CEO Doug McMillon points to a “new era of trust and transparency” for
customers and communities
At today’s Net Impact Conference, Walmart president and CEO Doug
McMillon will outline a roadmap that will guide the company’s role in
society on critical issues over the next several years, pointing to a
“new era of trust and transparency.” The roadmap adds fresh detail to
Walmart’s sustainability agenda and contains new commitments that
reflect a wider recognition of the company’s impact on communities and
the planet.
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Among other things, Walmart is doubling sales of locally grown produce
in the U.S.; expanding and enhancing sustainable sourcing to cover 20
key commodities, including bananas, coffee and tea; and implementing a
new plan designed to achieve science-based targets for reducing
greenhouse gas emissions.
Walmart is the first retailer with an emissions-reduction plan approved
by the Science Based Targets Initiative, in alignment with the Paris
Climate Agreement in December 2015. Under the approved plan, Walmart
will use a combination of energy-efficiency measures, together with a
commitment to source half of the company’s energy needs from renewable
sources, to achieve an 18 percent emissions reduction in its own
operations by 2025. Additionally, Walmart will work with suppliers to
reduce emissions by 1 Gigaton by 2030, equivalent to taking more than
211 million passenger vehicles off of U.S. roads and highways for a year.
In his remarks, McMillon will also discuss company programs that will
train hundreds of thousands of U.S. associates by the end of next year,
providing them with skills needed to move from entry-level positions to
jobs with more responsibility and higher pay, along with a new pledge to
take a leadership role in promoting ethical recruitment and treatment of
workers in the global retail supply chain.
Taken together, the initiatives are designed to make good on the
company’s desire to become the most trusted retailer, not just by
delivering affordable goods and a time-saving shopping experience, but
with trust-building transparency and actions.
“We want to make sure Walmart is a company that our associates and
customers are proud of - and that we are always doing right by them and
by the communities they live in,” McMillon said. “That’s really what
these commitments are about. And that’s why we’re so passionate about
them.”
The roadmap builds upon the three environmental sustainability goals
Walmart set in 2005: to create zero waste in company operations, to
operate with 100 percent renewable energy, and to sell products that
sustain natural resources and the environment. Those aspirational goals
have guided how Walmart engages on those vital issues and progress has
been made toward them. The new roadmap builds on progress to date, but
also broadens the company’s vision of its role in society.
The commitments shared today include:
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Power half of the company’s energy from renewable sources under a
plan designed to achieve science-based emissions targets: Walmart
is one of the largest private-sector investors in renewable
energy, including solar and wind power. In 2015, 25 percent of
Walmart’s operations were powered by renewable energy, a significant
step towards the 2005 goal. Going forward, the company will source
half of its energy needs from renewable sources by 2025, as part of a
plan designed to achieve science-based targets for reducing greenhouse
gas emissions. Walmart is the first retailer with an
emissions-reduction plan approved by the Science Based Targets
Initiative, in alignment with the Paris Climate Agreement. Under the
recently approved plan, Walmart will use a combination of
energy-efficiency measures, together with expanded use of renewable
energy, to reduce emissions in its own operations by 18 percent by
2025. Additionally, Walmart will work with suppliers to reduce
emissions by 1 Gigaton by 2030, equivalent to taking more than 211
million passenger vehicles off of U.S. roads and highways for a year.
-
Achieve zero waste to landfill in key markets by 2025: Progress
so far has been significant on the original goal. In 2015, 75
percent of Walmart’s global waste was diverted from landfills, helping
to reduce costs to the business, customers and society. Under the
roadmap, the company will achieve zero waste to landfill from our own
operations in key markets, including the U.S., U.K., Japan, and Canada
by 2025. The commitment is designed to meet or exceed EPA zero waste
guidelines. Walmart will also continue working to reduce landfill
waste in all markets, moving as fast as infrastructure and best
practices allow.
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Sell more sustainably produced products while maintaining the low
prices customers expect:
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Packaging: Walmart pledges to work with suppliers to reduce
product and packaging waste and preserve natural resources. Our
goal by 2025 is for Walmart’s private brand packaging to be 100
percent recyclable.
