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2013 Global Responsibility Report
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About this report
The scope and boundaries o the 2013 Walmart Global Responsibility Report encompass
our corporate social, environmental and company responsibility eorts, while also providing
snapshots into each o our individual markets around the globe. The report reviews our
progress and perormance during scal year 2013, refects areas where weve achieved
tremendous positive results and species areas o opportunity we must continue to ocus
on. The reporting timeline covers the period o Feb. 1, 2012 Jan. 31, 2013 and builds on our
last report, issued April 2012. Unless otherwise noted, all currency is in U.S. dollars.
Contents
Company responsibility |70
2 Message rom Mike Duke
6 How Walmart made a dierence in 2012
18 Progress at-a-glance
Social responsibility
22 Ethical sourcing
40 Global audit results
42 Global womenseconomic empowerment
44 Hunger relie
46 Healthier ood
48 Giving
49 Disaster relie
Environmental responsibility
52 Sustainability 360
53 Sustainable Value Networks
54 Renewable energy
56 Greenhouse gas (GHG)
58 Energy eciency and buildings
59 Energy: Fleet
60 Waste
62 Sustainability Index
64 Sustainable agriculture
68 Supply chain GHG
Company responsibility72 Stakeholder engagement
74 Governance
75 Public policy
76 Ethics and integrity
78 Compliance
82 Saety
84 Diversity
87 Talent development
89 Recruiting
90 Benefts and compensation92 Associate engagement
93 My Sustainability Plan
Local responsibility
96 Our company
98 Arica
102 Argentina
106 Brazil
110 Canada
114 Central America
118 Chile
122 China
126 India
130 Japan
134 Mexico
138 United Kingdom142 U.S. Walmart
148 U.S. Sams Club
Our progress
152 2012 commitments and progress
162 Global Reporting Initiatiave index
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Local responsibility | 94
Social responsibility | 20
Environmental responsibility | 50
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2 | Walmart 2013 Global Responsibility Report
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Message rom Mike Duke
Michael T. Duke, President and Chie Executive Ofcer
Together, we are doing big things. I am proud to share our
2013 Global Responsibility Report with you because o what
we accomplished together this year and Im even more
excited to share where we are going.
We were reminded again this year that Walmart has a
responsibility to lead. We serve the emerging middle class
around the world. Our customers are concerned with kitchen
table issues, like whether they can aord to put healthier
ood on the table whether they can save a little money or
a rainy day whether their kids can get a good education.
Walmart has aresponsibilityto lead
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As we move ahead, you can also expect us
to ocus more on the areas with the biggest
potential to make the biggest dierence. An
example is our pledge to signicantly increase
the amount we source rom women-owned
businesses including $20 billion o
products and services or the U.S. alone. This
is both where Walmart can have the biggest
impact through our purchase orders and
where we can have a huge impact on society.
Women hire other women, mentor other
women and create better communities
around them, while keeping Walmart more
connected to our customers.
We will also continue to strengthen our
leadership on an industry-wide level. Ater
all, what Walmart can do alone is signicant,
but what we can do together is even better.
For example, our pledge to reduce salt,sugars and ats in the ood we sell is driving
changes at our suppliers and across the
ood industry. In October, a grant rom the
Walmart Foundation was given to help
open an ofce o The Sustainability
Consortium in China that will work at scale
on the sustainability o products made
in Asia which, by the way, will help
our competitors too. Were also making
important commitments around renewable
energy that will have ripple eects across
the green power industry.
Continued transparency
We are grateul to the hundreds, even
thousands, o community groups, nonprots,
universities, businesses and NGOs that are
partnering with us on all o these eorts.
Building these relationships will allow us to
make our eorts sustainable and scalable,
and hopeully to set a good example or
others as well.
In these relationships and in this report,
Walmart is committed to being open,
transparent and sincere when we getthings right and also when we get things
wrong. We recognize that some might still
have concerns about our company, and we
try our best to address those concerns in
these pages. I want to spend a moment on
three issues that may be on your mind.
The rst is around our associates. We are
proud o the jobs and opportunities we oer.
Our U.S. turnover rate is lower than theindustry average; our job satisaction scores
are higher than the industry average, and
more than 300,000 associates have worked
with us or more than 10 years. Thats in part
because at Walmart, you can climb the
ladder rom a stocker or a cashier to a
department manager, a store manager and
beyond. Especially in todays economy, that
is a rare and important opportunity.
The second is the terrible tragedy in aBangladesh garment actory last all. Like
you, we were saddened and disturbed by
the senseless loss o lie, and we renewed
our dedication to being part o the solution.
Over the past ew years, we have taken
More than
300,000associates have
worked or
10+years
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Walmart 2013 Global Responsibility Report | 5
strong steps to ensure a more responsible
supply chain through training, ongoing
audits, and high standards or suppliers.
And we have instituted a zero-tolerance
policy: we will terminate our relationship
with any supplier engaged in unauthorized
subcontracting. This is a tough but critical
challenge or us and others and we
recognize that the immense complexity
o the supply chain requires us to partnerwith peers and stakeholders to ind
sustainable solutions.
The nal area is compliance with the Foreign
Corrupt Practices Act. We are committed
to having a strong and eective global
anticorruption program everywhere we
operate and to taking appropriate action or
any instance o noncompliance at any level o
the company. We are taking a number o
specic, concrete actions with respect to our
processes, procedures and people to build a
world-class compliance program in each o
our markets. We are communicating regularly
and clearly that it is our irm expectation
that every Walmart associate will act with
integrity at all times.
A stronger business
Leading on big issues is not easy. But the
rewards are greater than we thoughtpossible when we set out on this journey.
We do have a responsibility to lead, and
weve ound that our responsibility is also
our opportunity.
I hope youll see one o Walmarts core
convictions come to lie in these pages
that whats good or society and good or
business can be one and the same. More
and more, were nding ways to make
them mutually reinorcing.
Whether its oering customers more
relevant products rom women-owned
businesses, or supporting more domesticmanuacturing, or making the oods we sell
healthier, or cutting our costs by running
our truck eet more efciently, we believe
that our work on these issues makes us a
stronger business.
It drives our bottom line even more than
we had expected, but not only that it brings
us closer to our customers. It helps us orm
strong partnerships with governments and
communities in the countries where we
work. And it reinorces our Walmart culture.
Our associates take pride in knowing they
are helping make a dierence in the world.
I thank you or your time and interest in
learning about Walmarts work over the
past year and look orward to hearing your
thoughts on how we can do even better.
Sincerely,
Mike Duke
President and Chie Executive Ofcer
Wal-Mart Stores, Inc.
We arebuilding aworld-classcomplianceprogramto producea more
responsiblesupply chain.
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6 | Walmart 2013 Global Responsibility Report
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Thisisadetailedexaminationofourcommitments,progressandchallengesintheareasofsocial,environmentalandcompany
responsibility.Werecommittedtotransparencyandinviteyoutospendtimewithourreport.Butourcustomersconstantlytell
usthattheyrepressedfortime.So,withthatinmind,thisisasamplingofthetopwaysWalmartmadeadierencein2012.
HowWalmartmadeadierencein2012
Giving
Walmart and theWalmart Foundation
surpassed $1 billionin giving worldwide.
Renewable
energyWeve become the
largest on-site green
power generator in
the U.S., according
to the EPA Green
Power Partnership.
Womenseconomicempowerment
Walmart and theWalmart Foundationare increasingtraining andopportunities ornearly 1 millionwomen aroundthe globe.
U.S.manuacturing
Were committed tosourcing an additional$50 billion in productsin the U.S. over thenext 10 years.
SustainabilityIndex
We committed toscaling the Indexand helped to launchThe SustainabilityConsortium in China.
2 4
531
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Veterans
We project hiringmore than 100,000U.S. veterans overthe next ve years.
Healthier ood
Weve savedcustomers more
than $2.3 billionon resh ruitsand vegetablessince 2011.
Jobs andopportunity
About 77 percent o
our store managementteams in WalmartU.S. started ashourly associates.
