Wal-Mart's "scorecard" system will encourage companies to make competitive analyses of their own sustainable packaging materials and practices. This will cause competition between Wal-Mart suppliers as well as their materials and service partners. These are screenshots of a demo available at www.scorecardlibrary.com.

The Wal-Mart Sustainability Scorecard Becomes Interactive, Competitive Reality

Wal-Mart Stores Inc. has backed up it commitment of reducing packaging across its global supply chain by 5% by 2013 by rolling out its sustainability-minded packaging "scorecard" this fall. The program also serves Wal-Mart's other ambitious goals of dramatically reducing solid waste and energy expenditures. Ostensibly, the program is a tool that will help Wal-Mart and its suppliers improve packaging and conserve resources. Though it is a tool for self-evaluation, it sets up a competitive environment as more companies try to better their sustainable performance.

"As vital as the packaging initiative is to reaching our environmental goals, it is also very good for our business and our suppliers' business," said Matt Kistler, vice president of package and product innovations for Sam's Club. The criteria are valuable tools for suppliers to determine how their packaging innovations, environmental standards, energy efficiencies and use of materials match up against those of their peers. Suppliers will receive an overall score relative to other suppliers, as well as relative scores in each category.

The scorecard is a thorough analysis of any company's packaging and sourcing components, from materials to energy resources. Instead of Wal-Mart examining the companies' performances and recommending improvements, the scorecard structure and its competitive environment will automatically compel companies to improve their scores in areas they find themselves lacking.

The gradual roll out has begun, with more than 2,000 private label brand suppliers having access to the packaging scorecard, including the ability to input information and measure their performance against competitors. Other suppliers can view an automated online demonstration is available at www.scorecardlibrary.com or visit www.marketgate.com/packaging to learn more about improving their sustainability with the ECRM MarketGate Packaging Source.

On February 1, 2007, Wal-Mart will share the packaging scorecard with its global supply chain of more than 60,000 suppliers. During a one year trial period, suppliers will be able to input, store and track data, learning and sharing their results as desired. As of February 1, 2008, Wal-Mart will begin using the packaging scorecard to measure and evaluate its entire supply chain based upon each company's ability to use less packaging, utilize more effective materials in packaging, and source these materials more efficiently relative to other suppliers.

The scorecard is part and parcel of Wal-Mart's greater sustainability plan that, in addition to reducing packaging by 5%, includes reducing solid waste by 25%, making its stores 25% more energy efficient, and having 20% of its supply base aligned with sustainable products, all within the next three years.