sustainability wal mart
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Sustainability and EnvironmentSustainability and Environment
Andy RubenAndy Ruben
Vice President , Company Strategy/SustainabilityVice President , Company Strategy/Sustainability
WalWal--Mart Stores, Inc.Mart Stores, Inc.
May 18, 2006May 18, 2006
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To create zero waste
25% reduction insolid waste in 3years
All private brandpackaging improved
in 2 years (rightsized, reusablematerials)
To be supplied 100%by renewable energy
Existing stores 20%more efficient in 7years
New stores 30%more efficient in 4
years Fleet 25% more
efficient in 3 years,double in 10 years
To sell products thatsustain our resources& environment
20% supply basealigned in 3 years
Preference given toaligned suppliers in 2years
Design and supportGreen Company inChina
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Today there are 6.3 billion people.
In 2025 there will be 8 billion people.
What will it take to provide for everyone?
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Confidential - Do Not Distribute Earth from Above
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Global TradeIncreasing at an Increasing Rate
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
1973 1983 1993 2003
"When a Brazilian brews hermorning coffee today, she islikely to use electricity from apower plant in Uruguay thatruns on natural gas fromArgentina provided by a
Chilean company. She drivesto work in a Ford fueled withMexican gasoline, and herCanadian-owned factory ispowered by a natural gas
pipeline from Bolivia."
- Mack MacLarty, FormerWhite House official andCSIS Senior Advisor
$ Trillions of Trade
CAGR3.2%
CAGR3.5%
CAGR4.8%
Source: World Trade Organization, 2004Note: all data in 2003 dollars
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Of the worlds 100 largest economic entities,42 are now corporations, not countries
-CSIS, 2004
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when in fact they represent gatewaysfor Wal-Mart in becoming the mostcompetitive and innovative company in
the world.
Weve been dealing with jobs, healthcare,community involvement, product sourcing,diversity and environment from a defensive
posture
- Lee Scott, 21stCentury Leadership, Oct 2005
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Sustainability at Wal-Mart
Its about the customer and creating more
value for ALL customers- the democratization of sustainability
It is the business
Its about becoming a better company
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Auxiliary Power
Units (APUs)
FY07 Test
PrivateFleet
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Zero Waste
Kid ConnectionPrivate Brand Toy
Sandwich Bale
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All MightyRetail/CPG Partnership
ANNUAL IMPLIATIONS OF CATEGORY SHIFT
Gallons of water Saved478.1MM
Gallons of Diesel Saved.20.7MM
Reduced # of Trucks..2.79MM
Plastic Resin Reduction...128.9MM lbs
Reduced # of out of Stocks..50%
Reduced in Labor Dollars...$91.4MM
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EDLC+
Awareness of unintended consequences Potential to add more value for customers
Democratization of sustainability
requires systems thinking,solutions, execution
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Co2
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Network Structure
Measure andReward
-Relevant
metrics- Ability to measure
Design and Explore
Innovation Pilots
- e.g., Organic cotton
Develop EducationStrategies
- Suppliers- Associates- Public and policymakers
Leadership SuppliersLarge and small
Multi-levelWal-Mart MerchantsCross categoryCross marketsSupport functions
Outside ExpertsNGOsGovernmentAcademics
SustainableValue
Networks
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WASTE
Operations andInternalProcurement
Packaging
CLIMATE
Global GreenhouseGas
Energy, Design,construction andMaintenance
Global Logistics Alternative Fuels
PRODUCTS
Apparel Electronics Food and Ag
Forest and Paper Chemical Intensive Jewelry Seafood China
Initial 13 14 Networks/
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NetworkExpectations
Low Hanging Fruit
Innovation(Supply Chain)
GameChanger(Industry)
eg, wax coating ofchicken box
right sized TV/DVDcombo
eg, organic cotton fair trade coffee LED lighting
eg, electricity market
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Packaging PrinciplesonRetail Link
Remove Packaging
Reduce Packaging
Reuse Packaging
Renew (able) Packaging
Recycle (able) Packaging
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Mindset Shift Requires New Set ofGlasses
ReadEcology of Commerce, PaulHawken
Mid-Course Correction, Ray
Anderson
BehaviorReduce your trash at
work/homeConsider take, make, wastelife f products you useHigh efficiency bulbs
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One Incandescent Bulb
One CFLUses 80% less electricity.Saves $30-$80 on power bill.
Prevents 500 pounds of coal or1 barrel of oil from being burned.*Majority of US electricity comes from coal fired power plants
Keeps a ton of greenhouse gas(c02) out of the air.
Lasts 8 to 12 times longer > keeps 8-12
bulbs from the landfill.
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Every Customer Switches 1 Bulb
+ $3 billion saved on power bills.
50 billion pounds of coal preventedfrom being burned.
2 million cars worth of greenhousegases kept out of our air. (100 million tons)
1 billion incandescent bulbs keptfrom the landfill.
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