By Jonathan Birchall in New York
Financial Times
Published: April 7, 2008
Wal-Mart, the world's largest retailer, is to convene a meeting of hundreds of its Chinese suppliers to set out goals for significant reductions in the environmental impact of its vast supply chain.
Wal-Mart accounts for about 30 per cent of all foreign buying in China and just under 10 per cent of total US imports from the country, which were worth $321bn last year.
About 1,000 Chinese companies are expected to attend the Wal-Mart event in October, marking a push by the retailer to globalise a drive on environmental sustainability that has hitherto largely been focused on its US operations.
Lee Scott, Wal-Mart's chief executive, said in an interview with the Financial Times that "we are really ambitious" about what can be achieved in China, given increased evidence of government concern over the environmental damage done by rapid industrialisation. "I'm very confident that we are going to see in China more progress than any of us has imagined," he said.
"Part of it is . . . because the Chinese government has just now really got on the sustainability process as far as understanding what it is going to mean for them in the long term. And they're being really aggressive."
Blu Skye, an environmental consultancy that started advising the retailer in 2004, is working in China to assess strategies.
Wal-Mart launched a drive in 2005 to improve its muchcriticised record on environmental and social issues. Environmental Defense, a non-profit group that has also worked closely with Wal-Mart, recently signed an agreement with the China Association of Small and Medium Enterprises to offer technical support on environmental issues. Casme's more than 5,000 members include many Wal-Mart suppliers.
In January, Mr Scott told an annual meeting of Wal-Mart managers that the company would work with the Chinese government and other groups "to make sure suppliers comply with Chinese environmental laws and regulations" and would set up a "mechanism" to monitor performance. Mr Scott has said he hopes to see significant results in China in three to five years.
Since factories supplying Wal-Mart supply other leading international customers as well, Wal-Mart officials argue that its efforts could have a big impact on China's manufacturing base.
The Monday interview, Page 12 www.ft.com/scott
When the new Wal-Mart Supercenter opened in Columbia earlier this fall, it provided job opportunities for more than 200 people...
