Transcript Document 7285446

Sustainability at Wal-Mart
Environmental Business Council of New England
April 20, 2006
Andrew Ruben
VP Company Strategy and Sustainability
Wal-Mart Stores, Inc.
April 2006 CIO Summit – Wal-Mart Confidential
Private
Fleet
FY07 Test
Auxiliary Power
Units (APUs)
9
April 2006 CIO Summit – Wal-Mart Confidential
Zero Waste
Sandwich Bale
Kid Connection
Private Brand Toy
April 2006 CIO Summit – Wal-Mart Confidential
ALL Mighty
Retail/CPG Partnership
ANNUAL IMPLICATIONS OF CATEGORY SHIFT
•
Gallons of Water Saved
•
Gallons of Diesel Saved
•
Reduced # of Trucks
•
Plastic Resin Reduction
•
Reduced # of out of Stocks
•
Reduction in Labor Dollars
April 2006 CIO Summit – Wal-Mart Confidential
April 2006 CIO Summit – Wal-Mart Confidential
Access to Organic Cotton for ALL
Fall 2006
Society
Supplier
Customer
Farmer
+
Prevent use of of
chemicals
+
Eliminate need for H2O
+
Additional value for
customer
+
Meaningful work for
Associates
April 2006 CIO Summit – Wal-Mart Confidential
April 2006 CIO Summit – Wal-Mart Confidential
April 2006 CIO Summit – Wal-Mart Confidential
To be supplied 100%
by renewable energy
 Maximize energy
efficiency
 Reduce oil
dependence
 Move toward clean
& renewable
To create zero waste
 Reduce, reuse,
recycle
 Eliminate nonrenewable materials
April 2006 CIO Summit – Wal-Mart Confidential
To sell products that
sustain our resources
& environment
 Provide healthy food
& products
 Promote clean and
efficient supply chain
 Enhance natural
resources
To be supplied 100%
by renewable energy
 Existing stores 20%
more efficient in 7
years
 New stores 30%
more efficient in 4
years
 Fleet 25% more
efficient in 3 years,
double in 10 years
To create zero waste
 25% reduction in
solid waste in 3
years
 All private brand
packaging improved
in 2 years (right
sized, reusable
materials)
April 2006 CIO Summit – Wal-Mart Confidential
To sell products that
sustain our resources
& environment
 20% supply base
aligned in 3 years
 Preference given to
aligned suppliers in 2
years
 Design and support
Green Company in
China
Today there are 6.3 billion people.
In 2025 there will be 8 billion people.
What will it take to provide for everyone?
April 2006 CIO Summit – Wal-Mart Confidential
Global Trade
Increasing at an Increasing Rate
$9.0
$ Trillions of Trade
CAGR
4.8%
$8.0
$7.0
$6.0
$5.0
CAGR
3.5%
$4.0
$3.0
CAGR
3.2%
$2.0
$1.0
$0.0
1973
1983
1993
2003
Source: World Trade Organization, 2004
Note: all data in 2003 dollars
"When a Brazilian brews her
morning coffee today, she is
likely to use electricity from
a power plant in Uruguay
that runs on natural gas
from Argentina provided by
a Chilean company. She
drives to work in a Ford
fueled with Mexican gasoline,
and her Canadian-owned
factory is powered by a
natural gas pipeline from
Bolivia."
- Mack MacLarty, Former
White House official and
CSIS Senior Advisor
April 2006 CIO Summit – Wal-Mart Confidential
“Of the world's 100 largest economic
entities, 42 are now corporations, not
countries”
- CSIS, 2004
April 2006 CIO Summit – Wal-Mart Confidential
“We’ve been dealing with jobs, healthcare,
community involvement, product sourcing,
diversity and environment from a defensive
posture…”
“…when in fact they represent
gateways for Wal-Mart in becoming
the most competitive and innovative
company in the world.”
- Lee Scott, 21st Century Leadership, Oct 2005
April 2006 CIO Summit – Wal-Mart Confidential
+
EDLC
• Awareness of ‘unintended consequences’
• Potential to add more value for customers
• Democratization of sustainability
April 2006 CIO Summit – Wal-Mart Confidential
Sustainability Requires a New ‘Lens’
“Problems cannot be solved at
the same level of awareness that
created them.”
— Albert Einstein
“I have yet to see any problem,
however complicated, which, when
you looked at it in the right way,
did not become still more
complicated.”
— Poul William Anderson
April 2006 CIO Summit – Wal-Mart Confidential