Wal-Mart moves toward more environmentally and socially responsible global supply chain

October 22, 2008 · Filed Under Buildings & Equipment

Wal-Mart Stores, Inc. hosted a gathering of more than 1,000 leading suppliers, Chinese officials and NGOs in Beijing, China for their Sustainability Summit this week. The company outlined a series of aggressive goals and expectations to build a more environmentally and socially responsible global supply chain. Wal-Mart put forth a series of requirements to attain responsible sourcing.

Required demonstration of compliance with environmental laws and regulations — The agreement will be phased in beginning with suppliers in China in January 2009 and expanding to suppliers around the world by 2011.
By 2012 Wal-Mart will partner with suppliers to improve energy efficiency by 20 percent in the top 200 factories it sources from directly in China. The company will share information and best practices with all of the factories it sources from as well as its competitors.
Higher standards of product safety and quality — By 2012 Wal-Mart aims to drive returns on defective merchandise virtually out of existence.
Greater transparency and ownership — By 2009, Wal-Mart will require all direct import suppliers plus all suppliers of private label and non-branded products to provide the name and location of every factory they use to make the products it sells. By 2012 Wal-Mart will also have all suppliers it buys from directly to source 95 percent of their production from factories that receive the highest ratings on environmental and social practices.

Wal-Mart announced a major effort to make Wal-Mart China a leader in sustainability in China by committing to make its stores more energy and water efficient. Wal-Mart China will aim to cut water use by 50% in all of its stores.

Tags: responsible sourcing, Wal-Mart