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Haas School of Business University of California, Berkeley Matt Kistler, SVP Sustainability. WAL-MART SUSTAINABILITY GOALS. Energy. Waste. Products. To be supplied 100% by renewable energy. To create zero waste. To sell products that sustain our resources and environment.
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Haas School of BusinessUniversity of California, BerkeleyMatt Kistler, SVP Sustainability
WAL-MART SUSTAINABILITY GOALS Energy Waste Products To be supplied 100% by renewable energy To create zero waste To sell products that sustain our resources and environment Earth Month 2009
Global Environmental Impact Water Packaging Indirect Impact = 92% Marine Agriculture Factories Earth Month 2009
Sustainable Value Networks • Greenhouse Gas • Sustainable Buildings • Global Logistics • Alternative Fuels • Waste • Packaging • Textiles • Electronics • Agriculture and Seafood • Wood and Paper • Chemicals • Jewelry • China Earth Month 2009
Sustainability 360 Operations: 7400+ stores world wide Associates 2 million worldwide Suppliers 61,000+ worldwide Sustainability 360 Customers176 million worldwide Earth Month 2009
Operations: A few of the stories Plastic Bags 33% reduction in bags shows about more than the building The Roof Sky lights and white roofs help move toward 20% GHG reduction by 2012 LED Lighting Added to freezers where it can be profitable in order to scale technology High Efficiency stores Up to 45% more efficient than the baseline store. Earth Month 2009
Operations: A few of the fleet stories Hybrid Assist Full Propulsion Hybrid Reclaimed Grease Fuel (RGF) Liquid Natural Gas (LNG) Earth Month 2009
Associates: Key to Success Goal: Develop a network of associates around the globe who are engaged in sustainability in their personal and professional lives. Initiative: Associate Education and Action Actions: U.S. and Canada: Personal Sustainability Projects Japan: Mottai-nai China: My SustainabilityProject Earth Month 2009
Supply Chain: A Few of the stories Wal-Mart Buyers & rest of market Identify the Growing Areas Identify the Products Government Agencies & Departments of Agriculture Identify Farms/Ranches Supplier & Farmers Create Business Plans Pilot Ag Schools & NGO Stakeholders • Market Maker Produce Procurement • Brings together stakeholders and provides them a marketplace to sell to • Love, Earth Jewelry • Fully Traceable Earth Month 2009
Product Innovation? Earth Month 2009
What Product Innovation could be…. LCA Analysis – A Simple, Powerful Way to Measure Product Sustainability (Impacts of a T-Shirt) Raw Material Inputs Manufacturing/ Processing Transportation/ Packaging/ Sales Use End-of-Life/ Recycling Earth Month 2009
Version 1.0 and Business Value Earth Month 2009
To Learn More… Information Sources:www.walmartstores.comSustainability 2.0 DVD www.walmart.com Earth Month 2009
A few things I have learned….. • Basic Beliefs • Leadership • Risk Taking • Competitiveness • Cultural Competence • Teams and Networks • Personal Development Earth Month 2009
For discussion….. • Should WMT work with other retailers on the development of a standardized “Index” set of criteria, if yes, who? If no, why not? • What are some of the unintended consequences of establishing a sustainability Index for all consumer goods? Good and Bad. • What products should we start with? What should the consumer facing look like, a score? One metric or multiple? • What are the pro’s and con’s of the Consortium? Earth Month 2009