Saving the Planet – and Your Business

In November, Wal-Mart published a comprehensive report on its sustainability efforts. Until recently, sustainability – when used in a business context – described corporate efforts to survive adverse economic conditions. The term is now used to define how retail companies are helping our planet survive: That is quite a challenge, but almost every retailer and many manufacturers have joined in the effort to achieve this mission.

Initiatives vary, but some retailers have adopted very stringent measures to become more eco-friendly. To reduce power consumption, for example, companies now use energy-saving light bulbs and are building more skylights into their stores. They turn the thermostat up in the summer and down in the winter.

Some stores use solar power to conserve energy; others recycle waste paper more diligently, and some sell “green” products that do little or no harm to the environment and appeal to customers. Home Depot has been an early leader in this effort.

The conservation of wildlife and of forests are critical aspects of environmental sustainability, and retail companies have undertaken reforestation initiatives and take such issues into consideration when scouting for new locations.

Boosting sustainability
The cotton industry is striving to boost sustainability, which it defines as the optimal balance between environmental responsibility, economic feasibility and quality of life. That is not too different from Wal-Mart’s commitment to better long-term business processes through improved social, economic and environmental practices.

Wal-Mart chairman H. Lee Scott says sustainability is good for the planet and for business since it reflects responsible leadership to the communities and customers the company serves.

Wal-Mart’s report is notable because it outlines just how many initiatives the company has undertaken. It has formed collaborative initiatives with non-governmental organizations, suppliers, scholars and leaders that have developed into a network with implications for economic and social components, including health care. The company also is asking its vendors to package goods more efficiently to reduce waste in stores.

There is a little book that is very important. It is called “the green book: The Everyday Guide to Saving the Planet One Simple Step at a Time” (Elizabeth Rogers and Thomas M. Kostigen, Three Rivers Press) and is generally hidden in most book stores under “Nature, Environmental Conservation.” It lists a number of ideas on how to be more environmentally friendly.

Reduce and replace
Retailers, according to the authors, must focus on the use and sale of Energy Star appliances and electronics, using ceiling fans to reduce use of air conditioning, reducing paper consumption and replacing plastic utensils with silverware in afeterias.

There is growing consumer awareness of the need for ecological initiatives by manufacturers and stores. Retailers are selling more organic clothing: whether it is VF, Liz Claiborne, Levi’s or Nike, they are producing and expanding new lines of clothing that appeal to the eco-friendly consumer. Sales of organic cotton products are expected to reach $2.62 billion this year – a tenfold increase from 2001. That’s progress, but it’s just the beginning of a trend.

New York City, for instance, has mandated the exclusive use of hybrid taxis and the phasing out of the sale of incandescent light bulbs by 2012. Retailers have to be ready.