Wal-Mart Stores Inc. on Friday announced a five-year program with its suppliers to help reduce overall packaging by 5%, aiming to help keep trash out of landfills and global warming gases out of the atmosphere. In the latest effort to polish its environmental record, the worlds largest retailer said it would begin the initiative in 2008, potentially helping Wal-Mart save $3.4 billion in costs. The company, which will push its 600,000 global suppliers to find more efficient packaging methods, estimates total supplier savings of $11 billion.

The announcement came on the third and final day of the Clinton Global Initiative, an annual conference of business, political and nonprofit leaders led by former President Clinton. Clinton announced a total of $7.3 billion in pledges to help reduce global warming and fight Third World poverty, disease and ethnic strife.

The conference, which attracted world leaders, corporate titans and celebrities, produced at least 215 commitments of financial support to projects supported by the Clinton Foundation. Last years gathering produced 300 commitments worth $2.5 billion. A day after British business mogul Richard Branson pledged $3 billion to fight global warming, Clinton on Friday announced the launch of a $1-billion investment fund for renewable energy.

Clinton was joined for the announcement by the fund s California-based principal investors: venture capitalist Vinod Khosla, supermarket magnate Ronald W. Burkle and Hollywood producer Steve Bing. The amount of each man s investment in the fund was not disclosed. The Wal-Mart announcement was its second this week in its continuing efforts to polish its image. On Thursday, the retailer announced that it was cutting the prices of many generic drugs to $4 at its pharmacies. The program began Friday in Florida but was expected to be rolled out across the rest of the country next year. Wal-Mart Watch, a union-backed group more accustomed to criticizing the retailer, praised the companys latest environmental initiative.

"This goes to show Wal-Marts power when it chooses to be a leader," said Andrew Grossman, executive director of Wal-Mart Watch. "Wal-Mart has the ability to help transform American healthcare and wage standards, and we look forward to working with them on these efforts." Wal-Mart said it would start working with suppliers in November so they could prepare for the changes. Last year, the retailer teamed with suppliers to improve packaging on its Kid Connection toy line. By reducing the packaging on fewer than 300 toys, it said, it eliminated $3.5 million in transportation costs and saved more than 5,000 trees in one year.
Wal-Mart shares fell 17 cents to $48.29.
(Los Angeles Times, 23/09/2006)