Walmart China Factsheet

About Wal-Mart Stores, Inc.

 http://www.wal-martchina.com/english/walmart/index.htm

Wal-Mart Stores, Inc. was founded by American retail legend Mr. Sam Walton in Arkansas in 1962. For 49 years, the company has served customers and is now the world’s largest private employer and retailer, on the top of the Fortune 500 list. Walmart is among the most recognized global brands.
Today, with over 2.2 million associates worldwide, Walmart operates over 10,000 units in 27 countries under 69 different banners, and serves more than 200 million customers per week. Walmart recorded $419 billion in annual net sales in fiscal year 2011 (FYE10, Feb. 1, 2010 to Jan. 31, 2011), an increase of 3.4 percent over fiscal year 2010. Walmart and the Walmart Foundation announced $319 million in cash and $480 million in in-kind contributions around the globe during the fiscal year 2011. In 2010, Walmart regained the seat at the top of the Fortune 500, and ranked first among retailers in Fortune Magazine’s 2010 Most Admired Companies survey.
In China, as elsewhere, we follow the three core values of respect for the individual, service to the customer, and striving for excellence, and stick to the Walmart tradition of building our business one store and one customer at a time, so as to fulfill our core mission — save people money, so they can live better, and continue to make a difference in the lives of our customers, members and associates.

About Walmart China

Walmart entered the Chinese market and opened its first Supercenter and Sam’s Club in Shenzhen in 1996. Currently, Walmart operates a number of formats and banners in China including Supercenters, Sam’s Clubs, and Neighborhood Markets. As of March 1, 2012, Walmart had owned 370 units in 140 cities in 21 provinces and four municipalities, and had created over 106, 500 job opportunities across China.

Walmart China firmly believes in local sourcing. We have established partnerships with nearly 20,000 suppliers in China. Over 95% of the merchandise in our stores in China is sourced locally. In addition, Walmart is committed to local talent development and diversity, especially the cultivation and full utilization of female staff and executives. 99.9% of Walmart China associates are Chinese nationals. All our stores in China are managed by local Chinese. Furthermore, over 60 percent of Walmart China associates are female and about 40% of those are at management level. In 2009, the company established the “Walmart China Women’s Leadership Development Commission” for driving women’s career development.

About Walmart China’s Corporate Social Responsibility Programs

Walmart China is committed to being a good corporate citizen and has organized CSR efforts in six categories: environmental protection, community involvement, women empowerment, health & wellness, educational support, and disaster relief. We have donated funds and in-kind support worth about RMB65 million to local charities and welfare organizations since entering the China market. Moreover, Walmart China associates have dedicated 200, 000 hours to these activities.

Some of our recent CSR events are as below:

