How Many Business Practices can Change the World?

2007 seems to be a good year to revisit your plans for sustainable processes and business practices. I’m talking about energy. Wal*Mart is making headlines again with a new solar power initiative –- the world’s largest company has the potential to use its global influence to create a new standard.

Joel Makeower at Two Steps Forward outlines Wal*Mart’s solar energy vision. The giant retail operation issued a request for proposal (RFP) to install solar energy systems in its stores in five states.

According to the RFP, as presented by Makeower, the goal is to establish alternative sources of energy at competitive prices in an arrangement that would allow Wal*Mart to buy solar energy possibly without having to own or purchase the generating systems.

I like the implications of the suggestion that individual homeowners and renters -- just like companies -- should be able to purchase solar energy without owning the power plants, the panels. Can you imagine the impact of such an initiative? It would have the making of a long-term commitment and could have a profound and long-lasting effect on the global solar industry.

Makeower concludes with one important observation: "The company's opportunity is to help bring the price of solar down to earth. The challenge will be to do it in a way that doesn't negatively exploit its suppliers, or those that toil for them."

Aside from the occasional personal experience at a store less than 5 miles from my home, I learned a lot about “the high cost of everyday low prices” from Charles Fishman, author of The Wal*Mart Effect. The premise of our conversation with Fishman last May in Philadelphia had and still has enormous implications:

The forces that operate at Wal*Mart have squeezed retailers, manufacturers, wages and jobs in the name of standardization and commoditization for the pursuit of low prices. What is the overwhelming impact of these forces on the culture of shopping, the shape of communities, and the environment?

It could definitely go both ways. The light bulb went off when Fishman announced that "sitting humbly on shelves in stores everywhere is a product, priced at less than $3, that will change the world." That was in his article for Fast Company September 2006 issue. For this project, Wal*Mart chose to partner with GE, or rather it was a movement they both recognized and decided to embrace, together.

As you read (or scan) the article, see how the change always happens in one place, championed by one person who notices something and then "someone went off and did the math". Why couldn't we all believe in ourselves like that? What does it take to change a business practice?

Fast Company challenged Wal*Mart's wonder truck -- yet another one of the organization's energy savings initiatives -- by deconstructing the company's conservation effort in another article. You might also visit with the company's position and environmental initiatives on the corporate site, which states "one of our toughest challenges as a retailer is determining how to continue to create value for our customers while minimizing our footprint on the environment."

We know that Wal*Mart has tremendous power, and with it, it has the makings of the modern conglomerate we all like to hate. We also know, or we should if not, that we have power ourselves. Each one of us has the potential to change the world -- in our professional stage, personal lives, and sphere(s) of influence. Let's continue the conversation.

Comments

[Satya Boutique Boy]

It's great to see that Wal*Mart is continuing to expand its environmental initiatives, but don't mistake their greenwashing for honest concern. Their much publicized environmental programs are intended to obscure their actual business practices: specifically, labor violations at home and sweatshop produced products made abroad. And don't forget the fact that little or no concern is given to the environmental devestation wrought by manufacturing processes in these foreign countries--which lack proper oversight or regulation. It takes a lot of toxins and waste and water to fill Wal*Mart's big boxes with plastic gewgaws and chemical laden clothing. The only sustainability that Wal*Mart really cares about is the sustainability of their bottom line.

[Valeria Maltoni]

Welcome to the conversation, Romy. I wish I could turn back time and host you during our discussion on The Wal*Mart Effect with Charles Fishman. We talked about many of the issues you highlight and what Fishman uncovered during his research. If you follow the link to his site, you will find a couple of excerpt to give you an idea.

The motivations are immaterial, what matters is that these initiatives are taking place. Wal*Mart has the potential to have an enormous positive impact on the environment *because* of the scale of their business.

[Jay Draiman]

MANDATORY RENEWABLE ENERGY – THE ENERGY EVOLUTION –R1

In order to insure energy and economic independence as well as better economic growth without being blackmailed by foreign countries, our country, the United States of America’s Utilization of Energy sources must change. Our continued dependence on fossil fuels could and will lead to catastrophic consequences.

The federal, state and local government should implement a mandatory renewable energy installation program for residential and commercial property on new construction and remodeling projects with the use of energy efficient material, mechanical systems, appliances, lighting, etc. The source of energy must by renewable energy such as Solar-Photovoltaic, Geothermal, Wind, Biofuels, etc. including utilizing water from lakes, rivers and oceans to circulate in cooling towers to produce air conditioning and the utilization of proper landscaping to reduce energy consumption.

The implementation could be done on a gradual scale over the next 10 years. At the end of the 10 year period all construction and energy use in the structures throughout the United States must be 100% powered by renewable energy.

In addition, the governments must impose laws, rules and regulations whereby the utility companies must comply with a fair “NET METERING” (the buying of excess generation from the consumer), including the promotion of research and production of “renewable energy technology” with various long term incentives and grants. The various foundations in existence should be used to contribute to this cause.

A mandatory time table should also be established for the automobile industry to gradually produce an automobile powered by renewable energy. The American automobile industry is surely capable of accomplishing this task.

This is a way to expedite our energy independence and economic growth. It will take maximum effort and a relentless pursuit of the private, commercial and industrial government sectors commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) in order to achieve our energy independence.

Jay Draiman
Northridge, CA. 91325
12-27-2006

P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.
I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.