In a bid to lure shoppers who are inclined towards green products, Target Corporation (NYSE:TGT) has unveiled new guidelines on the information suppliers provide regarding the chemical composition and nature of products supplied. This is expected to force vendors to list the kind of ingredients found in the products they supply beyond government regulatory standards.
The new guidelines require the removal of flame retardants from textiles in the next five years as well as the elimination of perfluorinated chemicals.
“It’s ambitious, but using our size, scale and expertise, we think we’ll be able to make significant progress,” the chief sustainability officer of Target, Jennifer Silberman, wrote in a blog post.
Sustainability product index
To judge the products of a supplier, Target is relying on a sustainable product index which awards points based on how ‘green’ a product is. In the next three years, Target is aiming to have achieved full ingredient disclosure on various products from baby to beauty to personal care. Afterward, it will include all products. Just a little over a year ago, the list of chemicals that Target wanted to be removed from products was expanded.
As part of the retailer’s efforts to find safer ingredients, Target is investing close to $5 million towards the development of products that are environmentally-friendly.
Good for you brands
The guidelines from Target come in the wake of a growing consumer trend where shoppers have been turning more towards green goods regardless of whether they are food items or beauty products. Three years ago Target unveiled ‘Made to Matter’, a multi-brand collection of 17 products which possessed cleaner ingredients. This was expanded in the proceeding years. Last year sales in this line increased by 30%. The move followed a commitment Target had made four years ago to raise the transparency of the ingredients in the products found on its shelves.
Target is not the only retailer taking the cue from shoppers who are demanding environmentally-friendly products. In July 2016 Wal-Mart Stores Inc (NYSE:WMT) banned eight chemical groups which included triclosan and formaldehyde.
In Wednesday’s trading session, shares of Target Corporation rose by 0.92 percent to close the day at $65.00.