1. On December 30, 2011, Walmart China, in collaboration with Weibo.com of Sina, launched a charity event on Weibo.com themed “@Warming Up Our Communities” ( Weibo address: http://weibo.com/wmcsr), in search of 365 touching and respectful figures in our neighborhood. Walmart will present them with new year’s gift packages. Meanwhile, over 350 Walmart stores across the country will deliver thousands of “warm” gift packages to those needy people in the communities where Walmart has a presence.
2. On August 23, Walmart China launched a charity ceremony themed “1+1+1>3” with three of is major suppliers: Johnson&Johnson, Mars and Nivea. From September 8 to October 7, at over 200 Walmart supercenters, when customers buy designated items from the above three suppliers, both Walmart China and the supplier will donate RMB 0.1 to either the project themed “Revolving Fund on Poverty Alleviation for Mothers” of China Women’s Development Foundation or the project “Nutritional Enhancement Program for Children in China’s Western Region” of China Foundation for Poverty Alleviation. Walmart China joined the hands of both suppliers and customers together to convey love to women and children in need. Walmart China and the three suppliers respectively donated RMB 60,000 to the above two foundations for children’s and women’s better living.  
3. On July 5, 2011, One year after the earthquake hit Yushu in Qinghai Province, more than RMB760,000 donated by Walmart was used to build "Walmart Love Libraries" in nine schools in the hardest hit areas of Yushu, and equip the libraries with a total of 317 intensive book shelves, which can store 374,600 books, and 208 sets of reading tables and chairs.
4. On May 28, 2011, the National Development and Reform Commission (NDRC) and Walmart China jointly launched a communication event on the occasion of the third anniversary of the announcement of the Decree on the Restriction of Plastic Bags, advocating a low-carbon lifestyle. On June 1, as the sole collaborative enterprise of this event, Walmart held a series of activities entitled “Walmart Plastic-bag Restriction Green Initiative Enters the Communities” simultaneously in twelve cities including Shanghai, Shenzhen, Tianjin, Xiamen, Hangzhou, Nanchang, Guiyang, Kunming, Dalian, Zhengzhou, Chongqing, Changsha. Meanwhile, Walmart China held “Plastic Bag Restriction Green Initiatives in all its stores, advocating a green and low-carbon lifestyle jointly with customers. Since the implementation of this decree on the restriction of the use of plastic bags, Walmart stores across China made tremendous achievement with the reduction on the use of plastic bags by 90%.
5. Since entering the spring, vegetable farmers in many area of China, including Henan, Shanxi, Guangdong, Zhejiang, and Liaoning, suffered from unmarketable vegetable. In answering the call of the Ministry of Commerce and local governments, Walmart signed a proposal in Beijing on helping farmers sell unmarketable vegetables through “Direct Farm” activity. The company has been purchasing vegetables and fruits from the suffered farmers and selling them at fair price in its store outlets across China, which help tide the farmers over a period of difficulty while ensuring that customers get safe and affordable produce. As of May 8, Walmart stores had already purchased unmarketable vegetables in the total amount of 480 Tons in over ten provinces and municipalities including Beijing, Hangzhou, Guangzhou and Xiamen, to echo local authorities’ call on purchasing unmarketable vegetables. Walmart also sold these vegetables at reasonable prices in all its stores across China.
6. On April 1, 2011, Walmart China launched its nationwide sustainability campaign themed “2011 Walmart Earth Month”, in six Chinese cities, including Beijing, Shenzhen, Shanghai, Xi’an, Wuhan and Xiamen. With the theme “Go green with no plastic bags，the campaign was held in more than 210 Walmart supercenters across China, calling on people from different walks of life to reduce the use of plastic bags, and encourages the use of reusable bags in some pilot cities. We also turned off one third of the lighting in the stores during off-peak hours in continuous response to WWF’s Earth Hour program. The campaign helps our stores and neighboring communities save 500,000 kilowatt-hours of electricity. Around 8.2 million customers in over 110 cities, 100 thousand Walmart associates and their families were actively involved in this campaign.
7. March 15, 2010, Walmart announced an initial commitment of $5 million in cash and in-kind donations for emergency relief efforts in response to the tragic earthquake and resulting tsunami in Japan and was also mounting a full scale operation to get additional relief supplies into Japan. The supplies will be sent from China. Walmart China union donated RMB 100,000. Walmart China has also started donation in HO and operation units. The raised fund will be used to help Walmart Japan associates in the affected area.
