Walmart Sustainability

Transcription

1 Walmart Sustainability Packaging Nate Hurst October 13, 2010

2 When I became CEO last year, I said that we would broaden and accelerate our commitment to sustainability at Walmart. By that, I meant we would make sustainability a priority throughout our entire company and we would act with a sense of urgency. Mike Duke President and CEO Walmart Walmart Global Sustainability Report,

3 Walmart s global presence 8,500+ total units; 2+ million associates Canada 319 Units U.K. 377 Units Mexico 1,529 Units U.S. 4,371 Units China 291 Units Japan 414 Units Central America 525 Units Brazil 445 Units India 2 Units Chile 257 Units Argentina 46 Units 3

4 Walmart s broad sustainability goals To be supplied 100% by renewable energy To create zero waste To sell products that sustain people and the environment 4

5 Wal-Mart s Global Environmental Impact Packaging Water Agriculture Indirect Impact = 92% Marine Factories 5

6 Sustainability 360 Operations Associates Suppliers Customers Sustainability 360 Communities 6

7 Sustainability contributes to the productivity loop Operate for Less Buy for Less Grow Sales Saving people money so they can live better. Sell for Less 7

8 Sustainability Networks Sustainability Networks Walmart associates, non-governmental organizations, academics, government agencies, supplier companies Network Captains Director or Vice President level, guide network efforts and drive initiatives toward goals Sustainability Team Members oversee network activities, align overall efforts, provide guidance Executive Network Sponsor Senior Vice President level or higher Chief Executive Officer Quarterly updates provided through executive management 8

9 Walmart s Sustainable Value Networks 1. Greenhouse Gas 2. Sustainable Buildings 3. Global Logistics 4. Alternative Fuels 5. Packaging 6. Waste 7. Textiles 8. Electronics 9. Agriculture and Seafood 10. Wood and Paper 11. Chemicals 12. Jewelry 9 9

10 Packaging Sustainability at Walmart 2005 Creation of Packaging Sustainable Value Network Supply chain partners, NGO s, government 2006 Release of Packaging Scorecard Measurement of total packaging volume 2006 Packaging Reduction Goals set Commitment to reduce packaging across all brands by 5% through

11 Packaging Sustainability at Walmart 2009 Announcement of Sustainability Product Index Initiative Supplier Sustainability Assessment 15 Questions & Participation in the Packaging Scorecard Suppliers, universities, industry partners Designed to meet evolving expectations Watch the video at GHG Supply Chain Reduction Initiative 20 Million Metric Tons reduction by

12 Create zero waste Reduce packaging by 5% globally by 2013 and be packaging neutral by 2025 (2008 Baseline) Used packaging scorecard to collect packaging information on approximately 329,000 and 11,000 items in Walmart stores and Sam s Club respectively Reduce the weight of global plastic shopping bag waste by an average of 33% per store by 2013 (January 1-December 31, 2007 Baseline) In 2009, reduced plastic bag waste by approximately 66.5 million lbs, approximately 4.8 billion bags, a 16.1% reduction from 2007 baseline Eliminate landfill waste from U.S. stores and Sam s Club locations by 2025 Between February 2009 and January 2010, Walmart redirected more than 64% of the solid waste generated from U.S. facilities 12

13 Sustainability is business value Impact Area Business Opportunity Material Efficiency Reduced Cost of Raw Materials Product innovation Examples Through recovering commodities, trash = $100 million in income A 5% reduction in packaging = $3 billion in savings 13 13

14 Recent Steps We ve Taken with Packaging Broad application of the Packaging Scorecard Walmart, Sam s Club, International Global coordination of packaging Ongoing work with the Packaging Sustainable Value Network Measurement of GHG emissions Definition of terms Outreach to key suppliers 14

15 Recent Steps We ve Taken with Packaging Continued involvement with other industry groups Sustainable Packaging Coalition Global Packaging Project Recently completed our 5 th Annual Sustainable Packaging Expo Unique opportunity to meet with buyers, colleagues Useful information sessions and exhibits April 6-7, 2010 in Rogers, Arkansas 15

16 Packaging Scorecard has produced results Action Car Seat Sam s Club took their car seats out of the box and into clear plastic bags - Reduced packaging - More efficient transportation by 400 truck loads annually - Displays better in our stores so customers bought more Action Hamburger Helper Straightened noodles settle better in box requiring less packaging - 20% reduction in carton size - 20% increase in shelf pack out - 11% reduction in GHG - The equivalent of 500 fewer trucks on the road each year 16

17 More Packaging Scorecard Results Concentrated Laundry Detergent Goal Convert the entire liquid laundry detergent category into compacted versions at Walmart U.S. Partnerships with Unilever, P&G Transformed entire detergent industry By 2011, this change will reduce our impact on the environment Benefits and savings include: 125 million pounds of cardboard 80 million pounds of plastic resin saved 430 million gallons of water saved = 100 million fewer individual showers Fewer trucks on the road Customer Friendly 17

18 Changes to Private Brands Helps Reduce Shipping Costs and Waste 18

19 Great Value Sweetener Carton Blank B A 13% smaller carton Case Blank 13% smaller case 20

20 Moving forward Government NGOs Universities Retailers Manufacturers Consortium Innovation Quality Costs Sustainability Index 21

