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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Community

How You Can Take Action in the Fight Against Hunger

Big numbers aren’t always easy to grasp, but I have one for you – 42 million. That’s how many Americans struggle with hunger, according to the USDA. To break it down a little more, that’s one in eight of us.

For the next few weeks, there’s an easy way to join the fight against hunger. By making a purchase at your local Walmart store, using your social media channels or donating at the register, you can support Walmart’s “Fight Hunger. Spark Change.” campaign and help Feeding America secure 100 million meals on behalf of member food banks.

A lot of our associates are taking it a step further by volunteering with their local food banks, like Mario Young, a department manager at one of our Charlotte, North Carolina stores.

“I've been volunteering in the Charlotte community for more than six years and with the Second Harvest Food Bank of Metrolina for over a year,” Mario said. “I love helping with different projects and especially with helping other people in the community. Through Walmart I have been able to reach more members of the community in need and am always one of the first people to volunteer for events like the one today."

Only a few hours from Charlotte, in Charleston, South Carolina, even more of our associates are giving back. Along with the Lowcountry Food Bank, our associates recently helped 300 Greeleyville Elementary students and their parents have an amazing Easter. What started off with a massive egg hunt ended with the parents being able to stock up on fresh produce – 15,000 pounds of it to be exact – donated by Walmart and distributed by our associates.

As a grocer serving millions of customers in America each week, Walmart has been working to positively impact the issue of hunger in the U.S. for many years. By collaborating with our customers, Discover card and five of the nation’s leading food companies – Campbell Soup Company, General Mills, Kellogg Company, The Kraft Heinz Company and PepsiCo – we hope to make a real difference for families who are struggling with hunger.

From April 17 – May 15, you can join the efforts in three easy ways.

Purchase Participating Products: For every purchase of specially marked products both in-store and online, the manufacturer will donate enough to help you secure one meal on behalf of Feeding America member food banks. For every Discover card transaction made in-store and online, Discover will donate the equivalent of one meal, up to $1 million.

Donate at the Register: You can make a donation to Feeding America member food banks at the checkout in any Walmart store.

Online Act of Support: We have already met our online act of support goal of donating up to $1.5 million to Feeding America on behalf of member food banks. You can still show your support by continuing to use #FightHunger on your Facebook, Instagram and Twitter and like or share Walmart provided content. You can also visit Walmart.com/FightHunger to show your support through a click.


To participate or learn more, visit Walmart.com/FightHunger.

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Sustainability

Kyle Explains Why the GRR is News Worth Knowing

Every single week, Walmart helps millions of people get everything from bananas to books and baby gear.

But did you know that at the same time we’re getting that stuff to you, we’re also working behind the scenes to support our associates and serve our communities?

Each year, Walmart releases a Global Responsibility Report (GRR) that details all of those efforts. From investing in opportunity for our associates, to purchasing more products that support American jobs, we’re committed to making a difference.

The full report is available here, but if you’ve only got a few minutes, Walmart associate Kyle Jones breaks it down in this video – all in the time it takes for him to get to his desk in the morning.

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Business

Best Flatbread 4Evr: Meet the Crotilla, Your Bakery BFF

Crotilla. Crow-TEE-ah.

“Crow” like the bird. “Tea” like the hot beverage. “Uh” like when your kids ask you what’s for dinner and you have no idea.

Crotilla. What on earth is a Crotilla? I’m about to tell you.

The Crotilla is a hybrid bakery item exclusive to Walmart. A combination of a croissant and tortilla, this flatbread can be used for everything from breakfast sandwiches to Indian food. I wanted to know what goes into arranging a food marriage, so I talked to Bradlee Underwood, senior buyer for Walmart Bakery, to get the back story.

Elizabeth: So, let’s talk about the birth of a Crotilla. How did you come up with this new bakery item?

Bradlee: We wanted to invent something innovative and exclusive to Walmart. We worked with our supplier, Aryzta, to create a mash-up of two products the customer already understands, the croissant and the tortilla, similar to the Cronut sensation a few years back. Also, we know customers, especially millennial customers, are hungry for new food trends and cool ways to experience food, and we want to be a destination for that.

E: Because the item was exclusive to Walmart, and brand-new, was there extra pressure to get it right?

B: Because it would be our customers’ first encounter with the Crotilla, we wanted all aspects of the product to be perfect. That meant everything from making the shape correct – the perfect size to fit in a toaster – to ensuring the Crotilla had enough layers. One thing we are especially proud of is the Crotilla’s high quality: It’s made with all butter, and baked fresh in our bakery every day.

E: What about the Crotilla is going to pique the curiosity of, say, a young professional?

B: We’ve been talking a lot about how to help busy customers save not only money but also time. Our millennial customers will appreciate the convenience factor – Crotillas are portable and perfect for a meal or a snack on the go.

E: I know as a mom shopping for my family, I have certain “go-to” foods I buy every week that I am confident my kids will like. What is going to make customers switch up their mealtime routines with a Crotilla?

B: In the same way Walmart is looking to surprise and delight customers, I think parents want to surprise and delight their families. The versatility of the product is really going to impress our customers. You can add Nutella and bananas for breakfast, or dress up a burger for lunch, or even make mini pizzas in the toaster oven for a fun dinner one night. And since Crotillas are easy and not messy, kids can pitch in help make dinner, too.

So, what goes into a Crotilla? Anything you want!