8. October 21, 2010, Walmart and the China Women’s Development Foundation signed an MOU that included a Walmart 1 million RMB as seed funding for the “Walmart Women’s Development Fund.” The fund will finance the “Revolving Fund on Poverty Alleviation Program for Mothers” led by the China Women’s Development Foundation. This project is now in full swing and has benefited about 1,300 villagers including 310 women, each of whom received RMB 3,065 as initial funding to start a variety of plantation and cultivation projects.
9. On August 12, on behalf of all Walmart China employees, Walmart China and the trade union of the Walmart China Head Office announced the donation of RMB 150,000, via the China Foundation for Poverty Alleviation, to Zhouqu County, Gannan Tibetan Autonomous Prefecture in Gansu Province, which was hit by a massive flow of mud and rock. This donation assisted the victims in dealing with the disaster and helping themselves.
10. Walmart donated over RMB 370,000 to the flooded area since June. Over 600 Walmart China associates have dedicated to these relief activities.
11. During May to August 2010, Walmart China launched a campaign named “to be little environmental guardians, and win SH Expo tour” among customers and associate families, to raise customer and associate families’ consciousness about environmental protection. The award ceremony on final 9 winners was held at ZED Pavilion, SH Expo on August 25. All "Little Environmental Guaridians" was invited to present their works and shared their practice on a low-carbon lifestyle and environmental protection.
12. In March 2010, Walmart in the U.S. announced an initial donation of $ 1million to the tragic earthquake in Chile. Walmart China and its union, and Walmart’s Global Sourcing team in China donated an additional RMB 400,000 in cash and in-kind support to Chile.
    In April, 2010, Walmart Foundation donated $150,000 to the international NGO, World Vision for Public Welfare Project for earthquake relief in Qinghai. Walmart China and its union, and the Walmart Global Sourcing team in China donated an additional RMB 525,000 in cash and in-kind support to Qinghai Yushu, which was devastated by a massive earthquake. In addition, Walmart China associates made an additional donation of RMB 401, 500. In this way, Walmart China and Walmart's global foundation are joining efforts to support Qinghai relief with a total donation worth RMB 1.95 million.
13. In January, 2010, in response to the tragic earthquake in Haiti, Walmart operations around the world and the Walmart Foundation announced a $500,000 monetary donation to the Red Cross emergency relief efforts in Haiti. The company also sent pre-packaged food kits valued at $100,000 to Haiti. Walmart China also donated RMB 200,000 for disaster relief.
14. In January, 2010, Walmart China held a nationwide community campaign with the theme of “Caring about Climate Change, Making our Planet Healthier”, attracting more than 60,000 customers from 100 communities to participate.
15. In May 2008, Walmart pledged to donate over RMB 20 million to the Sichuan earthquake-stricken areas for buying items in short supply and community reconstruction. The projects included:
    • Buying and delivering badly needed supplies to the earthquake-stricken areas immediately after the earthquake, by coordinating efforts with the Red Cross, the local government, relief organizations and civil affairs authorities.
    • Donating RMB 5 million to the Sichuan Foundation for Poverty Alleviation for supporting programs to build countryside clinics in the earthquake-stricken area, and donating 20 ambulances worth more than RMB 2.5 million to the Health Department of Sichuan Province
    • Committing RMB 6.5 million for the rebuilding of schools damaged in the earthquake through the “ Sustainable School project”. The project is managed by the China-US Center for Sustainable Development. On April 29, 2011, after two years of construction, Walmart announced the completion of the new Jindai Ecological Model Primary School, Liangping County in Chongqing.
    • Donating about RMB 1.08 million to the international NGO Right to Play for the pilot program in Hanzhong and Ankang districts of Shaanxi Province to help orphaned and handicapped children.
    • Donating RMB 700,000 to support the Big Top project through partnership with Half the Sky Foundation, creating a warm and positive environment for children in the earthquake-stricken area.
    • Providing assistance to Beijing Normal University’s volunteer teaching trips in the quake area, establishing a recovery training room for teenagers by cooperating with the China Children and Teenagers’ Foundation, and “Youth Leadership Program among China University Students” developed by the Committee of 100.

