Things You May Have Missed During the Election #1: Walmart, Trust and Sustainability

There’s been a lot of talk about “trust” in the media lately—and it wasn’t all coming from the Trump and Clinton camps. In case you missed it, Walmart announced its 2025 goals just a few days before the election, as part of what Walmart CEO Doug McMillon characterized as a “new era of trust and transparency for customers and communities”.jenny_helen_expert

I’m going to do us all a favor and not re-visit the politicians’ pleas for trust. But Walmart’s desire to become “the most trusted retailer” makes me simultaneously wary and hopeful.

My wariness comes from the fact that we’ve heard plenty of companies talk about trust—especially as it relates to how much trust their customers have in them. And it’s no surprise why: trust is a key driver in customer loyalty and therefore repeat shopping trips and sales. So my cynical self keeps tip-toeing in and setting off the “empty sales pitch alert”, as in: if you have to say you’re trustworthy, you’re probably not.

But, having spent the last five years working side-by-side with Walmart to help them reach their 2015 sustainability goals, I’m hopeful. We all learned a lot in the process of using science to set goals, track progress and actually deliver measurable results… and I’m confident that Walmart can be even more successful this round.

Which is good: many of the 2025 goals—like making more packaging recyclable, reducing harmful ingredients in food and improving working conditions of their employees—matter, a lot. And achieving these goals should engender trust in Walmart: these issues touch consumers directly, and are quickly becoming part of mainstream thinking shared by other retailers and food companies (see the Wall Street Journal’s recent Global Food Forum).

But there's another dimension to the 2025 goals that gives me even greater hope.

What Walmart—and other companies—are starting to realize is that other, less tangible issues also matter. Real leadership means addressing all the major sustainability issues of our time—then helping their customers to come along with them.

Take climate change, for example: past shopper surveys asking mothers to rank areas of “concern” for their families have probably seen food safety scoring much higher on the list than the climate. But if the question were rephrased to ask “are the direct impacts of climate change (like more frequent severe weather) a concern for you and your family?”, I’m willing to bet the survey results would be a lot closer.

That’s why it’s so exciting to see Walmart’s other 2025 goals, where they will strive to achieve:

  • 50% renewable energy to power their operations
  • 18% absolute emissions reduction in their operations
  • Zero waste to landfill
  • Zero net deforestation in key commodities, such as palm oil and beef
  • 100% recyclable packaging in private brands
  • 1 Gigaton emissions reduction across their supply chain

While all of these goals are both laudable and ambitious, this last one—eliminating 1 Gigaton of greenhouse gas emissions—is an industry game-changer.  That’s the equivalent of removing 211 million cars from our roads… and is greater than the annual amount of GHGs emitted by the country of Germany.

And the even better news: Walmart’s not alone. Recent commitments by other companies like General Mills, Kellogg and Pepsi, shows that setting ambitious, science-based climate targets is now officially a trend. Achieving goals like these won’t be immediately seen, felt or touched by their customers—yet these companies are choosing to tackle them anyway.

That’s true leadership.

That’s saying to all of us, “we’ve got the power, scale and leverage to change the world, and we’re going to do it.”

That’s the way to engender real trust.

Walmart’s 2025 Sustainability Goals: My Three Takeaways

Amidst the noise in the run-up to the election, Walmart CEO Doug McMillon will map out the company’s sustainability goals for the year 2025 later today. As a keynote speaker at this year’s Net Impact Conference, he'll be delivering a fairly lengthy, aspiration list; here are a few highlights of what the world’s largest retailer has planned:ElizabethSturcken-(2)_287x377

  • 50% renewable Energy
  • 18% absolute emissions reduction Scopes 1+2
  • 1 Gigaton emissions reduction Scope 3
  • Zero waste to landfill by 2025
  • Zero net deforestation in key commodities
  • 100% recyclable packaging in private brands

As a director of the NGO that has worked closely* with Walmart on their sustainability journey over the last ten years, here are my initial, big takeaways:

Walmart can’t accomplish such ambitious goals alone. Which is good.

