Page 365 - Design for Environment A Guide to Sustainable Product Development

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3. Design the service business model to utilize eco-efficient
products and processes, including procurement, operations,
and customer interface.
The following sections illustrate how these approaches have been
put into practice in a variety of different service industry sectors.

Examples of Industry Practices
Retailing Industry †
By far the largest retailer in the world is Wal-Mart, with revenues
approaching four times its nearest global competitors. Although
often maligned for its questionable social impacts, Wal-Mart has em -
braced environmental excellence with a vengeance and, in doing so,
has stimulated a wave of environmental innovation in consumer-
oriented industries, such as electronics, clothing, and foods and bev-
erages. The company has engaged its employees and suppliers in
various networks aimed at generating value through improving prod-
uct sustainability [3]. Examples of initiatives being driven by these
networks include:
• Sustainable Packaging—A web-based packaging scorecard
has been developed that utilizes nine sustainability metrics:
GHG emissions, material value, product/package ratio, cube
utilization, transport distance, recycled content, recovery value,
renewable energy, and innovation. Wal-Mart is applying the
tool to score all of its suppliers and is using the results as an
input to purchasing decisions.
• GHG Emission Reporting—Wal-Mart is partnering with the
Carbon Disclosure Project in an effort to measure the amount
of energy used to create products throughout the supply chain
and encourage suppliers to reduce GHG emissions. The part-
nership includes a pilot project with seven sectors (i.e., DVDs,
toothpaste, soap, beer, milk, vacuum cleaners and soda prod-
ucts) to seek new and innovative ways to make the entire
supply chain more energy efficient.
• Chemical Intensive Products—To help identify and reduce
chemical risks, Wal-Mart is developing a list of “chemicals of
concern” and working with suppliers to eliminate them from
products. The company is also developing a product screening
tool to identify potential chemical hazards and risks, and to
help buyers and suppliers develop alternative products.

† Portions of this section were contributed by Nicole Gullekson, Eco-Nomics LLC.