Processors that supply products to Asda's supermarket shelves face strict sustainability audits as the retailer embarks on an environmentally-based supply chain crackdown in April 2010.
Over the past 12 months the retail chain has been designing and developing a new methodology that will audit the factories and supply chains of its suppliers, said Chris McCann, ethical standards country head, Wal-Mart Global Procurement.
Suppliers would be assessed on their commitment to reductions in energy, waste, water and packaging, said McCann.
He said Asda had identified around 500 suppliers generally smaller firms who needed help to bring their businesses up to the standard of sustainable processing it required.
He was speaking at the 8th Annual World Food and Technology and Innovation conference in Rotterdam last month.
According to McCann, Asda planned to pick up the bill for organising consultants to educate manufacturers on waste, water and energy management strategies to achieve millions of pounds worth of savings in the supply chain.
"We are trying to move from policing our suppliers to developing collaborative relationships to work with them," he said.
"This is why we are sending experts in to give them free advice."
"It's obviously up to them how they take this advice, but by 2012 we are aiming to have at least 95% of our suppliers committed to high sustainability standards."
Some of its suppliers, particularly larger manufacturers, "are ahead of us at the moment, in terms of environmental initiatives, so in some cases we have been learning from them", said McCann.
"But we need all of our suppliers to build environmentally friendly and sustainable supply chains, as well as take ownership of compliance in their factories."
He said sustainability was no longer just a PR exercise and impending food shortages, energy scarcity, climate change and population growth required action.
"It's these four issues that will dominate government policy in the future," McCann added.