Getting to 50% renewables, reducing absolute emissions from their stores and trucks, and removing a gigaton of GHG emissions from their supply chain are exactly the kinds of leadership goals Walmart should be putting forth to help meet the challenge of climate change.

But, actually delivering on these goals will be no joke. Luckily, our 25 years of working with companies has consistently revealed two, important guideposts:

  • specific, ambitious goals are vital for driving innovation and progress;
  • achieving real, science-based results truly takes a village of collaborators.

To give just one example, three years ago Walmart set a policy to eliminate eight of the most prevalent and concerning chemicals in their home and personal care products. With no clear path forward, Walmart engaged thousands of suppliers, requiring them to submit full product formulations to a 3rd-party database, then replace those eight ingredients with safer substitutes.

The result? A 95% reduction in chemicals of concern, adding up to 23 million pounds.  This affects 90,000 products that are sold everywhere, not just on the shelves at Walmart. At the same time, this work also helped to set the stage for this year’s passage of The Lautenberg Chemical Safety Act, the first piece of environmental legislation in a generation aimed at fixing our broken system of regulating toxic chemicals.

By aiming big and bringing on strategic partners, Walmart was able to go further, faster than they’d ever dreamed. The same holds true now.

Corporate sustainability is officially a trend.

Walmart’s announcement is just the latest in a string of other companies—PepsiCo, Kellogg, General Mills—who have also put forth ambitious sustainability goals. What this tells us is that companies are proving, over and over again, that this is not about “doing the right thing,” it’s about doing what creates business value and environmental progress.

As if to prove this point, last month Doug McMillon talked publicly about how sustainability is a core part of their business strategy during an investor call. In this first-time-event-for-a-Walmart-CEO, he emphasized to Wall Street that one of the four ways that Walmart will win in the 21st century: lead on sustainability by being “the most trusted retailer” and call out progress on making products like shampoo and lotion safer, healthier and better for the planet**, increasing renewables and reducing waste.

Sustainability is finally being seen for what it is: a smart business strategy. In a world of decreasing resources and consumers that want better products, there’s no other path forward in the long term.  And, looking around at what’s happening, the long term is here!

The election is finally (almost) over. Now let’s get back to work.

This election has shown that people want change.  It’s been scary and unsettling but it’s a challenge we can’t shrink from. We have healing to do as a country, which can only begin if we engage with each other. Climate change and its effects are going to get worse before they get better.  Just look at this summer’s fires in California, the hurricane in Haiti, the floods in Louisiana and North Carolina…

I know there’s another path forward.

Having worked with companies over the last 25 years doing what many thought was impossible, I have hope.  These corporate leaders aren’t waiting for regulation to force them to act, but are choosing to consciously, aggressively become more sustainable. And, I’m inspired by companies doing the hard work to think beyond their corporate walls and take ownership for the impact of the products they make and sell in the world.

The scary truth is,  business won’t know exactly how to achieve the aspirational goals we need for our planet and for long-term business viability mean that.  That forces an openness to innovation and requires bringing suppliers and customers in as partners to achieve those goals.

So congratulations, Walmart, on setting aggressive yet achievable goals for 2025—and doing what the science tells us needs to get done for a stable and healthy planet. You have a proven track record of meeting and exceeding big sustainability goals. We expect the same here.

* EDF takes no money from our corporate partners—we are funded solely through grants, donations and membership.  We like to say we get paid in environmental results.

** I’d be remiss if I didn’t point out that while Walmart is committing to healthy products in their 2025 goals, we are disappointed to not see further goals on the path to becoming a “toxic free” store.

 

What was Left Off the Menu at the WSJ Global Food Forum?

Many of us spend a considerable amount of time thinking about food – whether it’s deciding what’s for dinner or how healthy something is for our family. Given that I work on food sustainability and am married to a chef, I spend an even more extreme amount of time thinking about food.

Last week, the Wall Street Journal hosted the first annual Global Food Forum in New York City – more proof that food and agricultural issues are increasingly on the radar screens of many jenny_helen_expertexecutives, including those from Walmart, Campbell’s Soup, Panera, Perdue, Monsanto, and many more.

