Tyler Elm - Business Sustainability

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Business Sustainability and the Role of Renewable
Energy
November 2006 Chris Hendrix chris.hendrix_at_wal-mar
t.com Wal-Mart Stores, Inc.
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Business Sustainability Economic benefits
derived from improved environmental and social
outcomes
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WMTs Commitment

• With our expanding global presence, environmental
  problems are our problems. Due to our size and
  scope, Wal-Mart is uniquely positioned to have an
  impact on our world, perhaps like no company
  before.

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• Business Sustainability _at_ WMT
• Is about the business, not just the corporation
• Is NOT an environmental initiative
• Is a business strategy that derives value from
• Experiential Learning
• Enhanced Outcomes

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Sustainability Goals

• Our goal is to reduce our 2013 Carbon Footprint
  by 25
• Facilities 20 -- 7 yrs
• Store prototype 25-30 -- 4 yrs
• Fleet 25 -- 3 yrs

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Carbon Footprint2005 Baseline

• Worldwide -- 19.2 million tonnes
• United States -- 15.4 million tonnes
• Purchased Electricity 11.6
• Refrigerants 1.6
• Trucks 1.3
• On-site combustion 0.8

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Global GHG Strategy Network

• Maximizing the revenue opportunities for the
  business, and value to the customer in a
  carbon-constrained economy by creating carbon
  markets and utility pricing structures that
  reward innovation instead of pollution
• Renewable Energy Procurement Program
• Policy and Regulatory Change
• Supplier Energy Efficiency Program
• Customer Energy Efficiency Program

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Renewable Energy Guidelines

• Basic foundations for renewable energy
  procurement
• Cost effective (brown power vs. green power)
• Economical (internal project prioritization)
• Asset identification

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Renewable Energy Procurement

• Currently exploring the major renewable types
  throughout the country
• Wind
• Solar
• Biomass

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Lessons Learned (So Far)

• Capital is not usually an issue for renewable
  projects
• Renewable project rates of returns are
  surprisingly low
• Competitive markets are easier to structure large
  renewable projects

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