Sustainability

What Walmart Needs to Go 100% Renewable

Walmart’s aspirational goal to be supplied by 100% renewable energy – and to drive the production or procurement of 7 billion kWh of renewable energy globally while doubling the number of on-site solar projects in the U.S. by 2020 – just plain makes business sense. Between Walmart’s 2020 commitments to renewables and energy efficiency, the company could avoid up to $1 billion a year in energy costs.

Walmart’s Mountain View, California store is a perfect example of Walmart’s commitment to on-site solar energy, with 14.5% of the facility’s energy coming from a rooftop solar system installed by SolarCity. However, this facility also demonstrates the challenges in procuring a 100% renewable energy.  Available roof-space alone for a solar system is not enough to power the entire facility with renewable energy. It’s just further proof that more options for sourcing renewable energy are needed.

This means that in order to reach 100% renewable energy, Walmart needs to complement its onsite efforts with significant purchases from other sources such as third party suppliers and their local utility.

The Problem
Why is it so hard to get to 100%? The barriers are beyond Walmart. Two of the biggest challenges are market structures that prevent companies from directly contracting renewable energy and the fact that electric utilities have no incentive or directive to offer customers such as Walmart renewable energy above and beyond their current grid mix and/or the state renewable portfolio standard.

The Solution
Walmart and 11 other major companies developed the Corporate Renewable Energy Buyer's Principles that outline how renewable energy providers and utilities can help meet their growing corporate demand for renewable energy.

Primarily, the Buyers’ Principles seek greater opportunities to work with utilities and regulators to expand renewable energy choices. Walmart – and other U.S. corporations – recognize that utilities are experts in providing their customers with access to least-cost energy resources. With this expertise, utilities can provide companies with the low-cost renewable energy they need to reach their sustainability goals.

At the same time, it’s important to increase access to third-party financing vehicles (e.g. PPAs) and standardize contracting processes so it’s simpler for companies to get what they need. At the end of the day, it’s about increasing the options and flexibility companies have to green their energy inputs, just as they are doing with other commodities.

Walmart is doing its part – committing publically and financially – to be supplied by renewable energy, but achieving 100% renewable energy will require overcoming obstacles and catalyzing new opportunities. And that means utilities and other suppliers have an opportunity to step up to serve a multi-million megawatt hour demand for renewable energy. That’s a market opportunity ripe for the picking.

Walmart Foundation has financially supported WRI's and WWF’s work on corporate procurement of renewable energy and Walmart is also a member of WRI's Corporate Consultative Group.

Co-authors: Joshua Ryor of World Resources Institute (WRI), and Bryn Baker of World Wildlife Fund (WWF)

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Heritage

Remembering Don Soderquist, Retired Walmart COO

Walmart’s culture – defined by our core values of service, respect and excellence – has always been key to our success.

That culture lost a very significant champion this week, as Don Soderquist, a key member of our company’s leadership team until his retirement in 2002, passed away.

Don joined Walmart in 1980 as executive vice president of administration and logistics and was a driving force behind our company’s growth. In fact, he led us through a period of significant progress from 1988 to 1999 when he served as vice chairman and chief operating officer. During his tenure, the company’s revenue increased from $1 billion to more than $200 billion.

Don epitomized the term servant leader. He was always thinking of others, provided great feedback and was encouraging to so many people. He had a deep passion for integrity, and it was Don who drafted our original core values. Don became known as the “Keeper of the Culture” after our founder, Sam Walton, passed away because he not only helped define our values – he lived out our culture and spoke passionately about it year after year. He truly believed that ordinary people could do extraordinary things when they worked together, and he taught the beliefs and values that supported that conviction for the rest of his life. Even after his retirement, he invested his time and energy into many associates who still work for the company.

After retirement, he established The Soderquist Center for Leadership and Ethics in Northwest Arkansas to provide values-focused development training to future generations of leaders. In 2005, he wrote the book “The Walmart Way” to teach others how to apply the lessons that made Walmart successful to their own lives and careers. He was also involved in numerous charitable organizations and served on several corporate boards.

Don touched so many lives here, and he will be dearly missed by his family and all of us at Walmart.

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Sustainability

One ‘Perfect’ Solution for Saving Ugly Apples

As the world’s largest grocer, Walmart knows food waste is a big issue.

For more than a decade, we’ve been doing our part by changing the way we do business and working to create a zero waste future, especially where fresh produce is concerned. Last week, my colleague Frank Yiannas wrote about our dedication to reducing food waste in the U.S., outlining our progress and the ways we’re making a difference with innovative date labeling, as well as the Spuglies potato launch and our wonky veg program at Asda.

Now, we’re excited to announce that after months of discussion, a brand of apples from Washington state, called “I’m Perfect,” will make its debut in Walmart stores this week. One of the challenges growers have is that Mother Nature can throw a curveball such as a hailstorm, high winds or even a string of very hot sunny days, which can damage the exterior finish of fruits. While the texture and flavor remain perfect, the exterior damage usually renders these fruits unsellable in the fresh market because they fail to meet traditional grade standards. We’re proud to be the first retailer to bring these apples to you.

