NYT : Lead, Follow or Move Aside

Lead, Follow or Move Aside

By THOMAS L. FRIEDMAN | September 26, 2007

China today is entering a really delicate phase on the climate-energy issue — the phase I like to call “The Wal-Mart environmental moment.” I wish the same could be said of America and President Bush.

The “Wal-Mart environmental moment” starts with the C.E.O. adopting a green branding strategy as a purely defensive, public relations, marketing move. Then an accident happens — someone in the shipping department takes it seriously and comes up with a new way to package the latest product and saves $100,000. This gets the attention of the C.E.O., who turns to his P.R. adviser and says, “Well, isn’t that interesting? Get me a sustainability expert. Let’s do this some more.”

The company then hires a sustainability officer, and he starts showing how green design, manufacturing and materials can save money in other areas. Then the really smart C.E.O.’s realize they have to become their own C.E.O. — chief energy officer — and they start demanding that energy efficiency become core to everything the company does, from how its employees travel to how its products are manufactured.

That is the transition that Lee Scott, Wal-Mart’s C.E.O., has presided over in the past few years.

Last July, Mr. Scott was visiting a Wal-Mart in Las Vegas on a day when the temperature was more than 100 degrees. He happened to notice that a Wal-Mart staple — inexpensive Styrofoam coolers — were not being promoted by the store’s associates. As Andrew Ruben, Wal-Mart’s vice president for sustainability, told me: “Lee walked into the store and said, ‘It’s 105 degrees. Why aren’t we selling any coolers?’ The associates said, ‘We don’t want to sell Styrofoam coolers because of their impact on the environment.’ So Lee called us afterwards and said: ‘We’re going to have to figure this out.’ By that he meant innovation of a different kind of cooler” that doesn’t come from petroleum-based Styrofoam, which is not biodegradable and usually not recycled.

Wal-Mart on Monday also announced a partnership with the Carbon Disclosure Project (C.D.P.) to measure the amount of energy used to create products throughout its supply chain — many of which come from China.

Said C.D.P. Chief Executive Paul Dickinson: “Wal-Mart will encourage its suppliers to measure and manage their greenhouse gas emissions, and ultimately reduce the total carbon footprint of Wal-Mart’s indirect emissions. We look forward to other global corporations following Wal-Mart’s lead.”

China’s leadership is not where Lee Scott is yet. Chinese officials still put their highest priority on growing G.D.P. — their bottom line. But for the first time, the costs of this breakneck growth are becoming so obvious on China’s air, glaciers and rivers that the leadership asked for briefings on global warming. Many Chinese mayors are looking to get clean-technology industries — like wind turbines and solar — started in their cities.

At such a key time, if the U.S. government adopted a real carbon-reducing strategy, as California and Wal-Mart have, rather than the obfuscations of the Bush team, it would have a huge impact on China and only trigger more innovation in America.

Mr. Bush will be convening his climate photo op — oops, I mean “conference” — in Washington tomorrow, which will include Chinese and Indian officials. But, as Rob Watson, the C.E.O. of EcoTech International, which works on environmental issues in China put it: “The Chinese are not going to take anything we say seriously if we don’t set an example ourselves.”

David Moskovitz, who directs the Regulatory Assistance Project, a nonprofit that helps promote green policies in China, was even more blunt: “The most frequent and difficult question we get in China with every policy initiative we put forward is: ‘If it is so good, why aren’t you doing it?’ It’s hard to answer — and somewhat embarrassing. So we point to good examples that some American states, or cities, or companies are implementing — but not to the federal government. We can’t point to America.”

Too bad. “It was America which put environmentalism on the world’s agenda in the 1970s and ’80s,” recalled Glenn Prickett, a senior vice president for Conservation International. “But since then, somehow, the wealthiest and most powerful country on the planet has gone to the back of the line.”

Leadership is about “follow me” not “after you.” Getting our national climate regulations in order is necessary, but it will not be sufficient to move China. We have to show them what Wal-Mart is showing its competitors — that green is not just right for the world, it is better, more profitable, more healthy, more innovative, more efficient, more successful. If Wal-Mart can lead, and California can lead, why can’t America?