Wal-Mart urges Chinese suppliers to act on environment

Wal-Mart Stores Inc, the world's largest retailer said it will require Chinese suppliers this year to meet its environmental standards.

Around 1,000 Chinese suppliers will have to reduce emissions and improve waste disposal, energy efficiency and packaging if they want to keep doing business with Wal-Mart, company CEO H. Lee Scott said during a meeting in China, adding that the higher standards will help cut down costs for the retailer.

It is likely to buy US$9 billion worth of Chinese products as of 2008, the company said.

Wal-Mart released 20.4 million tons of carbon-dioxide emissions in 2006 which roughly equals to the annual output of 4 coal-fired power plants, according to a latest report released by the company.

The retail giant has set a long-term goal to generate all the power it needed from renewable sources and create zero waste in the quest for a green development, sources said.