Sustainability

The Power of Collaboration for Supply Chain Sustainability

Did you know that The Campbell Soup Company has installed a 60 acre, 10-megawatt (MW) solar panel project to run the largest soup plant in the world? The system comprises more than 24,000 solar panels mounted on mechanisms that track the sun each day from east to west and efficiently positions each panel at the optimum angle for maximum electricity generation. Since 2011, these panels have been producing about 15% of the total electricity for the company’s Napoleon, Ohio, manufacturing facility.

Campbell’s solar panel project is part of a much larger trend currently seen in companies of all shapes, sizes, and sectors. Companies are increasingly realizing that energy use and greenhouse gas (GHG) emissions management is good for business— and it doesn’t stop with products. Most of the biggest changes that companies can make are behind the scenes, from installing motion sensors on light fixtures to changing out boilers to retrofitting truck fleets. Although you can’t see the solar power in your favorite can of soup, Campbell’s commitments to sustainability benefit the triple bottom line – people, planet, profit – and mean better products for everyone.

Working with Campbell’s on sustainability initiatives helps achieve Walmart’s goal “to sell products that sustain people and the environment.” Currently, Walmart is collaborating with suppliers to collectively reduce 20 million metric tons of GHG from its supply chain by the end of 2015. To accomplish this, Walmart has partnered with CDP (formerly the Carbon Disclosure Project), an international, non-profit organization that provides the only global system for companies to manage and share vital environmental information. CDP works with market forces, including 767 institutional investors with assets of $92 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them by putting these insights at the heart of strategic business, investment and policy decisions.

As a leading member of CDP’s supply chain program, Walmart is learning how its suppliers are achieving real emissions reductions— and in doing so, driving thousands of companies to realize significant GHG emissions and bottom-line savings. Through CDP’s standardized disclosure platform, suppliers are accounting for their carbon footprint, setting strategies for climate resiliency, and reporting detailed energy efficiency improvements from the operational level down to the product level. Collaborative action works: CDP’s Global Supply Chain Report 2014, Collaborative Action on Climate Risk shows that companies that engage with two or more vendors, customers or other partners through CDP are more than twice as likely to both actively reduce GHG emissions and realize a financial return from their emissions reduction investments.

Campbell’s reports to CDP that “Walmart has challenged Campbell to be better stewards of carbon reduction.” Clothing maker HanesBrands agrees, stating that “executive level awareness and support for sustainability along with customer commitment, including the leadership of Walmart, are promoting continual improvements in cost reduction and initiatives leading to GHG reductions.” Even companies you might not have heard of are making real commitments to reduce their energy costs and associated GHG emissions. Utah-based Olson’s Greenhouse Gardens, which supplies poinsettias and other plants for Walmart’s garden centers, reports that "Walmart has driven our efforts to become sustainable and has made us aware of many areas where we can make a difference.  Walmart's interests in reducing their own carbon footprint have pushed our company to consider all initiatives in order to be a more responsible supplier."

Walmart’s leadership is also helping to pilot CDP’s new Action Exchange program. Participating suppliers are encouraged to invest in energy efficiency technologies by helping them identify the most cost-efficient solutions, thereby saving money for themselves, Walmart, and customers around the world. The challenge is enormous, but as Walmart explains in the CDP Global Supply Chain Report Launch 2014 video, “Addressing our carbon footprint is no small feat, but with aggressive targets to reduce emissions, the hard work and creativity of our great associates, and the infrastructure provided by CDP, it’s not an impossible one.”

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Community

Building Hygiene Kits and a Better Future

Shampoo, toothpaste, toothbrushes – many of us take these basic supplies for granted, but these hygiene items can truly save lives.

In the wake of disasters and crises, where people have often lost everything or fled with just their clothes on their backs, a simple bar of soap can help keep families safe from deadly diseases like cholera.

With the help of our partners, International Medical Corps works to send these essential hygiene kits to countries such as Nigeria, where fighting has forced thousands from their homes in the north, as well as other disaster-prone areas where populations have been displaced.

On June 2, Walmart volunteers attending the company’s annual shareholders meeting came together to assemble hygiene kits for families uprooted by conflict in Nigeria and to prepare for when the next major weather disaster may strike. Along with essentials such as toothpaste, combs and nail clippers, the kits also included solar lights, which provide a safe alternative to fire for visibility during nighttime cooking and studying. These lights also help reduce the risk of violence and sexual assault.

This isn’t the first time International Medical Corps and Walmart have worked together to help disaster-stricken communities across the globe. When Ebola threatened millions across West Africa, the Walmart Foundation was among the first to help, providing swift and flexible support to our emergency response efforts. When a 7.8 magnitude earthquake rocked Nepal in April 2015, the Walmart Foundation stepped up once again with a donation that helped us meet immediate needs in some of the most remote villages at the epicenter of the quake.

It was great to see these several hundred volunteers working together. But more than simply showing up, everyone was engaged and wanted to know more about what we were up to and how to give back. The teamwork, energy and enthusiasm were infectious. Everywhere we looked, people were helping others, collaborating, and building hygiene kits for people in need.

Thanks to Walmart, the Walmart Foundation, and the hundreds of associates who came out to pack the family hygiene kits, International Medical Corps will be able to send 1,500 kits to countries affected by disaster and crisis. One thousand kits will be sent to Nigeria, where International Medical Corps is providing health, nutrition, and hygiene services in the remote northern region of the country to families who continue to be displaced by ongoing conflict.

