Sustainability continues to make Walmart a better company by reducing waste, lowering costs, driving innovation, increasing productivity and helping us fulfill our mission of saving people money so they can live better. The credit for our progress goes to leaders in our business and more than 2 million associates around the world. It goes to our suppliers who have helped us make a difference that extends well beyond what we could do alone. I also want to thank the non-governmental organizations with whom we have worked closely.
One important point that we hope people take away from this progress update is that we have listened closely to the feedback on earlier reports and taken that into thoughtful consideration. We continue to ensure our definition of sustainability includes both environmental and social commitments around the globe. We have worked to make our metrics clearer and to provide greater transparency into our data.
At Walmart, we are never satisfied because our founder Sam Walton was never satisfied. We need to constantly ask ourselves: “Are we truly leading? Are we taking full advantage of our opportunity and capacity to make a difference?” This is why our Sustainability 360 approach is so important. By working with our customers, associates, suppliers and communities, we are tapping the full potential of our company and its size and reach. In this report, you will see the results of this comprehensive approach and why we are so excited about the future of sustainability at Walmart.
We are pleased with the progress on the goals we laid out in Beijing. For example, we announced that by 2012 we would require all direct import suppliers to source 95 percent of their production from factories that receive one of our two highest audit ratings for social and environmental practices. Today, 93 percent of our direct sourcing merchandise is produced in top-rated factories. We also announced a goal to engage one million farmers in China through our Direct Farm program. At the end of last year, Walmart China had built 28 direct farm platforms in 14 provinces and municipalities with 280,000 participating farmers, and Walmart de México and Bharti Walmart in India have established similar programs. In the years ahead, we will build even deeper relationships with the suppliers and communities that produce what we sell.
We have made a difference by carrying products that save customers money through lower utility bills. By selling more than 350 million CFLs in the U.S., we will save our customers $13 billion over the life of the bulbs. We have also continued to make great strides with the efficiency of our own operations. In 2009, we achieved our global goal to design and open a viable store prototype in every market that is 25 to 30 percent more efficient and will produce up to 30 percent fewer GHG emissions than the 2005 baseline.
As proud as we are of what we have achieved on the environment, we are just as excited about how we are building on our momentum. We recently announced an aggressive goal to eliminate 20 million metric tons of GHGs from our global supply chain by the end of 2015. This represents one and a half times our anticipated cumulative carbon footprint growth over the next five years and is equal to what 3.8 million cars emit in GHGs during one year. There are many opportunities throughout the product life cycle – from the sourcing of the raw materials, to the manufacturing of a product, to its transportation, and to how customers use it, dispose of it and recycle it.
Last July, we announced the development of a Sustainable Product Index to give manufacturers, merchants and customers the tools to make more sustainable decisions. The Sustainability Consortium, consisting of leaders from universities, suppliers, NGOs and retailers, will develop the science behind the Index and steps for moving forward. We are pleased that our suppliers are in the process of answering our Supplier Sustainability Assessment – a critical first step for the Index. The Index is driving efficiency and innovative product improvements, which improves both business and environmental results. We are certain it’s doing the same for our suppliers and even other retailers who are helping in this effort.
Associate opportunity is a major priority for Walmart. We want to make sure our associates – whether they’ve been with us for one year or more than 20 years – have the opportunity to acquire the tools and training they need to grow and succeed in their careers. And we continue to work to build a more inclusive workforce.
Our associates and entire company take pride in the role we play in local communities, and the Walmart Foundation has played an even bigger role over the past year. Last fiscal year, we donated $467 million to nonprofits in the United States, which is an $89 million increase over the previous year. And in our international markets, Walmart gave $45 million in cash and in-kind gifts.
In these efforts, we have put a special focus on helping alleviate hunger. We donated more than 127 million pounds of food in the United States, and in Mexico we helped feed more than 26,500 children suffering from malnutrition and supported projects in 140 communities. We’re proud of the $1 million grant that the Walmart Foundation made to CARE last year. It will help empower impoverished young women through education, job-training and entrepreneurial programs where our efforts will initially focus on local communities in Peru, Bangladesh and India.
When we look at the worl d today and the trends that will shape the world in the future, we see that sustainability is no doubt one of Walmart’s greatest opportunities to make a difference for our business, our communities, our customers and the planet. That’s why I hope you will see in this report that we did in fact “broaden and accelerate” our commitment to sustainability over the past year. I hope you will take away a real sense of our company’s long-term commitment to sustainability and my strong personal commitment as well.
