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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Business

#PattiPie, New Cobblers and the Evolution of Our Bakeries

When Patti LaBelle’s Sweet Potato Pie hit Walmart stores last fall, the demand for #PattiPie became so high we could barely keep enough of them on the shelves.

As a merchant for our fresh bakery, this was exciting news. It proved that the work by Kinna Thomas, our senior buyer of cakes and pies, and our entire team to provide premium goods baked with high-quality ingredients was not going unnoticed.

It also proved that taking the extra time and effort to think outside of the box whenever we’re developing bakery goods makes a real difference to our customers. Taking it to the next level for this holiday season, Kinna was reviewing Ms. LaBelle’s cookbooks and stumbled across one of her famous cobbler recipes. We knew how important it was to hit the mark perfectly.

After testing and trying out the product, I’m excited to announce that together, we’ve cooked up three premium cobblers in peach, apple and mixed berry flavors for #PattiPie fans to enjoy, starting Sept. 2. Not only are they packed full with quality fruit, they’re baked with two crusts – one on top and one on bottom – to ensure that sugary crisp bite.

Knowing that most cobblers on the market today are frozen, we worked to find the right supplier to create a unique fresh version. Turns out we had the right company with us all along: Twin Star Bakery out of Houston, who currently makes a number of decadent items for Walmart, including oversized sandwich cookies and specialty dessert cakes. As a matter of fact, the cobbler expansion will bring over a hundred new jobs to their factory.

In addition to the cobblers, we’re also bringing Ms. LaBelle’s apple pecan cake and sweet potato pound cake to select stores. The sweet potato pound cake was a joint venture to with a small Philadelphia business, Brown Betty Dessert Boutique. We will offer this delicious Southern-style treat in select stores in the Northeast.

The success of Patti’s sweet potato pie – and the resulting expansion of her personal recipe-based product line – is just one example of how we are working to transform our fresh bakery offerings through innovation. We are so proud to offer amazing new items across our entire bakery. Just last year, we added about 60 new items and we continue to innovate. Today, more than half of our items are prepared in our stores, and we’ve enriched our teams across the country with bakery technicians who’ve been training and helping our store associates to ensure everything comes out exactly right. On top of that, we’re simplifying our processes so that we can bake many different items at one temperature, allowing us to produce more fresh-baked goods for our customers every day.

It’s a sweet time to work in Walmart’s fresh bakery, and we’re excited to see our customers’ reactions as we work to deliver every ingredient just right.

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Sustainability

How One Small Farm Planted a Seed of Opportunity

For Juan Carlos Urquia, there was always an excitement associated with finishing his homework. It meant he could join his father on their small, 3-acre farm in the tiny rural community of Ocotal, almost three hours away from Tegucigalpa, the capital of Honduras.

As young as 5, he enjoyed helping his father raise and harvest corn, beans and cucumbers more than anything. He immediately sensed the responsibility of producing food people needed to survive. More than three decades later, Juan Carlos still finds joy in the field. Only, these days, his passion has evolved into an opportunity for his extended family and a growing number of others in the community to make a living.

Juan Carlos’ care and attention to detail sparked an opportunity to begin filling orders of several hundred cucumbers per week for Walmart in 2006. That opportunity has since grown to more than 25,000 cucumbers per week, and the family farm has spread to nearly 100 acres.

With access to stores across Honduras, Juan Carlos has created full-time jobs for 20 people, many of them siblings and cousins. And that has created work for nearly 100 others in the community who work to clean, process and transport the cucumbers, tomatoes and onions he grows, as well as those who supply fertilizer and other materials to sustain the operations.


The care was always there, even in the days when Juan Carlos was learning from his father. But, through support from Walmart and other organizations committed to delivering training and best practices to farmers in the areas of sustainable agriculture, efficiency and optimization, they’ve seized an opportunity. In fact, Honduran farmers sold more than $148 million in fruit, vegetables, grains, meats and other perishables to Walmart in 2015. This is equivalent to approximately 6.5% of the national agricultural gross domestic product and helped boost the country’s agricultural exports.

