Wal-Mart joins logging initiative

By Jonathan Birchall in New York
Published: July 15 2008 02:07

Wal-Mart, the world’s largest retailer, has joined a global programme aimed at eliminating illegal and unsustainable logging in the latest step in a drive to improve its environmental and social record.
The retailer said it would work with the Global Forest and Trade Network, an initiative backed by the World Wildlife Fund.

It will launch an assessment of where the wood used in its own-brand furniture comes from and will eliminate wood from illegal or unknown sources within five years. The retailer also pledged to stop the use of wood from any forests judged to be of “critical importance” that are not well managed.
The move comes almost three years after Lee Scott, Wal-Mart’s chief executive, launched an overhaul of the retailer’s approach to environmental sustainability, which included setting up “sustainability networks” that include suppliers and environmental groups.
Kerry Cesareo, a forestry expert at the WWF, said Wal-Mart would be required to meet “strict criteria” for the review of its sourcing of wood products, which would be subject to independent auditing.
The review is expected to result in the retailer using more wood from forests whose management has been certified as meeting environmental and social standards by the Forest Stewardship Council, at present the only such certification system recognised by the GFTN.
The initiative was launched in the mid-1990s to engage businesses in efforts to promote sustainable forestry.
Wal-Mart will be the first US retailer to join. European members include Ikea, Carrefour, Body Shop and Marks and Spencer. Procter & Gamble, a leading Wal-Mart supplier, joined in March.
Matt Kistler, head of Wal-Mart’s sustainability programmes, said the initiative would enable the retailer to provide “a reliable supply of wood products that come from responsibly managed forests”.
Wal-Mart’s immense purchasing power has made it an attractive partner for environmental groups who work with corporate partners, such as WWF and the Environmental Defense Fund. However, it has also created intense divisions within the environmental movement, with some activists arguing that the retailer’s low-cost consumerism reflects an ultimately unsustainable business model.
Copyright The Financial Times Limited 2008