Wal-Mart's odd decision to go green

The news this morning was filled with reports that Wal-Mart (NYSE: WMT) is going to tell its Chinese suppliers that they will be reviewed more carefully for the quality of their products. That makes sense given all the bad milk and toys with toxic paint that have been showing up.

The odd part of the list of things Wal-Mart wants from its suppliers are companies who are willing to get more "green." According to The Wall Street Journal, "Wal-Mart said it will phase in energy-efficiency requirements with its Chinese suppliers next year."

Wal-Mart may be missing the point here. Its investors and shoppers don't give a damn. If "green" cuts the number of suppliers who make bids and raises prices, it could hurt margins. People who own the stock would rather have inventory sourced from companies that dump waste in rivers as long as they offer low costs.

To a large extent, customers almost certainly feel the same. Many people who shop at Wal-Mart have remarkably restricted budgets. Wal-Mart may be the only place they can got to get bargains on most of the products that they need. That overrides any concerns about whether suppliers are environmentally friendly.

Douglas A. McIntyre is an editor at 247wallst.com.