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.

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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.

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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.

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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:

Offering a Safer Choice is a Good Choice for Business

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EDF Vice President, Health Sarah Vogel accepts EDF's Safer Choice Partner of the Year award

With so many vague claims and misleading labels on products in the marketplace, it’s no surprise that consumers are increasingly calling for safer products and greater transparency with regard to product ingredients. That’s why we at EDF were proud to share the stage at the EPA’s 2016 Safer Choice Partner of the Year awards ceremony yesterday with companies, trade groups, and other NGOs working to do just that.

EDF was recognized alongside other Safer Choice Partner of the Year awardees for “demonstrated leadership in furthering safer chemistry and products.” Among the 17 corporate winners were chemical makers, product manufacturers and retailers like BISSELL Homecare, The Clorox Company, Seventh Generation, BASF Corporation, Ecolab and Wegmans Food Markets, all of whom have submitted products or chemicals for certification under the Safer Choice label.

Safer Choice 2016 award winnersConsumer health is one of the most pressing – and frequently, less recognized – areas of corporate sustainability, and one where driving adoption of safer practices takes both ambition and leadership. We are gratified to see such a diverse range of corporations take significant steps to introduce safer chemicals into the marketplace and for organizations like Safer Chemicals, Healthy Families and the Healthy Schools Campaign to lend their support and encouragement.

Every product labeled under the Safer Choice certification program makes the marketplace a little safer and our jobs as advocates for consumer safety a little easier. Read more

Go Farther, Faster to Cut Truck Pollution

jason_mathersThe U.S. has put in place well-designed policies to cut climate pollution, and, with adopted and proposed policies, the nation’s 2025 climate reduction goals are within reach.  However, we are not there yet, and important work remains.

Big trucks have a critical contribution to make in cutting emissions now and well into the future. Cost-effective technologies are available to significantly reduce fuel use. Conversely, if we don’t take common sense steps today to cut climate-destabilizing emissions from this sector, climate emissions are projected to rise by approximately 15 percent by 2040. This is particularly problematic when you consider that the nation must reduce carbon emissions by at least 83 percent below 2005 levels by 2050 to prevent severe, potentially catastrophic, levels of climate change. Without further action to cut emissions from heavy-trucks, the sector would consume nearly 40 percent of our national 2050 emissions budget – a level that is clearly not sustainable. Read more

Forum Shows Government and Business Can Work Together to Tackle Oil & Gas Methane Emissions

powering-the-economyThere is often staunch disagreement between industry and policymakers on how to address pollution. But an event last week convening business leaders, federal and state officials and other stakeholders showed that there’s at least one idea on which they can agree and work together: the feasibility of reducing methane emissions from the oil and gas sector.

Here are four perspectives shared at this event that give me hope we can solve the large, but addressable problem of methane pollution from the oil and gas industry if we take a fact-based, collaborative approach. That would be great news in itself, and powerful precedent for tackling the broader climate opportunities ahead.

Environmental regulations are not a zero sum game. Martha Rudolph, director of Environmental Programs at the Colorado Department of Public Health and Environment, was on the front lines when Colorado proposed the nation’s first direct regulation of methane pollution from the oil and gas industry. At the event, she shared her state’s powerful example of unlikely allies coming together to protect climate and communities in a way that makes business sense.

Instead of tales of industry resistance, she shared a history of business and other stakeholders coming together with state policy makers to formulate and implement cost-effective regulations that will cut 100,000 tons of methane emissions – the climate equivalent of taking over 1.8 million cars off the road. Rudolph reports that the rules have not been challenged in court, and to date, her office had not heard complaints about compliance being difficult or costly . Noble, Anadarko, and Encana supported strong rules at the front end, and even the industry trade associations have rolled up their sleeves and set up trainings to ease rule implementation. Read more

Accelerating the Shift to More Efficient Trucks

Freight transportation is the work horse of the global economy, ensuring that the products consumers want get on the shelves where and when they want them. With 70 percent of U.S. goods being moved by truck, freight is a key source of U.S. fuel consumption and corporate greenhouse gas (GHG) emissions. Today, freight also offers companies a key opportunity to drive us toward a lower carbon future.

pepsico-logoIn a Wall Street Journal op-ed with EDF President Fred Krupp, Pepsico Chairman and CEO Indra Nooyi voiced the company’s strong support of the new fuel efficiency and GHG standards for medium and heavy duty trucks released June 19th by the U.S. Environment Protection Agency and Department of Transportation. Over the life of the program, these robust standards will cut fuel consumption in new trucks by 1.8 billion barrels of oil and reduce carbon emissions by one billion metric tons.

