On Thursday, Wal-Mart Stores Inc. (NYSE:WMT) announced that it is pushing its suppliers to remove or restrict 8 toxic chemicals found in its products ranging from household cleaning, beauty, and personal care items, as well as other products.
This appears to be a direct result of changing customer attitude when it comes to what goes into their food and household items.
The chemicals Walmart is looking to remove include formaldehyde, a carcinogen found in wood and building materials; butylparaben, a preservative used in cosmetics; and triclosan, which is found in clothing, kitchenware, toys, and furniture. The other chemicals are propylparaben, nonylphenol ethoxylates (NPEs), dibutyl phthalate, diethyl phthalate, and toluene.
Walmart said it is not pressing for the removal of triclosan in toothpaste, since the FDA and other regulators believe it to be safe for use.
"These eight chemicals and chemical classes were among the most ubiquitous found in home and personal care products sold at Walmart," the Environmental Defense Fund said in a statement.
According to Reuters, rival Target Corp. (NYSE:TGT) made a decision to remove over 1,000 chemicals from its beauty, personal care, and household cleaning products, and has been heavily promoting the products that are without these chemicals.
Back in 2013, Walmart published its Sustainable Chemistry Policy in order to increase transparency about all ingredients in the products it sells, to advance safer formulas, and to achieve the U.S. EPA’s Safer choice certification for its house brand products. And this past April, Walmart announced it had removed 95% of the 8 high-priority chemicals listed above by volume weight in U.S. sold products.
“Walmart has made major strides regarding the commitments set forth in its policy. Equally notable, it has set in place effective systems to measure and track progress over time – an ability that can’t be underestimated,” concluded the EDF (PA:EDF).
Currently, Walmart sits at a #2 (Buy) on the Zacks Rank.
WAL-MART STORES (WMT): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
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