When Juan Carlos was a boy, he and his extended family all lived under his father’s roof. Through their commitment to the farm, he, his siblings and cousins all have their own homes today – and that’s something they’re extremely proud of. They're not just producing food. They're creating opportunity and raising the quality of life for those around them.

Small and medium-sized farmers around the world will be counted on to meet half the increased global demand for food and clothing through the year 2050, and Walmart has committed to specific goals to improve their livelihoods. You can read more about this work in our Global Responsibility Report.

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Opportunity

One Walmart Associate’s Path to the Pentagon

Since 1997, Luke McCollum has lived somewhat of a double life, holding careers at both Walmart and the Navy Reserve.

While a retail role and a government job may seem like an unlikely pairing, he says the blending of both worlds is what has prepared him well for an exciting next step: Navy Vice Admiral, where he’ll serve as the Commander of America’s Navy Reserve Force. This is no small promotion – President Barack Obama had to appoint him to the role.

While this means Luke will be leaving Walmart’s home office in Bentonville, Arkansas, to work solely at the Pentagon, he says Walmart is a big reason why he’s able to take this new step. Why?

“Working here has made me a better Navy Reserve officer, and vice versa,” he said.

As vice president of Walmart’s logistics services, one of Luke’s duties is to oversee new distribution centers coming to life across the U.S. – from picking the location, to seeing it all in action with excited associates. He most recently experienced this with a new fulfillment center in Chino, California, and a new distribution center in Mankato, Minnesota. To Luke, it was exhilarating to see everything unfold, knowing that this would help serve customers better and provide new opportunities for our associates.

While his work and processes at Walmart are different than those at the Navy, he’s found common ground at both organizations in dealing with the large, complex and unpredictable. “In the Navy, we can never get comfortable because it’s always changing,” he said. “It forces us to think differently and strategically. We have to do a lot of that at Walmart, too.”

What Luke enjoys about both of his teams is their desire to learn new things. “I would be sitting in senior meetings in the Navy, and they would ask me how Walmart would solve a problem. The same happened in my Walmart meetings,” he said. “They have the appetite to change and grow. Both have had to evolve over the years. At Walmart, we try to understand how our customers have changed and how we can operate better to serve them. The Navy is no different. They serve a customer, too – the American people and the men and women on active duty.”

Having a really strong support system at home and at work is what has helped Luke hold down two careers. He gives a lot of credit to his family. When most people are heading home for the weekend, Luke has to get on a plane to the Middle East or the Pacific for another full work week. With a 24-hour flight back home and jumping right back into Monday, he doesn’t have much downtime. “You have to know what’s important because you can’t do everything,” he said.

Why do two jobs? For Luke, it’s all about the people. He thrives on seeing people do things they didn’t know they could do. “One of the definitions of leadership is to define reality, provide encouragement on the way and say thank you in between,” he said. “I’ve gotten to do that in both organizations.”

Luke is honored, humbled yet excited to take on this new job.

“I’ll miss my Walmart team, but my experiences here have prepared me well to take this next step,” he said.

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Community

When Disaster Strikes, Associates Provide Real-Time Relief

When forecasting warned that record rainfall could be coming to Louisiana, a team at Walmart’s home office did what they always do when severe weather is imminent: Pull together the right people to prepare for help.

Because there are about 30 Walmart stores and Sam’s Club locations in the Baton Rouge area where the flooding eventually hit, the company’s Emergency Operations Center had a responsibility to local associates and communities. Logistics, operations, and merchandising teams assembled quickly, first mapping alternate routes for trucks delivering to stores in and around Louisiana and ramping up shipments of diapers, bottled water and other essentials.

While some stores and clubs closest to Baton Rouge did have to close their doors because of flood damage, most have reopened now. Ensuring that corporate functions and teams on the ground can work together to make that happen is at the heart of the EOC’s role.

Formed in the early 2000s following 9/11, Walmart’s EOC was established to support associates and local communities in times of need. Whether it’s securing generators to restore power to facilities or acting as a call center so that associates and community members can locate and assist one another, the EOC is the hub that helps Walmart locations provide a sense of normalcy when disaster strikes.

With the recent Louisiana flooding displacing thousands of people from their homes, Walmart and the Walmart Foundation have committed $1.5 million to organizations making a difference on the ground. Learn more about those efforts here.

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