Hunger relie
Walmart and theWalmart Foundationbecame the rstpartner o FeedingAmerica to donate1 billion meals toght hunger andeed amilies.
Diversity
Nearly 28 percento our corporateofcers are women,compared with theFortune 500 averageo 14.3 percent.
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SaveMoney.LiveBetter.Welivebythesewords.Buttheworkwedotohelp
peoplelivebettergoesbeyondourstorewalls.Supportingorganizationsthat positively impact local communities around the globe is something
weconsiderpartofourmission.WereproudthatinFY2013,Walmartand theWalmartFoundationgavemorethan$1billiontomakeadierence
inthebigissuesthatmattertousall.
Surpassed $1 billion
in giving
U.S. cashmore than
$273million
Internationalcash nearly
$38million
$
$311million
Total cash givingmore than
SomeexamplesofourgivinginFY2013include:
Awardedmorethan85,000grantstosupporttheworkoforganizationsinlocalcommunitiesaroundtheworld.
Morethan73,000low-incomewomeninIndia,Bangladesh,
CentralAmericaandtheU.S.receivedjobskillstraining.
Walmart,SamsClubandLogisticsassociatesvolunteered
morethan2.2millionhours,generating$18millionfor
localU.S.nonprots.
$3.8millionincashandin-kindsupporttothoseimpacted
bydisastersacrosstheU.S.
1
Total in-kind givingmore than
$775 million
U.S. in-kind
more than
$731 million
International in-kind
more than
$44 million
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We committed to scaling our rollout o the Sustainability
Index a tool to measure and drive the sustainability o
products and helped to launch The Sustainability Consortium
(TSC) in China. At an event in Beijing on Oct. 25, 2012, we
announced a series o new commitments to make our
supply chain more sustainable, including:
Bytheendof2017,wellbuy70percentofthegoodswesell
in Walmart U.S. and Sams Club U.S. units only rom supplierswho use the Index to evaluate and share the sustainability o
their products.
Beginningin2013,wellusetheIndextoinuencethe
design o our U.S. private-brand products.
Beginningin2013,keyGlobalSourcingleaderswilljoin
our product buyers in Walmart U.S. and Sams Club who
already have specic sustainability objectives tied to their
annual evaluations.
In a signature step to strengthen our commitment to a
sustainable global supply chain, the Walmart Foundation
also provided a $2 million grant to support the launch o
TSC in China. Through this git, we hope that:
Chineseresearchersandlocalexpertswillengage
together in the development o TSCs measurement and
reporting systems.
TSCwill,throughdirecttrainingandpartnerships,build
capacity or using TSCs tools to improve sustainability.
ChineseretailersandsupplierswillengageinTSCs
global network o sustainability leaders to learn and
share best practices.
Committed to scaling the Indexand launched TSC China2
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Since launching our Global Womens Economic
Empowerment Initiative in 2011, weve worked to leverage
our size and scale to improve womens lives and opportunities.
For Walmart, empowering women isnt just the right thing
to do. Its smart business, helping us better understand
and serve our customers, nd the best talent and promote
economic growth in the communities we serve.
One o many success stories has been the launch o our
training program unded by the Walmart Foundation in
factoriesinIndiaandBangladesh,withnearly17,000women
trained to date. The training curriculum will be made an
open source or others to use, and we will share what weve
learned with stakeholders. Our aim is to strengthen this
initiative by promoting collaboration among stakeholders
and leveraging one anothers knowledge and expertise to
make womens empowerment central to the manuacturing
industry. As such, other retailers, brands and suppliers are
welcome to replicate the program developed by NGO
partners, Walmart and the Walmart Foundation, or to
utilize the curriculum and tools in their own programs.
Like our eorts in sustainability, hunger relie and healthierood, Walmart and the Walmart Foundation are using
philanthropy and our business model to empower women
by increasing training, market access and career opportunities
or nearly 1 million women, ensuring access to the economic
opportunity they deserve.
Increasing training andopportunities or nearly1 million women
For more inormation, visit
www.corporate.walmart.com/women .
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InJanuary2013,wecommittedtousingourbuyingpowertocreatemore
jobs inth eU.S. bysuppor tingmoreAmer icanmanufacturing.Wellsource
anadditional$50billioninproductsintheU.S.overthenext10yearsby
increasingourpurchasesincategoriesthatwealreadybuyhereandhelp
onshoreU.S.productioninhigh-potentialareas.Bytakingthesesteps,
wecanhelpcreatemorejobsandrevitalizeourcommunitiesandthe
U.S.economy,whilecontinuingtooffereverydaylowprices.
Sourcing an additional$50 billion in products in U.S.4
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In2012,wewere:
Conrmedasthelargeston-sitegreenpowergeneratorintheU.S.bythe
EPAGreenPowerPartnership.
RecognizedbytheSolarEnergyIndustriesAssociation(SEIA)ashaving
themostinstalledon-sitesolarcapacityintheU.S.
ReceivedtheRenewableEnergyLeaderoftheDecadeawardfromtheAmericanCouncilonRenewableEnergy(ACORE).
FromtheinstallationofourrstrooftopsolarsystemsinCaliforniain2007
andexpansionintoHawaii,Arizona,PuertoRicoandColorado,toourrst
solarshadedparkingstructuresatadistributioncenterinCasaGrande,Ariz.,
ourcommitmenttorenewableenergyhasbeenvisiblefromthebeginning.
Thepastyearmarkedabigoneonoursolarjourney,asweinstalledsolar
projectsinseveralnewmarkets,includingMassachusetts,Maryland,Ohio
andOregon.InJune2012,wecompletedour100thsolarinstallationinthe
stateofCaliforniaalone.Since2007,wevecompletedmorethan200solar
projectsandhopetocontinuethattrend,contributingsignicantlytoward
ourgoalofbecoming100percentsuppliedbyrenewableenergy.
Recognized as largest on-sitegreen power generator inthe U.S.5
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First partner o Feeding Americato donate 1 billion meals
In2012,WalmartandtheWalmartFoundationbecametherstpartner
ofFeedingAmericatosurpass1billionmealsdonated.Thismilestone
istheresultofsevenyearsworkingalongsideFeedingAmericatoght hungerintheU.S.Thatsenoughtoll31,250semitrailerswithfood,
enoughtrailerstostretchfromWashington,D.C.,toRichmond,Va.
AccordingtothemostrecentdatafromtheU.S.DepartmentofAgriculture,
atsomepointin2011,morethan50millionpeopleintheU.S.struggledwith
hunger.Ofthatnumber,morethan16millionwerechildren.Walmartand
theWalmartFoundationknowthisisabigissueand,astheworldslargest
grocer,wereuniquelypositionedtohelp.Bycollaboratingwithorganizations
suchasFeedingAmericaandShareOurStrength,wereleveragingoursize
andscaletoprovidenutritiousfoodandresourcestomakeadierence.
Onbehalfofthe37millionclientsofFeedingAmericaandour
nationalnetworkoffoodbanks,IdliketothankWalmartanditsassociatesforhelpingusghthungertogetherinourcommu-
nities.The1billionmealsyouvedonatedtoournetworkhave
helpedbringnutritiousfoodtofamiliesacrossthecountry.
Weregratefulforyourpartnershipandlookforwardtoworking
side-by-sidewithyouandyourassociatesaswecontinueto
feedthoseinneed.
BobAiken,presidentandCEO,FeedingAmerica
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BeginningMemorialDay2013,wevecommittedtooeringajobtoany
honorablydischargedU.S.veteranwithinhisorherrst12monthso
activeduty.Noteveryreturningveteranwantstoworkinretail,butevery
veteranwhodoeswillhaveaplacetowork.Weprojecthiringmorethan
100,000U.S.veteransoverthenextveyears.Mostofthesejobswillbe
inourstoresandclubs,andsomewillbeinourdistributioncenters,e-commerceandcorporateocelocations.
Hiring more than100,000 U.S. veteransover 5 years
Our hope is that businesses throughout our
countrywillfollowWalmartsleadandnd
evenmorenewwaystheycancommitto
servingthosewhoserveus.
