• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Blogs » Think Tank » Walmart Ramps Up Sustainability Effort, 'Invites' Suppliers to Join

Think Tank
Think Tank RSS FeedRSS

Walmart Ramps Up Sustainability Effort, 'Invites' Suppliers to Join

June 2, 2014
Robert J. Bowman, SupplyChainBrain

At the end of April, Walmart hosted a three-day Sustainability Product Expo at its headquarters in Bentonville, Ark. The first-time event drew more than 3,000 participants, including chief executive officers from more than a dozen global companies. Together they account for some $100bn in sales at the company’s stores.

By the time the expo wrapped up, Walmart had extracted pledges from major suppliers to boost the sustainability of a wide range of products and raw materials, most notably beef and palm oil. They also promised sharp cutbacks in water, energy and greenhouse gas emissions. Some examples:

General Mills will expand by two and a half times the amount of acreage enrolled in the Field to Market initiative of the Alliance for Sustainable Agriculture.

Kellogg Co. will work with Walmart to help small rice growers adopt sustainable practices, with the aim of increasing by 25 percent the adoption of Climate Smart Agriculture practices.

PepsiCo will extend its Sustainable Farming Initiative to 500,000 acres of North American farmland by 2016.

Monsanto will introduce new plant varieties and hybrids through advanced breeding and biotechnology, while helping farmers cut GHG emissions on at least 1 million acres by 2020.

Procter & Gamble has promised a 25-percent reduction in water per dose of its liquid laundry detergent.

Manuel Gomez, Walmart’s vice president of sustainability, says the expo was an extension of a previous company event that focused exclusively on optimizing packaging. “We wanted to make it much bigger and broader,” he said. The new one featured some 150 booths, workshops and meetings with key suppliers and non-governmental organizations, covering every facet of sustainability.

Yet another outcome was the formation of a $100m closed-loop fund to help companies and municipalities come up with more effective methods of recycling. The goal is to increase the recycled content of products on Walmart shelves and elsewhere, Gomez says.

At the core of the retailer’s engagement with suppliers is an index launched in 2009 by the Sustainability Consortium, a group of manufacturers, retailers, public interest groups and government agencies. Covering more than 700 product categories, the index “allows for very precise information on opportunities for major categories and suppliers, and a common language to identify them,” says Gomez.

The index is not to be confused with the Carbon Disclosure Project, of which Walmart is also a member, and which focuses mainly on carbon emissions. (CDP was a presence at the expo.) The consortium also tackles water usage, farming techniques and other elements of the larger sustainability picture. It’s also distinct from the Sustainable Apparel Coalition, whose Higg Index measures the environmental and social impact of apparel and footwear production. (One has to wonder about the point at which so many independent initiatives create the potential for confusion and overlapping efforts. Good intentions don’t preclude bureaucracy.)

For Walmart, the idea beyond those joint efforts is to avoid saddling suppliers with multiple standards, depending on which retailer they’re serving. “We’re trying to make the index one single umbrella,” Gomez says. Walmart and its partners designed the index as an open platform that can be used by all retailers and consumer products goods companies.

Smaller suppliers can participate too, in a manner that’s suited to their size. One of the ideas behind the expo was to give those players access to the efforts of bigger companies.

“That’s where the value of the sustainability index lies,” says Gomez. “It allows each supplier to independently identify the bigger opportunities and be able to work on them.” What it doesn’t do is burden smaller suppliers with an expensive mandate that places them at a disadvantage to their larger competition. At least for now.

Sustainability comes at a cost – or so says conventional wisdom. Walmart, which bases its whole business model on undercutting the competition, isn’t buying into that notion.

“We see many examples where making a product more sustainable actually reduces cost, which can be transferred to the customer in the form of lower prices,” says Gomez. “We don’t think there has to be a tradeoff between [sustainability] improvement and cost.”

Savings can be realized through cutting back on the materials used in packaging and distribution. In any event, says Gomez, Walmart’s philosophy isn’t to convince consumers to pay more for an environmentally responsible product. “The biggest opportunity is to go backwards and improve the product that our customers already prefer.”

The retailer’s sustainability effort is focused inward as well. A company-wide energy strategy, launched last year, aims to produce or procure 7 billion kilowatt-hours of renewable energy annually by Dec. 31, 2020. That’s also the deadline for a 20-percent reduction in energy intensity per square foot within its buildings.

The toughest goal going forward is engaging more suppliers, says Gomez. For now, the retailer is using a carrot instead of a stick, inviting vendors voluntarily to take part in such efforts as the Sustainability Expo.

Down the line, however, Walmart could start making such involvement a condition for getting its business. For all the talk of partnership surrounding the issue, the powerful retailer is no stranger to mandates. Sustainability, says Gomez, “is starting to become part of the discussions between our buyers and suppliers.” Time to get on board.

Comment on This Article

Product Lifecycle Management Supply Chain Planning & Optimization Supply Chain Visibility Business Strategy Alignment Global Supply Chain Management Quality & Metrics Regulation & Compliance Sourcing/Procurement/SRM Sustainability & Corporate Social Responsibility Consumer Packaged Goods Food & Beverage High-Tech/Electronics Retail

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Featured Product

Popular Stories

  • 005_veteran_winemaker_gallo_embarks_on_an_ai_journey_v2-(540p).jpg

    Watch: Veteran Winemaker Gallo Embarks on an AI Journey

    Artificial Intelligence
  • SCB_Q326_Made4Net_Top5_THUMB.jpg

    Five Costly WMS Selection Mistakes Warehouse Leaders Keep Making

    Logistics
  • A MAP OF THE STRAIT OF HORMUZ SHOWING DOZENS OF BLUE DOTS DISTRIBUTED THROUGHOUT THE WATERWAY

    Traffic Flows Through Hormuz Despite Shock Ship Attack

    Global Gateways
  • On Demand Webinar 4flow Thu Jun 25 2026.png

    How Mars uses 4flow's AI platform for Logistics optimization

    Webinars
  • Satellite view of the Strait of Hormuz with white graphic lines representing global shipping lanes and maritime traffic between the Persian Gulf and Gulf of Oman.

    Hormuz Highlights How Maritime Risk Assessment Needs to Change

    Global Gateways

Digital Edition

2026 esg cover main scb q2 2026 cover

SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

VIEW THE LATEST ISSUE

Case Studies

  • Recycled Tagging Fasteners: Small Changes Make a Big Impact

  • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

    Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

  • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

    Moving Robots Site-to-Site

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

Visit Our Sponsors

4flow Arkieva Blue Yonder
Carton Cloud CoEnterprise Dassault
Duravant E2Open EPG
General Logistics Systems GEP Hy-Tek
iGPS Korber Lyngsoe
Procurability Quinyx SAP
Sikick Staples Systech
S&P Global Mobility TADA Tive
TransImpact US Bank Werner Enterprises
WSI
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Email Preferences
    • Newsletters
  • Resources
    • Events Calendar
    • 2026 Event Coverage
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing