extremely insecure and should not be used. Some versions of ps include an option to display the environment of running processes. On some systems, if you set MYSQL_PWD, your password is exposed to any other user who runs ps.
Background: in the process image argv[] and envp[] are stored in the same way, next to each other. In "classic" UNIXes /usr/bin/ps was typically setgid "kmem" (or similar group), which allowed it to dig around in /dev/kmem to read information about the active processes. This included the ability to read the process arguments AND the environment, of all users on the system.
These days these "privileged ps hacks" are largely behind us: UNIX systems have all come up with different ways of querying such information (/proc on Linux, etc) I think all(?) of these consider a process's environment only to be readable by its uid. Thus, security-sensitive data like passwords in the environment aren't leaked.
However, the old ways aren't 100% dead. Just as an example, here's an example from an AIX 5.2 machine I have access to, running as a non-root user
[Fim da vida: 2009. Alguém sabe sobre AIX mais recente?]
...
For the record, some while back we discovered (on IRC?) that OpenBSD 5.2 has this exact security exposure of leaking the environment to other local users (it was fixed shortly after that release, though).
[Ano de lançamento: 2012]