MichelleObama,rstlady
7
USA
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Our commitment to diversity is deeply rooted in more than ve decades o rich history and
culture. We strive to be a great place to work or all people. By embracing the diversity o our
associates, we maximize our talents and deliver innovative solutions to business challenges.
We continue to make strides in establishing a workorce thats reective o our customers.
One such area has been emale representation, compared with Fortune 500 companies and
the retail industry in general, as illustrated below:
(Sources: Fortune 500 http://www.catalyst.org/knowledge/us-women-business-0 ;
Retail http://www.catalyst.org/knowledge/women-us-retail-trade-0 ; Walmart data as o 1/31/13.)
Position Fortune500 Retail Walmart
BoardDirectors 16.6% 18.3% 23.5%
Executive Ofcers 14.3% 17.9% 27.5%
LaborForce 46.9% 48.3% 57.2%
Women at Walmart: How we compare
8
Counted nearly 28% o corporate
ofcers as women, nearly doublethe Fortune 500 average
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WalmartU.S.continuestorealizesignicantprogressonitseortsto
makefoodhealthierandhealthierfoodmoreaordable.Overthepast
twoyears,weve:
Savedcustomersmorethan$2.3billiononfreshfruitsandvegetables.
Opened86storesinneighborhoodswithlimitedaccesstonutritiousproduce.
Ourcustomersarealsondingitseasierthanevertoidentifyhealthier
foodoptionswiththerolloutofourGreatForYouicon.Backedbyrigorous
nutritioncriteria,thisfront-of-packageiconisdesignedtohelpcustomers
quicklyndhealthierchoices.Morethan1,300WalmartGreatValueand
Marketsideitems,aswellasfreshandpackagedfruitsandvegetables,
willfeaturetheGreatForYouiconin2013.
Saved customers more than
$2.3 billion on resh ruitsand vegetables since 20119
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About 77 percent o our store
operations management teamsin Walmart U.S. started ashourly associates
Morethanthree-quartersofourstoreoperationsmanagement
teamsinWalmartU.S.startedashourlyassociates,andtheyearn
$50,000to$170,000annually.In2012,wepromotedapproximately
180,000WalmartU.S.andSamsClubassociatestojobswithmore
responsibilityandhigherpay.
Wewanteveryassociatetondthecareeropportunitiestheywant
withWalmart.Wereensuringthatpart-timeassociateshavevisibility
intofull-timejobopeningsintheirstoresandnearbystores,and
thattheyhavetherstopportunityatthosejobs.Werealsobringing
moretransparencytoourschedulingsystemsothatpart-timeworkers
canchoosemorehoursforthemselves.
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Progress at-a-glanceEnvironmental responsibility
Energy
Be supplied by 100 percent renewable energy. As o 2012, Walmart-riven renewable energy projects an purchases provie about 4 percent annually
o our builings electricity nees. The gri supplie another 17 percent, or a total o 21 percent
renewable electricity.
Double eet eciency in the U.S. by October 2015
(2005 Baseline).
Walmart U.S. Logistics has achieve an 80 percent improvement in eet eciency over our 2005 baseline.
Improve equipment, technology an increase system capabilities rove a 10 percent increase in 2012.
Reduce greenhouse gases (GHGs) at our existing
store, club and distribution center base around the
world by 20 percent (2005 Baseline).
At the en o 2011 (the most recent year or which we have complete ata), we ha achieve this goal
(20.02 percent reuction) an anticipate urther progress rom 2012.
Waste
Eliminate landfll waste rom U.S. stores and
Sams Club locations by 2025.
Even as our retail sales an square ootage continue to increase, Walmart U.S. improve to 80.9 percent
reuction in 2012. Sams Club U.S. improve to 77.3 percent reuction in 2012.
Reduce our global plastic shopping bag waste
by an average o 33 percent per store by 2013
(2007 Baseline).
We exceee the target by reucing plastic bag waste across our global operations by 38.1 percent,
or approximately 10 billion bags.
Walmart will reduce ood waste in emerging
market stores and clubs by 15 percent and in ourother markets by 10 percent by the end o 2015
(2009 Baseline).
While consierable attention is being pai to proucing more oo to meet growing population emans, one o
the most immeiate an eective ways to alleviate some o the pressure is to waste less o what we alreayhave. One example o our progress in this area is our ASdA operations aligning with the U.K. governments
Courtaul Commitment to eliminate 2,455 tonnes o oo waste through better orecasting in our resh
epartment an another 1,059 tonnes by reucing back-o-house inventory.
Products
By the end o 2012, well require that 95 percent
o direct import actories receive one o the two
highest ratings in audits or environmental and
social practices.
Since the announcement o this goal in 2008, weve increase the percentage o green an yellow irect import
actories by more than 12 percent an surpasse our goal in 2013 by achieving 96 percent.
In the U.S., Walmart will require all resh and
rozen, armed and wild seaood products sold at
Walmart and Sams Club to become certifed as
sustainable by a third party using Marine
Stewardship Council (MSC), Best Aquaculture
Practices (BAP) or equivalent standards.
97 percent o our arme fsh is BAP certife. The remaining 3 percent are low environmental risk fsheries such
as trout, oysters, clams an mussels, where there are no certifcation stanars available.
Walmart will require sustainably sourced palm oil
in all o our private-brand products globally by the
end o 2015.
20 percent o our global palm oil use supports sustainable growing. This inclues GreenPalm certifcates, Mass
Balance an Segregate. Six o our international markets purchase GreenPalm certifcates to cover all o their
2012 palm usage.
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Social responsibility
Womens economic empowerment
Empower women on arms and in actories through
training, market access and career opportunities. By
the end o 2016, in emerging markets, train 500,000
women in the agriculture value chain.
By the en o 2012, we traine approximately 150,000 armers an arm workers, o which about
33,000 were women. We une new projects in Inia, Nigeria an China uring 2012 an will
continue to ientiy an support aitional projects.
Scale our successul retail training programs to help
200,000 women internationally.
In April 2012, we announce an innovative partnership with the Inter-American development Bank (IdB) an major
multinationals to train as many as 1 million youth, hal o which will be women, or their frst job over the next 10 years
in the Western Hemisphere. Well contribute our successul retail training curriculum to the initiative an will work with
the IdB to pilot retail training programs or women throughout the Hemisphere. Through uning rom the Walmart
Founation to the International Youth Founation, the translation o the Brazilian curriculum materials into Spanish,
English an Chinese is complete, an well implement pilot programs in Argentina, Chile an Mexico this spring.
Work with proessional service frms and merchandise
suppliers with more than $1 billion in sales to
increase opportunities or women and minorities
on Walmart and Sams Club accounts.
In the U.S., weve evelope an online atabase to track gener an iversity representation or the Walmart account
among major suppliers. Were eucating suppliers an working through pilot programs to etermine the best
approach to achieve our target results. Internationally, weve communicate the program with local markets an
ientife owners or the program. Well begin the program with global suppliers.
Healthier food
Save customers at least $1 billion a year on healthier
oods, including reduced prices on produce and
parity pricing on healthier oods and beverages.
By the en o FY2013, we achieve $1.2 billion in savings, bringing the total savings or customers to
$2.3 billion over the frst two years o the program.
Open between 275 and 300 new stores in or nearood deserts by 2016. Increase access to resh and
healthier oods or Americans.
By the en o 2012, we opene 86 new Walmart stores in or near oo eserts since July 2011. As a result,more than 264,000 Americans now have better access to healthier oo.
Improve the nutritional quality o our Great Value
brand and national ood brands. Reduce sodium by
25 percent and added sugars by 10 percent, as well
as remove all industrially produced trans ats
compared to a January 2008 baseline.
Since 2008, inustrially prouce trans ats were reuce by 50 percent. Less than 10 percent o oos an beverages
we sol in 2011 containe inustrially prouce trans ats. Surpassing our goal, sugars have ecline by more than
10 percent since 2008 as a result o reormulate proucts, new healthier proucts coming into the marketplace
an customers making healthier choices. Between 2008 an 2011, we ecrease soium by 13 percent across the
commercial brea category. This is equivalent to removing more than 1.5 million pouns o salt rom the market
baskets o our customers.
