Commitments

People and Products

Progress Update

U.S.: In the U.S., Walmart will require all fresh and frozen, farmed and wild seafood products sold at Walmart and Sam's Club to become certified as sustainable by a third party using Marine Stewardship Council (MSC), Best Aquaculture Practices (BAP) or equivalent standards. Walmart will require currently uncertified fisheries to develop work plans to achieve certification and report progress biannually.

73% certified

As of January 28, 2011, in aggregate, 73 percent of the total pounds of wild fish and farmed seafood sold at Walmart U.S. and Sam's Club was certified (measured by the percentage of total volume of wild-caught fish that is MSC-certified, and farm-raised fish that is ACC-certified). In addition to the overall increase in the percentage of fisheries that have been certified, the percentage of wild fish that is in progress to become fully certified with MSC standards in the next 12 to 24 months has increased more than 23 percentage points to 82.03 percent.


After substantial progress toward certification and ongoing conversation and development with various stakeholders, Walmart and Sam's Club have decided to expand our overall commitment to providing availability of sustainable seafood.


In our ongoing effort to promote worldwide seafood sustainability, Walmart U.S. and Sam's Club U.S. require all fresh and frozen, farmed and wild seafood products we sell to become third-party certified as sustainable using Marine Stewardship Council (MSC), Best Aquaculture Practices (BAP) or equivalent standards.

Global: We will work with suppliers to drive customer returns on defective merchandise virtually out of existence (less than 1 percent) by 2012.

1.76% returned

Throughout 2010, we reduced our customer returns on defective merchandise to 1.76 percent. This effort included Factory Capacity and Capability Audits (FCCA) for expanded groups of supplier factories. We increased our focus on categories and suppliers that have been identified as having high return rates and took an earlier involvement in technical development, ensuring the right production methods for the right products.

Global: We will require that all direct import suppliers source 95 percent of their production from factories that receive one of our two highest ratings in audits for environmental and social practices by 2012.

94% achieved

More than 94 percent of direct import factories have received one of our two highest audit ratings.

Global: Reduce phosphates in laundry and dish
detergents in the Americas region by 70 percent
by 2011 (2009 Baseline).

14.5% reduction

We committed to reducing the amount of phosphates contained in laundry and dish detergents that we carry in our stores in the Americas region – Canada, Mexico, Central America, Brazil and Argentina – by 70 percent by 2011. While some countries have regulations in place to limit the amount of phosphates suppliers can use in their products, others do not. This presents us both with the challenge and opportunity to work with our suppliers in countries where regulations are not present and help them through the process of phasing out phosphates in their products. So far, the Americas region has reported that it has reduced the amount of phosphates in laundry and dish detergents sold by 14.5 percent. We continue to work with our suppliers to make progress toward the goal.

Global: Walmart commits to developing a worldwide sustainable product index globally.

70 organizations

Walmart continues to work with more than 70 organizations, including NGOs, government agencies, academic institutions, suppliers, retailers and food service companies to conduct research and develop data, tools and protocols for a product sustainability measurement and reporting system (SMRS). Our objective is to create a more transparent supply chain, accelerate the adoption of best practices and drive product innovation. We are working hard to understand and improve the sustainability of our broad assortment of products so we can help our customers save money and live better.

U.S.: Walmart to work with the Sustainability Consortium globally to establish the criteria that will be used to gather information from top-tier suppliers and other retailers for products in at least 20 categories.

25 categories in 2011

The Sustainability Consortium has active projects for eight product categories across three sector working groups, including Food, Beverage and Agriculture; Home and Personal Care; and Consumer Electronics. Additional sectors, including Toys, Paper and Apparel, are being launched and will expand SMRS activity to 25 categories in 2011. In addition, the Retail Working Group of the Consortium is understanding how to most effectively use the Consortium's work to communicate consistently with our supply chains and customers to spread best practices and drive innovation.

Global: Eliminate 20 million metric tons of greenhouse gas (GHG) emissions from Walmart's global supply chain by the end of 2015.

More than 20 product categories

Announced on February 25, 2010, Walmart merchants and energy experts are now working with suppliers in more than 20 product categories to identify GHG reduction opportunities, launch new projects and implement changes. In addition to benefiting the environment, these changes will help our customers save money on energy bills, reduce supplier costs, lower costs of goods and meet our business goals.

We have seen promising early results on a number of these projects.

Global: Walmart commits to provide a license for organizations, such as universities, NGOs, government agencies and corporations around the world to the My Sustainability Plan (MSP) employee engagement program designed to engage a global workforce in activities that sustain an employee's well-being and community by September 1, 2011.

Making progress on a toolkit

Announced at the Clinton Global Initiative Annual Meeting in 2010, we are making progress toward creating a toolkit available through a free license to organizations.

China: Expand the success of Walmart China's Direct Farm program by engaging as many as 1 million farmers by 2011.