The Crotilla is available in 832 Walmart stores nationwide. Look for it in the fresh bakery department.

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Business

Read Walmart CEO Doug McMillon’s 2017 Letter to Shareholders

The following letter from Walmart CEO Doug McMillon was taken from our 2017 Annual Report, which was released today. Read the report.

Dear shareholders, associates and customers:

As I sit down to write this year’s letter, I’m feeling proud of the progress we’re making at Walmart and, most specifically, the passion and hard work exhibited by our associates. I’m encouraged by the way we’re moving with greater speed to better serve customers.

Our business is getting stronger. In the U.S., we’ve delivered positive comp store sales for ten consecutive quarters and we’re hearing from our customers that their experience continues to improve. Sam’s Club comp sales improved throughout the year and members are increasingly using our digital tools like Scan & Go and Club Pickup. Outside the U.S., 10 of our 11 markets posted positive comp sales this past year. Across our business segments, e-commerce growth is accelerating. Our strategy to serve customers through e-commerce and our stores in a seamless way is gaining traction. The momentum we’re seeing is real and I’m excited about what the future holds.

We’re clearly living in a time of transformative change. The world is moving faster and the magnitude of the changes, and their influence on business, seem larger than I can remember. In retail, the things made possible by technology are fundamentally transforming this industry. These changes are creating compelling ways for customers to save time and gain easy access to products and services they didn’t have before. At Walmart, we’re harnessing the power of technology and the investments in our associates to create new ways of serving customers and provide associates with more opportunities to grow their careers.

We’ve been preparing ourselves to take advantage of the opportunities presented and we have four objectives that we’re focused on this year. First, we want to make every day easier for busy families. Customers are time-crunched, so we want their shopping experience with us to be fast and easy — truly seamless — in all the ways they want to shop: in stores, on their mobile device, or through pickup and delivery. I’m excited by many of our recent initiatives — like the free 2-day shipping offer with a $35 minimum order from Walmart.com, the expansion of online grocery around the world, and Sam’s Club’s launch of Scan & Go across the U.S. — because of the convenience these initiatives provide. The strategic acquisitions of Jet, ShoeBuy, Moosejaw and ModCloth, as well as the alliance with JD.com in China, provide customers with a broader assortment as well as more ways to save time and money. It’s truly been a significant year of progress on this front.

Our second key objective is to change the way we work. We’re focused on becoming more of a digital enterprise. We’re working to increase productivity with more efficient internal processes and creating more real-time information at our fingertips, supported by more advanced analytics. We’re providing in-store associates with the tools they need, like apps and tablets, to make it easier to gain insight into our performance. Our goal is to increase our speed, effectiveness for customers and productivity throughout the business. We’re also working to strengthen the performance mindset of our culture and fight bureaucracy that can plague large companies. A strong and effective culture is foundational to success and we’re shaping ours to drive performance and create even more opportunity for our diverse group of associates in an inclusive work environment.

Third, we will deliver results and operate with discipline. We were founded on an everyday low-cost mentality but we think we have opportunities to work in new ways and find a path to a lower cost base. This is vital for our future. We’ll be smart with how we allocate capital to drive long-term value for our shareholders. We’re after efficient growth. We will focus on growing more through e-commerce and comp sales in our current store fleet and rely less on new store growth in the U.S. We’ll also continually look at our portfolio to make sure we’re positioned to win. We’ll invest in our core business with store remodels, technology and customer initiatives like online grocery and pickup, while at the same time being open to divest non-core assets if it’s in our best interest.

The fourth objective is to be the most trusted retailer. During this time of change, customers are watching the companies they spend their time and money with more closely than ever. The way we earn their trust is through our associates doing the right thing every day — being creative, curious, ethical, service oriented and embodying our purpose of making lives better for others. If everyone could see inside the company I’ve come to love, they would feel even better about the company.

We’re doing things people would expect from Walmart: focusing on lowering prices — not by cutting corners, but by being better at delivering great items more efficiently than our competitors; and constantly innovating to save customers time as well as money. We’re also doing things that might surprise some people. We’ve made significant investments in our associates, providing the career opportunities they deserve and skills necessary to be successful at Walmart or wherever their career takes them. Over the last decade, we’ve become one of the most environmentally sustainable retailers (and companies) in the world and we’re raising the bar even higher. We’re investing in making our supply chain safer and more transparent so customers can be confident that the products they purchase are sourced the right way. And, we have embraced the journey towards the concept of “shared value” as espoused by Dr. Michael Porter of Harvard Business School, which challenges us to create a business model that is not just good for shareholders but better for everyone: customers, associates, suppliers, communities and society in general.

We’ve worked hard over the years to earn the trust of those we serve and do business with around the world. By no means am I saying Walmart is perfect. We’ll make honest mistakes along the way, but we won’t let up until we get it right. Our purpose is simple: we save people money so they can live better. We take both aspects of our purpose seriously.

We want to thank you for believing in us…for investing in our future. We are a company of the future. As I stated earlier, we’re operating from a strong foundation built by those before us and taking action aimed at strengthening our business this year and beyond. We’ll continue to strengthen our stores around the world, we’ll continue to build our e-commerce and digital capabilities, and we’ll put them together in a way that saves customers time and money. And as they choose to shop with us, we’ll be doing things behind the scenes to create shared value for all so they are confident that their trust in us is well-placed.

Honored to serve,


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