2015 Global Responsibility Report

More than 50 years later, customers in 27 countries around the world trust Walmart to bring them food, apparel, household goods and other general merchandise at everyday low prices through stores and e-commerce — anytime, anywhere.

Along the way, Walmart has grown into the world’s largest retailer. We have stores in 10,000 communities, employing more than 2.2 million associates and thousands of suppliers who, in turn, employ millions of people.

Because of our heritage, we seek to use our scale and capabilities to help others — not only customers and other Walmart stakeholders, but also society at large. We accomplish this by:

  • Creating economic opportunity for our associates, suppliers and people who work in retail and retail supply chains beyond Walmart
  • Enhancing the sustainability of our operations and product supply chains for people and the planet
  • Building strong communities where we operate

 

OpportunityIncrease economic opportunity
Priorities
  • Associate opportunity
  • Supplier/small business development
  • Women’s economic empowerment
  • Retail sector workforce mobility
Business impact
  • Associate engagement
  • Productivity
Societal impact
  • Frontline workforce mobility
  • Job creation
SustainabilityDeliver low true cost
Priorities
  • Leading in energy
  • Zero waste
  • Sustainable food
  • Sustainable materials and manufacturing
Business impact
  • Cost of goods sold and operating expenses
  • Supply security
Societal impact
  • GHG, natural capital
  • Worker safety, livelihoods
CommunityStrengthen local communities
Priorities
  • Community development
  • Associate philanthropy and support
  • Disaster response and preparedness
Business impact
  • Sales, license to operate
  • Associate engagement
Societal impact
  • Social cohesion
  • Disaster mitigation
Our priorities and key initiatives

OpportunityAccelerate upward job mobility and economic development.

Associate opportunity, diversity and inclusion: Accelerate the development of Walmart associates, including providing hundreds of thousands of people around the world with their “first jobs,” competitive compensation and benefits, and upward job mobility. Most recently in the U.S., for example, we announced an approximately $1 billion investment in higher wages, upskilling and scheduling enhancements. As well, Walmart fosters a diverse and inclusive workplace around the world. For example, as of FY2015, 32 percent of our corporate officers are women, and 22 percent are people of color.

Retail opportunity: Accelerate mobility of retail workers from entry- to middle-skills jobs, with more than $100 million in grants funded by Walmart and the Walmart Foundation over the next five years. Priorities include clarifying retail and related-sector career paths, better pre-employment training, more innovative and relevant on-the-job and supplemental training and credentials that employers will accept for advancement.

In 2005, Lee Scott (who was CEO of Walmart at the time) set three aspirational goals for Walmart that established the tone for our corporate global responsibility. These goals were to supply our company with 100 percent renewable energy, to create zero waste and to sell products that sustain people and the environment. Grounded in this foundation, we work hard every day on initiatives to promote sustainability, economic opportunity and strong communities around the world.

Women’s economic empowerment: From 2011 to 2016, source $20 billion from women-owned businesses, helping to train nearly 1 million women on farms, in factories and in retail; and promote diversity and inclusion within our supplier network, which is the largest in the world.

Veteran reintegration: In the U.S., accelerate the reintegration of veterans into civilian life and workforce. Since Memorial Day 2013, Walmart has hired more than 77,000 veterans, nearly 16,000 as part of our Veterans Welcome Home Commitment. Also, through a $20 million philanthropic investment, Walmart and the Walmart Foundation are working with private and public sector organizations to support veteran reintegration.

Supplier/small business development: Develop local suppliers and small businesses. We are doing this through supplier development programs, supplier diversity programs and local manufacturing efforts such as our U.S. manufacturing initiative that will source $250 billion of products made, assembled or sourced in the U.S. over 10 years. The Sam’s Club Giving Program is strengthening the microlending sector to expand access to capital for small businesses.

Sustainable operationsMinimize the environmental footprint and the cost of Walmart operations.

Energy: Reduce our energy consumption by 20 percent per square foot by 2020 compared with our 2010 baseline; work our way toward being powered 100 percent by renewable energy (we are at 26 percent); and double the fuel efficiency of our fleet (we’ve improved efficiency by 87.4 percent since 2005).

Waste: Generate zero waste by reducing, reusing and recycling materials we use to run our facilities, including cardboard boxes, food waste, plastic film and cooking oil. Today we are diverting 82.4 percent of our waste materials in the U.S. and 68 percent internationally from going to the landfill.

Sustainable foodHelp the world feed a growing population by making food more affordable, accessible, healthier, safe and transparent.

Affordable: Keep food affordable for customers, while promoting farmer livelihoods and preserving the world’s fish stocks, forests, water and air quality. To do this, we work with suppliers and others to optimize the use of inputs such as fertilizer and water, train farmers, and adopt sustainable sourcing and policies for commodities such as beef, seafood and palm oil.

Accessible: Bring affordable, quality food to more people through our stores and e-commerce and donate food to alleviate hunger among the most vulnerable. In the U.S., for example, we opened 375 stores in “food deserts” (communities that don’t have a grocery store), have doubled the availability of local produce and lowered the price of produce by $3.5 billion over the past two years. Walmart and the Walmart Foundation have provided more than 1.1 billion charitable meals since the beginning of FY2015.

Healthier: Make it easier for people to buy and prepare nutritious food. For example, in the U.S. we’re working to eliminate trans fat and reduce sodium (by more than 16 percent so far) and sugar (by 10 percent) in the products we sell; introducing low-priced, healthier product lines, affordable organics lines and providing information about nutrition online and through special programs with nonprofits and non-governmental organizations (NGOs).

