Sustainability Strategy

Prepared & Presented by Group 6 29111363 WiraniaSwasty 29112120 Meilina Marsinta M. 29112001 Dedi Witardi

ABOUT WALMART
1962, Sam Walton opened the 1st store in Rogers, Arkansas
1985, reached 882 stores, 104,000 associates, $8.4 B sales

Mission: Saving people money so they can live better.

Global Issues Impact to the Walmart Sustainibilty strategy

Environmental sustainibilty has become an essential ingredients to doing business responisibilty and succesfull.

Goal of Walmart is save their customer money and help ensure better world for generations to come. The aspirational : To be supplied 100% by renewable energy Create zero waste Sell product that sustain people and environment

1. Please explain what are the key issues faced by walmart?

1. Seafood Fishing was an inefficients industry in term of its fuel use and the boats were forced to venture further out in search of declining wild fish stocks Some studies had shown that farm raised fish provided lesser health benefits in terms of nutrient Increasing health risk in the form of harmful chemicals and antibiotics use to fight disease in fish farming environment Contuinity if supply was the single greatest long term issues facing the seafood network.

1. Please explain what are the key issues faced by walmart?

2. Electronics One of the first quick wins in the electronics netwrok was related to the issue of eliminating hazardous chemical from production. 80% of e waste collected for recycling was being exported to the developing countries where the toxic component led to pollution levels that were hundreds of thousand of times higher than those allowed in develope countrie, as well as tragic, large scale of human health effects.

3. Textile Customer want the high quality of the fabrics Conventional cotton crops received more than 25% of all chemical insecticides used and more than 10 % of chemical pestisides in agriculture cause cancer, birth defects, and nervous system damage

2.

How Walmart keep environmental improvement tightly coupled with business value and profitability for the strategy succes
By Operational Changes : Focusing on three of the company primary focus area (seafood, electronics, and textile) and their effect on the company opeartions. Supplier relationship and results

2.

What is the sustainiblity strategy Conducted by Walmart?

3 PRIMARY AREAS
That would set environmental goals for reducing impact on the environment:

ENERGY Were working to become supplied 100% by renewable energy by examining every aspect of our carbon footprint.

WASTE To create zero waste, were rethinking processes, using smarter packaging, recycling and reducing plastic bag use.

PRODUCTS Were committed to making our products better for the planet and more affordable for customers.

http://corporate.walmart.com/global-responsibility/environmental-sustainability

14 SUSTAINABLE VALUE NETWORKS

Renewable Energy
Global greenhouse gas strategy Alternative fuels Energy, design construction & maintenance Global logistics

Zero Waste
Operations & internal procurement Packaging

Sustainability Products
Textiles, electronics. Food & Ag, Forest & paper, Chemical intensive products, jewelry, seafood, China

2.

What is the sustainiblity strategy Conducted by Walmart?

Worked with Blue Skye, Conversation International the Environment Defense Fund, Evaluate its environmental impact

license to grow: differentiate itself from competitors, cut cost through an environmental strategy
Identify which products and processes created greatest environmental impacts:

Greenhouse gas emissions, air water pollution, water use, and land use.

pollution,

WALMARTS ENVIRONMENTAL IMPACTS ASSESSMENT

OVERALL IMPACT
4 4 IMPACT BY PRODUCT CATEGORY 5 5 5 4 4 4 2 3 64 2 2
textiles lawan/ Gareden paper supplies Health & Beauty Home Furnishing other cemicals Electronics/ Appliances Pharmacy Automotive Houseware/ hardware

50 42

Food

Non-food merchandise

Capital

Operations

Root Cause Analysis

Long supply chain Scale of operation

fuel inefficiency

The biggest private user of electricity in US

Emitted more than 19.1 million metric tons of CO2 annually

huge environmental impacts

Fishery

THE 4 DISCIPLINES OF EXECUTION

ACHIEVING YOUR WILDLY IMPORTANT GOALS

By: Sean Covey, Chris McChesney and Jim Huling

DISCIPLINE 1: FOCUS ON WILDLY IMPORTANT GOALS

Focus on the environmental issues as a main goal of company This care of environmental issue could be long term competitve advantage to the company Exhibit 5
Sustainable Business practicess

Todays Business Practices

Quick wins < 1 yr

Actions that make business sense based on available technologies, product, and process

Innovation projects 1-3 yr

Opportunities that make sense based on emerging technology, process, and innovation

Ibig game change ongoing

Changing the rules of the game to tilt the palying field to favor sustainiblr practices in areas where we can lead, so that the market works for sustainibility not againts it

Fossil fuel dependence Waste in many form Products that dont account for full cost to society Unintended negative consequences for our customer and business

Use 100% renewable energy Product zero waste Sell products taht sustain our resources and environment A win for society and a win for business

DISCIPLINE 2: LEVERAGE YOUR LEAD MEASURES

Measuring and communicating its ideas about sustainability to its suppliers, associates, customers, and the public.
Supplier thought Leader

Customer Action Supplier action Community Action

International

NGO thought Leader

Sams Club

Government thought Leader

Wal-Mart Academic thought Leader

Supplier thought Leader

DISCIPLINE 3: KEEP A COMPELLING SCOREBOARD

For example Walmart can use Balanced Score card to keep focus on the environmental strategy

DISCIPLINE 4: CREATE A CADENCE OF ACCOUNTABILITY

Accountability means making personal commitments to the entire team to move the scores forward and then following through in a disciplined way.

THANK YOU