Leading companies like General Mills, Walmart and Anheuser-Busch have made reducing fuel use and emissions from freight a priority in setting their internal supply chain performance goals. But Pepsico’s willingness to step forward with this op-ed is a prime example of how companies can extend their leadership by aligning their public policy stances on with their sustainability goals – what EDF has been referring to as the business-policy nexus.

Freight affects all of us, but business is in the driver's seat

EDF - Building better trucksFreight transportation exists to serve companies that make or sell physical goods, from brands and manufacturers using trucks to bring in supplies and ship out final products, to technology companies needing trucks to deliver the hardware that powers their online services. While medium- and heavy-duty trucks only make up 7 percent of all vehicles on the road, they consume 25 percent of the fuel used by all U.S. vehicles.

Inefficient movement of goods wastes fuel, raises costs and increases environmental impacts. For firms like Pepsico, who maintain their own fleets, as well as those that contract out for freight moves, fuel is the single largest cost of owning and operating medium- and heavy-duty trucks. Truck fuel prices have increased 58 percent since 2009, a strong incentive for increasing the efficiency of trucks that move freight. Consumers are counting on businesses to solve this problem, as those costs are passed on to consumers. Through everyday purchases, the average U.S. household spends $1,100 a year to fuel big trucks. Strong standards can cut this expense by $150 on average a year by 2030. Read more

It’s Actually OUR Honor to be an EPA SmartWay Affiliate!

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Cheryl Bynum, National Program Manager at US EPA, SmartWay, presents the 2015 Affiliate Challenge Honoree award to Environmental Defense Fund.

EDF has long been a champion of the SmartWay program, EPA’s highly successful public-private partnership between more than 3,000 organizations that are committed to improved fuel efficiency and environmental performance. So we were thrilled when EPA named us a 2015 Affiliate Challenge Honoree for our efforts to promote the program in our Green Freight Handbook.

We were recognized last week at the Transportation Intermediaries Association (TIA) conference, and we will participate in a virtual awards ceremony tomorrow. We have impressive company: the American Trucking Association, Penske, TIA, Wisconsin Clean Cities, and the North Central Texas Council of Governments were all named as honorees as well.

The program has helped facilitate positive results in many areas, perhaps most impressively in the goods movement sector.

Success in Texas and across the nation

SmartWay’s approach is one of partnership. The program brings together partners from the public and private sectors, to demonstrate the way modified operational practices can benefit both the environment and the bottom line.

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EPA Relaunches SaferChoice Product Labeling Program

by Jennifer McPartland, Ph.D., Health Scientist

SaferChoiceToday, the EPA Design for the Environment Program (DfE) Safer Choice program (formerly, the safer product labeling program) unveiled its newly redesigned family of three product labels. The voluntary Safer Choice program seeks to recognize and bring consumer awareness to those products whose chemical ingredients represent the safest among those within a particular chemical functional class (e.g., solvents).

Today’s milestone is the result of a public process led by the EPA DfE program to solicit feedback on a new label that better communicates the goals and purpose of the program. After more than a year, and 1,700 comments and six consumer focus groups later, the new labels will be arriving soon to a store shelf near you.  Read more

Leadership on Sustainability Must Include Helping Shape Smart Policy

This past year, we’ve seen some bold action by companies in what we’ve dubbed the business-policy nexus, and it’s taking several different forms. Some have been calling for state or federal action on environmental impacts, while others are taking far-reaching voluntary efforts that could help support policy advocacy in the future.

Whether you view engagement on public policy as risk mitigation, providing market certainty, supporting corporate sustainability goals or securing competitive advantage, leading businesses are increasingly stepping up their efforts to support smart policy reform that will benefit the environment and economy.

Keeping toxic chemicals out of supply chains

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Walmart and Target are moving to proactively get harmful chemicals out of their supply chains, even though the nation’s main chemical safety law, the Toxic Substances Control Act (TSCA), is outdated and hasn’t been reformed in nearly two decades.

Earlier this year, our long-term partner in this area, Walmart, took a big step forward by announcing a new sustainable chemicals policy focused on cutting 10 chemicals of concern from home and personal care products it sells. Chemicals of concern – for example, formaldehyde, a known carcinogen – have been found in about 40% of the formulated products on Walmart shelves, including things like household cleaners, lotions and cosmetics. Read more