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April 2006 CIO Summit – Wal-Mart Confidential
Sustainability at Wal-MartEnvironmental Business Council of New England
April 20, 2006
Andrew RubenVP Company Strategy and Sustainability
Wal-Mart Stores, Inc.
9
Auxiliary Power Units (APUs)Auxiliary Power Units (APUs)
FY07 TestFY07 Test
PrivateFleet
April 2006 CIO Summit – Wal-Mart Confidential
April 2006 CIO Summit – Wal-Mart Confidential
Zero Waste
Kid Connection Private Brand ToyKid Connection Private Brand Toy
Sandwich BaleSandwich Bale
April 2006 CIO Summit – Wal-Mart Confidential
ALL MightyRetail/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 ALLFall 2006
FarmerS
ociety
Su
pp
lier
Customer
+
+
+
+
Meaningful work for Associates
Prevent use of of chemicals
Eliminate need for H2O
Additional value for customer
April 2006 CIO Summit – Wal-Mart Confidential
April 2006 CIO Summit – Wal-Mart Confidential
April 2006 CIO Summit – Wal-Mart Confidential
To create zero waste
Reduce, reuse, recycle
Eliminate non-renewable materials
To be supplied 100% by renewable energy
Maximize energy efficiency
Reduce oil dependence
Move toward clean & renewable
To sell products that sustain our resources & environment
Provide healthy food & products
Promote clean and efficient supply chain
Enhance natural resources
April 2006 CIO Summit – Wal-Mart Confidential
To create zero waste
25% reduction in solid waste in 3 years
All private brand packaging improved in 2 years (right sized, reusable materials)
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 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
April 2006 CIO Summit – Wal-Mart Confidential
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 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
Source: World Trade Organization, 2004Note: all data in 2003 dollars
$ Trillions of Trade
CAGR3.2%
CAGR3.5%
CAGR4.8%
"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
“…when in fact they represent gateways for Wal-Mart in becoming the most competitive and innovative company in the world.”
“We’ve been dealing with jobs, healthcare, community involvement, product sourcing, diversity and environment from a defensive posture…”
- 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
“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
“Problems cannot be solved at the same level of awareness that created them.”
— Albert Einstein
Sustainability Requires a New ‘Lens’
