Increasingly, retailers are making the sustainability trend a supplier requirement.  For example, on July 16, 2009, Wal-Mart announced its Sustainability Index during a meeting with 1,500 of its suppliers, associates, and sustainability leaders. Seventh Generation has already held its first-ever Manufacturing Partner Sustainability Summit and conducted comprehensive audits of its suppliers and manufacturers.  Unilever announced it will source only RSPO-certified palm oil by 2015. Mars and Cadbury are making similar announcements on cocoa sourcing.  Through its branded "Considered Design" product standard, Nike has tied its celebrated footwear designs with its commitment to source responsibly and reduce environmental impact. 

Put simply, retailers are serious about sustainability. 

To succeed, product companies must do the same.

    While sustainability is frequently lumped into the “eco/green” basket, in truth, sustainability is a method of measuring efficiency.  Sustainable systems trend toward the most efficient, and efficient systems trend to lower costs over time.  Sustainability requirements are set not by environmentalists, but by engineers, scientists, and business people committed to capturing cost savings, market opportunities and consumer loyalty.  From low-flow toilets to low-carbon free-range eggs, retailers have proven that sustainable products reduce production costs, spur innovation, and capture both short- and long-term market opportunities.   Take a look at one mass retailer’s video, “The Secret Life of Sour Cream,” to see how sustainability delivers a better product, at a lower cost, with significantly less environmental impact.

    Wal-Mart’s Sustainability Index isn’t new, and its ambition and ability have already changed the way suppliers operate their business.  In fact, the mass retailer used a similar set of data requirements in 2008 for its private-label products.  Many of the manufacturers of these house brands are also major consumer product brand manufacturers, and thus have already enjoyed a marketing boost and a head start over its smaller competitors.  Wal-Mart is also working to bring other mass retailers to adopt the Index, creating an even greater need to recognize that sustainability is not marketing fluff, but a very real charge.