The Wal-Mart Sustainability Index: An Overview

Retail giant, Wal-Mart, debuted their Sustainability Index in July. You can download Version 1.0 of the Index here. The latest list of questions on the survey is here.

The survey is divided into four categories: Energy and Climate, Material Efficiency, Natural Resources, People and Community. In essence, it will function as an baseline measurement tool that sorts suppliers by having them demonstrate they are in control of their energy (GHG), waste (solid/water) management and reduction initiatives, material sourcing (production/certification), and community engagement (awareness of impact). At best, it points toward Cooperation. Basically, though, it sets a bar of Compliance for companies that want to do business with Wal-Mart

Though the first category is titled “Energy and Climate” a more appropriate heading would be “Greenhouse Gas Emissions.” The four questions in the category are focused completely through the lens of reporting and reducing greenhouse gas emissions.

The second category, “Material Efficiency”, is dedicated to reduction of solid waste and water use. Linked closely to Wal-Mart’s Packaging Scorecard and their Zero-Waste initiative, it is asking companies to demonstrate how they “reduce waste and enhance quality.”

Category three, “Natural Resources” focuses mainly on sourcing and certification, asking companies to report on origin of materials, purchasing guidelines and 3rd-party certification.

The fourth category is “People and Community” and centers on corporate awareness of and engagement with the communities in which they operate. The first question is telling. It asks if companies know where all of their production and manufacturing facilities are. It’s a start…

Relatively unexceptional in its content it still has very strong potential to be a game-changing move. The reason is simple: as a supplier, to do business with Wal-Mart means doing business their way. Though they are not setting any baseline requirements at the moment, nor are they auditing suppliers (answers to the 15-question survey are received in good faith) they are asking suppliers to complete the survey. To do so means you want (and really need) to have policies and controls in place or risk getting pushed out by companies that do.

Ultimately, this points to the development of an embedded system of and processes for sustainable business. The question suppliers for Wal-Mart have to answer is: “How far do we want to go?” Simple Compliance or Conformity? Cooperation? Collaboration and Coherence? Or, systemic Constellation?

Up next: How sustainable is the Wal-Mart Sustainability Index?

Tags: Climate, Coherence, collaboration, Community, Compliance, Conformity, Constellation, cooperation, Energy, GHG, greenhouse gases, Material Efficiency, Natural Resources, Packaging Scorecard, Sustainability Index, Wal-Mart, waste, zero waste

What Do CEO’s, Government, the General Public and Girls’ Softball Have in Common?

Check out this article at the Wall Street Journal. I’ve been hearing this a lot lately. Company heads are waiting for governments to give them clear signals on where they should be placing their R&D, development and marketing bets. In essence, they’re asking for regulators and policy makers to tell them the future. It’s a tall order

Still, that is exactly what regulators and policy makers need to be doing. Yet, signals remain mixed. The reason seems to be that our government leaders are looking for signs as well.

Regarding greenhouse gas emissions, the Japanese government, facing a seemingly intractable showdown between business interests (cap GHG emissions at +4% above 1990 levels) and environmentalists (reduce GHG emissions to -25% of 1990 levels) asked the public to help decide. The Japanese public, not surprisingly, chose the middle path option they were offered (-7% from 1990 levels). Let’s remember that under the Kyoto Protocol Japanese GHG emissions rose roughly 6%. Things are not what they seem. Ah, where is the Oracle at Delphi when you need her?

We are at a time where our conventional decision-making capacities are failing. Too many choices, mounting and multiple risks, way too much uncertainty. Business leaders want to move but are looking for direction. Governments wants to act but, they too, are looking for direction. Public opinion is all over the place. 

So, what to do? Let’s begin with another question: What sustains? We need to take a look at what holds us together. What supports us? What do we need? What sustains?

We need to look at the Value Web and begin boldly designing from and for abundance. Big business, small business, venture capital, entrepreneurs, NPO’s & NGO’s, school principals, teachers & professors, doctors & nurses, housewives & househusbands, village councils, state, provincial & prefectural assemblies, mayors, city directors, governors, presidents & prime ministers–all of us need to be doing this together. NOW. 

Otherwise, we will end up like the three middle school girls’ I remember from my English teaching days in Japan. They were members of the softball team and I was watching their team practice. The coach would line a ball to the shortstop and she would deftly field it and sling it over to first in accordance with her teammates shouts. The girl minding third base did the same. When the coach hit the ball deep to left field, the left fielder chased it down and relayed the ball to the shortstop who then, at the behest of her teammates spun and slung the ball home, to the catcher.

Then, there was this pop fly. A little Texas leaguer that either the girl at third, the shortstop or the left fielder could have called and caught. Instead they all tracked the ball on it’s upward arc and, as it descended, they formed a neat triangle into the middle of which dropped the ball. There was no tried and true response for this situation. The three girls looked at each other. Their teammates stood in confused silence. And, in that moment, nothing happened.

Sound familiar? Who wants the ball?

Catch…

Tags: CEO, climate change, government regulation, greenhouse gases, Japan, Kyoto protocol, the Value Web, Wall Street Journal, what sustains

The Absurdity of “Fighting” Global Warming

I have started collecting stories of sustainable practice. There are many of us doing so many things at so many levels, yet, when I talk with people in organizations or even in private I often hear a response sounding like, “I just don’t know where to begin.” 

Often, when people tell me they don’t know where to start, it is in reference to “fighting” the malevolent specter of global warming. I’ve got news for you.  We can’t “fight” global warming. It’s not an enemy. It’s an outgrowth of who we are, who we’ve been and what we’re becoming.

They only way we will make a significant impact on lowering the level of greenhouse gases we’re pumping into the atmosphere is to radically shift our energy generation and consumption practices as quickly and decisively as possible. We can’t “fight” global warming. We have to give in, give up and move on.

What is fueling global warming? Nearly everything we do. As I type away I’m also sucking up energy from the PGE power grid here in Portland which is, still to a great extent, coal fired. If we want to stop greenhouse gases from accumulating in the atmosphere we have to stop generating them. And, more importantly, we have to help other people stop as well.

This doesn’t mean villifying coal. Coal is not an enemy, it’s compressed carbon. We need to take our collective dis-ease with our current lifestyles and channel that energy into realizing fundamentally different ways of using and generating energy. I know, I know, renewable forms of energy are inefficient, expensive and not practical. The engine in an Oldsmobile wasn’t going to get us to the moon either.

What’s holding us back? We are. Change is hard, scary and uncomfortable, especially when you are a comfortably consuming American, Japanese or newly middle-classed Chinese. Give it up people. The dream of the last one hundred years is choking us with CO2. Let’s figure out and realize a better way. 

Revolution is coming one way or another. Either we keep “fighting” global warming with ineffective protocols, accords and reductions (until the glaciers melt, sea levels rise and all hell breaks loose) or we leap forward to something that just might sustain ALL of us. We’ve done it before. We can do it again.

Let’s stop fighting and start being the change we need to see in the world. Rant over. Let’s get on with it.

Tags: change, climate change, CO2, coal burning, global warming, greenhouse gases, renewable energy