2020 Environmental, Social and Governance Report Contents Introduction 3 Social 48 ESG commitments & progress 107 About this report 4 Human rights 50 Walmart’s corporate purpose 7 Retail opportunity 53 Environmental 108 Walmart’s omni-channel transformation 10 Product supply chains: Social sustainability 65 Social 114 Creating shared value 11 Providing safer, healthier food United Nations Sustainable & other products 75 Development Goals 119 A message from our Chief Executive Officer 12 Communities 82 Sustainability Accounting Standards Board 122 A message from our Chief Sustainability Officer 13 Global Reporting Initiative Content Index 125 Our approach to ESG: Generating value for stakeholders 14 Governance 84 Defining our ESG priorities, goals & targets 16 Endnotes 138 Board of Directors 85 Challenges to achieving aspirational goals, Corporate governance 88 commitments & targets 18 Management of ESG 92 Ethics & compliance 93 Environmental 21 Health & safety 94 Climate change 23 Training 95 Waste 30 Disaster response & resiliency 97 Natural capital 36 Corporate citizenship 99 Product supply chains: Sustainability overview 40 Stakeholder engagement 102 2 Introduction About this report 4 Walmart’s corporate purpose 7 Walmart’s omni-channel transformation 10 Creating shared value 11 A message from our Chief Executive Officer 12 A message from our Chief Sustainability Officer 13 Our approach to ESG: Generating value for stakeholders 14 Defining our ESG priorities, goals & targets 16 Challenges to achieving aspirational goals, commitments & targets 18 Introduction 3 Resources About this report Walmart has reported on a wide range of ESG eCommerce subsidiaries, businesses, platforms and programs and other business plans, initiatives topics since 2005. and/or marketplaces, unless otherwise noted. This and objectives. These statements are typically report also covers some activities of the Walmart accompanied by the words “aim,” “hope,” “believe,” Our reporting is guided by frameworks such as the Foundation, a separately incorporated Delaware “estimate,” “plan,” “aspire” or similar words. All such Global Reporting Initiative (GRI) Standards, the charitable private foundation. statements are intended to enjoy the protection United Nations (U.N.) Sustainable Development of the safe harbor for forward-looking statements Goals (SDGs), the Sustainability Accounting We did not seek, nor was there, external assurance within the meaning of Section 21E of the Securities Standards Board (SASB) and the Task Force on from third parties with respect to most of the Exchange Act of 1934, as amended. Our actual Climate-related Financial Disclosures (TCFD). We information in this report; exceptions are noted. future results, including the achievement of also participate in external programs such as CDP, our targets, goals or commitments, could differ a global environmental disclosure system. materially from our projected results as the result of changes in circumstances, assumptions not being This report covers Walmart’s activities for the fiscal Forward-looking realized, or other risks, uncertainties and factors. year ended January 31, 2020 (FY2020), unless statements Such risks, uncertainties and factors include the otherwise noted. Calendar years (CY) are marked risk factors discussed in Item 1A of our most recent as such or written in a four-digit format. “Walmart” This report contains certain forward-looking Annual Report on Form 10-K and subsequent means Walmart Inc., a Delaware corporation statements based on Walmart management’s current quarterly reports on Form 10-Q filed with the and its consolidated subsidiaries, but except for assumptions and expectations, including statements Securities and Exchange Commission (“SEC”), as financial data, otherwise excludes all acquired regarding our ESG targets, goals, commitments Introduction 4 well as, with respect to our ESG targets, goals, and commitments outlined in this report or elsewhere, the challenges and assumptions identified in this report under the heading Challenges to achieving aspirational goals, commitments & targets ✱ and other assumptions, risks, uncertainties and factors identified in this report. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this report. Walmart cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects. The forward-looking statements in this report are made as of the date of this report, unless otherwise indicated, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances. Note on materiality Materiality, as used in this report, and sometimes referenced as “ESG materiality,” and our materiality review process, is different than the definition used in the context of filings with the }“ SEC. Issues deemed material for purposes of this report and for purposes of determining our ESG Walmart has reported strategies may not be considered material for SEC reporting purposes. on a wide range of ESG topics since 2005 { Introduction 5 Walmart at a glance $524 billion $25 billion FY2020 total revenue (+1.9% vs. FY2019) operating cash flow ~37% +0.4% Walmart U.S. eCommerce AA adjusted EPS1 sales growth credit rating2 Introduction 6 Walmart’s corporate purpose Walmart’s purpose is to save people money and help Helping people them live better. We provide convenient access to around the world high-quality, affordable food and other essential save money and products and services to millions of people each week. In doing so, we aim to create shared value for live better our stakeholders. Our business Our values • Busy families: budget-sensitive and Respect for the individual time-sensitive Service to the customer • Omni-channel: stores and clubs combined seamlessly with eCommerce Strive for excellence • Segments: Walmart U.S., Sam’s Club and Act with integrity Walmart International (consisting of operations in Canada, China, India, Mexico, the United Kingdom and 21 other countries) • Retail categories: grocery (fresh, frozen, dry), consumables, pharmacy, optical and general merchandise • B2C services: including health and wellness and financial services • B2B services: including advertising and logistics Introduction 7 Stakeholders served ~11,500 stores >265 million in communities in >2.2 million customers served each week 27 countries associates globally ~31% institutional ownership representing >100,000 millions of individual investors suppliers Introduction 8 Our ecosystem as of the end of FY2020 * Walmart partnership or joint venture * * Minority interest Mobile Express First party Money Transfers® m Powered by ecom erce M * ar * s ke re tp to l S ac Powered by Allstate e M * * W RLD™ ple Money Transfers l o e Powered by a e m i s P s c e • o b c n c i e a i v a r r n s i • l e h F s T i p e c a H h t g e n w a a n e o i l s l t D i l l h t n o r e g a e s n y v • s d d A e n D s * te ig ic rt ita ist ai l g nm Lo en Home and t personal services * * * * Pharmacy * * * * * * * * * * Introduction 9 Walmart’s omni-channel transformation We save people money and help them live a better life. Delivering a seamless omni-channel experience in stores and online is key. To succeed, we are focused on making every day easier for busy families, developing our associates and transforming how we work to embrace digital technology and approaches, operating sustainably and with discipline, and making trust a competitive advantage. Walmart’s plan to win by accelerating innovation Make every Develop our associates, Operate Make trust People-led, day easier for sharpen our culture & sustainably a competitive tech-empowered busy families become digital & with discipline advantage company Price and value Our people and culture Strong, efficient growth Customer experience Mutually reinforcing business(es) • Values-based • Opportunity-oriented • Inclusive • Performance-driven Consistent operating Assortment Customer safety Agile, problem-solving culture discipline Digital • Product mindset • Data-driven decisions Focus on responsible use Experience • Consumer-grade Strategic capital allocation Customer values • Modern workspace of technology Key enablers Our Low cost Technology, data Sustainable sourcing Supply chain design Ecosystem thinking people structure and analytics and operations and innovation and partnerships Introduction 10 Creating shared value We believe we maximize value for shareholders by serving all stakeholders: delivering value to our customers, creating economic opportunity for associates and suppliers, strengthening local communities, and enhancing the environmental and social sustainability of our business and product supply chains. Customers Associates Communities Shareholders Suppliers Planet Convenient access Opportunity for good Resources to build Superior long-term Access to markets, Leadership on to affordable food jobs and advancement stronger, more returns through growth opportunities renewable energy, and other essential inclusive communities financial and ESG and ability to accelerate waste and sustainability products and services leadership supply chain sustainability >265M >2.2M ~11.5K ~31% >100K ‘A List’ customers served associates globally stores in communities institutional ownership suppliers placement from