Wal-Mart: Making Its Suppliers Go Green

From Business Week: “Jiangsu Redbud Dyeing Technology is a poster child for China’s effort to clean up manufacturing. The textile maker, based in Changshu City, Jiangsu Province, slashed electricity use by one-tenth, banished most toxic emissions from its dyeing operations, and garnered more than 150 patents for its environment-friendly jute-based materials. Behind the scenes, it has a demanding mentor: Wal-Mart Stores (WMT).”

“Wal-Mart has always been an intimidating taskmaster in China, extracting the lowest possible prices from suppliers. Last year it raised the bar a notch for these thousands of mostly small manufacturers, requiring that they meet or exceed all local environmental regulations. Wal-Mart gives them tips on how to boost energy efficiency and cut consumption of raw materials. It also delivers a blunt threat: Manufacturers have until 2012 to meet the new standards or risk being cut from the supply chain.” Wal-Mart: Making Its Suppliers Go Green