Global retail giant Wal-Mart Stores Inc said it will impose higher environmental and social standards on its 20,000 suppliers in China in a bid to build a more environmentally and socially responsible global supply chain.
The standards are due to take effect next month to ensure Chinese clothing, toys and appliances' global quality. And the standards are soon expected to cover all of the company's items.
The US chain store also said it wants suppliers to take more responsibility and play a bigger role in ensuring their sub-contractors are complying with standards.
"We think sustainability is essential to our future success as a retailer and to meet the expectations of customers," said Lee Scott, president and CEO of Wal-Mart.
"Maintaining the trust of our customers is tied hand-in-hand with improving the quality of our supplier factories and their products."
Under a new supplier agreement created by the company, factories will be asked to certify compliance with local laws and regulations on air emissions, wastewater discharges, and its management of toxic substances and hazardous waste disposal.
The agreement will be phased in beginning with suppliers in China in January 2009, and will expand to suppliers around the world by 2011.
The retailer is also promoting a Green Supply Chain Initiative led by the Environmental Defense Fund (EDF), a non-profit group that has cooperated with Wal-Mart on sustainability issues.