I was eager to attend the event and hear the discussions among some of the most powerful food companies out there. They covered many topics including food safety, “clean” labels, biotechnology, antibiotic use and the humane treatment of animals.

All important stuff—but given the prestige of the event, I’d like to bring up the elephant in the room (or more accurately the elephant not in the room): sustainability. The environmental impacts of agriculture were barely touched upon, and considering the corporate heavyweights who were in the room, this was a missed opportunity on a massive scale.

Why? Because across the entire food production supply chain, sustainability and profitability go hand-in-hand. Consider just a few of the advantages offered by sustainable growing methods:

Increased efficiency and cost savings: Crops take up on average only 40 percent of the nutrients applied to them each growing season. The rest is susceptible to running off the field, and contributing to water and air pollution.

But optimizing fertilizer use—using just the right amount and avoiding over applying—can mean higher yields and lower input costs for farmers, while simultaneously reducing that pollution-causing runoff.

Improved supply chain resiliency: One of the biggest risks that businesses face in the coming decades is supply chain disruptions caused by climate change. Unpredictable weather events like flooding and drought can mean grain shortages or inventory losses.

A couple of years ago, thousands of jobs were lost when Cargill closed meat processing plants in Wisconsin and Texas because drought had reduced its cattle count. And, according to a UC Davis study, last year saw about 542,000 acres of California farmland being left fallow for lack of water. That's about 7 percent of the state's irrigated farmland—meaning thousands fewer farm laborers had work.

But sustainable growing methods can help mitigate these risks. By helping farmers become more resilient, businesses are also protecting themselves by ensuring a consistent, dependable supply of goods. This improved resiliency is something shareholders are increasingly aware of.

Improved customer trust: The ability to share where and how ingredients are grown helps meet consumer demand for transparency. Consumers are clearly becoming more educated, and to remain competitive businesses need to respond to this demand.

Given all this, what advice do I have for the organizers of next year’s WSJ event?

First off, include deforestation, which is responsible for nearly 15 percent of the world’s greenhouse gases. In many tropical nations, it is more economical to cut down forests for farmland than to protect them.

In addition to taking on a massive carbon footprint, companies sourcing food from deforested land are likely exposing themselves to legal and ethical risks. Solutions exist, such as sourcing from large-scale zones that operate under an umbrella of sustainable practices, but companies need to be educated and informed about their options.

Second, shine a spotlight on corporate sustainability leaders helping make farmers more resilient and profitable, such as:

  • The Midwest Row Crop Collaborative, a diverse coalition of food companies, retailers, and nonprofits working to expand on-the-ground solutions to protect air and water quality, enhance soil health, and maintain high yields throughout the Upper Mississippi River Basin.
  • Land O’Lakes’ SUSTAIN® platform, co-developed by EDF, which trains agricultural retailers in best practices for fertilizer efficiency and soil health. The ag retailers then bring this knowledge to the customers they serve. Kellogg Company, Campbell’s, and Smithfield Foods are all using SUSTAIN as a way to connect directly with growers in their sourcing regions.

Lastly, talk about food waste. Up to 40 percent of food in the U.S. ends up in a landfill – the equivalent of $165 billion each year. The only way to truly address the environmental issues of our food system while feeding a growing global population is to reduce food waste, which translates into improved bottom lines for farmers, food companies, and customers.

So, yes: I spend a lot of time thinking about sustainable food. But sustainability is clearly where the food industry is going.

The WSJ Global Food Forum should be thinking about it too.

A new era of collaboration for sustainable agriculture

Companies have the opportunity to use their voice to draw attention to issues that matter to their business and to their customers.  Today, a handful did just that – by announcing their commitment to sustainable agriculture.Cornfield

Over the past several months, I’ve spent countless hours representing Environmental Defense Fund in a room with Cargill, General Mills, Kellogg Company, Monsanto, PepsiCo, The Nature Conservancy, Walmart, and World Wildlife Fund. This group makes up the Midwest Row Crop Collaborative (MRCC) – a diverse coalition working to reduce the environmental impacts of commodity row crop production (i.e., corn, soy, wheat, etc.) throughout the Upper Mississippi River Basin.

