Sustainability Strategy
Prepared & Presented by Group 6
29111363 WiraniaSwasty 29112120 Meilina Marsinta M. 29112001 Dedi Witardi
ABOUT WALMART
1962, Sam Walton opened the 1st store in Rogers, Arkansas
1985, reached 882 stores, 104,000 associates, $8.4 B sales
Mission: Saving people money so they can live better.
Global Issues Impact to the Walmart Sustainibilty strategy
Environmental sustainibilty has become an essential ingredients to doing business responisibilty and succesfull.
Goal of Walmart is save their customer money and help ensure better world for generations to come. The aspirational : To be supplied 100% by
renewable energy Create zero waste Sell product that sustain
people and environment
1. Seafood
Fishing was an inefficients industry in term of its fuel use and the boats were forced to venture further out in search of declining wild fish stocks
Some studies had shown that farm raised fish provided lesser health benefits in terms of nutrient
Increasing health risk in the form of harmful chemicals and antibiotics use to fight disease in fish farming environment
Contuinity if supply was the single greatest long term issues facing the seafood network.
1. Please explain what are the key issues faced by walmart?
2. Electronics
One of the first quick wins in the electronics netwrok was related to the issue of eliminating hazardous chemical from production.
80% of e –waste collected for recycling was being exported to the developing countries where the toxic component led to pollution levels that were hundreds of thousand of times higher than those allowed in develope countrie, as well as tragic, large scale of human health effects.
1. Please explain what are the key issues faced by walmart?
3. Textile
Customer want the high quality of the fabrics
Conventional cotton crops received more than 25% of all chemical insecticides used and more than 10 % of chemical pestisides in agriculture cause cancer, birth defects, and nervous system damage
2. How Walmart keep environmental improvement tightly coupled with business value and profitability for the strategy succes
By Operational Changes :Focusing on three of the company primary focus area (seafood, electronics, and textile) and their effect on the company opeartions. Supplier relationship and results
2. What is the sustainiblity strategy Conducted by Walmart?
3 PRIMARY AREAS
ENERGY
We’re working to become supplied
100% by renewable energy by
examining every aspect of our carbon
footprint.
WASTE
To create zero waste, we’re
rethinking processes, using
smarter packaging, recycling and
reducing plastic bag use.
PRODUCTS
We’re committed to making our products better for the planet and more affordable
for customers.
http://corporate.walmart.com/global-responsibility/environmental-sustainability
That would set environmental goals for reducing impact on the environment:
14 SUSTAINABLE VALUE NETWORKS
Renewable EnergyGlobal greenhouse gas strategyAlternative fuelsEnergy, design construction & maintenanceGlobal logistics
Sustainability ProductsTextiles, electronics. Food & Ag, Forest & paper, Chemical intensive products, jewelry, seafood, China
Zero WasteOperations & internal procurementPackaging
• Worked with Blue Skye, Conversation International the Environment Defense Fund,
• Evaluate its environmental impact
• “license to grow”: differentiate itself from competitors, cut cost through an environmental strategy
• Identify which products and processes created greatest environmental impacts:
• Greenhouse gas emissions, air pollution, water pollution, water use, and land use.
2. What is the sustainiblity strategy Conducted by Walmart?
WALMART’S ENVIRONMENTAL IMPACTS ASSESSMENT
50
42
4 4
OVERALL IMPACT
Food Non-food merchandiseCapital Operations
5 55
44
4
23
2264
Impact by Product Category
textiles cemicalslawan/ Gareden Electronics/ Appliancespaper supplies PharmacyHealth & Beauty AutomotiveHome Furnishing Houseware/ hardwareother
huge environmental
impacts
…
Long supply chain Scale of operation
Root Cause Analysis
Emitted more than 19.1 million metric tons of CO2 annually
The biggest private user of electricity in US
…
…
fuel inefficiency
Fishery
…
…
THE 4 DISCIPLINES OF EXECUTIONACHIEVING YOUR WILDLY IMPORTANT GOALS
By: Sean Covey, Chris McChesney and Jim Huling
DISCIPLINE 1: FOCUS ON WILDLY IMPORTANT GOALS
Focus on the environmental issues as a main goal of company This “care” of environmental issue could be long term competitve advantage
to the company
Exhibit 5
Today’s Business Practices
Fossil fuel dependence Waste in many form Products that dont
account for full cost to society
Unintended negative consequences for our customer and business
Quick wins < 1 yr
Actions that make business sense based on available technologies, product, and process
Opportunities that make sense based on emerging technology, process, and innovation
Innovation projects 1-3 yr
Ibig game changeongoing
Changing the rules of the game to tilt the palying field to favor sustainiblr practices in areas where we can lead, so that the market works for sustainibility not againts it
Sustainable Business practicess
• Use 100% renewable energy
• Product zero waste• Sell products taht
sustain our resources and environment
• A win for society and a win for business
Sustainibility pathways
Using competitive forces to create a reca to the top
DISCIPLINE 2: LEVERAGE YOUR LEAD MEASURESMeasuring and communicating its ideas about sustainability to its suppliers, associates, customers, and the public.
Supplier thought Leader
NGO thought Leader
Government thought Leader
Supplier thought Leader
Academic thought Leader
Wal-Mart
Sam’s Club
InternationalCustomer
ActionSupplier actionCommunity
Action
DISCIPLINE 3: KEEP A COMPELLING SCOREBOARD
For example Walmart can use Balanced Score card to keep focus on the environmental strategy
DISCIPLINE 4: CREATE A CADENCE OF ACCOUNTABILITY
Accountability means making personal commitments to the entire team to move the scores forward and then following through in a disciplined way.
THANK YOU…