Hunger relief
Through 2015, award $250 million in hunger relie
grants at the local, state and national levels.
Since our commitment, Walmart an the Walmart Founation have onate more than $180 million in hunger
relie grants.
Mobilize Walmart associates and customers. Last year, through both online an in-store initiatives, we engage associates an customers in the fght against hunger.
In April, consumers vote to etermine the 21 communities across the nation to receive $2 million in grants. In September,
more than 13,000 customers participate in our Golen Spark contest, which aware over $2.5 million to Feeing
America oo banks an numerous hunger-relie agencies nationwie. Associates continue to step up to fght hunger,
volunteering more than 67,000 hours in 2012 alone.
Collaborate with government, ood manuacturers,
other oundations and corporations.
To urther our impact on hunger in America, Walmart an the Walmart Founation are collaborating with suppliers,
government, oo manuacturers an others. In 2012, supplier participation in our in-store campaigns more thanouble, increasing rom our to nine. These suppliers onate more than 8 million meals to ee hungry amilies.
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Social responsibility
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We consider it our responsibility to make a
positive impact in the communities we
serve. Whether its through the grants
Walmart and the Walmart Foundation provide to the
thousands o organizations that share our mission
o saving people money so they can live better, the
inspiring volunteer eorts o Walmart associates,
ood donations or market-specic skills training
programs, were passionate about helping people.
One community at a time.
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Ethical Sourcing
As part o our Ethical Sourcing program,
audits are conducted by third-party rms
to veriy that suppliers and their actories
are complying with our rigorous supplier
standards. We engage with suppliers and
their actories to assist them in addressingany issues detected through the audit and
to guide them in implementing processes
to prevent violations beore they happen.
We understand audits alone dont provide
lasting solutions to the complex issues that
are part o the global supply chain. Through
our Supply Chain Capacity Building and other
training programs, were dedicated to helping
our supplier partners build the capacity
necessary to not only improve workplace
practices and working conditions, butultimately improve actory managements
ability to move beyond compliance and
toward sustainable change.
We recognize that our commitment to
responsible sourcing requires partnerships
with various stakeholders across the industry.
Were committed to actively partnering
with industry peers and suppliers, as well
as nonprots, NGOs and governmentstakeholders to address supply chain
challenges and collaborate on solutions.
As we engage, we listen to eedback rom
our stakeholders and work to incorporate
recommendations where possible to make
our program better. Our goal is to positively
impact global supply chain practices by
raising our own standards and by sharing
our experience, knowledge and ideas with
other retailers, brands and stakeholders.
Helping people live better has always been core to our mission.
It applies to our customers, associates and the workers who
make the products we sell. Ethical sourcing is such an integral
part o our culture and continuing priority that weve operated
an entire department since 1992 to veriy that those in our
global supply chain are provided a sae working environment
and treated with dignity and respect. We recognize the
complexity o the supply chain and continue working to
initiate positive change via three broad strategies: auditing,
training/education and collaboration.
Walmarts participation in
various sustainability programs,
such as the toy industry, to
improve labor conditions, as
well as health and saety issues,
through the ICTI CARE process;and its role in the GSCP, which
aims to improve working and
environmental conditions in the
supply chain, through knowledge-
sharing, sends a positive message
o engagement.
Amir A. Dossal, chairman,
Global Partnerships Forum
Positioned or leadership
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Ethical Sourcings 10 most impactul programs o the past 10 years
Each year, we learn ways we can make our Ethical Sourcing organization more eective in improving
conditions or workers in our supply chain, and each year we put programs in place to ensure were
making measurable progress. Below is a high-level overview o 10 o those programs, implemented
since 2003. Its important that we position ourselves to lead on the issues that matter most. That way
well continue to ulll our mission o helping people live better today and or years to come.
10
9
8
7
6
51
2
3
4
Supply Chain Capacity Building
This comprehensive supplier and actory training
program was developed to help those in our supply
chain understand our standards and become better
equipped to meet them. Participants have said they
not only gained a better understanding o how to
comply with social and environmental requirements,
but have also implemented best practices as a result
o the sessions.
Worker saety initiativesGoing above and beyond general workplace health
and saety, weve set new industry standards or on-site
living quarters and dining acilities, and continue to
require adherence to much more stringent chemical
and machine saety criteria. In 2013, we built upon our
existing re saety programs by announcing strengthened
re and electrical saety audit requirements, as well asexpanded re saety training in Bangladesh.
Womens empowermentAs part o Walmarts Global Womens Economic
Empowerment Initiative, we launched the Women in
Factories training program, created in 2011 to educate
60,000 women working in India, Bangladesh, China and
Central America. The curriculum is centered on the core
competencies necessary to be more successul in the
workplace, at home and in the communities. The training
program is unded by grants rom the Walmart Foundation
and is being acilitated by local nonprot organizationsin partnership with actory management.
Community investment
A grant was given to the Asia Foundation in support
o a scholarship program or migrant workers in China.
Vocational training in Arica and primary education
in India were unded through our partnership with
HOPEworldwide. Our ocus on sourcing communities
began in 2006 and continues today in partnership
with CARE, Swasti and World Vision, to name a ew.
Anti-human trafcking
We partnered with multiple industry-recognized experts
and NGOs in an eort to learn more about the
indications o human tracking and slavery. Were
actively working on related issues, including the
Sumangali Scheme in India and migrant workorce
challenges in Thailand, Jordan and the U.S.
Stakeholder engagement
In 2004, we began proactive outreach to build
relationships with industry peers and suppliers, as well as
nonprot, NGO and government stakeholders, allowing
us to broaden and enhance our eorts to positively
impact the global supply chain.
95 percent green/yellow actories
Since the announcement o the goal in Beijing in 2008,
weve increased the percentage o green and yellow
direct import actories by more than 12 percent and
surpassed our goal in 2013 by achieving 96 percent.
Global Social Compliance Program (GSCP)
Were one o ve ounding members o GSCP and the
rst retailer to have completed the equivalence process.
This is the rst step toward audit sharing with other
retailers and brands, which should lead to signicant
reduction in audit duplication in acilities worldwide.
Retail market compliance
Targets are created or each retail market to measure
improvement in the percentage o green- and yellow-
rated acilities. By setting these goals, were able to
successully encourage our global markets to work with
suppliers whose actories demonstrate compliance.
Color-coded actory rating system
In 2003, we created a color-coded system to rate
actories based on severity o audit results. By assigning a
color rating to actory audits, were able to communicate
clearly to both internal and external stakeholders
regarding the compliance o our suppliers acilities.
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Ethical Sourcing continued
Now in our th year since
the summit in Beijing,
weve accomplished each
o our original goals, and
continue to leverage our
size and scale to bring
meaningul improvements
to suppliers acilities,
workers and communities
they impact.
Direct import goal achieved
In January 2013, we achieved the goal that at least 95 percent
o our direct import actories receive one o our two highest
ratings in audits or social and environmental practices. In act,
we surpassed our goal by reaching 96 percent, but not without
acing challenges along the way.
For example, when a actory doesnt manage capacity planning
eectively, this can lead to increased working hours and even
unauthorized subcontracting, especially in peak production
periods. Working with our Sourcing and Merchandising partners,
we seek to infuence suppliers or actories with recommended
improvements. Our training programs such as the modules in
our Supply Chain Capacity Building program help educate
suppliers on the reasons or these changes. However, at times,
we have to make the dicult decision not to proceed with
certain suppliers and actories when theyre unwilling to make
necessary improvements.
Our success is built on coordinated internal eorts, which include
associate education on Ethical Sourcing and Holistic Sourcing
Practices, communication o expectations to suppliers and
actories, and the broadened and accelerated rollout o our
capacity-building programs. Walmart is committed to sourcing
ethically and responsibly, and we continue to enhance and rene
our programs so we can sustain the goal weve achieved.
