Wal-Mart's Sustainability Initiatives
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Case Details:
Case Code : BECG074
Case Length : 17 Pages
Period : 2005-2007
Organization : Wal-Mart Stores Inc.
Pub Date : 2007
Teaching Note :Not Available Countries : USA
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Excerpts
The Green Strategy
How it all Started
In February 2004, during a private trip to Coco Island, a lush Costa Rican
national park, Peter Seligmann (Seligmann), co-founder and CEO of Conservation
International (CI), impressed upon Samuel Robson Walton (Rob Walton), the eldest
son of Sam Walton and chairman of Wal-Mart that Wal-Mart could have great
influence on environment protection by influencing its vast customer base. The
company could do much more than whatever the family foundation was contributing
toward environment protection. Earlier Rob Walton's family foundation, which had
assets of US$ 1 billion, had donated US$ 21 million to CI for ocean-protection
programs, and eventually Rob Walton had also joined the group's board...
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Unveiling the Sustainability Roadmap
In October 2005, Wal-Mart unveiled its sustainability initiatives which were
aimed at making greater use of renewable sources of energy and reducing
waste and thereby improving the energy efficiency at its stores. The company
outlined three ambitious goals as a part of the new strategy –to run the
stores totally by renewable energy, to create zero-waste, and to sell
sustainable products...
Sustainable Value Networks
Wal-Mart started seeking ideas from its employees, consultants, NGOs, and
suppliers on its sustainability initiatives. It also invited experts from
the World Wildlife Federation , Natural Resources Defense Council ,
Environmental Defense, and Greenpeace for discussions and suggestions on its
green initiatives...
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Experimental Stores
In 2005, Wal-Mart set up two experimental stores at McKinney, Texas, and
Aurora, Colorado in the US. The company involved experts in engineering,
technology, architecture, and landscape designing to build its
environmentally sustainable stores. The stores were to conduct
experiments with natural resource conservation and sustainable design
technologies, which would be replicated in the company's other stores if
they were successful. Wal-Mart saw the experimental stores as the first
step in implementing its sustainability initiatives. The materials
needed to construct the stores were kept at a minimum level... |
Operational / Supplier Initiatives
Experts felt that Wal-Mart had a huge opportunity to make a difference in the
sustainability area by revamping its supply chain. For example, it targeted to
reduce 5% packaging in all its products by 2013 over 2006 levels. It was
estimated that the initiative could save US$ 11 billion in the company's global
supply chain. From February 1, 2008, the company was also to begin using a
packaging scorecard to measure and evaluate its entire supply chain. The
scorecard had attributes called the '7 R's of Packaging'– Remove, Reduce,
Reuse, Recycle, Renew, Revenue, and Read. Using the scorecard, each supplier was
to be evaluated relative to other suppliers...
Excerpts Contd...>>
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