Is Wal-Mart Really Going Green?

It was easy for Wal-Mart's critics to laugh this past spring when CEO Lee Scott proudly announced that he drove a Lexus hybrid. For Scott to expect praise for his consumer choices given the abysmal record of his massive company -- which has repeatedly violated the Clean Water Act while contributing to sprawl, air pollution, and a host of other serious problems -- seemed to insult public intelligence. It also seemed a strange maneuver for a man heading a company known for shunning environmental concerns. Indeed, in Robert Greenwald's new film, Wal-Mart: The High Cost of Low Price, one veteran activist says she has never encountered a company as unresponsive as Wal-Mart.

But since then, Scott's green inclinations seem to have grown. In late October, he unveiled plans to hold Wal-Mart's suppliers to higher environmental standards and to begin selling clothing made from organic cotton. Just four days later, in a speech to employees, he outlined his goals for being a "good steward" to the environment. Scott plans to increase fuel efficiency in the company's truck fleet -- one of the largest in the world -- by 25 percent over the next three years, and to double fuel efficiency over the next decade from 6.5 to 13 miles per gallon. He promised to cut energy use at new stores by 30 percent and reduce greenhouse-gas emissions at the more than 5,000 existing stores, warehouse clubs, and distribution centers by 20 percent over the next eight years. He also said the company would offer cheaper health insurance to its employees, and called upon the government to raise the minimum wage.

Baby Steps or a Sea Change?

How meaningful are Scott's plans? Are they simply attempts to divert attention from concerns about Wal-Mart's notoriously shoddy treatment of its workers? The mixed reaction from progressive activists reveals no easy answers.

The new proposals are, by Scott's own admission, a response to increasing public pressure on both social and environmental issues. Reactions from activists have varied, reflecting divergent analyses of the company and differing opinions of how best to approach it. Without exception, they fault the plan for vagueness, and for including no intention of public reporting. But some advocates are cautiously hopeful.

Carl Pope, executive director of the Sierra Club -- which has, as he puts it, "frequently crossed swords" with the company in community battles -- said Scott's speech was "environmentally important and substantive, but it did not address some of the environmental problems with their business model."

Despite concerns about the company's use of "cheap land" and encouragement of sprawl, some critics still see Wal-Mart's size and market power as a potential plus. "Wal-Mart ought to be using its competitive advantage to raise standards," Pope says, and others agree. "Wal-Mart is the biggest company in the world," says Gwen Ruta, director of corporate partnerships for Environmental Defense, which has been in talks with Wal-Mart about these issues. "I'd like to see them flex their purchasing muscle. If you can make a change in Wal-Mart, even if it's a small change, it's really a big change, especially if it affects the supply chain." (Wal-Mart has thousands of suppliers, and many manufacturers say its dominance is so complete that it would be impossible to stay afloat without doing business with the company.)

From the point of view of Pope, Ruta, and others, the proper response to Wal-Mart's proposals is to see that the company actually lives up to them. Some will do that by continuing to fight community battles or assisting with public education efforts, while others will work more closely with Wal-Mart, hoping to influence company officials. Says Pope, "We have to acknowledge [Scott's plan]. We have been very careful not to call it green-scamming. It's more like, when your kid is making progress going to bed, you acknowledge the progress, but you still have to make sure they get all the way to bed."