A Sustainable Plant Is Profitable
Proponents of sustainability for businesses make the case for the triple bottom line - people, planet, profit – where economic, environmental and social costs and benefits are considered equally when measuring the results of enterprise activities.
We can address the difficulties of quantifying the economic value of social and environmental profits by interpreting them in the more familiar terms of lifecycle cost, risk management and shareholder value. So in addition to the direct sustainability bottom-line benefits of reducing material and energy costs, we can account for tangible benefits in lower long-term facility maintenance costs, lower insurance premiums due to reduced risk of accidents and product liability.
“We will require all suppliers who work with us through global procurement, who are domestic or importers, or who manufacture Sam’s Club or Wal-Mart private brands, to demonstrate that their factories meet specific environmental, social and quality standards. We have already started doing this, and we hope to extend the requirements to all of the above-mentioned suppliers within three to five years."
“We will work only with suppliers who maintain our standards throughout our relationship, so certification and compliance will be part of our supplier agreements."
“We will favor – and in some cases even pay more – for suppliers that meet our standards and share our commitment to quality and sustainability. Paying more in the short term for quality will mean paying less in the long term as a company.”
-- Walmart President & CEO Leo Scott, March 2008
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