The rest of the kits will be prepositioned and ready to be deployed in the aftermath of the next crisis – wherever and whenever that may be.

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Sustainability

One ‘Perfect’ Solution for Saving Ugly Apples

As the world’s largest grocer, Walmart knows food waste is a big issue.

For more than a decade, we’ve been doing our part by changing the way we do business and working to create a zero waste future, especially where fresh produce is concerned. Last week, my colleague Frank Yiannas wrote about our dedication to reducing food waste in the U.S., outlining our progress and the ways we’re making a difference with innovative date labeling, as well as the Spuglies potato launch and our wonky veg program at Asda.

Now, we’re excited to announce that after months of discussion, a brand of apples from Washington state, called “I’m Perfect,” will make its debut in Walmart stores this week. One of the challenges growers have is that Mother Nature can throw a curveball such as a hailstorm, high winds or even a string of very hot sunny days, which can damage the exterior finish of fruits. While the texture and flavor remain perfect, the exterior damage usually renders these fruits unsellable in the fresh market because they fail to meet traditional grade standards. We’re proud to be the first retailer to bring these apples to you.

These “beautifully imperfect” apples will eventually be available in 12 varieties from Granny Smith to Red Delicious. For now, about 300 stores in Florida will offer the apples in five-pound bags.

From helping our growers find alternate uses for these less than gorgeous fruits, such as making apple juice or selling small apples for lunch kits, we are committed to identifying options to get less than perfect fruit to market and thereby reduce this type of food waste.

What excites me the most about the launch of these “I’m Perfect” apples is that it is a result of working with our suppliers to build the infrastructure and processes that create a new home for perfectly imperfect produce. Because ugly produce can occur unexpectedly in any growing season or crop, we want to have the systems in place to offer this type of produce whenever it may occur.

The “I’m Perfect” product is just one example of the ways we are aiming to reduce food waste, supporting growers, and providing value to our customers.

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Business

A New Angle on Our Fresh Produce Departments

As a store manager, nothing compares to the thrill of actually seeing or hearing a customer react to a change I’ve worked with a team of associates to bring to life. In fact, since the remodel of our store earlier this year, I’ve purposely spent more time in our fresh produce department, just to watch and listen.

My store was among the first of our remodeled locations to unveil Walmart’s new Fresh Angle approach, which places fresh, unpackaged vegetables front and center. When you walk into our store today, you're intentionally greeted with a farmer’s market vibe. We’ve lowered the profile of our fixtures so customers can see across the entire department. We’ve captured the field-to-store experience, and in a way that’s easier and more enjoyable for customers to navigate. But – while the positive feedback on the visual aspect of the program represents a victory in itself – that barely scratches the surface of what Fresh Angle is all about.

The fact is, “looking” fresh only goes so far. The key is making sure the fresh produce our customers buy in our stores continues to look and taste the same when they pull it out of the fridge three days later. That’s the real driving force behind this new approach, which has been rolled out at 180 stores to date and more than 3,000 by the end of the year.

In addition to improving the sight lines across our produce department, we’ve reconfigured our fixtures to look fuller while holding fewer products. At the same time, we’ve maintained our broad assortment.

Why fewer products? Pressure and time go a long way in determining the freshness of an item. By reducing the depth of our produce fixtures, our avocados are no longer stacked four or five deep. Same goes for tomatoes and so many other popular fresh items. By reducing the depth of our fixtures, we’ve reduced the volume of product we’re holding on the sales floor at any given time. And, given the clock on freshness begins ticking the moment fresh fruit and vegetables are picked, we’re essentially passing increased freshness on to our customers – and working even harder to reduce food waste.

It was eye-opening how a department could look so abundant with less. It’s helping us reduce throwaways and operate more efficiently across the board. We’ve also received positive customer feedback at stores where Fresh Angle has been implemented.

Customers want fresher products so they can enjoy them longer. With Fresh Angle, we’ve developed a vehicle to deliver on those expectations. The impact has been immediate – and it’s growing. It just makes sense.

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Heritage

Remembering Don Soderquist, Retired Walmart COO

Walmart’s culture – defined by our core values of service, respect and excellence – has always been key to our success.

That culture lost a very significant champion this week, as Don Soderquist, a key member of our company’s leadership team until his retirement in 2002, passed away.

Don joined Walmart in 1980 as executive vice president of administration and logistics and was a driving force behind our company’s growth. In fact, he led us through a period of significant progress from 1988 to 1999 when he served as vice chairman and chief operating officer. During his tenure, the company’s revenue increased from $1 billion to more than $200 billion.

Don epitomized the term servant leader. He was always thinking of others, provided great feedback and was encouraging to so many people. He had a deep passion for integrity, and it was Don who drafted our original core values. Don became known as the “Keeper of the Culture” after our founder, Sam Walton, passed away because he not only helped define our values – he lived out our culture and spoke passionately about it year after year. He truly believed that ordinary people could do extraordinary things when they worked together, and he taught the beliefs and values that supported that conviction for the rest of his life. Even after his retirement, he invested his time and energy into many associates who still work for the company.

After retirement, he established The Soderquist Center for Leadership and Ethics in Northwest Arkansas to provide values-focused development training to future generations of leaders. In 2005, he wrote the book “The Walmart Way” to teach others how to apply the lessons that made Walmart successful to their own lives and careers. He was also involved in numerous charitable organizations and served on several corporate boards.

Don touched so many lives here, and he will be dearly missed by his family and all of us at Walmart.

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