Jan. 11, 2008 - Wal-Mart is finding that it's a lot easier to green product packaging than to green what goes inside. Despite recent successes reducing packaging waste in consumer goods from laundry detergent to toilet paper, the retail giant is facing new hurdles in demanding greener products from electronics suppliers, Reuters reports.

One of the biggest challenges is raw materials. Some of the more toxic materials used in electronics also tend to be the cheapest, and the switch to more eco-friendly materials will likely be shouldered by the supplier, not the Wal-Mart customer.

Some manufacturers have suggested making premium pricing more palatable for consumers by emphasizing the cost savings of energy-efficient products, a strategy Wal-Mart employed successfully during its campaign to promote compact fluorescent lightbulbs. Wal-Mart says it may create a labeling system that outlines the long-term benefits of green electronics.

Another problem centers on recycling the millions of phones, TVs, and computers sold at Wal-Mart. Many vendors have their own recycling programs, but consolidating the recycling efforts of Wal-Mart's 61,000 U.S. suppliers would be logistical nightmare. The problem is further compounded by the lack of standard U.S. guidelines for energy efficiency and recycling of electronics.

"We'd like to see some kind of federal legislation that would take all the individual state programs and bring it together," says Kevin O'Connor, Wal-Mart's general merchandise manager for consumer electronics.

Despite these barriers, Wal-Mart is expected to shake up the industry this year when it expands its green scorecard system to include electronics products.

"When they move to make [the scorecard] a buying criterion, it will become a very powerful force," says Theo Schoenmakers, head of sustainability for Philips Consumer Lifestyle.