This isn’t just good news for the planet. Implementing on-the-ground solutions that reduce fertilizer pollution and improve soil health can also result in higher yields for farmers, reduced risk of supply chain disruptions for food companies and retailers, reduced air and water pollution, and improved transparency for consumers.

Why companies care about fertilizer and soil health

Farmers and food companies need fertilizer to grow their ingredients, but fertilizer in excess of the amount crops need can lead to water and air pollution and wasted money for farmers, who spend approximately half of their input costs on fertilizer.

Each year, fertilizer runoff contributes to an aquatic dead zone in the Gulf of Mexico – an area the size of Connecticut that so devoid of oxygen, marine life cannot survive. And excess nitrogen fertilizer can lead to nitrates contaminating drinking water and water supplies – posing serious health risks to infants in particular.

Three pilot states

That’s why, along with a council of scientific and agronomic advisors, the MRCC will work with growers to help improve and implement conservation activities across three pilot states that are responsible for 44 percent of the corn, soy, and wheat production in the U.S.: Illinois, Iowa, and Nebraska.

By vastly increasing the number of row crop acres enrolled in sustainability measures in these three states, farmers and companies can help protect food security and drinking water supplies, while improving efficiencies in their business operations.

The power of collaboration

Farmer organizations, environmental groups, food companies, state and local watershed organizations, and many others share these common goals – and much work is already underway.

That’s why the MRCC isn’t reinventing any wheels. It’s shining a spotlight on an important environmental issue that is often overlooked, while helping support and scale the various technical and regional sustainability efforts already in place.

When leading companies collaborate around a common goal, both business and the planet will thrive.

Conclusion

This work is hard and will take time, but I’m more hopeful than ever that one day my daughter won’t grow up to read about toxic algae blooms or dead zones in the news and I’ll know I had a small part to play in that.

 

When NGOs and Business Work Together, They Can Change the World

Tom Murray, VP Corporate Partnerships, EDFFull disclosure:  I’ve been a big fan of Michael Porter and Mark Kramer since my days as a graduate business student.  Lots of hours on group projects working on five forces analysis, you get the idea.  So it was especially rewarding to read their recent Fortune article looking at the actions behind the Change the World list of leading companies who are doing well by doing good.

Porter’s and Kramer’s Creating Shared Value approach is “moving into the mainstream and growing exponentially. Companies that adopt shared-value thinking remain committed (as they should) to philanthropy and corporate social responsibility. But they’re moving beyond often-fuzzy notions like sustainability and corporate citizenship, and instead making measurable social impact central to how they compete.”

Sustainability as a fuzzy notion for business strategy?

I’m going to push back on that.

As the environmental NGO that spearheaded a first of its kind partnership with McDonalds over 25 years ago, Environmental Defense Fund (EDF) has partnered with hundreds of leading companies to address sustainability in specifically non-fuzzy ways. We do it by following the science and making sure that every EDF+Business project drives measurable environmental and business results. Read more

Walking the Walk: Companies Lead the Call for New Clean Truck Standards

A number of America’s most iconic brands helped pave the way for the new Clean Truck standards announced August 16th by the U.S. EPA and DOT. Nearly 400 companies, large and small, publicly urged strong, final fuel efficiency and greenhouse gas standards for heavy trucks.

Through their action, these companies have reaffirmed a basic truth of business today: to be a “leader”, companies must align their sustainability goals and strategies with their external engagement on policy.

Tom Murray, VP, Corporate Partnerships Program

Tom Murray, VP, Corporate Partnerships Program

While there are many differences as to how these 400 companies intersect with heavy trucks—manufacturers make the trucks, fleet owners drive the trucks, brands hire the trucks to move their goods to market—they are all unified by one resounding theme: cleaner trucks are better for their business, better for our health and better for the planet.

