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2018 Global Responsibility Report

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2018 Global Responsibility Report 2018 GLOBAL RESPONSIBILITY REPORT 51 SUSTAINABILITY 1 5 Enhancing sustainability in our operations WELCOME 52 Enhancing sustainability in retail operations and value chains 2 Our business 53 Reducing greenhouse gas emissions 3 A message from our CEO 71 Reducing waste 4 A message from our CSO 83 Advancing water and land stewardship 5 Performance highlights 95 Enhancing sustainability in our value chains 7 Shared value: Our approach to ESG 109 Promoting responsible sourcing 8 Defining our ESG priorities, commitments and targets 126 Reducing environmental impact 10 Stakeholder engagement 144 Providing access to affordable, safer, healthier food and products 16 Our priorities 161 Supporting measurement and transparency 8 1 OPPORTUNITY 169 COMMUNITY 0 2 Providing great jobs and inclusive advancement in retail 170 Relieving hunger 41 Growing a local and inclusive supply base 177 Providing disaster relief 184 Supporting communities 192 Supporting veterans and military families 197 GOVERNANCE 197 Walmart Board 200 How we operate around the world ABOUT THIS REPORT 202 Ethics and compliance This report covers the global responsibility 211 Cybersecurity and data privacy activities of Walmart and the Walmart 213 Pub lic policy and political engagement Foundation, and information reported from grantees, suppliers and others, for fiscal year 2018, which ran from February 1, 2017, 216 ESG COMMITMENTS AND PROGRESS to January 31, 2018. For readers’ convenience, we refer to this fiscal time period as FY2018 throughout the report, unless otherwise noted. 223 GLOBAL REPORTING INDEX Grant funds reported as awarded or committed may not have been disbursed in FY2018, and full payment of those amounts For more information regarding forward-looking may be subject to receipt of satisfactory statements, please refer to page 230. impact reports. Walmart Inc. | 2018 Global Responsibility Report 1 Our business OUR PURPOSE IS TO SAVE PEOPLE MONEY SO THEY CAN LIVE BETTER Walmart aims to provide safe, affordable food and other products to people around the world. Doing so in a way that enhances economic opportunity, environmental and social sustainability, and local communities creates value for our business and for society. Nearly 270 million customers served every week with convenient access to affordable food, health $500+ billion and wellness products, and $ total revenue general merchandise More than 11,700 stores under 65 banners in 28 countries and eCommerce websites OUR VALUES OUR PLAN TO WIN • Respect for the individual • Make every day easier for busy families • Service to the customer • Change how we work • Strive for excellence • Operate with discipline • Act with integrity • Be the most trusted retailer To learn more, please read our full Annual Report and Form 10-K by visiting stock.walmart.com. Walmart Inc. | 2018 Global Responsibility Report 2 A message from our Chief Executive Officer Since Sam Walton founded our company over 55 years ago, Walmart has helped hundreds of millions of customers save money and live better—providing them with convenient access to affordable items. His vision and passion transformed retail. Today, we’re leading a new transformation—one that I’m encouraged by the progress we’ve already made. combines our stores and clubs with eCommerce to make We’ve invested in higher starting wages and training every day easier for busy families. At the same time, we for Walmart associates. Earlier this year we also know our transformation is about more than the shopping expanded maternity and parental leave for full-time experience. Technology has created a new level of hourly and salaried associates in the U.S. We were the transparency and, increasingly, customers want to do first retailer to set science-based targets for greenhouse business with companies they trust. gas emissions reduction, including launching Project GigatonTM, which is an initiative to work with suppliers to To become the most trusted company in a way that remove 1 billion metric tons, a gigaton, of emissions from creates value for business and society, we not only have our supply chain by 2030. We’re also collaborating with to transform our day-to-day operations, we have to suppliers and others, including nonprofit organizations, work alongside our suppliers, NGOs, thought-leaders to help combat forced labor in the global supply chain. and elected officials to change entire systems. We want We’re proud of this progress, but we know we can do to lead on the environmental, social and governance more to create shared value and earn the trust of all issues that matter most to our customers, associates, our stakeholders. shareholders and communities. In this report we share details about