Sustainability

The power of working together

People expect big things from Walmart. And while we recognize our responsibility and opportunity to lead, we also recognize one important idea: What Walmart can do alone is significant, but what we can do together is even better.

With environmental sustainability in particular, this concept is key, and it’s been central to how we’ve approached our work from the beginning. We work with our suppliers, we listen to our customers, we learn from our associates and we engage with leaders. Significantly, we also collaborate with nongovernmental organization (NGOs) and nonprofit organizations on a number of issues.

NGOs provide guidance and expertise – and they hold us accountable. These organizations have pushed us to make bold commitments and helped us deliver on them.

I have worked at the intersection between business and the environment for the past 15 years, most recently at World Wildlife Fund (WWF). It is through this experience that I understand the value that NGOs can bring to bear on some of the world’s most pressing challenges. A core part of my role is to build strategic alliances and establish public-private partnerships that can deliver value and global impact at scale. Fortunately, Walmart has long standing relationships with many of the leading NGOs who can help us do just that.

At our Global Sustainability Milestone Meeting last month, Peter Seligmann, Chairman and CEO of Conservation International (CI), talked about his experiences with Walmart when we first began our sustainability journey 10 years ago. And CI is one of many NGOs with whom we’ve cultivated a close working relationship.

For example, we were the first corporation to work with CDP (formerly the Carbon Disclosure Project) to establish an emissions strategy for our entire supply chain – which encompasses more than 100,000 suppliers across a diversity of sectors around the world. This partnership comprises an integral part of our goal to eliminate 20 million metric tons of greenhouse gas emissions from our global supply chain by the end of 2015. Together, we are working with suppliers who provide us all types of products – from toothpaste to lawn mowers and video games – to measure, manage, reduce and report their impact on climate change.

We’ve also spent seven years working closely with Environmental Defense Fund (EDF) to drive environmentally sustainable practices throughout our supply chain and set new priorities for collaboration, such as sustainable chemistry. In particular, EDF and Walmart are focusing on a global strategy for improving food production and processing in order to mitigate climate impacts and enhance water quality and water efficiency. Most recently, we’ve been addressing fertilizer use. With groceries accounting for half of our sales at Walmart U.S., it’s no wonder that agriculture is a massive opportunity in the area of sustainability. In fact, fertilizer use is responsible for nearly half of Walmart’s carbon footprint in our supply chain. Together with EDF, we are targeting 15 million acres of farmland – comprising 30 percent of food and beverage sales in North America – for optimizing fertilizer practices, which could ultimately avoid 7 million metric tons of greenhouse gas emissions as well as improve waterways and soil health.

So, how do we form these relationships? It happens both formally and informally. For instance, we have established a working group who meets every other month, which includes several leading NGOs, such as CDP, CI, EDF, World Resources Institute and WWF. We also develop annual operating plans to define how we are engaging across areas of mutual interest and to scope out emerging opportunities for collaboration.

No matter how these relationships take shape, we rely on our partners to share their knowledge, expertise and perspectives with us, and we’re very excited about the progress they have helped us make. But we, as a company, certainly don’t have all the answers – and we alone can’t make the social and environmental changes that will help ensure a sustainable future for our business and for the planet. To really drive change at scale across the retail industry, multiple entities must pull in the same direction and work together in ways that we haven’t done in the past.

As we at Walmart continue to pursue our big goals, we will also work toward strengthening our relationships with the NGO community. Together, we will keep exploring ways our company can uniquely make a difference – but more importantly, how we can be one of many contributors toward a more sustainable shared future.

 

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U.S. Manufacturing

Meet Homestar: Building a Future Through Building Furniture

Willie Grant likes to get his hands dirty – and he’s grateful to say that for the past three years, he has had the opportunity to wake up every morning and do just that.

As a maintenance tech at the Homestar factory in Statesville, North Carolina, Willie holds one of the most important jobs on the plant: He fixes the machines that make it possible to produce up to 7,000 units of ready-to-assemble furniture daily.

“My role here is to see that Homestar succeeds,” Willie says. “These are good people, and I don’t want to see anybody get hurt.”

But hard economic realities often make meaningful work difficult to come by. Willie knows from personal experience how hard it can be to lose a job with no warning. In 2008, he faced a series of layoffs because companies were shutting down their factories in the U.S. and sending the work overseas. As a family man with strong sense of responsibility to his wife and four children, he felt helpless to care for the people he loves the most.

When Willie began looking for work again, he had already lost trust in the companies offering him work – he even rejected a job offer with a factory that ended up shutting its doors to American workers only six months later.

“When you’ve been knocked down like I have, it’s really hard to build that trust in a company,” Willie said, “but I’m not a failure, I’m a provider.”

Finally in 2013, Willie’s brother told him about Homestar, a new company committed to hiring American workers and promoting employees from within. After going in for an interview, he recognized something special – and thanks to the commitment Walmart has made to source an additional $250 billion in U.S. products from suppliers like Homestar, Willie and his coworkers can again do the most important work in their lives: provide for their families. Now, they have something to work for again – something to be proud of.

“Every day is not peaches and cream, but we know we have something to fight for,” Willie said. “Walmart coming together with Homestar, it’s a great feeling … It gives us that feeling that we have security now. It gives us that drive to come to work every day and do what we do, and do it the best. Just the thought of knowing that the product we make, here in America, is on the shelves at Walmart – it’s an amazing feeling.”

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Sustainability

Entertain the Idea of Less Waste this Holiday Season

My favorite part of the holidays is inviting my friends and family over to bake cookies, share treats, trade gifts and laughs.

With everyone’s busy schedules, this time of year may be the only opportunity we have to enjoy simply being together.

I love to entertain, but if I’m being honest, there is one thing I am not so thankful for: post-party cleanup.

It’s not the icing smudges on the table or the cookie sprinkles in the carpet that bother me the most. It’s the mountain of packages and wrapping created from these wonderful celebrations. The only lasting effect I want from my party is happiness – not a large addition to the local landfill.

Keeping my waste low and recycling as much as possible is important to me and many other customers. In fact, according to the Carton Council survey, 91% of customers expect food and beverage companies to actively help the recycling of their packages and 95% believe if more people recycled, it would help the environment. But recycling isn’t always easy. According to EPA reports, in 2013, more than 35 million tons of packaging was put into the landfill, the equivalent of over 230,000 Olympic swimming pools full of usable materials.

For more than a decade, Walmart has been working to reduce waste in its operations, and this November, our CEO Doug McMillon pledged to work with our suppliers to reduce product and packaging waste and preserve natural resources. The goal is for Walmart’s private brand packaging to be 100% recyclable by 2025. This is building on the announcement of Walmart’s new Packaging Playbook encouraging suppliers to optimize their designs, source sustainably and support recycling.

My company has inspired me to do more to recycle and buy more products that create less waste. Here are a few of my new favorite items along these lines this holiday season. What are yours?


1. Children’s character watches – These fun watches show your child’s favorite characters. Previously, they were packaged in a large plastic clamshell that was not recyclable, and now they come in a fully recyclable cardboard holder, making it easier to touch and see the product.

2. Barbie Fashionistas Doll – Lots of fashion and fun are delivered in a smaller package. This Barbie comes in a box that uses 10% less materials and is made of PET plastic, so it is 100% recyclable in most U.S. communities.

3. SoapBox soaps and lotions – I love giving gifts that help my family pamper themselves. Soapbox products come in recyclable containers, and for every product you buy, the brand donates a bar of soap to aid organizations in the U.S. and globally.

4. Enviro-Log – I love curling up to the fire with friends. This product is made from 100% recycled waxed cardboard and helps give that material another use rather than sending it to a landfill.

5. Hefty disposable cups – Have a cup of cheer because these cups feature the How2Recycle labeling system. This labeling system uses large logos that clearly indicate what is and is not recyclable. (P.S. In the coming months, customers will see How2Recycle labels on some of Walmart’s Great Value and Equate brand products, with more to come.)

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Life

#FiveThingsFriday: News for the New Year

ICYMI: It’s two weeks into 2017, and we’re back from the holidays with these highlights: honoring a great teacher in North Carolina, hosting Clemson’s cool trophy at two stores in South Carolina, and opening even more Academies in five communities across the country.

Mr. Bonner’s Neighborhood

Michael Bonner is a second-grade teacher at South Greenville Elementary, which is located in a neighborhood with a high poverty rate in Greenville, North Carolina. Despite these circumstances, Mr. Bonner has found a voice to inspire his students through unique and fun lesson plans and activities. He’s truly making a difference in his community, so we were excited to donate $25,000 to his school on The Ellen DeGeneres Show. Keep up the awesome work, Mr. Bonner!

Clemson’s Trophy Travels … to Walmart

Clemson Tigers fans in South Carolina have until 7 p.m. tonight to get a close-up look at the shiny new College Football National Championship trophy, which has been on display at Walmart Supercenters in Central and Easley this week before it goes to live forever at the Clemson University campus. Craftsmen at the Polich Tallix fine art foundry in Rock Tavern, New York, spent three months shaping the trophy out of 24-karat gold.

Get to Know Your Health Stats

If you’ve been putting off your 2017 resolution to finally start being healthy, this Saturday, Jan. 14, might be the perfect time to kick off change with Walmart Wellness Day – the country’s largest single-day health fair. From 10 a.m. to 2 p.m. local time, visit one of more than 5,200 Walmart and Sam’s Club locations to receive free glucose, blood pressure and vision screenings – and for the first time, body fat and body mass index testing. Product samples and health insurance information will also be available to help you get going in the right direction.

SCORE One for Small Businesses

For the fourth year, the American Small Business Championship is back. This annual competition celebrates small business owners and entrepreneurs from across the nation. The winners (two small businesses per state) will receive $1,000 Sam’s Club gift cards and an all-expense paid trip to train and network at an event in Dallas. Sam’s Club serves more than 600,000 small business owners each week, so their sponsorship of this program is one way they help support those members. If you are a small business owner or know someone, you can sign up here!

Academies Across America

Setting our associates up for success is a huge priority. In 2016, we opened 40 Walmart Academies, dedicated locations where hourly supervisors and department managers can receive hands-on training that combines both the classroom and the sales floor. This week, we kicked off the new year with five additional locations: Coventry, Rhode Island; Hatfield, Pennsylvania; Florence, South Carolina; Plover, Wisconsin; and Shawnee, Kansas. By the end of 2017, we’ll have 200 total locations and will have trained more than 200,000 associates.

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Business

3 Predictions for the Future of Retail – from the CEO of Walmart

What will shopping be like in 10 years? No one knows all the details (that’s exciting!), but one thing is for sure: it will be very different than it is today.

Editor’s Note: This piece by Walmart CEO Doug McMillon was originally published Jan. 6, 2017 on the World Economic Forum’s website.

History is clear about that. In the mid-19th century, most people in the U.S. were shopping at small markets. They would tell the manager what they wanted, and then wait for the item to be retrieved from the back or from the supplier. After that came the urban department store, supermarkets, then strip malls and discount stores.

Today, the pace of change is rapid. Ten years ago most customers were reading about the original iPhone, and wondering whether it would be useful. Now they expect to order something on their mobiles, have it delivered or pick it up in store – often on the same day, in a few hours, or even in a few minutes.

It’s up to retailers to adapt to these changes – and in some areas even lead the way – or they’ll fall behind and disappear.

Here’s what customers can expect their shopping experiences to be like 10 years from now:

1. Customer empowerment and even greater influence
Customer satisfaction has always been the number one goal for retailers, and in the future, customers will be more empowered than ever to drive the change they want, as they get more control over their shopping experience.

Technology – the internet, mobile and analytics – is being used to do anything and everything a customer doesn’t want to. Customers want to explore. But they need to have easy access to items they choose to use all the time. The historic trade-off between price and service has been altered by technology and customers expect to save time and enjoy the experience while saving money. They’ll fulfill their everyday needs – items like laundry detergent, paper, light bulbs, grocery staples and shampoo – in the easiest way possible through a combination of stores, e-commerce, pick-up, delivery and supported by artificial intelligence. Customer desires – think emerging fashion, fresh produce, and items they’ve never seen before – will still be fun to explore in stores as well as with technology (think virtual reality).

Retailers that provide a truly unique, enjoyable experience and prepare their associates to provide excellent service will have the advantage. At Walmart we already see the value customers place on personalization and convenience, through our success with grocery pick-up and delivery in several markets around the world.

With the growth of the internet of things, customers will enjoy an increasingly connected or “smart” shopping experience through a network of connections linking the physical and digital worlds into an ecosystem of devices, including vehicles, stores and software. The internet of things, drones, delivery robots, 3D-printing and self-driving cars will allow retailers to further automate and optimize supply chains too. Both sides of the equation – demand and supply – will change dramatically.

In addition, customers will continue to demand transparency around pricing and the supply chain. They’ll have less time to research the products they buy – but they’ll care even more about how they are sourced. They’ll choose to shop with retailers who provide that transparency so they can feel good about the items they purchase. This will require retailers to work with manufacturers to source items responsibly and sustainably. Retailers who do this and share the information will further earn customers’ trust.

2. I’ve seen what you have and I want it, too
Customers all over the world now know, and can see, what people in other countries have, and they want access to it all. And they want it now. Chinese customers want access to Louis Vuitton bags from France and milk from Australia. Not long ago on a visit to Nigeria and Ghana, I asked one of our local store managers what his one wish would be. His answer: “I want you to put a Walmart Supercenter like the ones you have in the US right here and let me run it. My customers and my family have seen what you have and we want it, too. We want those items at those prices.”

As Tom Friedman taught us, the world got flat and now it’s moving fast. The world needs inclusive growth provided in a sustainable manner. People are demanding it.

3. Shared value
With all these changes, retailers will only survive if their business creates shared value that benefits shareholders and society. Social and environmental sustainability will be engineered into our systems, and that will strengthen the communities in which we operate, which will in turn appeal to customers. These changes, however, will require new levels of cooperation and collaboration between retailers and NGOs, governments and educational institutions. Basically, we’ll design retail and other businesses so that all stakeholders (as many as possible) benefit: customers, associates/employees, shareholders, the communities we serve and those in the supply chain.

At Walmart, we’ve already found that investments in training, education and wages for our associates have resulted in higher customer satisfaction. Our customers want our associates to have a great life and they want to see that reflected in their attitudes and the service they provide.

When it comes to environmental sustainability, retailers and policy-makers face new challenges with the increase in packaging waste and emissions that comes with the growth of e-commerce. Shipping packages one at a time is not only wasteful and environmentally unsustainable, it isn’t cost-effective. The demand for convenience will force retailers to come up with new ways to ship items – in batches vs. one at a time – that are better for business and the environment.

While all these changes pose big challenges for retailers, they also represent unprecedented opportunities to innovate on behalf of customers and create new job opportunities for retail associates. I can’t think of a more exciting time to be in retail, to be at the forefront of change and part of an industry that has the potential to provide a better life for millions around the world.

This piece draws on a new report, Shaping the Future of Retail for Consumer Industries, which can be read here.

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