About Walmart China’s Sustainable Development
Besides providing assistance to the community and making grants, Walmart is committed to incorporating sustainability throughout its global supply chain and daily operations. Sustainability has been a global priority of Walmart since 2005. And we’ve committed to three major goals

1. to be supplied 100 percent by renewable energy
2. to create zero waste
3. to sell products that sustain the world’s resources and the environment

In October, 2008, Walmart brought its top suppliers together in Beijing for the Sustainability Summit, outlining a series of aggressive goals and expectations to build a more environmentally and socially responsible global supply chain. Walmart is cooperating with its top 200 supplier factories to reach the goal of 20% energy efficiency improvement by 2012. In February, 2010, we announced a goal to eliminate 20 million metric tons of greenhouse gas (GHG) emissions from our global supply chain by the end of 2015. This is the equivalent of taking more than 3.8 million cars off the road for a year.
On October 14, 2010, Walmart announced its global sustainable agriculture goals. We would focus on three broad areas, with specific goals and commitments to help measure progress.

1. First, Support farmers and their communities. By the end of 2015, Walmart will purchase and sell globally food sourced directly from 1 million small, medium local farmers;
2. Second, Produce more food with less waste and fewer resources. Walmart will invest $1 billion in its global fresh supply chain to help deliver fresh, quality food with a longer shelf life to its customers by the end of 2015
3. Third, Sustainably source key agricultural products。

Walmart’s sustainability initiatives in China are aligned with the Chinese government’s environmental, social and energy objectives. And it is fully aligned with the company’s global sustainability goals. Walmart China’s sustainability goals and key programs mainly include:

1. Building energy efficient stores and becoming the best-in-class sustainable retailer in China. By using LED lighting as general lighting, adopting energy-saving refrigeration, installing heat reclamation systems, and turning down lighting during off-peak hours, etc. As designed, up to the end of 2010, we were expected to achieve:

• 40.16% reduction in energy use in new proto stores against 2005 baseline, exceeding its original goal of 40% reduction in energy use.
• 54.17% water use reduction in new proto stores against 2005 baseline, exceeding its original goal of 50% reduction in water use.

Our goal is:

• 20% Green House Gas reduction by 2013 against 2005 baseline

As designed, up to the end of 2010, we were expected to achieve:

• 7.4% GHG reduction in energy use in existing stores 

2. Sell sustainable products. Set Walmart China’s Direct Farm Program as an example
By Sep. 30th 2011, Walmart has established 81 bases in 23 provinces and municipalities with areas up to 840,000 mu, engaging over 810,000 farmers.
Walmart’s Direct Farm Program started in 2007. We helped farmers better adapt to market conditions, encouraged them to choose standardized and scaled production methods, and provided instructions on ways to preserve the environment in production activities. These initiatives not only increased farmers’ income, but also helped Chinese customers get the benefits of fresh, safe, delicious, affordable and sustainable produce. In December 2008, Walmart was picked by the Ministry of Commerce and the Ministry of Agriculture as one of the first companies for the pilot “Direct Farm” program. As of Oct.31, 2011, we had set up 81 direct farm projects in over 23 provinces and cities, spanning a total space of over 840,000 mu, directly benefiting over 810,000 farmers.
3. Build a world-class, high-value sustainable supply chain. Set The Program of Capacity Building on Innovation and Sustainable Development in Chinese Manufacturing Enterprises as an example:
Since the launch of the project in October 2008 by Walmart and the Administrative Centre for China's Agenda 21 (ACCA21), a public institution under China’s Ministry of Science and Technology, the needs analysis of suppliers training has been carried out; CEO training and a number of technical training sessions have been held; pilot clean production audits have been completed in 4 companies in the food, clothing, electronics, and toy industries; project outcomes have been assessed; and the publicity and promotion on the outcomes of the project has been successful through the making of publicity materials. After nearly six months of clean production audits, the four pilot enterprises achieved lower power consumption per unit of product by 6.4%, 9%, 6.9% and 11% respectively, completing 32%, 45%, 34.5 % and 55% of their sustainable development goals in 2012 respectively, which lays a solid foundation to achieve their overall goal of saving 20% by 2012. 65 programs have been developed through pilot enterprise programs, 56 of which have been carried out with a total investment of about RMB 1.79 million and an economic benefit of about RMB 5.12 million.
Walmart is also committed to working with the Chinese government, supplier partners, and associations to achieve its sustainability goals by signing cooperative Memorandums of Understanding (MOUs).