Over 757,000 farmers

Walmart China has successfully engaged more than 470,000 farmers into our Direct Farm program in 2010, bringing the total to just over 757,000 since we announced this goal.

Global: Walmart will sell $1 billion in food sourced from 1 million small- and medium-sized farmers in emerging markets by the end of 2015.

In progress

Announced on October 14, 2010, we will work to measure progress based on sales dollars of produce sourced from small- and medium-sized farmers. The definition of small- and medium-sized farmers is defined by each market.

Global: We will raise the income of the small- and medium-sized farmers we source from by 10 percent to 15 percent in emerging markets by the end of 2015.

In progress

Announced on October 14, 2010, we will measure progress based on each market: Average income increase upon each farmer's entry into the program. Income increase is the difference between the price paid to the farmer prior to entering the Walmart program and the price paid to the farmer after entering the program based on comparable goods.


Note: Volatility of produce prices will impact this metric.

Global: Walmart will provide training to 1 million farmers and farm workers in our food supply chain, of which we expect half will be women, in emerging markets by the end of 2015.

In progress

Announced on October 14, 2010, we will measure progress based on the cumulative number of farmers and farm workers trained, including gender of workers trained.

U.S.: In the U.S., Walmart will double sales of locally sourced produce, accounting for 9 percent of all produce sold by the end of 2015 (January 1, 2009 to December 31, 2009 Baseline).

In progress

Announced on October 14, 2010, we will measure progress on the dollar amount of sales of produce grown and sold within the same state as a percentage of the overall dollar amount of produce sales.

Global: Walmart is accelerating the agricultural focus of the Sustainability Index globally, beginning with a Sustainable Produce Assessment for top producers in its Global Food Sourcing network by the end of 2011.

In progress

Announced on October 14, 2010, we are working to develop this assessment and will pilot crops in some of our Global Sourcing hubs located in the U.S. Northwest, U.S. West, U.S. Southeast, Mexico, Central America and South America locations.

Global: Walmart plans to invest more than $1 billion in our perishable supply chain so that we deliver fresher, higher-quality food with a longer shelf life by the end of 2015.

In progress

Announced on October 14, 2010, this goal's timeframe for tracking runs January 1, 2010 through December 31, 2015. Progress will be measured based upon the sum of all capital investment in global perishable supply chain (international and U.S.).

Global: Walmart will require sustainably sourced palm oil in all of our private brand products globally by the end of 2015.

In progress

Announced on October 14, 2010, this goal's timeframe for tracking runs January 1, 2010 through December 31, 2015. We will measure the percentage of private brand suppliers using sustainable palm oil based on the Roundtable on Sustainable Palm Oil standards or equivalent for products sold to Walmart.

Global: Walmart will expand the already existing practice of Walmart Brazil of sourcing only beef that does not contribute to the deforestation of the Amazon rainforest to all of our companies worldwide by the end of 2015.

In progress

Announced on October 14, 2010, this goal's timeframe for tracking runs January 1, 2010 through December 31, 2015. We will measure progress based on the percentage of Walmart suppliers only using beef sourced from Brazil that does not contribute to the deforestation of the Amazon rainforest.

U.S.: Double the sale of products in the U.S. that help make homes more energy efficient by 2011 (2008 Baseline).

Sales increased 28.11%

Products falling under this goal include caulk, weather stripping, air filters, programmable thermostats, expanding foam and power strips. Since 2008, sales of these products in the U.S. increased by 28.11 percent. This represents a 4.47 percent increase from the previous fiscal year. One primary challenge that has been identified as we work to achieve this goal is that a number of these items, such as programmable thermostats, once purchased, do not need to be repurchased. Sales from the more consumable categories such as weather stripping and air filters, however, do continue to show strong growth. We continue to monitor progress toward this goal.

Global: Reduce packaging by 5 percent globally by 2013 (2008 Baseline).

627,000 items entered on the scorecard

Part of the challenge in achieving this goal is determining the most meaningful way to measure our progress. Using a conventional metric like the total weight or volume of packaging fails to account for changes in the total number of our stores or the impact of our growth in sales.


Progress toward this goal will be measured based on GHG/CMUM (consumers' meaningful unit of measure), which is already widely used within the packaging industry, and many of our suppliers of consumer products are already familiar with it. As a result of these efforts, more than 627,000 items for sale in our stores and clubs have been entered in the scorecard, an increase of 90 percent compared to last year.

Global: Be packaging neutral globally by 2025.

627,000 items entered on the scorecard

Part of the challenge in achieving this goal is determining the most meaningful way to measure our progress. Using a conventional metric like the total weight or volume of packaging fails to account for changes in the total number of our stores and neglects the impact of our growth in sales. Progress toward this goal will be measured based on GHG/CMUM (consumers' meaningful unit of measure), which is already widely used within the packaging industry, and many of our suppliers of consumer products are already familiar with it. As a result of these efforts, more than 627,000 items for sale in our stores and clubs have been entered in the scorecard, an increase of 90 percent compared to last year.