According to BusinessWeek, Walmart is using its considerable power to pressure its suppliers to reduce manufacturing energy consumption, and in doing so, cut costs.
Seven categories will be the focus of Walmart’s attention: “DVDs, toothpaste, soap, milk, beer, vacuum cleaners, and soda.”
The retailing giant announced the initiative Sept. 24 in partnership with the Carbon Disclosure Project (CDP), a nonprofit group supported by institutional shareholders that focuses on climate change and carbon emissions. Wal-Mart says it plans to use the Carbon Disclosure Project’s expertise to help set up the new program with its suppliers.
“We are working together to measure our global supply chain footprint and to encourage our suppliers to reduce greenhouse gas emissions,” said John Fleming, executive vice-president and chief merchandising officer at Wal-Mart.
The article spends some time pondering Walmart’s motivation for participating in the program. We don’t think its that difficult to figure out. Walmart likes saving money and energy is expensive. If they can cut costs and look socially responsible by bullying their suppliers… why wouldn’t they?