Retail market compliance
We set annual targets in each retail market or acilities that will
receive one o the two highest ratings in audits or social and
environmental practices. We created baselines ater initial audits
were conducted o acilities within the scope o our Ethical
Sourcing program. Appropriate stretch goals are set or each
global retail market to achieve, based on the previous years
perormance result. Our Ethical Sourcing and merchant teams
work together to achieve these results.
O our 11 retail markets, 10 attained or exceeded their percentage
goal this year. The international retail markets have collectively
shown an 8 percent improvement in green and yellow ratings.
The U.S. retail market continues to perorm well and demonstrated
improvement o nearly 3 percent.
Walmart is committed to sourcing ethically and responsibly, and
were working diligently to sustain the progress weve achieved by
enhancing and rening our programs. Additional disclosure
requirements, accompanied by the implementation o our zero-
tolerance policy, are expected to cause a signicant increase in
the number o acilities disclosed or our Ethical Sourcing audits.
This will likely impact the percentage o green and yellow acilities
were tracking because some o the newly disclosed acilities may
undergo their rst social and environmental audit as a result. Well
utilize our capacity-building training modules to orient acilities
and suppliers to our program and to equip them to improve upon
any noncompliances identied.
Goal: 95%+Percentage o direct import
actories that received one o
our two highest ratings in
audits or environmental
and social practices
Progress: 96%
Achieved by Jan. 31, 2013
Delivering on our commitments to improvestandards or workers around the world
In 2008, we took a landmark step in our sustainability journey by
hosting an unprecedented gathering o more than 1,000 leading
suppliers, Chinese ofcials and NGOs in Beijing, China. There, we set
aggressive goals intended to drive responsibility and transparency
into our supply chain. We made it clear that we expected rm com-
mitments rom our suppliers to meet strict social and environmental
standards, or them to be open to rigorous audits and to publicly
disclose all appropriate inormation.
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Suppliers are required to display the
Standards or Suppliers poster in the local
language(s) in the common areas o their
actories and must adhere to them in order
to continue doing business with Walmart.
The Standards or Suppliers are updated
regularly and include, but arent limited to,
the ollowing provisions:
Noforcedorchildlabor Nodiscrimination
Wagesandbenetsmustmeet
country law
Appropriatehiringandemployment
practices are in place
Laborhoursareconsistentwiththelaw
and not excessive
Freedomofassociationandcollective
bargaining upheld according to law
Healthandsafetyofworkers Environmentalcompliance
To view our Standards or Suppliers Manual,
go to: corporate.walmart.com/global-
responsibility/ethical-sourcing.
Audit process
Facility audits are conducted by accredited
and internationally recognized auditing rms
and are based on our Ethical Sourcing scope.
Every 6 to 24 months, a acility undergoes an
audit, depending on the ndings rom theprevious audit. The audit result is assigned a
color rating by the Ethical Sourcing team
based on the type and severity o violations
ound. Initial actory audits are announced,
with all subsequent audits being
unannounced.
In 2012, 11,568 audits on 10,035 actories
were conducted to veriy that our suppliers
were adhering to our Standards or Suppliers.
O these, 965 were conducted through theILO/IFCBetterWorkProgramorthe
International Council o Toy Industries CARE
Process. We choose to participate in these
programs in an eort to reduce audit
duplication and because o program
remediation components.
During 2012, we required our suppliers to
cease production in 214 actories due to
serious violations. A list o acilities not
authorized to source merchandise or
Walmart will be made available on ourinternalRetailLinksystemandonour
corporate website.
Maintaining integrity
We take steps to ensure that all actory
audits are conducted with integrity. Audits
are conducted by internationally recognized
and accredited third-party audit rms. These
approved audit rms are required to complete
the equivalence process or the auditing
competence portion o the Global Social
Compliance Program.
Setting expectations
Our Standards or Suppliers are Walmarts undamental expectations
o our suppliers and their actories on the treatment o workers and
impact on the environment. They also provide the ramework or the
audits that measure how well suppliers are meeting our expectations.
We ask suppliers to amiliarize themselves with the Standards or
Suppliers Manual that outlines obligations in meeting the standards
and provides details on the audit process.
11,568audits conducted on
10,035actories in 2012
214actories ceased
production due to
serious violations
in 2012
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Additionally, we implemented an industry-
best practice to conduct a percentage o
validation audits that veriy the accuracy
o third-party audits. These reaudits are
conducted by the Walmart Ethical Sourcing
Special Audit Team within 30 days o the last
audit and ollow the same protocol. We utilize
this process to drive consistency in execution
o our audit processes and protocols.
Whenever issues surace related to integrity,
these matters are reported to our Global
Ethics team, which initiates an investigation
by our Corporate Investigations team.
Worker helpline
In addition to the audit process, violations o
our Standards or Suppliers can be reported by
actory workers condentially and in their local
language. On the Standards or Suppliers
poster that actories are required to display,
theres a toll-ree telephone number, e-mail
address and website that workers can use to
anonymously report violations and concerns.
All reports are collected by a third party and
directed to our Global Ethics oce, where
theyre reerred or investigation and, i
necessary, corrective action.
Inormal supply chain
Were beginning to identiy ways to validate
that our Standards or Suppliers are met in
inormal supply chain settings where people
may work in small community centers or out
o their homes. Recently, weve engaged one-
on-one with specic suppliers to gain a better
understanding o these supply chains and therelated challenges. Certain products, such as
woven i tems, require sk illed production by
hand and are oten produced outside o a
actory setting.
We worked closely over several months
with one supplier, whose supply chain in
China is made up o actories and home-
based production sites, to learn the details
o its manuacturing processes. Through
this exchange, we were able to provide
guidance on management systems that
were needed to validate compliance with
our standards. The supplier understood the
importance we place on being able to
veriy that workers receive appropriate
wages and beneits. As a result, the
supplier implemented more robust
procedures or recording wage payments
and collecting age documentation and
verication. They also utilize signed contracts
with home workers that conrm our
standards have been communicated to
workers individually.
In some countries, woven baskets are
produced in cooperatives where much
o the work is done in community centers
or in homes. As part o our eorts to
understand the inormal supply chain, we
worked closely with one such supplier to
identiy ways to integrate our Standards or
Suppliers into their supply chain in a
culturally sensitive way.
Weve also begun engaging with various
stakeholders to nd ways to harmonize
strategy and activities into an industryapproach. As part o this eort, Walmart
is collaborating with the Alliance or Artisan
Enterprise, a group ormed by the U.S. State
Department and the Aspen Institute, to
examine how to embed ethical sourcing
principles into working with small businesses.
We look orward to continuing such dialogue
with our suppliers, expert organizations,
NGOs, other retailers and brands to develop
solutions that work well across the inormal
supply chain.
Ethical Sourcing continued
Developingsolutions together
Full Circle Exchange (FCE), in
partnership with Gahaya Links,
supplies handcrated baskets to
Walmart.com. Gahaya Links is a
women-owned business thatworks with cooperatives located
throughout Rwanda to weave
baskets and produce home
decor, apparel and accessories.
The business began shortly ater
the genocide in Rwanda and has
been instrumental in helping
bring together Hutu and Tutsi
women through the marketplace.
Following an audit o the
cooperatives and the actorywhere the baskets were produced,
we had the opportunity to meet
in-person with the ounder
and CEO o Gahaya Links. We
brainstormed ways necessary
improvements could be imple-
mented while still respecting the
culture o the women involved.
It was both an inspiring and
humbling conversation.
All o us agreed that therelationship being built
among FCE, Gahaya Links
and Walmart could bring
meaningul change to the
supply chain.
Mark Priddy, CEO/co-ounder
Full Circle Exchange
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1,742 actoriesand 497 suppliersparticipated in
Factory Audit
Orientation
Training in 2012
985 actories and347 suppliersparticipated in
Violation
Correction
Training in 2012
181 actoriesparticipated in the
Orange School
Program in 2012
Education and training initiatives
Supply Chain Capacity Building
Were committed to working with our
supplier partners and their actories to
help them develop the capability to improve
working conditions by investing in education,
training and operational eciencies. In 2012,
we created our Supply Chain Capacity
Building (SCCB) program, which brought
together established training modules
(Orange School Program, Supplier
Development Program and Supplier Round
Table) and newly developed modules
(Factory Audit Orientation and Violation
Correction Training) into a well-rounded
collection o instructional curriculum.
