Wal-Mart collects supplier data for environmental label

The company, which owns Asda, is asking 100,000 of its global suppliers to provide information about areas such as water usage, greenhouse gas emissions and packaging.

The data will then be used to provide a Sustainable Product Index rating for customers. The retailer has not yet decided on the form it will take, but it could be number or a colour code.

Wal-Mart president and chief executive Mike Duke said customers wanted to know about the entire life-cycle of a product so they felt good about buying it. “We do not see this as a trend that will fade. Higher customer expectations are a permanent part of the future,” he said.

US suppliers will have to complete the survey by 1 October. Wal-Mart said it will establish timelines for the rest of the world on a country-by-country basis.

The survey comprises 15 questions looking at energy use and greenhouse gas emissions, material sourcing and use and people and community (see below).

Chief merchandising officer John Fleming said: “The questions aren’t complicated, but we’ve never before systematically asked for this kind of information. The survey is a key step to establishing real transparency in our supply chain.”

Wal-Mart is providing the initial funding for the Sustainability Index Consortium but said it would work with leading technology companies to create an open platform for the data. It called on other retailers and suppliers to contribute.

“We want to spur the development of a common database to allow the consortium to collect and analyse the knowledge of the global supply chain,” said Duke.

WALMART SUSTAINABLE PRODUCT INDEX

Supplier questions

Energy and Climate: Reducing Energy Costs and Greenhouse Gas Emissions
1. Have you measured your corporate greenhouse gas emissions?
2. Have you opted to report your greenhouse gas emissions to the Carbon Disclosure Project?
3. What is your total annual greenhouse gas emissions reported in the most recent year measured?
4. Have you set publicly available greenhouse gas reduction targets? If yes, what are those targets?
Material Efficiency: Reducing Waste and Enhancing Quality
5. If measured, please report the total amount of solid waste generated from the facilities that produce your product(s) for Walmart for the most recent year measured.
6. Have you set publicly available solid waste reduction targets? If yes, what are those targets?
7. If measured, please report total water use from facilities that produce your product(s) for Walmart for the most recent year measured.
8. Have you set publicly available water use reduction targets? If yes, what are those targets?
Natural Resources: Producing High Quality, Responsibly Sourced Raw Materials
9. Have you established publicly available sustainability purchasing guidelines for your direct suppliers that address issues such as environmental compliance, employment practices and product/ingredient safety?
10. Have you obtained 3rd party certifications for any of the products that you sell to Walmart?
People and Community: Ensuring Responsible and Ethical Production
11. Do you know the location of 100 percent of the facilities that produce your product(s)?
12. Before beginning a business relationship with a manufacturing facility, do you evaluate the quality of, and capacity for, production?
13. Do you have a process for managing social compliance at the manufacturing level?
14. Do you work with your supply base to resolve issues found during social compliance evaluations and also document specific corrections and improvements?
15. Do you invest in community development activities in the markets you source from and/or operate within?

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