Greentailing

Greentailing
Where’s the silver bullet? Wal-Mart is on the path of setting the new industry standard for sustainability
August 01, 2009

Sustainability seems like a moving target, doesn’t it? New eco-labels, updated rating systems, emerging laws and code, etc. The confusion is stifling and, in my perspective, enough to halt creativity and the leadership we all want to see. But what if the retail industry changed its entire approach and perspective towards sustainability?

Here’s an example:

You’re building a new home (smaller, water- and energy-efficient, with native landscaping, of course). You and your family are looking at hundreds of plans and models, but can’t find the right one that fits your lifestyle. There are plans that address one of your goals, like a great utility room or the courtyard formats you’ve been looking for—but no silver bullet to suit the big picture. Under pressure to make a decision, you decide to wait, thinking you’ll find better plans down the road (option A).

Now, let’s look at option B. What if you weren’t stuck with “finding” the most compatible plan? What if you stepped away from this stifling process and built a custom home? A home that addresses the features and layout to match you and/or your family’s lifestyle?

Sure, custom homes can cost a bit more and take some careful planning, but they deliver something that model homes don’t—solutions, performance and, oftentimes, happiness and character (that human side). Let’s not forget that they also tend to appreciate in value at a faster rate.

Hasn’t the retail industry been stuck in a similar dilemma around sustainability?

On July 16, 2009, a milestone event took place in retail. A major retailer took a leadership position and announced a custom sustainability index: a platform that addresses the footprint of most areas of the business model, aligns with the company’s values and enables transformation in its supply chain. That company is Wal-Mart.

The index serves as a first draft for efforts the retailer plans to monitor and improve within all aspects of the business model. Details can be learned here: www.walmartstores.com/sustainability.

What is different about their approach is that they are NOT saying they have the most wind power, or photovoltaics, or thousands of green products within their stores. They are NOT saying they are green champions, the best or the first to achieve some environmental accomplishment. What they are saying is that they have worked hard, with multiple outside parties, to develop an initial platform to start moving in a direction that is the right thing to do as a corporate citizen and as a business.

This commitment is not made behind closed doors, kept in a little black box or tucked deep within a Web site. Rather, it has been delivered in a public forum with the promise of sharing the fruits of this labor for industry taking. Wal-Mart is on the path of setting the new industry standard for sustainability. Even the naysayer must acknowledge that this approach is the safe and smart way to welcome transformation into the retail industry.

I’ve seen retailers struggling to keep green efforts quiet until they can achieve a gold star or certain rating for a single product, process or building. You can stop that now—new precedence has been set. Open up, share your goals, speak your challenges, and tell the industry your shortfalls and where the heck you want to be. A social science expert can tell you that any person or culture loves to share in the success of the underdog—and Wal-Mart has now set the stage for this story to be told.

If you had asked me prior to July 16th who the green retail leaders were, I would have more than likely referred to those with the “firsts,” the “bests,” or the “most of something.” Today, I’d say the leaders are simply the retailers and manufacturers that have infused sustainability as the foundation for all business decisions. Green leaders today are those that acknowledge the impact their business has on land, people, health, air, happiness, water, animals and our financial economy. Leaders do something about it and find a way—either through metrics or third parties—to verify it to key publics.

So where’s the silver bullet for this industry? It’s in the platform. The sustainability platform that is designed by you addresses the footprint that is unique to your business. It requires a step back. It requires creativity and, most importantly, measurement. If you can’t measure it, you can’t manage it—right?

The retail industry has adopted a passive stance, waiting for the customer or shareholder to say something. We’ve waited for the perfect case study or plan to follow. We’ve waited for the silver-lined report that says the customer demands it. We’ve waited for the seal of approval from some non-governmental organization to verify that we are “good” if we do “X.” If you are waiting for this magic report, you’ll be late to a good party.

Start today. Assess your impact. Assess your opportunity. Establish a baseline. Build a sustainability platform that will tell everyone how you plan to shine. Everyone loves a good story!

Cheers,

Justin Doak
Founder, Ecoxera – Green Business Strategy for Retail
Send green retail questions to justindoak@ecoxera.com.