In light of Wal-Mart's recent announcement that it's launching a Sustainable Product Index and will invest upwards of $500 million in sustainability projects, the pressure for global corporations to "go green" finally has some punch behind it.

In a speech broadcast to all of Wal-Mart's facilities last November, CEO Lee Scott set several ambitious goals: increase the efficiency of its vehicle fleet by 25% over the next three years; eliminate 30% of the energy used in stores; reduce solid waste from U.S. stores by 25% in three years. And while this seems like a grand task, much of the work will actually fall on the shoulders of Wal-Mart's more than 60,000 global suppliers who will need to collaborate with the retail giant on lowering energy and carbon intensities of their operations, redesigning packaging and increasing the efficiency of shipments to Wal-Mart distribution centers.

Mike Duke, Wal-Mart's new CEO, recently reiterated the company's commitment to sustainability and called upon Wal-Mart's top tier suppliers to step up to the challenge. After all, the largest part of a company's environmental footprint actually lies deep within its extended supply chain (some 50%-90%) -- meaning that it's not merely the retailers that need to watch their energy use and GHG emissions, but also the manufacturers, suppliers and logistics providers connected across multiple tiers of the supply chain.

In addition to Wal-Mart, governments are also advocating for stronger regulations. The Obama administration has appointed a number of climate hawks to government agencies like energy and environment. President Obama has stated that his scientists' advice will be heeded, even when it's not convenient.

Increased regulations from government agencies mean increased requirements from OEMs and retailers, who are ultimately accountable for environmental law compliance. This means that it is fast becoming a core competency of companies to understand how their energy is being used and in what ways it can be more effectively managed. And energy use is no longer contained within a company's four walls, but rather radiates throughout its extended supply chain-on both the supply and demand sides-often involving hundreds or thousands of geographically disparate trading partners.

And if government and consumer pressures aren't convincing enough, the bottom-line benefits offered by a lean and green supply chain certainly will. Sustainability means durable business value; the ability to sustain operations into the future indefinitely.

Enter the advantages of a smart demand-supply network. An Eco-Operations oriented value chain is essentially a supply chain with sustainability intelligence built into it-enabling it to maximize the use of resources and energy, and minimize the use of hazardous materials.

The so-called "intelligence" of the supply chain is achieved by enabling total visibility, collaboration, and control across all tiers of trading partners. Stock outs and product surpluses result from a lack of transparency across the supply chain, where consumer demand (or lack thereof) is not communicated to suppliers, manufacturers, or logistics providers until it is too late to shift production. But a supply chain that is equipped with the right software to enable real-time visibility and collaboration across all partners is better positioned to supply the market with what it actually needs-no more, no less while having a much lower environmental impact.

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