Indeed, common-sense efforts to cut climate pollution have gone mainstream in business. Earlier this year Microsoft, Google, Amazon, Apple and others raised the bar on corporate climate leadership by standing up for the clean power plan. Colgate-Palmolive, Hewlett Packard Enterprise, Nike, Starbucks and over 100 other companies built on this trend by urging “the swift implementation of the Clean Power Plan and other related low-carbon policies so that we may meet or exceed our promised national commitment and increase our future ambition.”

But this corporate support of the clean truck standards goes even further: it’s another step in the evolution of corporate climate leadership. This is beyond simply supporting good policy; a number of these companies are actively shaping it to deliver significant sustainability benefits. Among the companies that distinguished themselves in this effort are:

  • PepsiCo: the largest private fleet in the U.S. led the way in demonstrating the alignment between its sustainability objectives and its policy advocacy through an op-ed, and expert testimony.
  • Walmart, the 3rd largest private fleet in the U.S., was highly proactive and constructive in its engagement on the clean truck phase two program, supporting it with public statements, and expert commentary.
  • Cummins, FedEx, Eaton, Wabash National, Conway, and Waste Management joined PepsiCo in the Heavy Duty Leadership group that urged the EPA and DOT to: “Achieve Significant Environmental, Economic and Energy Security Benefits.”
  • Honeywell, Achates Power and a number of other innovators made clear that they were ready to meet the challenge of building more fuel efficient trucks.

There were hundreds more examples like these—each one of them a proactive leadership action that demonstrates the new frontier for corporate leadership.

Securing these protections was a real team effort.  The Pew Charitable Trusts organized a letter of support for strong standards signed by IKEA, Campbell’s Soup, and many others. Ceres brought forward a strong statement from General Mills, Patagonia and more. The Union of Concerned Scientists articulated how strong rules would benefit leading fleets, including UPS, Coca-Cola and Walmart. Together, these efforts marshalled an unprecedented level of corporate support for a critical piece of climate policy.

So, if your company is among the now hundreds of companies actively advocating for strong climate protection measures, thank you. We look forward to your continued leadership and engagement on other critical advances, including implementation of the Clean Power Plan and moving forward with reductions in methane emissions. We want to work with you to shape protective policies that also make business sense.

If, however, your company is still stuck at talking the talk, it’s time to start walking the walk when it comes to supporting common sense measures like the Clean Trucks program.

You’re falling behind the leadership pack in the one of the world’s most important races.

New Clean Trucks program: Business, Consumers and the Planet all Win

Across America, companies have reason today to celebrate an important step to drive cost and emissions out of their supply chain. The U.S. EPA and U.S. Department of Transportation unveiled new fuel efficiency and greenhouse gas standards for heavy trucks. Once fully implemented, the new standards will cut over a billion tons of climate pollution and save hundreds of millions of dollars by 2035.

Jason Mathers, Senior Manager, Supply Chain Logistics

Jason Mathers, Director, Supply Chain

Every business in America stands to benefit.

Why? Because every business in America relies, in some form, on trucking services. Product manufacturers need trucks to get goods to market. Service and knowledge companies depend on trucks to deliver equipment and supplies. Retailers utilize trucks in distribution.

Retailers and consumer brands are among the top winners of strong fuel efficiency standards, as these companies account for a lot of freight movement. Companies that have undertaken detailed carbon footprint analysis often find, as Ben & Jerry’s did, that freight transportation can account for upwards of 17% of their total impact.

The new fuel standard means continued progress in tackling this significant source of emissions. This progress will reveal itself in lower carbon footprints for every product brought to market. It will be apparent through lower freight and fuel surcharge fees – saving large consumer brands millions annually. Read more

Is Walmart a Leader on Safer Chemicals?

Consumers want to know that the products they buy contain ingredients that are safe for them and their loved ones. EDF has identified five pillars of leadership to help companies meet that demand and in doing so build consumer trust in the products they make and sell. One company that has recently taken major steps to drive safer chemicals and products into the market is Walmart.

