the turn of the last century.

A few years ago, Trader Joe's powder dishwasher detergent got high marks in your reviews, so I've stuck with the brand due to its reasonable cost and other benefits. Now it is no longer even reviewed by CR in this year's review of dishwasher brands. What gives?

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