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. 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.

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

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

ENERGY

We’re working to become supplied

100% by renewable energy by

examining every aspect of our carbon

footprint.  

WASTE

To create zero waste, we’re

rethinking processes, using

smarter packaging, recycling and

reducing plastic bag use.

PRODUCTS

We’re committed to making our products better for the planet and more affordable

for customers.  

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

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

14 SUSTAINABLE VALUE NETWORKS

Renewable EnergyGlobal greenhouse gas strategyAlternative fuelsEnergy, design construction & maintenanceGlobal logistics

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

Zero WasteOperations & internal procurementPackaging

• 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 pollution, water pollution, water use, and land use.

2. What is the sustainiblity strategy Conducted by Walmart?

WALMART’S ENVIRONMENTAL IMPACTS ASSESSMENT

50

42

4 4

OVERALL IMPACT

Food Non-food merchandiseCapital Operations

5 55

44

4

23

2264

Impact by Product Category

textiles cemicalslawan/ Gareden Electronics/ Appliancespaper supplies PharmacyHealth & Beauty AutomotiveHome Furnishing Houseware/ hardwareother

huge environmental

impacts

…

Long supply chain Scale of operation

Root Cause Analysis

Emitted more than 19.1 million metric tons of CO2 annually

The biggest private user of electricity in US

…

…

fuel inefficiency

Fishery

…

…

THE 4 DISCIPLINES OF EXECUTIONACHIEVING 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

Today’s Business Practices

Fossil fuel dependence Waste in many form Products that dont

account for full cost to society

Unintended negative consequences for our customer and business

Quick wins < 1 yr

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

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

Innovation projects 1-3 yr

Ibig game changeongoing

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

Sustainable Business practicess

• Use 100% renewable energy

• Product zero waste• Sell products taht

sustain our resources and environment

• A win for society and a win for business

Sustainibility pathways

Using competitive forces to create a reca to the top

DISCIPLINE 2: LEVERAGE YOUR LEAD MEASURESMeasuring and communicating its ideas about sustainability to its suppliers, associates, customers, and the public.

Supplier thought Leader

NGO thought Leader

Government thought Leader

Supplier thought Leader

Academic thought Leader

Wal-Mart

Sam’s Club

InternationalCustomer

ActionSupplier actionCommunity

Action

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…