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Transcript of Walmart Confidential - 2013 Global Leaders · PDF fileWalmart Confidential - 2013 Global...
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March 4, 2014 Sustain Your Sustainability Janelle Kearsley, Sr. Director Walmart Stores Inc.
Walmart Confidential - 2013 Global Leaders Summit 2
Give the world an opportunity to see what it's like to save and have a better life.”
“ Sam Walton’s Vision
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Scope and Scale
Canada 333 Units
China 370 Units
United Kingdom 544 Units
Japan 424 Units
India** 17 Units
Mexico 2,133 Units
Brazil 531 Units
Argentina 88 Units
Central America 622 Units
Chile 322 Units
U.S. 4,498 Units
Sub-Saharan Africa 349 Units
Countries 28 Total Units 10,000+ Associates 2.1 Million Customers 200 Million (/wk) Suppliers ~100,000 Walmart Confidential - 2013 Global Leaders Summit 4
At the height of this recession, we promised we would broaden and accelerate our commitment to sustainability. Today sustainability is sustainable at Walmart… …I appreciate that the world now has higher expectations of our company. So we must raise the bar. We must continue to meet the social obligations and expectations ahead. Walmart will never look back.” Mike Duke President and Former CEO, Wal-Mart Stores, Inc.
“ Sustainability unlocks the true potential of Walmart’s mission: Save Money, Live Better
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To be supplied 100% by renewable energy
To create zero waste
To sell products that sustain people and the environment
Walmart’s broad sustainability goals
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Create zero waste Be supplied 100% by renewable energy
Sell products that sustain people and the environment
ENERGY WASTE PRODUCTS
Walmart’s Sustainability Goals
those suppliers who partner with us in building a responsible supply chain will be the suppliers that will grow with us.. And you too will become a better and more sustainable business. - Mike Duke, President and CEO, Wal-Mart Stores, Inc.
“
“
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Our Customers Care…
They Have High Expectations of Us…
And They Should
Why Should We Care?
Walmart Confidential - 2013 Global Leaders Summit 8 www.walmartstores.com/sustainability
Productivity Loop – Walmart’s Engine
Grow Sales
Operate for Less Buy for
Less
Sell for Less
Saving people money
so they can live better.
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We have a responsibility to lead where it counts…
10%
90%
Direct FootprintIndirect Footprint
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Be supplied 100% by renewable energy
• Globally, 21 percent of total electricity and 17 percent of total energy comes from renewable energy
• Walmart-driven renewable energy projects provide 4 percent annually
Be supplied 100% by renewable energy
• Drive the production or procurement of 7 billion kWh of renewable energy by Dec. 31, 2020 – an increase of more than 600 percent verses 2010.
Scaling renewables
• By Dec. 31, 2020, reduce the total kWh-per-square-foot energy intensity required to power our buildings by 20 percent 2010
Accelerate efficiency
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Create zero waste
• Even as our retail sales and square footage continue to increase, Walmart U.S. improved to 80.9 percent reduction in 2012. Sam’s Club U.S. improved to 77.3 percent reduction in 2012.
Eliminate landfill waste from U.S. stores and Sam’s Club locations by 2025
• We exceeded the target by reducing plastic bag waste across our global operations by 38.1 percent, or approximately 10 billion bags.
Reduce our global plastic shopping bag waste by an average of 33 percent per store by 2013 (2007 Baseline)
• While considerable attention is being paid to producing more food to meet growing population demands, one of the most immediate and affective ways to alleviate some of the pressure is to waste less of what we already have.
Reduce food waste in emerging market stores and clubs by 15 percent and in our other markets by 10 percent by the end of 2015 (2009 Baseline)
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Sell products that sustain people and the environment
• 20 percent of our global palm oil use supports sustainable growing. Six of our international markets purchased GreenPalm certificates to cover all of their 2012 palm usage.
Walmart will require sustainably sourced palm oil in all of our private-brand products globally by the end of 2015
• By the end of 2017, we’ll buy 70 percent of the goods we sell in Walmart U.S. and Sam’s Club U.S. units only from suppliers who use the Index to evaluate and share the sustainability of their products.
Committed to scaling the Index
• The Walmart Foundation provided a $2 million grant to support the launch of TSC China.
Helped to launch The Sustainability Consortium China
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Our North Star…..
Customers shouldn’t have to choose between products they can afford and products that are good for the environment (or themselves, their communities, society and future generations)
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“If we work together, we can create a new retail standard for the 21st
century."
Sustainability Index: Tools that are…
• Improving the sustainability of the products our customers love
• Integrating sustainability into our core business
• Driving the productivity loop by reducing cost, increasing product quality and finding supply chain efficiency
• Increasing customer’s trust in us and the brands we carry by leading in transparency
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Category Sustainability Profile
Key Performance Indicators
Buyer Index Scorecard
Practical Buyer Tools Grounded in Standard Scientific Metrics
Index Sustainable Value Network Walmart Stores, Inc. Confidential Walmart Confidential - 2013 Global Leaders Summit 16
Sustainability Index: Buyer Report – Report Tab
Index Sustainable Value Network Walmart Stores, Inc. Confidential
Performance Summary
Select Suppliers
Supplier Rank
Supplier Improvement Opportunities
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Index Rollout Stats
Broad Rollout
Strong Participation
Next Steps
▪ TSC Batch 1 & 2 à 190 Walmart Categories (30% of sales) ▪ Buyers in Walmart US, Sam’s, .COM and
Walmart Canada
▪ 1000+ suppliers responded ▪ ~70% of sales across 190 categories
▪ Batch 1 & 2: Priorities, buyer goals, projects ▪ Bi-Annual reporting for all categories (April) ▪ Rollout in 3+ markets in FY14
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Index Helps us Prioritize General Merchandise Categories
• Monitors • Mobile Devices • Printers • Televisions • Copy Paper • Plastic Toys • Greeting Cards • CDs and DVDs • Small Appliances • Printer Ink • Plush Toys
0%
10%
20%
30%
40%
50%
60%
70%
0% 20% 40% 60% 80% 100%
Importance to Business
Impo
rtanc
e to
Sta
keho
lder
s
Energy/GHG in Manufacturing
Chemicals in Manufacturing
Energy Efficient Use
Chemicals in Products
Deforestation and Land Conversion
End of Life Management
Cotton Production and Processing
Mining and Sourcing Conflict Minerals Product Quality
Packaging
Water
Fossil Fuel-Based Materials
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Every buyer will have sustainability goals as part of his or her objectives, and we will use the Index as the tool to measure progress against those goals. We’ll recognize and reward those buyers and suppliers who are doing well. We will also ask suppliers who aren’t performing well to develop plans to improve, and we’ll hold them accountable for showing progress.
“
Duncan Mac Naughten Chief Merchandising Officer, Wal-Mart US
Incentives Recognize Leadership and Hold Ourselves Accountable
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Broaden and Accelerate
1 2Facilities enter information 3 Generation of
estimates of total savings
Visualization of savings opportunities
Once we realize what our priorities are, we can focus on ways to help our supplier base.
RedE Pilot Phase Unlocking Energy Efficiency with Walmart’s Chinese Suppliers
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But is it working?
Laptops
Tele
visi
ons
Personal Care
Fertilizer
Rec
ycle
d C
onte
nt
Chem
icals
PFC’s
Palm Oil
Sm
all h
olde
rs
Packaging
Ene
rgy
System Change
Water Scarcity Engagement E
nd-of-Life
End-of-Life
Was
te
Walmart Confidential - 2013 Global Leaders Summit