The SCCB program components vary rom
hal-day group training sessions to several
months o one-on-one engagement with
suppliers and actories. Topics range rom
Ethical Sourcing orientation to managing
issues that are regionally specic to develop-
ing systems that encompass many acilities
within a suppliers manuacturing base.
SCCB is an integral part o our overall
strategy to eect continuous and sustain-
able improvement within the acilities that
produce our merchandise.
Factory Audit Orientation
Factory Audit Orientation is a training
program that prepares new actories and
associated suppliers or participation in the
Ethical Sourcing program through training
in the ollowing areas:
WalmartsStandardsforSuppliers
Socialandenvironmentalcompliance
Enhancedresafetystandards
and requirements
Chemicalandmachinesafety
Dormitoryandcanteenstandards
Auditscopeandfactorydisclosure
Factoryauditprocess,resultsand
consequences
Country-andregion-specictrends,
laws and best practices
Eectivecorrectiveaction
plan development
Violation Correction Training
Factories with higher-risk observations are
requested to attend Violation Correction
Training so they can gain a better
understanding o the Walmart Ethical
Sourcing program requirements and
Standards or Suppliers. The training
addresses common trends related to social
and environmental compliance, while
ocusing on topics based on relevance to
the attending actory location or industry.
Factories become equipped through root
cause analysis and corrective action plan
development to remedy potential violations
and work toward achieving acceptable
audit ratings.
Orange School Program
The Orange School Program is an advisorytraining program aimed at selected actories
and suppliers. The program provides one-
on-one, hands-on training to resolve high-
risk social and environmental violations.
Factory management is taught a systematic
approach to continuous and sustained
improvement, utilizing root cause analysis
methodology, along with procedures or
early detection o noncompliances. The
importance o ongoing sel-monitoring
between audits is emphasized.
SupplyChainC
apacityBuilding
Training
Supplier Development Program
Supplier Roundtable Program
Violation Correction Training
Factory Audit Orientation
Environmental Compliance
Machine & Chemical SafetyDormitory Standards
Orange School
Information
Remediation
Best Practice Sharing
Transformation
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Ethical Sourcing continued
Supplier Development ProgramThrough our Supplier Development
Program (SDP), Walmart has committed to
work proactively with our supplier partners
to help them improve standards and
manage their actories more eectively. The
program provides valuable training ocusing
on key outcomes such as empowering
workers and developing eective
communication with actory management.
In 2012, we partnered with approximately
100 new suppliers and worked with oursuppliers who graduated in 2011 to bring
additional actories into the program. As we
go orward, well continue as guides and
advisors or these graduated suppliers as
they embed systems into their other
actories, taking the program to a
sustainable position.
This program continues to promote improved
working conditions around the globe with
more than 300 suppliers having participated
in the program to-date, touching the lives othousands o workers in our supply chain.
Jarden Consumer Solutions was the rst
supplier to graduate rom our Supplier
Development Program. Their participation
in the initial pilot phase o the program
assisted us in determining that the
ramework was practical and workable.
Strong internal monitoring and social
compliance perormance systems enable
Jardens actories to ocus on continuousimprovement in their supply chain. To date,
Jarden has had a total o 12 actories
complete the SDP.
Another supplier, Stanley Black & Decker,
has been involved in the SDP rom the
beginning and will have 10 actories
enrolled as o early 2013. This supplier
ocuses on relaying its learnings through
best practice sharing and training actory
management throughout its supply chain.
Stanley Black & Decker has worked toimprove social and environmental practices
within their actory base since 2003.
Supplier Round Table
The Supplier Round Table (SRT ) program
is a orum or our suppliers, actories and
stakeholders within sourcing regions to come
together to discuss concerns that impact
social, economic and environmental aspects
o their operations and to learn best practices
rom each other. In general, round-table
meetings ocus on Ethical Sourcing goals andobjectives and current issues that are relevant
to that region. Previous topics have included:
management o contract and migrant labor,
re saety, environmental requirements and
best practice sharing on energy eciency.
Walmart and Jarden Corporation are
working toward a uniied goal, and
through this partnership were able
to shit rom a compliance-based
program to one thats perormance-
based with long-term sustainable
improvements.
Chris Akins, vice president,
Global Security and Social Compliance,
Jarden Corporation
[By] implementing the
Supplier Development
Program in our company
weve strengthened our
ethics and business
practices throughout our
supply chain. Our Pack
Houses have improved
communication with
workers, have built trust
and improved productivity.
Natalia Aranciba,
certications chie,
GESEX S.A., Chile
437 suppliers352 actoriesparticipated in the
SRT program
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Environmental responsibility
Our initiative to include environmentalcompliance in audit standards began with
the commitment that Mike Duke made at the
Beijing Sustainability Summit in 2008, when
he stated: Our audits will now include a ocus
on specic environmental criteria including
a actorys air emissions, its wastewater,
discharges, and its management o toxic
substances and hazardous waste disposal.
The environmental standards are based
on mandatory compliance with legal
requirements. Demonstration includes theull set o approved permits, in addition to
monitoring reports as required by law and
validated by independent audits. The
standards also promote the maintenance o
inventories to track resource use and greaterenvironmental eciency, as well as
implementation o best industry practices.
We worked closely with AECOM, a leading
environmental management consulting rm,
to develop extensive training materials in
English, Spanish and Mandarin, which are
available to suppliers. More than 3,000 actories
around the world were trained by our Ethical
Sourcing teams between 2010 and 2011.
Factories continue to receive training on the
environmental component o our auditsthrough our capacity building programs.
In 2009, we developed our
standards on the basis o the
Environmental Reerence
Framework o the Global
Social Compliance Program
(GSCP), which covers nine
areas, touching on all aspects
o the actorys operating
environment:
Waste management
Wastewater and
eluents management
Air emissions management
Water management
Energy use and greenhouse
gas (GHG) management
Land use and biodiversity
Environmental
management system
Hazardous substances
management/soil and
groundwater pollution
prevention
Noise pollution
In China, weve joined orces with the Institute or Sustainable
Communities Environment, Health and Saety Academy to provide
cost-eective and practical training to actory mid-level management.
Weve also partnered with the Institute o Public & Environmental
Aairs (IPE), an environmental NGO in China that aims to curb
environmental pollution in Chinas manuacturing hubs by integrating
transparency and raising stakeholder awareness in the supply chain.
In 2012, Walmart was ranked ourth out o 48 international
brands and retailers or eforts to improve environmental
compliance in the supply chain in China.
IPE uses government-sourced data to identiy actories in China
that ail to meet legal standards related to air and water pollution,
making the list o noncompliant actories publicly available. Since
2009, when the irst actory in our supply chain was removed rom
the IPE database, through our eorts, weve successully worked
with suppliers to remove 35 total actories. The impact is less about
the number o actories removed and more about the number o
communities that beneit rom reduced pollution as a result.
Today, were actively involved with a number o ad ditional actories
that we anticipate will be removed in the coming year.
Walmart has continued
to proactively use the
Pollution Map Database
to screen their suppliers
in China. We hope that as
a leading global brand,
Walmart can meet rising
public expectations and
encourage more partners
and suppliers in China to
disclose pollution
discharge data andenhance environmental
perormance.
Ma Jun, director,
Institute o Public and
Environmental Aairs
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Women in Factories
training program
In 2011, Walmart and the Walmart Foundation
launched an initiative to empower women in
actories. This is a ve-year initiative that will
train women who work in industries where
the workorce is predominantly emale.
Together with NGO partners, were helping
establish womens empowerment programs
in 150 acilities in India, Bangladesh, Central
America and China. As a rst step, 60,000women will receive Foundational Training to
provide them with the core competencies
necessary to be more successul in the work-
place, at home and in their communities.