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Affordable, safe and healthier: Walmart will double the
sales of locally grown produce in the U.S. by 2025 and work with
suppliers and its own private brand products to remove certified
synthetic colors and artificial flavors in products where
customers don’t expect to find them, as well as reduce sodium,
added sugars and saturated fat where possible. Additionally,
Walmart will expand and enhance sustainable sourcing to cover 20
key commodities, including bananas, grapes, coffee, and tea.
-
Natural resources: Walmart is expanding sourcing of
commodities produced with zero net deforestation. In partnership
with governments, NGOs and industry groups, Walmart has previously
been working to source private-brand palm oil and beef from
Brazil’s Amazon with zero net deforestation. Under the roadmap,
Walmart will expand its work into additional critical commodities,
including all Brazilian soy and private-brand pulp and paper.
McMillon will also discuss the company’s $2.7 billion investment over
the past two years in education, wages and training for associates in
the U.S. and called for a broader industry push to ensure retailers are
seen as employers of choice. “Today we are asking other retailers to
join us in helping people live better,” he said. “Let’s use our
collective power to create good jobs with good training that become good
careers for all our associates.”
Walmart will work to achieve the following:
-
Support the human dignity of workers in the retail supply chain:
Walmart is joining the Leadership Group for Responsible Recruitment, a
collaboration of businesses and NGO partners working to ensure ethical
recruitment and treatment of workers globally. This is on top of
Walmart’s work underway in four areas that present risk to the dignity
and safety of workers: seafood; apparel; produce; and electronics.
-
Be the place to go for an individual’s first job: Walmart will
further its efforts to afford a good experience for the thousands of
people who come to the retailer for their first job. Associates will
be provided with workplace mobility - a good start, new skills and a
clear path to grow and succeed - whether or not they remain with the
company. To further these efforts, Walmart has recently signed
on to the White House First Jobs Compact, a nationwide
effort to help connect out-of-school, out-of-work youth to their first
jobs.
-
Provide a clear path for career advancement: By 2025, Walmart
U.S. will put millions of associates through focused training programs
to equip them with skills to improve career growth, from entry level
positions to jobs with more responsibility and higher pay. The
retailer’s Pathways program provides training in core skills for
entry-level associates and rewards them with a pay increase upon
completion. The Academy training program - for supervisory associates
- is expected to graduate 250,000 people alone by the end of 2017. As
part of this commitment, Walmart strives to be a destination employer
for young people and returning service members.
-
Predictability, stability and pay: Walmart is committed to
improving predictability in the lives of its associates by providing
work schedules more than two weeks in advance in the U.S.; as well as
implementing a strong leave policy that empowers associates to decide
how to use their paid time off based on individual needs. Walmart also
believes in equal pay for equal work. Associates with the same
qualifications, performing the same jobs and making the same effort to
achieve the same results, should receive the same pay.
-
Improve the lives of people in communities: Walmart will source
more products locally around the world, including $250 billion in
products supporting American jobs by 2023 and $20 billion in products
from women-owned businesses in the U.S. by the end of this year. The
retailer also committed to donating 4 billion meals to fight hunger by
2020 and, over five years, to contributing $25 million towards
disaster relief and resiliency around the world.
About Walmart
Walmart Stores, Inc. (NYSE: WMT) helps people around the world save
money and live better - anytime and anywhere - in retail stores, online,
and through their mobile devices. Each week, nearly 260 million
customers and members visit our 11,539 stores under 63 banners in 28
countries and e-commerce websites in 11 countries. With fiscal year 2016
revenue of $482 billion, Walmart employs more than 2.3 million
associates worldwide. Walmart continues to be a leader in
sustainability, corporate philanthropy and employment opportunity.
Additional information about Walmart can be found by visitinghttp://corporate.walmart.com on
Facebook at http://facebook.com/walmart and
on Twitter at http://twitter.com/walmart.
Online merchandise sales are available athttp://www.walmart.com and http://www.samsclub.com.
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