These “beautifully imperfect” apples will eventually be available in 12 varieties from Granny Smith to Red Delicious. For now, about 300 stores in Florida will offer the apples in five-pound bags.

From helping our growers find alternate uses for these less than gorgeous fruits, such as making apple juice or selling small apples for lunch kits, we are committed to identifying options to get less than perfect fruit to market and thereby reduce this type of food waste.

What excites me the most about the launch of these “I’m Perfect” apples is that it is a result of working with our suppliers to build the infrastructure and processes that create a new home for perfectly imperfect produce. Because ugly produce can occur unexpectedly in any growing season or crop, we want to have the systems in place to offer this type of produce whenever it may occur.

The “I’m Perfect” product is just one example of the ways we are aiming to reduce food waste, supporting growers, and providing value to our customers.

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Community

Making Room to Provide the Gift of Vision

The ability to see is personal for me because my vision began to deteriorate when I was a child.

One day, I couldn’t see the chalkboard anymore. I couldn’t read the letters. Since then, I’ve had to wear either glasses or contact lenses. So I can relate to someone who does not have the ability to see. Vision and its connection to daily function and providing for your family is significant.

My distribution center, Walmart Optical #7054, started donating warehouse space to RestoringVision – a nonprofit that helps get glasses to those in need – two years ago, and recently, RestoringVision received a massive gift of eyeglasses that they had nowhere to house. Because ours is the only optical-focused distribution center within Walmart’s supply chain, I knew we would be uniquely equipped to help.

When major donations arrived, Walmart volunteers got to work in preparing these donations for shipment around the world. As we continue to work on this, the Walmart Foundation matches our volunteer hours with donation money that is passed along to RestoringVision.

When I hear the stories of how people can now provide for their families because of the work of RestoringVision, I instantly feel a sense of pride that we are a part of that mission. Helping people live better is what we do at Walmart. The partnership that we have established with RestoringVision is one way that we are better able to achieve that goal.

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Sustainability

New Initiatives Taking a Bite out of Food Waste

With 795 million people in the world reportedly going hungry, food waste is an ugly problem to face. In the U.S. alone, it’s estimated that consumers throw away $29 billion worth of edible food each year in their homes. Walmart is especially concerned with reducing food waste – not only because we’re the world’s largest grocer, but as an integral part of our EDLC philosophy that provides you everyday low prices.

Two culprits of food wastage are confusion caused by food labels and the tossing of imperfect, but perfectly usable, fresh produce.

Consumers often mistake date labels as food safety indicators; however, most of the labels are created based on peak quality. Adding to the confusion is the different language used on labels, including “best by”, “use by” and “sell by”. That’s why, in the last year, we started requiring suppliers of nonperishable food products under our Great Value private label to use a standardized date label, “Best if used by”.

The switch will go into full effect this month and involves thousands of products.

What really got our attention was a report released in 2013 by the Harvard Food Law and Policy Clinic and the Natural Resources Defense Council, The Dating Game: How Confusing Food Date Labels Lead to Food Waste in America. My team has been working on a solution since then.

After surveying our customers about how they would choose a food label that indicated a change in quality but not safety, there was a clear winner: “Best if used by”. I expect the standard labels to have an even bigger impact on waste reduction since many of our suppliers sell products under their own labels outside of Walmart. This is significant, as the global economic impact of food wastage comes to about $750 billion each year.

Although food waste has been making headlines in recent months, including an in-depth article in the Guardian, Walmart has been doing its part for more than a decade to create a zero waste future by affecting change in the way we do business and throughout our supply chain, especially where fresh produce is concerned.

For years we’ve worked with farmers to repurpose fruits and vegetables that may be slightly blemished or oddly shaped. These items usually make up a very small part of a harvest and aren’t a major contributor to food waste; however, we know every bit counts. A customer may not take home a triangle-shaped apple from our produce bins, but that apple is just as tasty when made into apple juice.

Earlier this year we began selling Spuglies, Russet potatoes that were less than perfect on the outside thanks to rough weather in Texas. Working with our supplier, we found a way to offer these at a value price. Our wonky veg test at Asda in the UK was so popular, we now offer it year round when farmers have enough supply.

Because customers around the world shop very differently, our team here in the U.S. has been working for months on our first spec for this type of produce. We’re exploring the ways to make these items available while providing value to our customers and supporting farmers.

Our efforts don’t stop there. In 2009, Walmart and Sam’s Club U.S. launched a first-of-its-kind organics recycling program nationwide. As of 2015, the equivalent of more than 25,000 tractor-trailers full of food waste has been diverted out of the waste stream through composting, conversion to animal feed and energy production through anaerobic digestion.

In 2015, Walmart began selling garden products from Ecoscraps, a company that turns food scraps into organic and sustainable lawn materials such as compost, potting mixes and plant food. To date, our sales of these products amount to more than 2.4 million pounds of food waste diverted from landfills.

Another recent collaboration is preventing millions of eggs from being thrown away annually.

Food waste is a big problem that will only get bigger as the world’s population grows. Countries around the globe are realizing we’re not going to be able to produce our way to feeding 9 billion people, so we have to reduce food waste now.

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