Through this Foundational Training, women
are learning undamental lie and work skills,
such as health and communication. From
this group, 8,000 high-potential women will
be oered Advanced Training, which includes
management and leadership skills training,
in addition to more in-depth instruction onwork and lie skills. Obtaining these skills can
enable women to become better advocates
or themselves.
The training curriculum, developed by CARE,
will be made open source or others to use,
and Walmart and the Walmart Foundation
will share training tools and learning with
the public. The aim is to strengthen the
manuacturing industry by making womens
empowerment central to it, through
promoting collaboration among stakeholders
and leveraging each others knowledge and
expertise. As such, other retailers, brands
and suppliers are welcome to replicate the
program developed by NGO partners,
Walmart and the Walmart Foundation, or
utilize the curriculum and tools in their own
programs. Because many o the participating
acilities are shared with other brands and
retailers, the industry as a whole can benet
rom the program.
Implementation is acilitated by Swasti
in India, by CARE in Bangladesh, and by
World Vision in El Salvador and Honduras.
In 2012, we began working with 15 actories in
India and 15 actories in Bangladesh, with
16,667 women and 4,310 men having
received oundational training to date.
Program implementation will begin in
Central America in 2013 and in China
in 2014. The program is being evaluated by
Northwestern University in partnership
with Development Alternative International
(DAI) and Mission Measurement.
Ultimately, the objective is or actories to
operate sel-sustaining training programs
where work environment will be more
receptive to promotion and inclusion o
emale work talent through engagement
with both actory management and the
male worker population. A inal result
would be a pipeline o emale talent in
each acility.
Womens Economic Empowerment Initiative
Ethical Sourcing continued
Im 46 years old and I eel being empowered at this age isnt too
late because a woman plays various roles in her lie. What Ive
learned in this training will help me justiy those roles.
Foundational Training participant, Pointec Pens,
Bangalore, India
Supplier round tables areheld quarterly in India andBangladesh with actoriesparticipating in womensempowerment and have beenvaluable to the success o theprogram. Factory workersengage directly with actorymanagement, raising theircondence and buildingbridges o communication.
The leadership and humanresource teams rom the actoriesalso have the opportunity todialogue and share learning.A session in Bangladesh led toone actory helping anothercreate plans or schedulingtraining sessions around pro-duction. The rst actory hadovercome similar challengesand was able to help thesecond actory becomemore successul in theGlobal Womens Economic
Empowerment Initiative.
For a video related to our Women
in Factories program, go to the
online version o this report at
http://corporate.walmart.
com/microsites/global-
responsibility-report-2013.
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Program curriculum
Program curriculum was developed by
CARE and contextualized, thus ar, or
Bangladesh and India by CARE and Swasti,
respectively. When the program begins
in a actory, all men and women who
work on the production line participate
in Foundational Training. In addition,
implementing partners work with local
nonprot organizations to provide services
such as literacy training.
Foundational Training (15 hours)
Understandingandutilizingyour
strengths
Managingstressandtime
Eectivecommunication
Gendersensitivity
Menstrualhealthandfamilyplanning
Hygieneandsanitation
Occupationalhealthandsafety
Applicationoflearningatwork
and home
Advanced Training (99 hours)
Basicliteracy
Technicaltraining
Functionalliteracy/numeracy
Personalnance
Healthandnutrition
Earlychildhooddevelopment
Communicationandnegotiation
Problemsolving,decision-makingand
goal setting
Violenceagainstwomen
Gender,socialstatusandrelationships
Legalempowerment
Self-managementandleadership
CARE is proud o our partnership with Walmart to enhance skills and improve
opportunities or emale actory workers in Bangladesh. Weve implementedworkorce engagement initiatives or more than a decade, and were pleased the
curriculum rom this program will be available to other buyers and actories around
the world or ree. Women are key to ending the cycle o poverty, and its vitally
important that they have the opportunity to realize their ull potential. This program
will empower 60,000 women actory workers and make a sustainable impact in their
amilies and communities.
Dr. Helene D. Gayle,
president and CEO,
CARE USA
Holistic sourcingpracticesWe know our sourcing and
purchasing practices have an eect
on suppliers. In 2011, we ocused
on our internal awareness about
the eects o business decisions on
the supply chain. In 2012, we began
robust training sessions rom thetop levels o the merchandising
organization to the category levels,
beginning with the apparel
division. Currently, the merchant
development teams and Ethical
Sourcing are coordinating the
development o mandatory
embedded training programs.
These courses will be required
or merchandising associates.
Holistic sourcing meansmerchandising, sourcing and
suppliers all work together to
build a responsible supply chain.
We want to create an environment
o transparency and communication
among these stakeholders so
that challenges can be resolved
eectively. As we explore the
reasons behind unacceptable
behavior, such as unauthorized
subcontracting, well work to
determine i activities on our side
can positively inuence suppliers
and actories to make appropriate
decisions. A part o holistic sourcing
is better planning by all parties. For
example, accurate business ore-
casting can better enable suppliers
and their actories to meet set time
lines. This is one area speciically
being targeted or improvement.
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Dormitory and canteen standards
The health and saety o workers in our
supply chain is o utmost importance to us.
In addition to setting standards or working
conditions at production acilities, last year,
we implemented speciic standards related
to on-site dining and living quarters. Theseenhancements require suppliers to provide
sae, healthy and sanitary dormitory and
canteen acilities or their workers. Specically,
workers should be adequately prepared to
saely evacuate acilities in the event o an
emergency and have access to appropriate
washroom acilities. Security measures
should also be implemented to protect
workers and their property.
We audited against these requirements
in 2012 and communicated the indings
to suppliers. Now that acilities are more
amiliar with our requirements, as o March 1,
2013, the Ethical Sourcing ratings that a
acility receives as part o the audit process
will refect the acilitys level o compliance
with the enhanced standards.
Machine and chemical saety
The wide variety o products that are sold in
our stores are sourced rom diverse regions
and industries that oten have dierent
requirements or machine and chemical
saety. To enhance our own standards and
drive industry change, we implemented acommon set o requirements or all our
sourcing markets, which incorporated such
international standards as OSHAs 18001:2007.
Health and saety management, risk assessment
and training, as well as specic areas such as
protection against noise, re, hazardous
substances and electrical equipment, are
among the areas addressed by international
occupational health and saety specications.
Inormation gathered through audits during
2012 has enabled us to pinpoint specic
challenges acilities ace with regard to
meeting our saety standards. It has also
allowed us to share recommended actions
necessary to address these issues.
Worker health and saety
Ethical Sourcing continued
In 2012, more than 4,000 actories around the globe received training
on our enhanced standards in the areas o Dormitory and Canteen
Saety as well as Machine and Chemical Saety. Management was
instructed on implementation o the standards within the actory
operating environment. The training also raised awareness o industry-
specic hazards and best practices to correct them. At the same time,
the benets to the workers and actories were demonstrated during
the training to encourage adherence to the new standards. We also
utilize our regular audit process to educate actories and suppliers on
appropriate corrective action required to alleviate risk.
One o the most helpul
modules in the (Factory
Audit Orientation) program
was the dormitory and
canteen standards, and
this has directly led to us
implementing industry-best
practices in these areas.
From a business perspective,
were now clear on what
levels o compliance are
expected o us.
S.P. Apparels Ltd.,
India
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A global approach to ire saety
As part o our eort to work with suppliers
globally to improve acility conditions
related to risk o re, weve made several
modications to our protocol or auditing
and assessing acilities. Facilities ound to
have re saety-related violations will have
30 days to take corrective action beore
production is barred. In addition, weve put
in place a set o requirements that build
upon our current program. While these may
be above and beyond legal requirements,
they must be implemented and adhered to:
Nolockeddoors.Doorsshouldhave
push-bar operation or easy exit in case
o emergency.
Alldoorstoexitstaircasesandre
escapes must be kept closed at all times
to prevent smoke rom lling the
stairwell and keeping workers rom saely
exiting the building.
