To further promote the sustainable development of its global supply chain, Walmart announced new initiatives on the 25th to comprehensively integrate its sustainability strategy into its business development. At the press conference in Beijing, Walmart emphasized that its goal of promoting the Sustainability Index within its global supply chain will be implemented throughout the global supply chain system. This includes four measures, such as launching the Sustainability Coalition (TSC) in China using $2 million in funding from the Walmart Foundation.
The new initiatives announced by Walmart are all based on the sustainability goals that Walmart proposed at the 2008 China Sustainable Development Summit, specifically including:
By the end of 2012, 70% of the merchandise sold at Walmart and Sam’s Club stores in the United States will be sourced exclusively from global suppliers, including those in China, that participate in the Sustainability Index program. Suppliers must evaluate their products according to the Sustainability Index and share the results with Walmart. Suppliers for all categories of merchandise covered by the index will be subject to this requirement.
Starting in 2013, Walmart will use the Sustainability Index to evaluate the design of its U.S. private label products. It will also change the evaluation criteria for its major global sourcing to ensure that sustainability strategy becomes an important part of the daily work of its sourcing staff. Starting in 2013, these sourcing staff, like the major sourcing staff at Walmart stores and Sam's Club in the U.S., will be required to specify sustainability goals in their annual evaluations.
This sustainability initiative builds upon Walmart's ambitious goal announced at its 2008 Sustainability Summit to enhance the sustainability of its operations in China, which will benefit its global supply chain. In the five years since 2008, nearly 95% of direct importers have received one of the highest environmental protection and procurement audit ratings, and as of July 2012, 195 factories had improved their energy efficiency by 20%. Currently, the top 200 energy-efficient factories are expected to further improve their energy efficiency by 20% or more by the end of 2012.
In 2009, Walmart set a goal to improve sustainability across the consumer goods industry by developing a sustainability index. The Sustainability Coalition (TSC) developed reporting systems and assessment tools for its members, including Walmart, to evaluate products and determine suppliers' sustainability performance.
Walmart assesses the sustainability of its products using standards developed by the Sustainability Alliance, and has already launched a Sustainability Index for over 100 products. More than 500 suppliers have joined the Sustainability Index program, representing 70% of sales in the product categories currently evaluated by Walmart using the index. Walmart expects to apply the index to another 100 products by the end of this year.
Sources: Environmental Leader (2012-10-25) (Compiled by PIDC)
