Karla Chaffee

March 10, 2008

There are many reasons for one to dislike retail giant Wal-mart: big-box store exacerbate sprawl and draw business from local retailers, which can lead to the deterioration of traditional downtown business districts and local economies; Wal-mart pays low wages, denies affordable health care to workers, and has been accused of gender discrimination and violation of labor laws abroad. Can a new eco-friendly image become Wal-mart's saving grace?

In 2007, Wal-mart pledged to double its truck fleet's fuel efficiency by 2015. Since Wal-mart owns the country's second largest trucking fleet, this commitment will reduce emissions by twenty-six billion pounds of carbon dioxide. According to attorney John Fahsbender, who spoke at Vermont Law School's recent symposium, "Confronting Global Climate Change: Using the Law to Protect Future Generations," Wal-mart's executive management has pledged to make all of their stores as energy efficient as possible, installing technologies such as lighting that adjusts for time of day and solar panels in their stores. Wal-mart is also using their heavy retail clout to influence suppliers. Last year, they held "a sustainability summit for major suppliers" to encourage more compact packaging and the elimination of non-renewable energy used to manufacture products. These environmentally minded efforts do not excuse Wal-mart's questionable labor relations, but they do indicate that "green business" is playing an increasingly important role in private markets.

The State of Green Business 2008, a new report released by GreenBiz.com, seeks to answer the question of just what role green business played in 2007, and what role it will play in the future. Most importantly, is the greening of business practices "actually making a difference to the environment?" The report attempts to index what type of progress U.S. companies are or are not making in twenty areas of environmental performance. For example, U.S. businesses are making positive progress in the areas of clean-technology investments, energy use per dollar of gross domestic product, and the construction of more efficient building under LEED certification. The report also concludes that U.S. industry is falling far short of any substantial reduction in carbon emissions, and must take steps to reduce E-waste and monitor current disposal methods. Industry is also not making much progress and is simply, "treading water" in areas such as alternative fuel use, reduced employee transportation, and green power use.

One of the primary conclusions of the authors is that there is a lack of information and monitoring available to quantify total environmental impacts of business. Non-profits, academics, oversight agencies, and the businesses themselves, should be taking steps to gather this information at every step in the supply chain. The authors found especially lacking information regarding water usage, waste generation, and IT energy use.

Although the report identifies many areas that need improvement, the authors contend that the state of green business is improving. Many challenges face the effectiveness of the "green business movement." Including that consumers are skeptical of green making techniques as a new marketing ploy. They may be justified in thinking so; green-washing, which can be described as an unjustified marketing technique, used to project an unwarranted environmentally responsible image, is likely to become more prevalent as the trend towards green business continues. Industry reporting requirements and regulatory oversight will be essential in preventing misuse of an overall positive industry trend.

Sources:
Joel Makower et al., State of Green Business 2008 (2008), available at http://greenbiz.com/news/news_third.cfm?NewsID=36600.

Editors of GreenBiz.com, The State of Green Business in 2008: Are We Swimming, Treading or Sinking?, GreenBiz.com, http://greenbiz.com/news/news_third.cfm?NewsID=36600 (last visited Mar. 1, 2008).

Source Watch, Greenwashing, http://www.sourcewatch.org/index.php?title=Greenwashing (last visited Mar. 1, 2008).

United Food and Commercial Workers, Wal-Martization of Health Care, http://www.ufcw.org/take_action/walmart_workers_campaign_info/facts_and_figures/walmartonbenefits.cfm (last visited Mar. 1, 2008).

'Would Jesus Shop at Wal-Mart' Questions Worker Treatment in Chain, Fox News.com, Dec. 14, 2006, http://www.foxnews.com/story/0,2933,236440,00.html.