Haas School of Business University of California, Berkeley Matt Kistler, SVP Sustainability

Earth Month To create zero waste To be supplied 100% by renewable energy To sell products that sustain our resources and environment WAL-MART SUSTAINABILITY GOALS

Earth Month Global Environmental Impact Packaging Agriculture Water Marine Factories Indirect Impact = 92%

Earth Month Sustainable Value Networks 1.Greenhouse Gas 2.Sustainable Buildings 3.Global Logistics 4.Alternative Fuels 5.Waste 6.Packaging 7.Textiles 8.Electronics 9.Agriculture and Seafood 10. Wood and Paper 11. Chemicals 12. Jewelry 13. China

Earth Month Sustainability 360 Associates 2 million worldwide Suppliers 61,000+ worldwide Customers 176 million worldwide Operations : stores world wide

Earth Month Operations: A few of the stories The Roof Sky lights and white roofs help move toward 20% GHG reduction by 2012 High Efficiency stores Up to 45% more efficient than the baseline store. LED Lighting Added to freezers where it can be profitable in order to scale technology Plastic Bags 33% reduction in bags shows about more than the building

Earth Month Hybrid Assist Full Propulsion Hybrid Reclaimed Grease Fuel (RGF) Liquid Natural Gas (LNG) Operations: A few of the fleet stories

Earth Month Associates: Key to Success Goal: Develop a network of associates around the globe who are engaged in sustainability in their personal and professional lives. Initiative: Associate Education and Action Actions: U.S. and Canada: Personal Sustainability Projects Japan: Mottai-nai China: My Sustainability Project

Earth Month Supply Chain: A Few of the stories Love, Earth Jewelry Fully Traceable Wal-Mart Buyers & rest of market Supplier & Farmers Government Agencies & Departments of Agriculture Ag Schools & NGO Stakeholders Identify Farms/Ranches Create Business Plans Identify the Growing Areas Pilot Identify the Products Market Maker Produce Procurement Brings together stakeholders and provides them a marketplace to sell to

Earth Month Product Innovation?

Earth Month

Earth Month What Product Innovation could be…. Manufacturing/ Processing Transportation/ Packaging/ Sales Use End-of-Life/ Recycling Raw Material Inputs Level 2Level 3 Energy and Climate Material Efficiency Natural Resources People and Community Raw Material Inputs Manufacturing & Processing Transport/ Packaging/ Sales UseEnd Of LifeDescription LCA Analysis – A Simple, Powerful Way to Measure Product Sustainability (Impacts of a T-Shirt)

Earth Month

Earth Month Version 1.0 and Business Value

Earth Month Sustainability Index Version 1.0 Supplier Questions Energy and Climate Reduce energy costs and greenhouse gas emissions 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) 4. Have you set publicly available greenhouse gas reduction targets? If yes, what are those targets? (Enter % or # and target date; 2 fields or leave blank) Material Efficiency Reduce waste and enhance quality Scores will be automatically calculated based on your participation in the Packaging Scorecard, as well as number of products returned, damaged and/or recalled. 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 or kilograms) 6. Have you set publicly available solid waste reduction targets? If yes, what are those targets? (Enter % or # 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 or liters) 8. Have you set publically available water use reduction targets? If yes, what are those targets? (Enter % or # and target date; 2 fields or leave blank) Natural Resources High quality, responsibly sourced raw materials 9. Do you know the country of origin for 100% of all of the materials or components that are purchased directly to make your final products? (Y/N) 10. 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) 11. 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. People and Community Responsible & ethical production 12. Do you know the location of 100% of the facilities that produce your product(s)? (Y/N) 13. Before beginning a business relationship with a manufacturing facility, do you evaluate their quality of production and capacity for production? (Y/N) 14. Do you have a process for managing social compliance at the manufacturing level? (Y/N) 15. Do you work with your supply base to resolve issues found during social compliance evaluations and also document specific corrections and improvements? (Y/N) 16. Do you invest in community development activities in the markets you source from and/or operate within? (Y/N)

Earth Month

Earth Month Information Sources: Sustainability 2.0 DVD To Learn More…

Earth Month A few things I have learned….. Basic Beliefs Leadership Risk Taking Competitiveness Cultural Competence Teams and Networks Personal Development

Earth Month For discussion….. Should WMT work with other retailers on the development of a standardized “Index” set of criteria, if yes, who? If no, why not? What are some of the unintended consequences of establishing a sustainability Index for all consumer goods? Good and Bad. What products should we start with? What should the consumer facing look like, a score? One metric or multiple? What are the pro’s and con’s of the Consortium?