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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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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