January 25, 2008

Wal-Mart to Open Energy-efficient Stores

To: Dr. Derek Larson
Fr: Lief Davisson
Re: Wal-Mart to open energy-efficient stores
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Retail giant Wal-Mart has recently undertaken efforts to make its stores more energy efficient and, as a result, more environmentally friendly. In 2005 as part of a two year old environmental efficiency drive, they built two experimental “green stores” in the U.S. which utilize such measures as energy-efficient LED lighting, rooftop solar cells, waste-oil heating systems and water runoff recycling systems. Their intention was to try many different energy saving measures, and then implement the ones that worked in their other 2,400 U.S. “Supercenters.” Now Wal-Mart has begun to build new stores based on this new efficiency model, with the first one in Romeoville, IL and three more coming in the immediate future. These new stores will run at levels 25% more efficient than their baseline measurement from 2005. Their goal is to eventually run their stores using only renewable energy and creating zero waste. Wal-Mart has also begun to pressure its suppliers to use less packaging. They aim to cut the amount of packaging used in their stores by 5% by 2013.

Wal-Mart’s actions are of particular importance because of the current crisis in energy production and consumer waste. Landfills are overflowing, and power plants are churning out more and more power to keep up with demand. Wal-Mart claims to be the largest private user of electricity in the world. With fossil fuels becoming more and more scarce, and with their negative effect on the environment, one very large corporation’s commitment to renewable sources of energy could sway corporate attitudes and practices. Wal-Mart met with competitors such as Target and Costco to try and get them to also revamp their stores. With such a large corporation advocating change, it might come faster than we think.

Wal-Mart’s moves are a good start, but we must take their actions with a grain of salt. It is important to note that Wal-Mart’s main motivation is fiscal, not environmental. As Leslie Dach, Wal-Mart's chief of government and public relations, said at a meeting in New York: "at Wal-Mart, there is no conflict between the business model of everyday low prices and everyday low costs, and being a more sustainable company." So while their actions benefit the environment, and they appreciate the positive press, in the final analysis it makes good business sense to become more efficient, which may be all that is needed to make America go green.
[Paragraph 3: Controversy associated with issue and options for action]

Further Information:
Reuters.com

Grist.org

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