The Walmart Sustainability Index

"We save people money so they can live better."

This slogan dominates the front page of Walmart's Global Sustainability Report 2010 Progress Update. Its colorful lettering, presumably designed in accordance with Walmart's revamped logo, projects a "hip" new message from CEO Mike Duke: there is increasing demand for "sustainable" stuff and Walmart is ready to accommodate that desire, providing consumers the ability to purchase whatever they want at the lowest price possible. In addition to their new sustainable offerings, the international retail giant has made commitments to reduce energy use in their stores, increase fuel efficiency of their merchandise distribution fleets, and dramatically reduce the amount of packaging waste created. Duke explains: "Sustainability continues to make Walmart a better company by reducing waste, lowering costs, driving innovation, increasing productivity and helping us fulfill our mission of saving people money so they can live better."

Thanks to Walmart's embrace of "sustainability," business is better…but better for who?

"Sustainable" products are better for the consumer

Walmart offers a wide variety of "sustainable" products, including ENERGY STAR-rated air conditioners, compact fluorescent light bulbs, and a variety of organic foods. Responding to changing demands is proof of Walmart's savvy business strategy, but it also can have a major effect on production standards in general. And simply because of its size, Walmart can make more sustainable products available to more people…at a lower cost. If Walmart makes a commitment to organic food, for example, they can have a tremendous impact on the organic food industry - way bigger in scope than a local farmer who runs a CSA. While some might make the argument that mass produced, industrial organic food doesn't hold up to the same standards as local small scale operations, it is still preferable than traditional industrial food production.

However, at the end of the day, Walmart's commitment to sustainable products still reinforces the idea that consumption is the path to sustainability. While this philosophy makes sense coming from a retail company, it's important to keep in mind that their value system is still motivated by a balance sheet.

"Sustainable" practices are better for upper management

Walmart's commitment to greening their operation is significant. Their 2009 high-efficiency prototype stores in Brazil, China, Canada, and the U.S. take into consideration local climatic conditions and are expected to reduce store energy use by somewhere between 25% and 35%. Water-saving technologies are being tested in Brazil and China, and the company is working toward a goal of eliminating landfill waste from U.S. stores; (according to their website, Walmart has already achieved a 64% reduction.) These efforts all contribute to a more efficient functionality; fewer wasted resources mean less wasted money - a win-win for environment and profit margins.

What about sustainable practices that benefit Walmart employees?

Walmart Watch is a national public education campaign intended to "challenge the world's largest retailer, Walmart, to become a better employer, neighbor, and corporate citizen." Their "Handshake with Sam" campaign urges the company to adopt seven business practices based on a notion of corporate moral responsibility. Perhaps the most controversial aspect has to do with affordable healthcare for Walmart employees.

According to the Walmart Watch health care "Fact Sheet," due to high employee turnover and a disproportionately large numbers of part-time workers, too few Walmart employees are eligible to receive health care benefits. In many cases, those who are eligible are not able to pay the premiums, given their low wages. According to the "Fact Sheet," only 50% of Walmart's 1.4 million domestic employees are covered by company health benefits, the rest rely on state-funded public programs, or go without insurance. A quote from Susan Chambers, Walmart Executive Vice President for Benefits, confirms this: "Our coverage is expensive for low-income families, and Walmart has a significant percentage of associates and their children on public assistance...46 percent of Associates' children are either on Medicaid or are uninsured."

Walmart might be greening its infrastructure to better its business, but it would be even more admirable to see improvements in social sustainability initiatives - such as employee benefits - even if they don't directly lead to increased profits.