Wal-Mart Demands Suppliers Go Green By 2012
In a recent meeting in Beijing, Wal-Mart met with over 1,000 of it’s leading product suppliers to inform them of the changes going on in Wal-Mart stores. In an effort to make more of a difference in the environment, Wal-Mart is demanding that all of it’s suppliers meet eco-friendly manufacturing and product safety standards.
The demands put forth by the major retail company include that all of their suppliers facilities reach a 20% improvement in the current efficiency of energy usage by the year 2012. And, all of their suppliers will be required to provide Wal-Mart with the locations and names of every factory that they use to produce products for the chain.
Among other demands, suppliers were informed that by 2012 they must be running 95% of their productions out of factories that rank the highest in both social and environmental ratings. On top of that, Wal-Mart is demanding that their suppliers come up with a way to eliminate any defective merchandise from ever making it to the stores.
Wal-Mart’s bottom line is that if the suppliers want to continue to do business with the chain they’ll have to meet the environmentally friendly requirements. Most of the green initiatives are targeted at Wal-Mart suppliers in China.
Only time will reveal the outcome of such bold moves. Many worry that with the cost involved in meeting these demands and the time line Wal-Mart has set may make the task near impossible. Some suppliers have already stressed concerns about meeting the retail giants demands.