our progress and Our journey began over 10 years ago, when we set our aspirations for addressing the issues most important ambitious goals to be powered by 100 percent renewable to society. We look forward to your feedback and energy, to create zero waste and to sell products that collaboration as we work together to help the people we sustain people and the environment. Since then, we’ve serve to live better today and for generations to come. deepened and broadened our aspirations to focus even more on our planet and on people—our associates who work at Walmart and the people who make the products we sell. In 2016, we set our long-term aspirations in three broad Doug McMillon areas: creating economic opportunity for our associates President and Chief Executive Officer and the people in our supply chain, further enhancing Walmart Inc. the sustainability of our operations and the supply chain, and strengthening the communities where we operate. Walmart Inc. | 2018 Global Responsibility Report 3 A message from our Chief Sustainability Officer Business exists to serve society. For Walmart, this is true in many ways. We’re providing customers with convenient access to safe, affordable food and other products, creating job opportunities for our associates; helping suppliers grow their businesses that, in turn, employ others; and generating tax dollars that help support community life. The most successful businesses do all these things but go one step further—they aim to strengthen the systems on which they rely, such as retail employment or food production. Why? Not only to build customer trust and maintain license to operate, but also to enhance supply security, manage evolution of cost structure, generate And when it comes to human rights in supply chains, new revenue streams and attract talent. Strengthening we aim not only to source responsibly but also to work societal systems is not only the responsible thing to with others to rewire chains for social sustainability—for do—it maximizes business value. example, improving Bangladesh factory safety through our work with the Alliance, or fighting modern slavery in Today, as a society, we face significant challenges. While seafood through our work with the Seafood Task Force global prosperity has increased, so has inequality. Studies and Leadership Group for Responsible Recruitment. point to a growing skills gap that, if unaddressed, will prevent people from advancing economically. Meanwhile, And with respect to climate change, we aim not only growing consumption—compounded by increasing to lower our own emissions, but to galvanize collective population—puts more pressure on the climate, natural action across the retail supply chain to bend the curve resources and waste management. on emissions—removing a gigaton through initiatives in energy, waste, agriculture, packaging, natural capital That’s why our approach to environmental, social and and product design. governance (ESG) issues goes beyond minimizing our own footprint or mitigating risk. We take a more assertive In this report, you will find a summary of our aspirations, approach: sparking collective action to transform the programs and commitments in our priority areas of retail sector for environmental, social and economic increasing economic opportunity, enhancing sustainability sustainability. of supply chains and strengthening communities. We welcome your feedback and collective action to help So in the case of retail associates, for example, we accelerate progress. aim not only to help people enter the workforce with competitive wages, but also to help them build skills needed to advance, whether at Walmart or beyond. We want to build a skills-based employment system with ladders of opportunity, at scale, that include everyone— in numbers representative of our communities. Kathleen McLaughlin Chief Sustainability Officer, Walmart Inc. and President, Walmart Foundation Walmart Inc. | 2018 Global Responsibility Report 4 Performance highlights Opportunity We aim to increase economic opportunity in retail and retail supply chains Providing great jobs and inclusive advancement in retail Bonuses for hourly Walmart U.S. associates totaled 230,000+ associates promoted $625 million in Walmart U.S. in FY2018 Fostering inclusion Growing a local and inclusive supply base Women make up to Walmart and the Walmart Foundation funded the 30 percent training of more than of corporate officers & 1 million 55 percent small- and medium-scale of our total U.S. farmers, of whom more workforce than half are women GLOBAL GIVING $1.5 billion+ in-kind and in cash giving Walmart Inc. | 2018 Global Responsibility Report 5 Sustainability We aim to enhance the sustainability of operations and value chains Reducing energy Eliminating Reducing intensity and emissions waste in our environmental
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