The Scores are in: Understanding the Walmart Sustainability Index
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by Amy Haddon on 11/09/2012
Suppliers in the first batch of Walmart’s new Sustainability Index initiative have begun receiving their scores back from the retailer, and at first glance, understanding the score can feel overwhelming.
The score includes:
- A summary snapshot of how the supplier scored overall
- A dimension score that tells the supplier how it’s doing in the four areas Walmart has publicly said are its most pressing priorities
- Details of how the supplier ranks compared to its product category peers
- Suggestions for improvement and
- Details on how the suppliers’ overall score was determined
We’ve developed a Quick Guide to help suppliers interpret their score and—more importantly—how to make use of the information provided by Walmart to improve their score.
Now, more than ever, Walmart is pushing the sustainability envelope forward. As suppliers begin to receive and interpret their scores, it will become imperative to pay attention to how their scores align with Walmart’s priorities. Walmart has publicly stated its intention to tie the performance of buyer product lines to compensation, a holistic buying model that views products through the lens of price, performance, and sustainability.
Suppliers who will be asked to participate in the second batch of the Sustainability Index rollout should begin anticipating the invitation to respond to Walmart’s request. The Batch 2 product categories, as made available by Walmart partner The Sustainability Consortium, are:
We’ve helped hundreds of suppliers respond to—and improve their score on—sustainability scorecard requests. We invite you to contact us to see how we can help you, too.
Amy Haddon is Vice President of Communications for Renewable Choice. Follow Amy on Twitter @RenewableAmy.