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When it comes to climate change–the defining environmental issue of of our era -- Wal-Mart is moving in the wrong direction.
As Gwen Ruta of the Environmental Defense Fund, a Wal-Mart partner, writes in her frank assessment of the company’s 2009 sustainability report, the problem is that all the good things that Wal-Mart is doing -- increasing its use of renewable energy, driving efficiency in individual stores, improving its fleet operations and pushing up its recycling rate -- are offset by the fact that the company is adding more stores and selling more stuff.
So although WMT’s greenhouse gas emissions per unit of sales is decreasing (the bars on the right), its overall carbon footprint is growing (the bars in the middle).
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Wal-Mart executives have a sophisticated response to this; they’ve told me that if the company takes market share away from other, less efficient retailers, it could actually be increasing its own emissions while reducing emissions in the aggregate because people are buying less stuff from its competitors. Certainly that’s possible.
If the Earth’s atmosphere could speak, it would tell us that it doesn’t care about efficiency or renewables or recyling -- or market share. It cares about absolute emissions of the greenhouse gases that cause global warming.
The trouble is, Wal-Mart hasn’t figured out how to get bigger and smaller at the same time. Bigger: more revenues and profits. Smaller: a reduced environmental footprint.
This a fundamental problem facing not just Wal-Mart, but all of corporate America. Until we solve it, we’re in trouble.
Image CC licensed by Flickr user jason.mundy.
It's the whole system
It is respectable that Wal-Mart is using their buying power to influence sustainable improvements on products and trying to reduce their carbon footprint. It's a step in the right direction, but on a path that can only go so far. The problem is that they are working within a system (capitalism fueled by consumerism and oil) that is a dead end. This is a problem that we must deal with as a society. We are the ones that buy all that "stuff."
Stacy Holtmann
The Natural Step
Portland, OR
detailed carbon inventories
Wouldn't it be interesting to be able to produce a Share of Emissions report for all players in a category? If we had detailed carbon inventories for all retailers and could then compare them by total footprint, footprint per square-foot of store space, footprint per $ sold...then we could make educated, informed decisions about who is doing well and who isn't. www.csa.ca/carbonperformance
Market share does matter
Yes, the earth doesn't care about market share. It does care about total emissions. On that point, Walmart's argument is coherent and deserves a serious response.
My answer: gaining market share is an environmentally sound way to grow. Convincing people to buy more stuff is not. Walmart should look at their sales strategies carefully to see which category they fit in.
Wal-Mart's Big Problem
I think it is unfair to clasify this as Wal-Mart's problem. Indeed, as you note, it is the problem of our current fossil-fueled economy at a global scale. That said, you certainly have a headline to attract readers
There are two parallel paths for a solution, increased energy productivity, and reduced energy carbon intensity - both of which must be pursued. Wal-Mart, like any end user, is focused on the former, while searching for applications to scale solutions on for reduced carbon intensity.
Blaming Wal-Mart for growth is a non-productive diversion from what is needed. In essence, the argument put forth blames economic growth as the core of the issue, which is only partly true. The true cause is not economic groth; rather, it is grown of a fossil-fueled economy. You might as well blame gravity and try to stop that.
Let's focus on the key issue, which is our reliance on fossil fuels, while we reward those that pursue efficiency. Anything less is a waste of resources and a diversion of mind-share.
Surely Mark and Gwen realize this. Why can't they just say it and move on to the real issues.
Yeah, but...
It is better than nothing. That is fantastic that their carbon footprint is growing, but that happens when a company continues to grow. At least they are one of the few companies that is investing in this "green" movement, especially in this economic state.