In 2013, Walmart published its Sustainable Chemistry Policy, which focuses on ingredient transparency and advancing safer product formulations in household and personal care products. EDF worked with Walmart as it developed its policy and has advised the company during implementation and data analysis. This past April, Walmart announced that the company achieved a 95% reduction in the use of high priority chemicals of concern. Now, Walmart has shared considerable additional information detailing the progress made, including the identities of the high priority chemicals.

In our previous blog, we broke down the wealth of information that Walmart has shared. However, to fully evaluate the significance of the numbers, we now look at how well Walmart has done against EDF’s five pillars: institutional commitment, supply chain transparency, informed consumers, product design, and public commitment.

Read more

Product Ingredients at Walmart Changed for the Better. Really.

It’s whack-a-mole time.

In April, Walmart released their 2016 Global Responsibility Report. In it, they noted a 95% reduction by weight in the approximately ten high priority chemicals in home and personal care products covered by their 2013 Sustainable Chemistry policy. Ninety-five percent is a big number, but the substance – the chemical names, the volumes – was missing.

No longer.

Today, Walmart released the names of those high priority chemicals, with details as to how the reductions were achieved. The chemicals – butylparaben, propylparaben, dibutyl phthalate, diethyl phthalate, formaldehyde, nonylphenol ethoxylates, triclosan, and toluene – will not come as a surprise to most who work on these issues; these chemicals have been called out for action by many for quite some time.

Scale_Blog-Graphic

If this announcement is met like most environmental stories told by corporations, the mole-whacking will commence shortly. WHACK! Why these chemicals and not those? WHACK! What took so long? WHACK! What about everything else? While companies that do nothing will stay in the shadows, those like Walmart trying to drive needed change usually get whacked for what they haven’t done already.

And of course a lot still remains to be done.

But this story is a good one, and Walmart deserves credit for what they have accomplished. Walmart is the one company in the world that could drive drive over 11,500 tons – 23 million pounds – of chemicals out of so much product in less than 24 months.

Read more

Major Strides: Walmart Details Progress on Chemicals

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In 2013, Walmart published its Sustainable Chemistry Policy, which focuses on ingredient transparency and advancing safer product formulations in household and personal care products. EDF worked with Walmart as it developed its policy and has advised the company during implementation and data analysis.

This past April, Walmart announced that the company achieved a 95% reduction by weight in the use of high priority chemicals of concern. Today, Walmart shared considerable additional information detailing the progress made, including the identities of the initial high priority chemicals. Let’s unpack this.

Revisiting Walmart’s Sustainable Chemistry Policy

Broadly speaking, Walmart made three commitments in its 2013 policy:

  1. to increase transparency of product ingredients,
  2. to advance safer formulations of products, and
  3. to attain U.S. EPA’s Safer Choice certification [formerly Design for the Environment] of Walmart private brand products

The policy, which went into effect in January 2014, focuses on formulated household cleaning, personal care, and beauty products, sold at Walmart U.S. and Sam’s Club U.S. stores. A few months after releasing the policy, Walmart published a policy implementation guide that gave suppliers greater specificity as to Walmart’s expectations and, importantly, outlined the quantitative metrics Walmart would use to track and report progress.

How Walmart has fared so far

  1. “Transparency”:

Walmart’s policy requires its suppliers to be more transparent about the ingredients in their products in two ways. First, Walmart requires suppliers to submit “full product formulations” – the names and concentrations of all ingredients in a product – to WERCSmart, a 3rd party- managed product ingredient database. WERCSmart provides the retailer with aggregate information about the types and quantities of chemicals in the products on its shelves without divulging specific product formulation data.

Second, the policy requires suppliers to increase ingredient transparency to consumers by calling for disclosure of product ingredients online starting in 2015. Further, any Priority Chemical found in a product must be disclosed on the product’s packaging starting in 2018. Priority Chemicals (PCs) are Walmart’s designated chemicals of concern, drawn from 16 reputable regulatory and authoritative lists.