21 The Sustainability Consortium Consortium of universities providing applied sustainability research & externally credible solutions Open life cycle database will ensure access to affordable, credible and standardized data Provide new research that helps companies drive innovation Universities Open Life Cycle Database 22 Footer goes here Retailers/ Manufacturer s Sustainability Index

22 Sustainability Index Goal Establish a single source of data for evaluating the sustainability of products Initiative Measure the sustainability of a product throughout its entire lifecycle Actions Sustainability Index Provided initial funding for the Sustainability Consortium, which will help develop a way to measure the impact of all products on its shelves throughout the product s lifecycle and translate the information into a simple rating system for consumers Check out sustainabilityconsortium.org Raw Materials End of Life Manufacturing Product Consumer Distribution /Sales 23

23 Supplier Assessment Questionnaire A set of questions for global suppliers to evaluate their own sustainability and help drive transparency in our supply chain. Energy and Climate Material Efficiency People and Community Natural Resources 24

24 Energy and Climate Reduce energy costs and greenhouse gas emissions Material Efficiency Reduce waste and enhance quality Natural Resources High quality, responsibly sourced raw materials People and Community Responsible & ethical production 25 Sustainability Index: Supplier Assessment Questions 1. Have you measured your corporate greenhouse gas emissions? (Y/N) 2. Have you opted to report your greenhouse gas emissions to the Carbon Disclosure Project (CDP)? (Y/N) 3. What are your total greenhouse gas emissions reported in your most recently completed report? (Enter total metric tons CO2e, e.g. CDP6 Questionnaire, Section 2b Scope 1 and 2 emissions) 4. Have you set publicly available greenhouse gas reduction targets? If yes, what are those targets? (Enter total metric tons and target date; 2 fields or leave blank) Scores will be automatically calculated based on your participation in the Packaging Scorecard in addition to the following: 5. If measured, please report total amount of solid waste generated from the facilities that produce your product(s) for Wal-Mart Inc for the most recent year measured. (Enter total lbs) 6. Have you set publicly available solid waste reduction targets? If yes, what are those targets? (Enter total lbs and target date; 2 fields or leave blank) 7. If measured, please report total water use from the facilities that produce your product(s) for Wal-Mart Inc for the most recent year measured. (Enter total gallons) 8. Have you set publically available water use reduction targets? If yes, what are those targets? (Enter total gallons and target date; 2 fields or leave blank) 9. Have you established publicly available sustainability purchasing guidelines for your direct suppliers that address issues such as environmental compliance, employment practices, and product/ingredient safety? (Y/N) 10. Have you obtained 3rd party certifications for any of the products that you sell to Walmart? If so, from the list of certifications below, please select those for which any of your products are, or utilize materials that are, currently certified. 11. Do you know the location of 100% of the facilities that produce your product(s)? (Y/N) 12. Before beginning a business relationship with a manufacturing facility, do you evaluate their quality of production and capacity for production? (Y/N) 13. Do you have a process for managing social compliance at the manufacturing level? (Y/N) 14. Do you work with your supply base to resolve issues found during social compliance evaluations and also document specific corrections and improvements? (Y/N) 15. Do you invest in community development activities in the markets you source from and/or operate within? (Y/N)

25 Supplier Assessment Tool Material Efficiency Reducing Waste and Enhancing Quality 5) If measured, please report the total amount of solid waste generated from the facilities that produce your product(s) for Walmart for the most recent year measured. 6) Have you set publicly available solid waste reduction targets? If yes, what are those targets? 7) If measured, please report total water use from facilities that produce your product(s) for Walmart for the most recent year measured. 8) Have you set publicly available water use reduction targets? If yes, what are those targets? 26

26 Packaging Impact on Productivity Loop Extraction Processing Material Mfg. Conversion Manufacturing Package Materials Manufacturers gain Scale and Efficiencies Significant volume in major commodities: fiber, resin, metal, glass Volume forecasts create operational benefits and efficiency savings Uniformity and consistency drive package improvements Reduced in mill waste and changeovers Converters can achieve Significant Savings Harmonized specifications Longer production runs drive efficiency and production improvements Converters receive timely guidance from Walmart Private Brands Packaging team 27

27 Measure our Supply Base Supplier Performance Scorecard Sustainability integrated as part of scorecard Each business unit is integrating with their own needs Example - Pacific Coast Producers Scorecard (Develop) 53% performance 64% innovation/capability One on One November 5, 2009 No Carbon Management No Waste Management Performance Develop Coach Coach Strategic Develop Coach Strategic Strategic Coach Innovation/Capabilities 28 ICCR Meeting - Sustainability Update

28 Results to Date Nearly all top tier suppliers are complete Approx 50% are on/above target 29 ICCR Meeting - Sustainability Update

29 What We ve Learned Be Bold Create Incentives Increase Transparency Build Partnerships Drive Efficiencies Use Systems Thinking Involve Entire Business Organize Globally Engage all Stakeholders 30

30 Resources 2010 Global Sustainability Report: Sustainability Website: Sustainability DVD: Sustainability Fact Sheets: Shareholders 2010: 31