Distributors Help Customers Become More Sustainable

by | Apr 28, 2014

wilson, michael, afflinkMany leaders in the professional cleaning industry believe customer demand pushed the industry to develop green cleaning products that are both more effective at cleaning and more cost-effective. The industry was also pushed in this direction by Executive Order 13101, signed by then-President Bill Clinton, which directed the facility managers of more than 100,000 federally owned or operated buildings worldwide to begin using green cleaning products.

In an important move, the order defined green cleaning as “the use of products and services that reduce the health and environmental impacts compared to similar products and services used for the same purpose.” This is still the generally accepted definition of green cleaning today.

However, when it comes to sustainability in the 21st century, the federal government appears to have been superseded by private industry—most notably, retail giant Walmart. Starting in 2005, the company made sustainability one of its key concerns. And with more than 100,000 global suppliers, Walmart has considerable “pull power.”

Thousands of the company’s suppliers are now working with Walmart, not only helping the company become more sustainable, but also becoming more sustainable in their own business operations. Walmart’s efforts are helping to define sustainability throughout the supply chain.

Going a step further, in 2009 Walmart introduced its sustainability index. This initiative was designed to track and measure the sustainability and environmental impact of the products the company sells, with the goal of reducing the use of nonrenewable resources (such as petroleum and water) as well as the greenhouse gasses generated in the manufacture and transport of these products. Overall, the index is meant to encourage scientific research and innovation to create a more sustainable supply chain both in the United States and around the world.

Those suppliers that are following suit and becoming more sustainable are receiving the green “buying light” from Walmart, while those that fall behind may find the retailer looking elsewhere for suppliers that can meet their index and become more sustainable. If all goes well—meaning enough suppliers come on board with Walmart’s efforts – by the end of 2017, US Walmart and Sam’s Club stores will receive as much as 70 percent of their goods from global suppliers that meet the goals of the index.

The Quandary for Suppliers

Many of Walmart’s suppliers also market their products to other retailers and B2B clients that are also encouraging their vendors to become more sustainable. However, many of these suppliers have discovered that meeting these sustainability goals can be a significant challenge. Some suppliers find green and sustainable initiatives to be unclear at times while others feel the bar is being raised a bit too rapidly for them to keep up.

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