In the contemporary world, the need for enhanced performance in regard to environmental conservation has increased (Zamagni 2012). This has necessitated the use of life cycle assessment (LCA) to identify the effect of corporate processes on the environment. Essentially, LCA refers to the method used to analyze the impact that the production process and the product have on the environment (Diaz & Anton, 2014). According to Epstein & Buhovac (2014), corporates must ensure environmental diligence not only because there are government regulations, but also because it is part of the companies' moral obligations. In this light, therefore, Wal-Mart is among the companies using LCA to ensure that their products and the manufacturing process do not have a negative effect on the environment. Due to the importance of LCA analysis, this paper analyzes the manner in which the Wal-Mart uses this approach. In particular, the paper focuses on the tools used by the company to conduct the analysis.
2.0 Wal-Mart Approaches to LCA
2.1 Use of E2T Software System
Currently, Wal-Mart has come up with new software that analyzes and evaluates the impacts that a product has on the environment. This company is using the Earthster 2 Turbo tool which contains data sources that are open to product designers, suppliers, and manufacturers. These sources provide essential information that helps to understand the life cycle of a given product (Nagappan, 2012). In this regard, the software enables the company to obtain data concerning raw materials, the amount of energy consumed, and the social impact of the product among others. As such, this information is used to conduct the Life Cycle Assessment and the results are automatically plotted on a graph.
2.2 Sustainability Index
In addition to the E2T software, the company also uses the Sustainability Index. This index is a tool used to not only check the impacts of the product on the environment but also to enhance quality. Besides ensuring quality, it helps to reduce the costs of production. In order to come up with this index, the company has provided the starting capital to the suppliers, public organizations, retailers, and other private organizations. Having received the capital, the companies establish an international database that contains information about the product, customer’s observations, and expert reviews. In addition to this, Wal-Mart is applying the matrix approach which analyzes the impact of the product on the environment at different stages. This approach uses various indicators such as the amount of natural resources utilized, acidification, and the level of toxic products produced in the process. Essentially, the impact is measured by using a numerical scale (Chris, 2010).
2.3 Pre-Analysis on Innovated Products and Packaging
Wal-Mart evaluates new products in order to determine their environmental suitability. In this regard, the company has made various innovations in its pursuit to improve quality of services and products. These innovations involve coming up with new products that can create value to the consumers without compromising the environment (Horne, Grant & Verghese, 2009). For example, the company has recently developed new types of fruit juices that are packed using biodegradable containers. However, before using these packaging methods, a thorough analysis was done to determine whether they are friendly to the environment. With such analysis, the company has ensured that the containers can be disposed of safely after use. Similarly, a prior analysis is conducted before making changes on business processes and designs. The analysis is aimed to determine whether the anticipated changes are helpful to environmental conservation. Using such prior evaluations, Wal-Mart has redesigned several of its products to make sure they are friendly to the environment. For instance, the shampoo produced by the company initially had negative impacts on the users and the environment. However, upon redesigning, the shampoo has become one of the most attractive products that consumers are currently using. Importantly, the product does not have any negative influence on the environment.
2.4 Use of Product Data Index
Additionally, Wal-Mart is in the process of coming up with a unique product index to develop a central information center. This information center will help to store data regarding products.
In order to come up with this index, the company plans to put products into categoriesZamagni, 2012). It uses two operating groups that are used to serve seven major categories of products with the aim of promoting sustainability. These products include laundry detergents, laptops, shampoo, television, breakfast, yogurt and fruit juices. The company also measures the impact of each product category on the environment. For instance, the policy regulations on detergents used in laundry require that the retailers and manufacturers make the best use of cold-water detergents. This regulation is stipulated to promote sustainability of the laundry industry. In essence, the mere existence of such a regulation does not only help to achieve sustainability, but it is also an indication of the company's commitment to the ideology of sustainable manufacturing.
3.0 Conclusion
It is evident that Wal-Mart is one of the companies that conduct LCA in Saudi Arabia. LCA is the act of analyzing a product’s impact on the surroundings. The above discussion shows that the company uses different techniques to conduct the assessment. Some of the methods include the use of Sustainability Index, E2T tool, and Product Data Index among others.
References
Chris, B. (2010). Walmart Pilots Earthster Life Cycle Assessment Tool.
Diaz, J., & Anton, L. (2014). Sustainable Construction Approach through Integration of LCA and BIM Tools. Computing in Civil and Building Engineering (2014).
Epstein, M. J., & Buhovac, A. J. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts (2nd ed). Sheffield, UK: Greenleaf Publishing.
Horne, R., Grant, T., & Verghese, K. (2009).Life cycle assessment. Collingwood, Vic.: CSIRO Pub.
Nagappan, P. (2012). How Walmart is using its sustainability metrics to drive productivity.
Zamagni, A. (2012). Life cycle sustainability assessment.Int J Life Cycle Assess, 17(4), 373-376. http://dx.doi.org/10.1007/s11367-012-0389-8
