Thanks to SmartBrief for giving me the heads-up on this one:
America's retailasaurus rex today told its suppliers to start providing it with the full environmental costs associated with making their products, so that Wal-Mart can start putting "Nutrition Facts"–style labels that give sustainability ratings on all of the products it sells. (Read the full story in the Wall Street Journal here.)
The company says it will take about five years to construct the ratings system and distill all the information from companies into a format consumers will find useful.
I've talked to many individuals who have had this idea and even taken a stab at it (but are often stymied by a lack of financial resources). A multitude of certifications and eco-labels exist, and there are companies such as Patagonia that have come up with their own labels, but this is by far the largest effort in the green labeling arena that I've heard of, and it has the potential to set the template for how future such labels emerge, at least in the U.S.
The devil will be in the details, of course. Standards makers are the new diplomats in today's globalized world. How trustworthy will the data be? Will there be an auditing process to ensure that suppliers are honest?
I will be watching this development with great interest!