Barredwindowsmusthaveaninternal
mechanism or emergency release or
removal to allow or worker escape andmust remain unlocked.
Alloorsandbuildings,including
dormitories, must have a secondary exit.
Aone-hour,re-ratedenclosed
staircase or external re escape
route is recommended.
Fireescaperoutesmustleadtosafe
assembly points without any
obstructions. Assembly points must be
designated and marked as such and
must be kept clear at all times.
Properaccessforredepartment
vehicles and other re-ghting
equipment in the actory premises.
Adequatewatersupplyforsprinklerand
re hydrant systems.
Traveldistancetoanexitcannotexceed
61 meters (200 eet) in buildings without
automatic re sprinkler systems.
Audible,visibleandoperablesmoke
alarms placed appropriately throughout
the building with at least the minimum
number required by law.
Audibleandoperablerealarmsthatcan
be heard in all parts o the building and
operate as one system.
Markedandlightedexitroutesfor
all foors and areas o the building,
including stairwells. Emergency lights to
be re grade industrial emergency
lights or use in smoke and re
environments.
Everybuildingmustbeinspectedon
each work shit by trained personnel to
ensure the above criteria are met.
Quarterlyjointredrillsincludingall
foors o the building to be overseen
by an external party, such as the re
authority, or timely and eective
personnel evacuation. Documentation
o these drills must be retained by the
acility or review during any visit to
the acility.
Firesafetytrainingconductedforall
personnel every six months.
Personnelon-boardingprocessshould
include re saety training upon hiring.
Trainedreghtersforeachoorof
the acility.
Validrelicensewhererequiredbylaw.
Validconstructionapprovalwhere
required by law.
Hazardous/ammablechemicalsandcombustible materials must be kept
away rom ignition sources.
Crche/childcarefacilitiesmustbe
on the ground foor o the building,
preerably located in a separate
nonindustrial acility.
Worker training lmsWe understand the value o
connecting with workersdirectly regarding issues o
saety in the workplace. As part
o our eorts to provide much
needed inormation and training
to workers, we collabor ated
with other brands and retailers
in Bangladesh to create lms
ocused on ire saety. Most
recently we were involved
in a similar project in India
where ilms on health and
saety, overtime, workercommunication, and harass-
ment and abuse were created
or workers on all levels.
Facilities ound to
have re saety-
related violations
will have 30 daysto take corrective
action beoreproduction is
barred.
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Enhanced ire saety standards
Bangladesh
While were taking an overall global
approach, we also recognize theres a need
or heightened attention to re-related risks
in countries such as Bangladesh. Our plans
include collaborating with other brands and
retailers to drive industry-wide results. In
the interim o a collaborative approach
being clearly dened, weve implemented
certain actory requirements to address the
most serious concerns.
In 2012, we completed our work with
suppliers to phase out o acilities deemed
to be at high risk or re-related incidents
because they met one or more o the below
re saety risk criteria. Factories meeting any
o these criteria are assessed as red-ailed
and are no longer eligible or Walmart
production or any retail market.
Fire safety risk criteria related to occupancy:
Residentialbuildingconvertedintoan
industrial acility
Facilitiesinmultistorybuildingwitha
ground-foor marketplace or commercial
shops on any foor
Facilitiesinmultistorybuildingshared
withotherfactories/enterprisesunder
separate ownership
Facilitieswitharooftopthatdoesnt
meet legal requirements and is not
completely clear
Facilitieswheretheresaresidence
located within the buildingManuacturing in a building originally
constructed or an alternate purpose, such
as a residence, can lead to many high-risk
issues. Furthermore, when buildings are
occupied by various types o businesses
under separate ownership executing a ull,
eective and sae evacuation o the
building can be next to impossible.
In addition, all acilities in Bangladesh are
now required to undergo a mandatoryelectrical and building saety assessment
provided by a credible independent
external certication agency. The initial and
rst ollow-up assessments will be unded
by Walmart. To build on this, Walmart is
contributing $1.6 million toward the
establishment o an Environment, Health
and Saety (EHS) Academy in Bangladesh by
the Institute o Sustainable Communities,
a U.S.-based NGO that has also set up a
similar successul Academy in China.
Through the EHS Academy, apparelmanuacturers in Bangladesh will have
access to high-quality, aordable and
comprehensive training on re saety and
all aspects o environment, health and
saety. The Academy will provide a local,
long-term platorm or addressing EHS
challenges in the supply chain through
technical training and engagement. In the
interim, Walmart is also unding re saety
and emergency response training or
actory workers and management, provided
by an independent third party.
Critical to the success o our approach is
working with the government o Bangladesh
to strengthen legal requirements around re
protection, worker training and building
saety, including the phase out o residential
and commercial mixed-use buildings.
Likewise,increasedcapacityofrelevant
agencies is needed or oversight o these
requirements. Were calling on industry
associations to support these eorts as well,
especially with regard to training and
moving production out o unsae buildings.
Ethical Sourcing continued
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Walmart zero-tolerance policy orunauthorized subcontracting
In order to continue to improve transparency in our
global supply chain, we instituted a zero-tolerance policy
or unauthorized subcontracting and will terminate our
relationship with any supplier engaging in unauthorized
subcontracting to source merchandise or Walmart. Any
acilities subcontracting sourcing o Walmart merchandise
to an undisclosed or unauthorized acility are subject to
being classiied as red-ailed in our system and may be
permanently barred rom sourcing merchandise to
Walmart or all retail markets.
Program enhancements
Were committed to supply chains that empowerthe people who work in them, and the amilies
that are supported by them, to live better. What
we learned rom the tragic incident at Tazreen
Fashions,Ltd.inBangladeshhascausedusto
reevaluate our processes and strengthen our
policies and procedures. Our dedication to
responsible sourcing includes raising our own
standards and partnering with other stakeholders
to improve the standards or workers across
the industry.
In January 2013, we distributed a letter to all suppliersglobally to inorm them o a new zero-tolerance
policy or unauthorized subcontracting as well
as Ethical Sourcing program enhancements.
These new policies were designed to strengthen
compliance with important saety standards. Weve
implemented several new policies, the rst steps
o many, as we work to create more transparent
and productive supply chains and increase
opportunities or those who work in them.
Newly disclosed acilities will now be required to
prequaliy with an Ethical Sourcing audit prior tobeing made active. Production may not begin
until ater the acility has passed the ull Ethical
Sourcing prequalication process. Production in
a acility that hasnt been prequalied will be
deemed unauthorized subcontracting.
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U.S. agriculture, aquaculture
production and seaood
Weve increased our ocus on sourcing
more products rom local suppliers and
armers in the U.S. This is a good thing or
small business owners, local communities
and the U.S. economy.
At the same time, we recognize that this
initiative presents unique challenges or our
small suppliers who may not have theresources necessary to implement Ethical
Sourcing requirements. Were committed
to helping our supplier partners address
these challenges. The rst step was or us
to better understand our agriculture and
aquaculture supply chains in the U.S. by
looking deeper into our supplier acilities
and processing centers, including arms
and resh packing acilities.
Next, we began development o a
comprehensive support program thatincludes education, training and capacity
building to enable suppliers and their
actories to meet our expectations and
requirements. In October 2012, we conducted
37 localized training sessions and several
webinars or suppliers throughout the U.S.,
ocusing on our standards and supported
by an e-learning module to be rolled out in
2013. Using audits and other metrics, we
validate compliance with our standards at
supplier acilities.
Because these challenges arent exclusive to
Walmart, weve collaborated with NGOs, as
well as the public and private sectors, to
identiy an approach that will provide real
and meaningul solutions or our supply
chain and the industry as a whole.
Seaood
Weve engaged with the United Nations
Inter-Agency Project (UNIAP) on human
tracking in Thailand. On June 6, 2012,
UNIAP convened an expert consultation
to discuss human tracking and labor
exploitation in the seaood industry. Given
that Thailand is the worlds largest exporter
o shrimp and that Thai exports account or
one-third o the U.S. shrimp market, this
meeting marked a signicant opportunity
or private sector, government, U.N. and
civil soc