Sustainability starts with simple changes
Posted on Thursday, October 11, 2007
ROGERS - Rip open a box of Hamburger Helper to make a quick meal, and you might notice that the noodles are a little less curly than they used to be.
This is not a mere accidental change in texture. Product developers at General Mills actually held meetings to decide how crinkled the pasta in that one-pan meal should be.
Smoother noodles mean a pasta that will settle, allowing for less air in the pouch and a smaller box for the product, reducing waste and eventually lowering overall product cost.
Ideas that seem simple only seem that way after a team of creative people have put a lot of thought into that innovation, Lee Scott, president and CEO of Wal-Mart Stores, said Wednesday.
That simple change impressed Scott to the point that he found himself putting a package of Hamburger Helper into the hands of foreign presidents and celebrity advocates when he spoke on a panel addressing climate-change issues at the Clinton Global Initiative.
On Wednesday, Scott held that package up in front of a ballroom packed with leaders of a host of Wal-Mart supplier companies as he encouraged them to pursue and build upon the same simple innovations. The Wal-Mart Live Better Sustainability Summit, held at the John Q. Hammons Center in Rogers, was designed to encourage the people who produce the products that Wal-Mart sells to consider how their decisions affect consumption for the company and the consumers who buy their products.
A challenge to reduce the company's "environmental footprint," or impact on the Earth's resources, started several years ago, gradually evolving into a pledge from all associates to examine their own habits and find ways to incorporate green thinking into their role at the company. Scott has challenged his company to rely on 100 percent renewable energy and create zero waste.
Sustainability efforts have largely been anchored in the design of the stores themselves as engineers find ways to use recycled products and energy-saving climate and refrigeration systems with the goal of reducing the energy use of new stores by 30 percent.
"We have simply started this process; we lay no claims to being a green company," Scott said.
The buildings themselves can only change so much, said John Fleming, executive vice president of merchandise for Wal-Mart Stores U. S. Only 8 percent of the company's total environmental footprint comes from operations; the other 92 percent is found in the products it sells.
On Wednesday, Scott, Fleming and a panel of Wal-Mart leaders and suppliers recognized for their sustainable innovations encouraged product manufacturers to find simple ways to change the products they make, issuing a sort of pep talk at a keynote CEO summit and helping devise practical solutions in a series of subsequent breakout sessions.
Suppliers have already made changes, Fleming said, but Wal-Mart buyers will increasingly incorporate sustainability and reduced waste into their product-development conversations.
The innovations also make good business sense, Fleming said. Among the successful strategies, a toy company saved $ 3. 5 million in annual transportation costs when it reduced the size of its boxes, saving materials and money. A car-seat company began packaging its seats in clear plastic bags instead of cardboard boxes, reducing shipping costs, making the product more visible and increasing sales by 10 percent.
"This is not just a trend; this is a movement," Fleming said, noting that consumers, cultural influencers and political leaders are calling for a change in U. S. consumption habits.
To encourage suppliers to rethink their products, Fleming and Greg Spragg, executive vice president of merchandise for Sam's Club, introduced a challenge. Wal-Mart plans to incorporate "Live Better"sustainability standards into 20 percent of the products on its shelves next year. Sam's Club will aim higher, hoping to apply the standards to all of its products.
The company will incorporate innovations into its RetailLink sales-tracking system, and Fleming and Spragg will highlight key products on a quarterly and annual basis, with a special focus on April as sustainable-products month.
Fisk Johnson, CEO of SC Johnson, encouraged corporate leaders to take the challenge seriously, not just to appease Wal-Mart, but to make their own products better. When SC Johnson began eliminating chemicals with potential environmental harm from its products, some questioned whether the decision made good business sense.
"I think there's a myth that there's a tradeoff between profitable growth and sustainable progress," he said.
Scott agreed, challenging all those present to think creatively about their products and make simple changes.
"The model is healthy, but we could do a lot better," Scott said. "There's not a single group in this world who can more change environmental sustainability than the people in this room and their partnership with Wal-Mart Stores."
FEEDBACK:
Something to say about this topic? Submit a Letter to the Editor online
