STORES Magazine - February 2008 - (Page 68) CONSIDER THIS/ LOEB RETAIL LETTER Copyright 2008 by Loeb Associates Inc. Used by permission. Saving the Planet – and Your Business BY WALTER LOEB In November, Wal-Mart published a comprehensive report on its sustainability efforts. Until recently, sustainability – when used in a business context – described corporate efforts to survive adverse economic conditions. The term is now used to define how retail companies are helping our planet survive: That is quite a challenge, but almost every retailer and many manufacturers have joined in the effort to achieve this mission. Initiatives vary, but some retailers have adopted very stringent measures to become more eco-friendly. To reduce power consumption, for example, companies now use energy-saving light bulbs and are building more skylights into their stores. They turn the thermostat up in the summer and down in the winter. Some stores use solar power to conserve energy; Walter F. Loeb is a New Yorkothers recycle waste paper based consultant and member more diligently, and some of the NRF board of directors sell “green” products that do whose newsletter is published little or no harm to the envimonthly in STORES. ronment and appeal to customers. Home Depot has been an early leader in this effort. The conservation of wildlife and of forests are critical aspects of environmental sustainability, and retail companies have undertaken reforestation initiatives and take such issues into consideration when scouting for new locations. Wal-Mart’s report is notable because it outlines just how many initiatives the company has undertaken. It has formed collaborative initiatives with non-governmental organizations, suppliers, scholars and leaders that have developed into a network with implications for economic and social components, including health care. The company also is asking its vendors to package goods more efficiently to reduce waste in stores. There is a little book that is very important. It is called “the green book: The Everyday Guide to Saving the Planet One Simple Step at a Time” (Elizabeth Rogers and Thomas M. Kostigen, Three Rivers Press) and is generally hidden in most book stores under “Nature, Environmental Conservation.” It lists a number of ideas on how to be more environmentally friendly. Boosting sustainability The cotton industry is striving to boost sustainability, which it defines as the optimal balance between environmental responsibility, economic feasibility and quality of life. That is not too different from WalMart’s commitment to better long-term business processes through improved social, economic and environmental practices. Wal-Mart chairman H. Lee Scott says sustainability is good for the planet and for business since it reflects responsible leadership to the communities and customers the company serves. 68 STORES / FEBRUARY 2008 Reduce and replace Retailers, according to the authors, must focus on the use and sale of Energy Star appliances and electronics, using ceiling fans to reduce use of air conditioning, reducing paper consumption and replacing plastic utensils with silverware in cafeterias. There is growing consumer awareness of the need for ecological initiatives by manufacturers and stores. Retailers are selling more organic clothing: whether it is VF, Liz Claiborne, Levi’s or Nike, they are producing and expanding new lines of clothing that appeal to the eco-friendly consumer. Wal-Mart chairman Sales of organic cotton products are expected to reach $2.62 billion H. Lee Scott says this year – a tenfold increase from sustainability is good 2001. That’s progress, but it’s just for the planet and for the beginning of a trend. business since it reflects New York City, for instance, has mandated the exclusive use of hyresponsible leadership to brid taxis and the phasing out of communities and the sale of incandescent light bulbs customers by 2012. Retailers have to be ready. WWW.STORES.ORG http://WWW.STORES.ORG
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