The Ash Twins Blog

In today’s New York Times, Jared Diamond gives a thoughtful discussion about the role of corporations in cleaning up the environment. Here’s an excerpt about Wal-mart’s environmentalist reforms:

Obviously, a business can save money by finding ways to spend less while maintaining sales. This is what Wal-Mart did with fuel costs, which the company reduced by $26 million per year simply by changing the way it managed its enormous truck fleet. Instead of running a truck’s engine all night to heat or cool the cab during mandatory 10-hour rest stops, the company installed small auxiliary power units to do the job. In addition to lowering fuel costs, the move eliminated the carbon dioxide emissions equivalent to taking 18,300 passenger vehicles off the road.Wal-Mart is also working to double the fuel efficiency of its truck fleet by 2015, thereby saving more than $200 million a year at the pump. Among the efficient prototypes now being tested are trucks that burn biofuels generated from waste grease at Wal-Mart’s delis. Similarly, as the country’s biggest private user of electricity, Wal-Mart is saving money by decreasing store energy use.

Another Wal-Mart example involves lowering costs associated with packaging materials. Wal-Mart now sells only concentrated liquid laundry detergents in North America, which has reduced the size of packaging by up to 50 percent. Wal-Mart stores also have machines called bailers that recycle plastics that once would have been discarded. Wal-Mart’s eventual goal is to end up with no packaging waste.

One last Wal-Mart example shows how a company can save money in the long run by buying from sustainably managed sources. Because most wild fisheries are managed unsustainably, prices for Chilean sea bass and Atlantic tuna have been soaring. To my pleasant astonishment, in 2006 Wal-Mart decided to switch, within five years, all its purchases of wild-caught seafood to fisheries certified as sustainable.