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Sustainability at Wal-Mart

Sustainability at Wal-Mart. Environmental Business Council of New England April 20, 2006 Andrew Ruben VP Company Strategy and Sustainability Wal-Mart Stores, Inc. Private Fleet. FY07 Test. Auxiliary Power Units (APUs). 9. Zero Waste. Sandwich Bale. Kid Connection Private Brand Toy.

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Sustainability at Wal-Mart

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  1. Sustainability at Wal-Mart Environmental Business Council of New EnglandApril 20, 2006Andrew RubenVP Company Strategy and SustainabilityWal-Mart Stores, Inc. April 2006 CIO Summit – Wal-Mart Confidential

  2. Private Fleet FY07 Test Auxiliary Power Units (APUs) 9

  3. April 2006 CIO Summit – Wal-Mart Confidential

  4. Zero Waste Sandwich Bale Kid Connection Private Brand Toy April 2006 CIO Summit – Wal-Mart Confidential

  5. ALL MightyRetail/CPG Partnership ANNUAL IMPLICATIONS OF CATEGORY SHIFT • Gallons of Water Saved • Gallons of Diesel Saved • Reduced # of Trucks • Plastic Resin Reduction • Reduced # of out of Stocks • Reduction in Labor Dollars April 2006 CIO Summit – Wal-Mart Confidential

  6. April 2006 CIO Summit – Wal-Mart Confidential

  7. Access to Organic Cotton for ALLFall 2006 Customer + Prevent use of of chemicals + Eliminate need for H2O Supplier Society + Additional value for customer + Meaningful work for Associates Farmer April 2006 CIO Summit – Wal-Mart Confidential

  8. April 2006 CIO Summit – Wal-Mart Confidential

  9. April 2006 CIO Summit – Wal-Mart Confidential

  10. To be supplied 100% by renewable energy • Maximize energy efficiency • Reduce oil dependence • Move toward clean & renewable To create zero waste • Reduce, reuse, recycle • Eliminate non-renewable materials To sell products that sustain our resources & environment • Provide healthy food & products • Promote clean and efficient supply chain • Enhance natural resources April 2006 CIO Summit – Wal-Mart Confidential

  11. To be supplied 100% by renewable energy • Existing stores 20% more efficient in 7 years • New stores 30% more efficient in 4 years • Fleet 25% more efficient in 3 years, double in 10 years To create zero waste • 25% reduction in solid waste in 3 years • All private brand packaging improved in 2 years (right sized, reusable materials) To sell products that sustain our resources & environment • 20% supply base aligned in 3 years • Preference given to aligned suppliers in 2 years • Design and support Green Company in China April 2006 CIO Summit – Wal-Mart Confidential

  12. Today there are 6.3 billion people. In 2025 there will be 8 billion people. What will it take to provide for everyone? April 2006 CIO Summit – Wal-Mart Confidential

  13. Global TradeIncreasing at an Increasing Rate $ Trillions of Trade "When a Brazilian brews her morning coffee today, she is likely to use electricity from a power plant in Uruguay that runs on natural gas from Argentina provided by a Chilean company. She drives to work in a Ford fueled with Mexican gasoline, and her Canadian-owned factory is powered by a natural gas pipeline from Bolivia." - Mack MacLarty, Former White House official and CSIS Senior Advisor CAGR 4.8% CAGR 3.5% CAGR 3.2% Source: World Trade Organization, 2004 Note: all data in 2003 dollars April 2006 CIO Summit – Wal-Mart Confidential

  14. “Of the world's 100 largest economic entities, 42 are now corporations, not countries” - CSIS, 2004 April 2006 CIO Summit – Wal-Mart Confidential

  15. “We’ve been dealing with jobs, healthcare, community involvement, product sourcing, diversity and environment from a defensive posture…” “…when in fact they represent gateways for Wal-Mart in becoming the most competitive and innovative company in the world.” - Lee Scott, 21st Century Leadership, Oct 2005 April 2006 CIO Summit – Wal-Mart Confidential

  16. + EDLC • Awareness of ‘unintended consequences’ • Potential to add more value for customers • Democratization of sustainability April 2006 CIO Summit – Wal-Mart Confidential

  17. Sustainability Requires a New ‘Lens’ “Problems cannot be solved at the same level of awareness that created them.” — Albert Einstein “I have yet to see any problem, however complicated, which, when you looked at it in the right way, did not become still more complicated.” — Poul William Anderson April 2006 CIO Summit – Wal-Mart Confidential

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