• In October 2008, signed an MOU with the Administrative Center for China's Agenda 21 (ACCA21) of Ministry of Science & Technology (MOST) with an aim to provide support for domestic enterprises to achieve sustainable development by launching The Program of Capacity Building on Innovation and Sustainable Development in Chinese Manufacturing Enterprises.
• In October 2008, signed an MOU with the China National Forestry Industry Association (CNFIA) of State Forestry Administration (SFA) to share expertise and exchange views on forest certification.
• In December, 2008, signed an MOU with the Environmental Certification Center of the Ministry of Environmental Protection (MEP) to develop green store standards in China.
• In October, 2009, signed an MOU with ACCA21 of MOST regarding launching the “Walmart Cup” Youth Science & Technological Innovation Competition, to increase public awareness of energy-saving and emission reduction, and to encourage young people to be active in science & technological innovation. On July 15 2010, the award ceremony for the “Walmart Cup” Youth Science & Technological Innovation Competition was held by Walmart China and ACCA 21 of MOST at the U.S. Pavilion of the Shanghai Expo. Awards were given to 30 students for best, first and second prizes and 5 schools and universities as best organizers.
• In October, 2009, signed two MOUs with the Ministry of Commerce (MOFCOM) and the Ministry of Agriculture (MOA), to accelerate the expansion of Walmart’s Direct Farm program and promoting knowledge and experience sharing, training, product testing & tracking.
• In April, 2010, signed an MOU with the China Beverage Industry Association for a joint effort on promoting clean production and sustainable development in the beverage industry.
• In October, 2010, signed an MOU with the Zhonglin Tianhe (Beijing) Forest Certification Center of the State Forest Administration (SFA) for a joint effort on providing technical consulting and professional trainings on forest certification for forest certification assessors, suppliers, managers of forest-related businesses and agencies to be certified.
• In December, 2010, signed an MOU with Peking University for the cooperation in the Waste Management and Recovery, and reducing the amount of waste generated by our facilities.
• Partnered with suppliers to promote eco-packaging and improve energy efficiency in home appliances. Since 2008, we have made the "Walmart China Eco-Packaging fair” an annual event for our suppliers, aiming at jointly seeking operational improvements which will enable our suppliers to find energy-saving packaging solutions. The packaging scorecard was also launch in early 2009 in China.  So far, we have worked with 36 supplier partners on more than 1800 SKUs.
• Through partnership with local governments, we’re leading initiatives in different parts of the country to prepare export manufacturers to produce for the domestic market as well through PSEE - Program Supporting Export-oriented Enterprises in Developing Domestic Market, helping them overcome the economic downturn. Walmart promoted PSEE in Guangdong, Jiangsu, Zhejiang, Fujian and other areas where export-oriented enterprises are concentrated since April 2009, sponsoring 7 PSEE activities and actively taking part in 9 related exhibitions and symposiums sponsored by central and local governments. Through this program, more than 1,000 enterprises attended PSEE trainings, over 60 of which have been able to put their products on the shelf of Walmart stores, driving a total sale of over RMB 50million.
• Feb. 2012, Walmart China and Chongqing Foreign Trade and Economic Relations Commission (Chongqing MOFCOM) signed a Memorandum of Understanding (MOU) on “Strategic Economic and Trade Partnership”.  The MOU aims to develop economic and trade cooperation, broaden business interactions for both parties in the future, and plans to conduct cooperation in six areas including: New Sam’s Clubs; Multi Formats; E-commerce; Transition and Distribution Center; Direct Farm and Commercial Land.

Walmart China's Sustainability and CSR Efforts are also widely recognized by society. Some of the most recent awards and honors are listed below:

• In Feb. 2012, Walmart China was selected “Special Award for 2012 Responsible Company Under the Spotlight”: Meanwhile, “Walmart’s Women’s Development Fund” was awarded “2012 Outstanding CSR Project Under the Spotlight ” .
• Walmart China won “the Most Influential Enterprise” award at the High-forum in Commemoration of the 10th Anniversary of China’s Accession into WTO, hosted by China Business Herald on December 18, 2011.
• Walmart China was awarded the “Outstanding CSR Company” at the session themed “2011 China CSR High Forum and the launch of Chinese Companies’ CSR Report”, hosted bywww.xinhuanet.com.
• Walmart was awarded the “Most Influential Enterprise in 2011” by Oriental Entrepreneur, Manager, Xinmin Weekly, Financial Circle, and BTV.
• Walmart China was awarded The Year 2011 Best Employer by China HR, rank 20 in the Top50.
• Walmart China was awarded as the 2011 Special Award on Corporate Social Responsibility by China Association of Enterprises with Foreign Investment (CAEFI), China Foundation on Consumer Protection.
• Walmart Beijing Wangjing Store (1016#) was picked by China Chain Store & Franchise Association as one of the first companies for the 100 Model Low-carbon Stores award.
• Jinghua Commonweal Award - 2010 Best Corporate Social Responsibility Contribution Award of China by the Chinese Red Cross Foundation, Jinghua Commonweal Fund, and Beijing Times.
• China Women’s Charity Award by All-China Women's Federation and China Women's Development Foundation.
• Low-Carbon Innovation Company by China Youth Daily and the Economy Journal
• Best Retail Place to Work and Retail Innovation Award of 2010 by China Franchise & Chain Store Association
• The China Best Employer Enterprise by the International Human Resources Association
• China Green Gold Award by Sohu.com and A.T.Kearney
• The Leading Brand of Low-carbon by People.com.cn.
• 2010 Hurun CSR Top 50
• 2009 Shenzhen Top 30 Retail Chain by Shenzhen Chain Store and Franchise Association
• Top Ten Global Leaders in Green Economy by International Green Economy Association (IGEA)
• The Top Charity Brand that Influences Chinaat the Top Brands Contributors Awarding Ceremony. (General Assembly on China Brands and Communications 2010) hosted by China Media Culture Promotion Association (CMCPA)
• Shenzhen 30-Year Business Achievement Awards - Excellent Retail Company by Southern Metropolis Daily & Shenzhen Retail Business Association
• 2009 Best Corporate Public Image Award-Multinational Corporation by the Best Corporate Public Image Evaluation Committee and sohu.com
• Walmart China President & CEO Ed Chan was selected as one of the People of the Year 2009 - Outstanding Person of Low-Carbon Economy by Forbes China
• Walmart ranks number one on the 2009 Multinational Company’s Contribution to China List by the China Enterprise Federation, China Enterprise News and China Corporate Social Responsibility Research Center
• Walmart was listed among the China Top 100 Brands and Top 10 Foreign Brands at the P.R. China’s 60th Anniversary by People’s Net of the People’s Daily and the China Newsweek
• he Farm Produce Circulation Special Award of Merit by the China Agriculture Wholesale Market Association and CCTV 7
• The Satisfactory Chain Retailers selected by Suppliers by Business Information of Shanghai, seven years in a row
• Academician-recognized Best Employers in China by www.ChinaHR.com, six years in a row
• Contribution of Fortune Global 500 in China – Top 100 Companies by Southern Weekend, five years in a row
• The 2009 Business Week Greener - China Business Award
• China Green Bench Mark Company 2008 by the China Entrepreneur Club
• On September 15, 2011，Walmart China was selected as one of the "Best Companies to work for in China” by Fortune (China) and Towers Watson
• On August 18, Walmart China was named as one of "the top 100 most trustful brands" in food safety and public health by CBN.
• China Foundation for Poverty Alleviation presented Walmart China the award named “Community Service Ambassador of 2011” on October 17, 2011, which was the 19th international Day for the Eradication of Poverty.
• On Oct 19, 2011 Walmart China was nominated “the Outstanding Employer – The Best Company to Work for” by Towers Watson and Fortune (Chinese).
  This is the fifth consecutive year for the release of the award list since 2003.
• On Oct 27, 2011 Walmart China was nominated as “The Second Session of China’s Green Gold Award – The Outstanding & Sustainable Company in China” by Sohu.com and A.T.Kearney.