Tracing the history of what you buy
How to make sure the cotton in your shirt wasn't picked, say, by child laborers.
Laguna Niguel, Calif. (Fortune) -- Where was the cotton in your shirt grown? Who mined the gold in your wedding ring? What forest produced the paper in the magazine you are reading?
You almost surely don't know, but a growing number of brands and retailers want to dig deep into their supply chains to better understand the roots (sometimes literally) of the products they sell. Their goal: to avoid risks and enhance their reputation as "green" business leaders, says Tim Wilson, the 41-year-old CEO of Historic Futures, a little British company that is riding a big idea in sustainability, known as traceability.
Using Internet-based systems and RFID tags, Historic Futures tracks such commodities as cotton and gold through the long and previously opaque supply chains of Wal-Mart (WMT, Fortune 500), Gap (GPS, Fortune 500) and Patagonia, among others. "If you don't know where your stuff is coming from," Wilson asks, "how can you have a sustainability program?"
So, for example, Wal-Mart's "Love, Earth" brand of gold and silver jewelry invites consumers to visit a website to find the source of their precious metals - and to be assured that it's not a dirty mine in a poor country.
Patagonia's "Footprint Chronicles" website tracks the journey of a T-shirt through the global economy, revealing its carbon footprint, water usage and miles traveled. The British retailer Tesco (TESO), which has pledged not to sell anything made with cotton picked by child laborers in Uzbekhistan, now traces its dry goods through several tiers of suppliers to make sure it can keep its word.
Wilson, who previously wrote software for farmers, came up with the idea for Historic Futures after mad cow disease devastated the British beef industry. The outbreak began with as few as 100 sick cows, but no one knew how to find them.
His company's tagline - "The Future is History" - is not an apocalyptic prediction but an expression of the idea that brands and consumers eventually will want to understand the history of everything they buy.
-
The retail giant tops the Fortune 500 for the second year in a row. Who else made the list? More
-
This group of companies is all about social networking to connect with their customers. More
-
The fight over the cholesterol medication is keeping a generic version from hitting the market. More
-
Bin Laden may be dead, but the terrorist group he led doesn't need his money. More
-
U.S. real estate might be a mess, but in other parts of the world, home prices are jumping. More
-
Libya's output is a fraction of global production, but it's crucial to the nation's economy. More
-
Once rates start to rise, things could get ugly fast for our neighbors to the north. More