For years, ordinary people have been urged to reduce, re-use, recycle. Yet we’ve done so with a nagging feeling of futility. What can one little household do, if Big Business won’t get on board? The assumption being, of course, that Big Business would do no such thing.
Is there anything nicer than having a negative assumption proved wrong? Rand Waddoups of Wal-Mart Stores, Inc., spoke with MGB to set the record straight and explain how thinking sustainably is actually part and parcel of old Sam Walton’s business ethic.
Is “thinking green” a business necessity these days, even for the “big guys?”
Sustainability is consistent with what we say our purpose is, and that is saving people money so they can live better. We looked at what Sam Walton started and how he developed the company. It was by eliminating waste and bringing in efficiencies. And by thinking about sustainability from our standpoint, it really is about how do you take cost out, which is waste, whether it’s through recycling, through less energy use in the store, through the construction techniques we’re using, through the supply chain. All of those things are simply the creation of waste. We found that focusing on these things reduces waste and in return lowers costs for our customers.
A company the size of Wal-Mart obviously consumes a lot of energy. How much progress have you made towards switching to renewable sources for that energy?
One of the sustainability goals to which we aspire is to be supplied with 100 percent renewable energy, and at this point we still have a long way to go.
In May 2007, Wal-Mart announced a pilot solar power program in California and Hawaii to put solar panels on up to 22 sites in the two states. The total solar power production from these sites is estimated to be as much as 20 million kWh (kilowatt-hours) per year. As of the end of 2008, we have completed 18 of those projects. The solar panels deliver an average of 25-30 percent of the energy needs for the stores where they are located. This project is allowing Wal-Mart to purchase renewable power at traditional power rates. Building on the success of the solar project, in November 2008, Wal-Mart agreed to buy 226 million kWh of wind energy for its operations in Texas. This purchase will supply up to 15 percent of the energy needs for more than 360 Wal-Mart facilities in the state.
How does Wal-Mart intend to cut down on plastic bag use?
Wal-Mart’s goal is to reduce plastic shopping bag waste by an average of 33 percent per store by 2013. We think we can eliminate plastic waste equivalent to 9 billion bags per year from our existing stores alone.
We want to decrease the number of bags we hand out and increase the number of bags we get back for recycling. Ultimately it’s about reducing the amount of plastic bag waste in landfills and the environment. We are using a three pronged strategy of reduce, reuse, recycle. Within those areas, our different global subsidiaries have a menu of options to choose from, so they can decide what works best for those countries to reduce plastic bag waste.
Wal-Mart’s changing its requirements for laundry detergents actually changed the whole industry. How did that work?
At Wal-Mart we are always looking for ways to take a leadership role in the area of sustainability and promote innovative change. Our buyers are working everyday to provide more sustainable products for our customers.
As part of our commitment to reduce packaging by 5 percent by 2013, create zero waste and sell products that sustain our resources and environment, the transition to sell only concentrated liquid laundry detergent is yet another example of Wal-Mart’s efforts to work with our suppliers to drive efficiencies in the supply chain, and utilize new and innovative sustainable products.
This initiative alone will save more than 400 million gallons of water, more than 95 million pounds of plastic resin and more than 125 million pounds of cardboard. The potential savings in natural resources across the retail industry could be four times as much.
A single bottle of concentrated laundry detergent uses approximately half the water and 20 to 40 percent less plastic than the standard size, depending on the brand.
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