April 2006 CIO Summit – Wal-Mart Confidential Sustainability at Wal-Mart Environmental Business Council of New England April 20, 2006 Andrew Ruben VP Company Strategy and Sustainability Wal-Mart Stores, Inc.
9 Auxiliary Power Units (APUs) FY07 Test Private Fleet
April 2006 CIO Summit – Wal-Mart Confidential
Zero Waste Kid Connection Private Brand Toy Sandwich Bale
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
Access to Organic Cotton for ALL Fall 2006 Farmer Society Supplier 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
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 Trade Increasing at an Increasing Rate Source: World Trade Organization, 2004 Note: all data in 2003 dollars $ Trillions of Trade CAGR 3.2% CAGR 3.5% CAGR 4.8% "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, 21 st 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’