Safe and transparent: Promote transparency, human rights and animal welfare among suppliers and across food chains; lead the industry in implementing food safety standards and practices around the world, from the U.S. to China; put customers in charge of their food choices by helping provide clear, accurate information about food ingredients and production methods.

Sustainable product design and manufacturingFoster social and environmental responsibility across the supply chain.

What goes into products: Work with suppliers to deliver products that are better for people (e.g., eliminate chemicals of concern) and for the planet (e.g., ask suppliers to increase recycled content, reduce packaging and design for recyclability). The GE residential LED light bulb and P&G’s concentrated laundry detergent are two examples of products we helped create that are more sustainable for the planet.

How products get made: Work with suppliers in factories and on farms to promote worker safety and fair treatment, improve energy efficiency and reduce pollution. For example, according to the Alliance for Bangladesh Worker Safety, more than 275 factories were inspected and improvements are being made to structural and fire safety. And we are working directly with manufacturers in China to lower energy consumption by 30 percent over the next several years.

What happens to products after they are used: Promote recycling and repurposing of products at the end of their life to keep them out of landfills. For example, we run a cell phone “take-back” program in the United States. Walmart and the Walmart Foundation also helped create and launch the Closed Loop Fund — a $100 million, low-interest loan fund that municipalities can tap into to pay for building a recycling infrastructure.

In everything we do, we set bold aspirations for social and environmental outcomes. We seek to change the way the retail industry operates so that the improvements go beyond Walmart and are lasting.

Strong communitiesStrengthen local community cohesion and resilience, while inspiring our associates to give back.

Community grants: Engage with and provide grants to community organizations from our regional offices, stores and other facilities. In the U.K., for example, Asda gave more than 10,000 grants as part of the Chosen By You, Given By Us program in 2014. And in the U.S., Walmart and the Walmart Foundation awarded over $100 million in state and neighborhood grants to law enforcement agencies, fire departments, schools, recreation centers and more.

Associate philanthropy: Encourage our associates to contribute time and money to the causes they care about most. In FY2015, our U.S. associates volunteered more than 1.5 million hours in their local communities. Walmart also contributed $14 million to the causes in “dollar-for-doer” grants.

Disaster relief: Help prepare for and provide disaster relief in the aftermath of hurricanes, typhoons, tornadoes and earthquakes through our emergency operations center and our collaborations with organizations like the Red Cross and United Nations. Over the last 10 years, Walmart and the Walmart Foundation have given more than $43 million in cash to various countries burdened by disaster.

Our approach

For Walmart, leading on social and environmental issues is a “whole company” undertaking that we pursue in collaboration with customers, suppliers, nonprofit organizations and governments around the world. For us, it’s more than just a matter of philanthropy. It’s woven into our day-to-day business activities.

Lead through the business:

At Walmart, we integrate the social and environmental agenda into our day-to-day business activities, including our leadership practices, our organization roles and structure, and our incentives, tools and processes. For example, our operators and real estate teams are hard at work every day on our energy and waste goals. Our merchants and sourcing teams work with our suppliers on our sustainable product goals. Our supplier development teams help create opportunities for suppliers.

Seek business as well as societal benefits:

Wal-Mart Stores, Inc., will be most successful at — and able to sustain — social and environmental initiatives that create business value. For example, we’ve committed to reduce sodium by 25 percent, added sugars by 10 percent and to remove all industrially produced trans fats in our private brands, including Great Value and national food brands in the U.S. by the end of 2015, compared with our 2008 baseline. We’ve also opened 375 stores in areas serving designated food deserts in the U.S. since 2012. Efforts like these not only elevate our business, but also increase access to healthier, affordable food in the communities we serve.

Use philanthropy to complement business initiatives:

Walmart extends our impact on social and environmental issues through our philanthropy. During FY2015, we contributed approximately $1.4 billion worldwide through cash and in-kind giving — drawing on business assets such as food, logistics know-how and emergency operations expertise to further enhance our impact. For example, Walmart and the Walmart Foundation contributed more than $70 million in cash to programs that enhance nutrition and alleviate hunger. We carry out such work through the Walmart Foundation, which leads our global and U.S. philanthropic efforts; market-specific foundations such as the Asda Foundation; and market-by-market giving programs.

Prioritize actions that draw on Walmart capabilities:

Globally and in each market, we choose to focus on issues where we have a relative advantage in making a difference because of our particular capabilities. This includes our 2.2 million associates in 10,000 communities; our supplier relationships and buying power in food, apparel and other categories; our physical assets such as stores, trucks and distribution centers; and our capabilities in logistics, marketing, operations and merchandising.

Collaborate with others:

Walmart and the Walmart Foundation search for organizations around the world that have capability to accomplish one of our societal goals, and we work with them to provide the funding, resources or expertise they need to deepen and scale their impact. This model allows us to accomplish more in a shorter amount of time and take advantage of the expertise of those organizations dedicated to a particular cause. An example is our collaboration with CARE, Swasti, World Vision and Business for Social Responsibility on the development of a Women in Factories training program that will reach more than 60,000 women working in 150 factories in Bangladesh, India, El Salvador, Honduras and China. The collaboration has included the development of an open-source curriculum by CARE that has been adapted to meet the needs of each country, as well as best-practice sharing to help factory management and human resource teams lead training. Providing funding and facilitating a community of practice has resulted in a stronger initiative. It’s creating a more inclusive mindset and positive environment for the women working on factory floors and, in turn, contributing to more productive operations for factory owners.

Every healthy, high-performing company has an obligation to use its strengths to help society. In the long term, a company’s business interests and the interests of society converge. Governments, companies, communities and individuals — we are all interdependent and stronger together.