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Asda Sustainability A Retail Perspective Julian Walker-Palin Head of Corporate Sustainability.

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Presentation on theme: "Asda Sustainability A Retail Perspective Julian Walker-Palin Head of Corporate Sustainability."— Presentation transcript:

1 Asda Sustainability A Retail Perspective Julian Walker-Palin Head of Corporate Sustainability

2 What ‘Sustainability’ means to us “…Our mission of ‘saving people money so they can live better’ starts with low prices…but it doesn’t end there. It extends to being a leader in how we take care of our world. It means that Wal-Mart and our supplier partners must operate in a more socially and environmentally responsible way wherever we do business.” Mike Duke, President & CEO Walmart “For us, sustainability is about building a better business. It is about making a positive difference in people’s lives and their communities. And it is about staying out in front of the changes that will take place in the world not just next month or next year, but for decades to come.” Lee Scott, Chairman of Executive Board Walmart

3 The global framework Walmart 2005 framework Sustainability strategy is a key driver of profitability Holistic focus both inside and outside our business ENERGY Supplied 100% by renewable energy WASTE Create zero waste PRODUCTS Sell products that sustain people & environment Sustainability EDLC EDLP

4 Need to tackle directs first Existing buildings emit 21% less carbon Over 82% of store waste diverted from landfill - recycled or re-used Transport fleet emits 52% less carbon – industry leading 27% packaging reduction

5 Directs only takes us so far… Packaging Agriculture Water Marine Factories Indirect Impact = 92%

6 2010 Signals a Change in Approach Develop more environmentally preferable products Help our supply base reduce impacts ( water/carbon/waste ) Greater resource stewardship (water, deforestation, farming)

7 Could mean a fundamental re-design Inputs Manufacturing processes Investment hurdles Start with iconic areas Packaging material types Transportation We need to help our suppliers make this transition in partnership with us Issues from a Retail Perspective Not an easy transition but essential

8 Responsible Sourcing Initiative Goal: Build a more environmentally and socially responsible supply chain Initiatives: Required demonstration of compliance with environmental laws and regulations Improved supplier energy efficiency Higher standards of product safety and quality Greater transparency and ownership Will insulate from future shocks too

9 Global tool for Buyers & Customers Not a sole Walmart tool Led by Academic Consortium Buyer decision making tool Fair comparison between products Simplifies a wide range of metrics Customer information potential Unlikely to appear on packaging Opportunity to use iPhones, PDAs etc Sustainability Index One global tool is the key

10 Goal to eliminate 20m tonnes of carbon by 2015 Announced Feb 2010 Most aggressive goal in the world Focus on priority products carbon intensity x sales volume 19 key categories: food & non food Lifecycle approach taken Tackling Product Carbon Transformational goal that will benefit our suppliers and our customers

11 Support farmers & their communities Increase products sourced from local suppliers Expand education schemes like Farm Link Improve health & livelihood of women in agriculture Produce more food with less waste & fewer resources Reduce fresh food waste & utilise unavoidable waste using sustainable methods by 10% farm to fork Invest £99m in perishable supply chain Deliver program disseminating R&D for beef, pork, lamb, dairy, produce, poultry Sustainably source key agricultural products Sustainable palm oil focus Develop global sustainable beef program Sell only sustainable fish (as per Sustainable Fish Partnership) Sustainable Agriculture Umbrella group of targets to drive agriculture supply chain innovation

12 Issues on multiple levels: Carbon, Water, Food Scarcity & Energy What does the future hold ? How should we approach water scarcity ? Water scarcity versus ‘trade aid’ Footprint or watershed approach How do we feed 9 billion by 2050 ? More food or simply less waste Role of GMO Peak oil Elephant in the room Unsure how / quickly it will affect supply chain Carbon management Mitigation versus adaptation Lack of knowledge and need for partnerships on adaptation

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