To track the first requirement, Walmart determined the number of products whose ingredients are fully accounted for in the WERCSmart database. According to the data, 94% of the product formulations are full formulations. This suggests that the other results Walmart presents today are based on real data.

To track ingredient transparency to consumers, Walmart polled suppliers about their online disclosure practices using the Walmart Sustainability Index, its annual environmental issues survey sent to suppliers. In 2015, 78% of respondents reported they disclose ingredients online for all their products. Walmart also breaks down the responses  in more detailed ways, such as by department.

  1. “Advancing safer formulations of products”:

The bulk of Walmart’s policy focuses on providing safer products to customers by calling for the “reduction, restriction, and elimination” of Priority Chemicals (PCs), and for product reformulations to be undertaken using “informed substitution principles.” Because the list of PCs includes hundreds (if not thousands) of chemicals — as evidenced by Walmart’s reference list of regulatory and authoritative lists used to define its PCs — Walmart focused its suppliers’ attention on a shorter list of High Priority Chemicals (HPCs).

Today, Walmart identified the HPCs as propylparaben, butylparaben, nonylphenol ethoxylates (NPEs), formaldehyde, dibutyl phthalate, diethyl phthalate, triclosan, and toluene. These eight chemicals and chemical classes appear on a number of authoritative lists (e.g. EU REACH Substances of Very High Concern) for their hazardous properties and are worthy of action by Walmart. The revelation of the identities of the chemicals was long-awaited and provides context to the rest of the information Walmart shared today.

To assess the portion of its chemical footprint[1] related to product sales covered by the policy, Walmart has measured progress in two ways: (i) the total weight of HPCs contained in products sold, i.e. pounds of HPCs going out the door, and (ii) frequency of use, i.e. the number of products on store shelves that contain HPCs and the number of suppliers using HPCs in their products. Walmart relied on RetailLink, its internal product inventory database, and WERCSmart, mentioned earlier, to make these calculations. Walmart has also computed and published this data for all Walmart PCs in the covered product categories.

Walmart reports a dramatic reduction in the total weight of PCs and HPCs going out the door. The total weight of HPCs dropped by 95% and PCS by 45%.  The more than doubling of reduction of HPCs suggests that focusing attention on a subset of chemicals accelerated action.

Walmart attributes part of the success to its ability to determine which select set of suppliers used the majority (in pounds) of HPCs. This illustrates the utility of a product ingredient database that can provide aggregate information by supplier while not disclosing proprietary information.

As it relates to progress made in reducing the frequency of use of HPCs, the results were far more modest.  Unfortunately, it appears that suppliers who use HPCs are largely still using them, though the aggregate mass has dropped. Overall, the percent of products containing HPCs dropped by only 3 percentage points (to 16%), while the percent of suppliers using HPCs increased slightly (to 39%). Meanwhile, the percent of products containing any Priority Chemical actually went up one percentage point (to 80%).

So while the weight amount of HPCs, and PCs more broadly, has dropped significantly, there is clearly much more work to be done to achieve complete elimination of these chemicals.

  1. “Safer Choice [formerly Design for the Environment] in private brands”:

Lastly, Walmart committed to increase the number of private brand product offerings bearing Safer Choice certification. As discussed in our recent blog, the Safer Choice Program is a voluntary program implemented by the U.S. EPA that seeks to recognize and bring consumer awareness to products that are leading the way when it comes to safer ingredients. This is the only commitment for which Walmart has not released quantitative data. The company reports that it has hit snags in making progress against this target but is still committed to the program.

Conclusion

Overall, Walmart has made major strides regarding the commitments set forth in its policy. Equally notable, it has set in place effective systems to measure and track progress over time – an ability that can’t be underestimated.

In our next post, we’ll assess where Walmart’s progress rates against EDF’s five pillars of leadership for safer chemicals in the marketplace.


[1] As defined by the Chemical Footprint Project, a chemical footprint is “the total mass of chemicals of high concern in products sold by a company, used in its manufacturing operations and by its suppliers, and contained in packaging.”

Further Reading: