Walmart Society SupplierS
Transcription
Walmart Society SupplierS
Sustainability 2013 Report Year 2012 Walmart Suppliers Society Management practices and engaged teams distinguish the company in the retail industry In the supply chain management, the company requires a performance in line with its ethical principles Walmart is committed to Women empowerment and the value generation to customers and communities Credits Coordination Walmart Brasil Corporate Affairs - External Communications Content Consultant and layout TheMediaGroup Translation Celtic Comunicações Photos Felipe Gombossy, Mari Vaccaro, Pulsar Image Bank and Walmart Image Bank PRINT Braspor www.facebook.com/Walmartbrasil @walmart_br Questions, comments and suggestions about the content of this publication should be sent to Walmart Brasil´s Corporate Affairs/External Communication Department (Av. Tucunaré, 125 – ZIP: 06460-020 – Barueri – SP or by e-mail to: [email protected]) CONTENTS 08 04. MESSAGE FROM THE PRESIDENT 06. HOW WE CREATED THIS REPORT walmart Walmart 09. PROFILE 12. HISTORY OF WALMART BRASIL 16. PEOPLE 22. SUSTAINABILITY MANAGEMENT SUPPLIERS 30 32. MANAGING THE CHAIN 36. LOCAL SUPPLIERS SUPPLIERS This publication presents a series of special articles/reports 14. HEATED MARKET 21. CAN YOU PLAN YOUR CAREER? 28. IN THE HEARTS AND MINDS OF CUSTOMERS 34. DEVELOPMENT OF BUSINESS ETHICS 38. SMALL AND MID-SIZED FARMING IN SOCIETY 43. CUSTOMERS 48. SECTOR ENGAGEMENT 49. WOMEN’S EMPOWERMENT 52. WALMART INSTITUTE 58. GRI LETTER 59. GRI INDEX BRAZIL 46. CUSTOMER OF THE 21ST CENTURY 50. SUSTAINABILITY, ECONOMIC EMPOWERMENT AND GENDER EQUALITY 54. The youth unemployment crisis SOCIETY 42 Governança Message from the President GRI 1.1 | 1.2 Walmart Brasil is pledged to be a high performance company with well defined operating principles. These include having a leading position in social and environmental issues, focused on engagement with suppliers and consumers to foster more sustainable consumption habits. In this interview, Walmart Brasil president Marcos Samaha describes how the company has made investments and structured platforms to achieve the aims of its sustainability strategy. This has been incorporated into its global business management since 2005 when Walmart pledged to reduce waste from its operations, increase energy efficiency, reduce greenhouse gas (GHG) emissions and offer more sustainable products. 4 How do you assess the changes and transformations Walmart made in 2012? harmony with the corrections on the way greatest innovation should occur in this link of and the business targets. We could never the chain. In the retail sector we can be driv- We opened new stores in 2012, expanded our aspire to be a high performance company ers, helping to raise awareness and creating an competitive advantages and our customers without these changes. environment in which the discussion, search increased their perception that we were offer- for improvement and identifying opportunities can occur. The End-to-End Sustainability make it even more of a high performance com- How does Walmart assess the customer’s perception and satisfaction in relation to these changes? pany. However, we have to make structural ad- We hold weekly leadership meetings at which lished with a number of commercial partners. justments to do so and adopt the best business the agenda includes a brief introduction and We should also not overlook the initiatives to practices in terms of management, integrat- the first topic is the Voz do Cliente (Customer’s appreciate the small and mid-sized local farm- ing systemic platforms, simplifying processes Voice) which presents our customer atten- ers who supply our stores with quality regional and giving priority to operating efficiency and dance and service satisfaction indicators. Our products and have access to the retail business focusing on activities directed at customers. clients have increased their loyalty to our stores without needing to go through intermediaries. These changes have been underway since the and brands. This shows customers understand beginning of 2010 so I would describe 2012 as that the changes we are making are in their the third year of our transformations. interest as they improve the quality and help ing quality products at low prices. Walmart is undergoing some transformation processes to lower the price. I am very satisfied to see that we are advancing program is an obvious example of this. We can also mention the various pacts we have estab- What type of structure is needed for this strategy of managing sustainability successfully and in line with Walmart’s global aims? Do the sustainability strategies and actions encourage consumers to change their behavior and raise their awareness? This strategic focus on sustainability arose I have seen many comments by customers the ground in the countries where the com- who are choosing to buy in Walmart stores pany is present. We adhered to this guidance The introduction of the Everyday Low Prices because we have recycling stations. Our vol- quickly in Brazil and made innovations. I have concept was a significant change that was untary reception posts are available in many worked for Walmart operations outside Brazil adopted in a consistent way and did not take districts where there is no selective waste and one of the innovations we brought to place overnight. To do so, we carried out a collection. Customers will do their shopping these places was working with platforms in plan over a period of 10 months that involved there because they can bring disposable which there are sponsors, captains and vari- renegotiations with suppliers and changes in packaging for recycling. The very growth in ous multidisciplinary areas. This shows that the way we carried out our business. The pub- sales of products that are part of the program sustainability is not just the job of one par- lic was informed about the Everyday Low Prices Sustentabilidade de Ponta a Ponta (End-to-End ticular sector but all of us. concept in 2011 but we still face the challenge Sustainability), through which we encourage of publicizing our philosophy on a permanent, the industry to review some aspects of the consistent basis to our costumers. product life cycle and make changes that add and the team has its feet on the ground. How does the Everyday Low Prices philosophy fit into this transformation situation? from a global strategy that was announced in 2005 and was adapted to the situation on The great transformation we are currently sign that the customer sees and appreciates What are the future expectations and what initiatives will be taken to reduce Walmart’s social and environmental impacts? making is related to processes and systems what we are doing as part of our principle of There is absolutely no doubt that our practices and we have made another important step playing a leading role in social and environ- are constantly improving – and even being re- with pilot projects for the systemic conver- mental questions. vised on some fronts – to ensure we achieve differences in terms of sustainability, is a clear the goals in the short, medium and long terms. sion of our stores. To raise the company to a high performance operation involves chang- And in relation to suppliers? This also includes all the initiatives related to ing the foundations and structures and pre- The industrial sector has a much greater en- social responsibility and private social invest- paring it for the future. It also requires cour- vironmental impact than the retail industry in ment which are having a strong impact on the age and engagement to keep the team in the productive chains so it is natural that the communities where we are present. Sustainability Report 2013 5 How we Created This Report GRI 3.5 | 4.17 Walmart Brasil is publishing its Annual Sus- handling and relating to customers, employ- city and interviews with customers and employ- tainability Report on its economic, social and ees, suppliers and other stakeholders who ees in the store chain in other states – through environmental performances from January 1 are part of its value chain. To understand and a materiality test – and the company’s strategic to December 31, 2012 in a new, lighter edito- improve the scope of the report, the com- priority issues were debated. During these rial form. The company is following the guide- pany held a Stakeholders Panel in 2012 which two periods, the stakeholders evaluated as- lines of version 3.0 of the Global Reporting Ini- included senior management, customers, pects in their economic, social and environ- tiative (GRI) as it did with the previous annual suppliers, employees, non-governmental or- mental context, working practices, human report. GRI 3.1 | 3.2 | 3.3 ganizations, the media, academics and trade rights, and social and product responsibil- associations. GRI 3.6 | 3.7 | 3.8 | 4.15 ity. The themes arising from this materiality This report goes well beyond presenting in- matrix, as with other issues regarded as im- formation related to Walmart’s store and of- Important issues for this report were identi- portant for Walmart Brasil, are considered in fice operation in Brazil. It aims to be a tool for fied through an on-site meeting in São Paulo detail in this publication. MATERIALITY MATRIX 21 32 Importance for the stakeholders Caption: 29 Environmental issues 4 30 11 31 12 27 15 10 13 28 16 26 19 8 18 1 3 23 24 Importance for the organization 6 17 20 25 14 2 5 7 9 6 22 Economic issues Social issues STRUCTURE OF THE REPORT The business strategies, the challenges to to and interacts with its strategic stakeholders ensure that the products sold on the super- – customers, suppliers, governments, associa- market shelves achieve the most sustainable tions and voluntary organizations, academic production possible and how the company institutions and institutional forums. GRI 3.5 | contributes to the development of society 4.14 | 4.15 | 4.16 | 4.17 are described in three large chapters of this report: Walmart, Suppliers and Society. At the same time, a series of reports, articles and interviews are featured which highlight Each chapter presents the most important some of the inherent challenges of the sector themes indicated in the materiality matrix, and the macroeconomic outlook. The aim of the performance indicators and the com- this content is to give the reader a better un- pany’s policies and practices are covered in derstanding of how Walmart Brasil manages direct, simple language. A description is also sustainability within its business strategy and given in the report on how Walmart relates how this has evolved over the years. ECONOMIC DIMENSION 1 Economic and financial performance 2 Local economic performance 3 Indirect environmental impact ENVIRONMENTAL DIMENSION 4 5 6 7 8 9 10 11 Use of materials and recycling Energy consumption and generation for own use Water consumption and reuse Managing and impact on biodiversity Control of emissions, effluents and waste Environmental impact in the use of products * Environmental investments and spending Social and environmental management in the value chain * 12 Sustainable buildings 1 3 Impact of climate changes on the business LABOR PRACTICES AND DECENT WORKING CONDITIONS DIMENSION 14 Work and relations between employees and the company* 15 Health and safety at work 16 Training and development * 17 Diversity and equal opportunities* HUMAN RIGHTS DIMENSION 18 Investment practices in business and human rights 19 Human rights aspects in the productive chain 20 Non-discrimination and eradication of slave labor* SOCIAL DIMENSION 21 22 23 24 Impact on communities* Combating corruption* Company’s positioning in relation to public policies Relationship with the competition PRODUCT RESPONSIBILITY DIMENSION 2 5 Health and safety of customers in using the products* 26 Customer relations and satisfaction 27 Information about the product (access and quality of information) 28 Communication and marketing 29 Conscientious consumption 30 Research & Development and innovation 31 Purchasing policies and practices 32 Product life cycles (ecodesign/recycling/return after use) GRI 3.4 | 3.9 | 3.10 | 3.11 B Level of Application More information in the GR index Questions and Suggestions Department of Corporate Affairs Avenida Tucunaré, 125 – Alphaville CEP: 06460-020 | Barueri | SP E-mail: [email protected] Measurement and Calculation Techniques The methodologies and any alterations in the criteria used for obtaining the information/data are described in the report *Highly relevant themes. Sustainability Report 2013 7 walmart GRI 2.8 Units in Brazil 547 521 479 2012 Revenues (R$ billion) 25.9 23.4 22.3 2012 8 2011 2010 2011 2010 Walmart Solid expansion and benchmark practices in the sector make the difference in the company’s operations PROFILE Walmart was founded in 1962 when Sam Walton opened the first Walmart discount store in Rogers, Arkansas (USA). Fifty years later, the chain consisted of more than 10,000 stores, with 69 brands in 27 countries. The company employs 2.2 million people who carry out its activities and serve their customers in a way that is inspired by the enthusiasm and entrepreneurial spirit of its founder. Walmart has been in Brazil since 1995 and is an unlisted company controlled by Wal-Mart Stores, Inc. It had 547 stores and warehouse membership clubs in 18 states, located in the Northeast, Center-South, Southeast and South regions at the end of 2012. The head office is located in the town of Barueri in the metropolitan region of São Paulo and it has regional offices in the cities of Porto Alegre (RS), Curitiba (PR), Salvador (BA) and Recife (PE). It also has 21 distribution centers in 9 states. GRI 2.4 | 2.5 | 2.6 | 2.9 Canada Walmart worldwide UK US Japan China Ghana Mexico Uganda El Salvador Guatemala Costa Rica Honduras Nicaragua India Nigeria Brazil Chile Namibia South Africa Argentina Tanzania Botswana Zambia Malawi Mozambique Swaziland Lesotho Present in 27 countries 10,800 stores 2.2 million employees Global revenues in 2012: US$466.7 billion Sustainability Report 2013 9 walmart GRI 2.2 | 2.3 | 2.7 | 2.8 | 3.6 Hypermarket 55 stores present in São Paulo, Minas Gerais, Rio de Janeiro, Espírito Santo, Paraná, Mato Grosso do Sul, Goiás States and the Federal District Supermarket 42 stores located in Paraná, Santa Catarina and Rio Grande do Sul States 61 stores in the States of Sergipe, Bahia, Pernambuco, Maranhão, Paraíba, Alagoas, Piauí, Ceará and Rio Grande do Norte 39 stores 21 units located in Paraná State 68 supermarkets in the States of Bahia, Sergipe, Alagoas, Pernambuco, Paraíba, Ceará, Rio Grande do Norte, Piauí and Maranhão in Rio Grande do Sul and Santa Catarina States Warehouse Membership Club Wholesale 2 1 59 units in the States of Paraná, Santa Catarina, Rio Grande do Sul, São Paulo, Minas Gerais, Mato Grosso do Sul, Goiás, Alagoas, Paraíba, Pernambuco, Bahia and Ceará Neighborhood Market 175 units located in the States of Bahia, Pernambuco, Paraíba, Alagoas, Sergipe, São Paulo, Paraná and Rio Grande do Sul 27 clubs of the chain in the States of São Paulo, Rio de Janeiro, Espírito Santo, Minas Gerais, Paraná, Rio Grande do Sul, Alagoas, Rio Grande do Norte, Ceará, Pernambuco, Goiás and the Federal District Special Division Drugstores Gas stations Photo centers Restaurants Cafeterias Virtual Store The virtual store www.walmart.com.br was created in 2008 and attends consumers throughout Brazil. The leisure and travel service was launched in 2012 through which customers can buy air tickets, make reservations in hotels and restaurants and hire cars. 1. Operates according to the cash and carry concept, a self service model that is different from traditional retail as products are sold in large quantities or packaged with a number of Items for resale. 2. In this format, the customer (whether the end consumer or merchant) becomes a member of the club and pays an annual fee. It provides a mix of differentiated products, imports and with exclusive packaging. 10 BUSINESS CONCEPT The Everyday Low Prices (EDLP) concept was introduced to Brazil in 2011 and is Walmart’s main differential in all the countries where it operates. The aim is to sell customers products at lower and more stable average prices than the competition. To uphold this strategy, the company also needs to work with an Every Day Low Cost approach and pursues better negotiating models with suppliers and greater efficiency in its processes to be able to offer the lowest prices and maintain commercial sustainability. A Walmart research team also carries out a weekly assessment of the prices of up to Mission Saving people money so they can live better. 7,000 items. This is one of the mechanisms that helps monitor and ensure that low prices are maintained and increase customer satisfaction (see more on page 44). The focus of the EDLP concept is to highlight the company’s appreciation of the customer. It brings clients a series of advantages, such as the freedom to choose which day of the week to go shopping and the certainty of always finding fresh, top quality products and smaller lines at the checkout as they no longer need to go to the stores on specific promotion days. MANAGING RISKS The Corporate Risk Management area makes an annual corporate assessment of the risks to which the chain could be exposed. Four kinds of risks classified in the anti-corruption category were submitted to a vote by the company’s senior Vision To be the best retailer in Brazil in the hearts and minds of customers and employees. management in 2012. On this particular occasion the participants received training to strengthen the culture of integrity, risks and internal control. The assessment resulted in the creation of a risk matrix with mitigation plans that made the anti-corruption risks visible and transparent, allowing the company to direct its efforts to offset them with the weight they deserve. GRI SO2 All employees are presented with the Walmart Statement of Ethics on joining the company and sign it. They also receive training in Walmart’s Anti-Corruption Policy and related procedures. In 2012, 3,794 employees and 54 outsourced workers from service providers were trained in the anti-corruption policies and procedures, including the revisions of those policies which were made in 2012. GRI SO3 Walmart’s operating strategy and governance in Brazil are supervised by the president and 11 vice-presidents, who have the freedom to adapt the company’s global guidelines to the domestic situation. This includes decisions related to managing the business and sustainable and social responsibility actions. The senior management must show their commitment to Walmart’s basic principles and the company’s results, balancing professionalism with a humanitarian approach to business in such a way to ensure sustainable growth. GRI 4.7 | 4.9 Principles • Respect for the individual. • Service to our customers. • Striving for excellence. • Acting with integrity. GRI 4.8 Sustainability Report 2013 11 walmart HISTORY OF WALMART BRASIL 12 1995 1997 1998 2000 Five stores opened in Greater São Paulo. Chain stores open in upstate São Paulo. Expansion to other states, beginning with Paraná. The chain stores start operating in Minas Gerais and Rio de Janeiro states. 2005 2007 The acquisition of the Sonae Group’s retail operation incorporates another 140 units to the chain and the BIG, Mercadorama, Nacional and Maxxi Atacado brands. Stores are opened in the Federal District, Espírito Santo and Goiás States. The Walmart Institute is created in Brazil and Wal-Mart Stores, Inc announces global sustainability strategy. Walmart Granja Viana in São Paulo serves as a pilot scheme for the creation of eco-efficient stores, incorporating 24 sustainability initiatives. Walmart signs a commitment to the Movimento Conexões Sustentáveis (Sustainable Connections Movement) and joins its Executive Committee. The company also joins the Grupo de Trabalho da Pecuária Sustentável (Sustainable Livestock Working Group) and the Fórum Amazônia Sustentável (Sustainable Amazon Forum). 2010 2011 The Escola Social do Varejo (Social School of Retail) is launched by the Walmart Institute and looks after more than 1,000 young people. The tracking program Qualidade Selecionada. Origem Garantida (Selected Quality. Guaranteed Origin) is created. Walmart proposes and signs the Responsible Fish Purchasing Commitment Policy, thereby publicly assuming responsibility with the Fishery and Agricultural Ministry. The first products within the End-toEnd Sustainability program are launched. The Everyday Low Prices concept is introduced. Research institutes confirm the company’s efficiency in providing customer access to lower prices. Walmart coordinates the creation of the Movimento Empresarial pelo Desenvolvimento Econômico da Mulher (Corporate Movement for the Economic Empowerment of Women) known as the Movimento Mulher 360 (Women 360 Movement), and concludes the second End-toEnd Sustainability program, with the launch of another 13 products. The company is the world leader within the group with the creation of the Responsible Beef Sourcing Buying Policy. 2001 2002 2003 2004 The first distribution center is opened in Greater São Paulo. The first TodoDia store opens in São Paulo city. The Producers’ Club is founded, created by Sonae, a group Walmart subsequently acquires. The first drugstore within the chain opens. The purchase of the Bompreço chain in the Northeast leads to the acquisition of 118 stores. 2008 2009 The chain’s drugstores start selling 500 generic medicines at prices up to R$9.90. The virtual store www.walmart.com.br. is founded. The first eco-efficient store opens in Rio de Janeiro city and Community Stores are opened in Salvador (BA). The Cliente Consciente Merece Desconto (Responsible Customers Deserve Discounts) program is launched. The chain arrives in Mato Grosso do Sul State. The Programa de Apoio à Implementação da Floresta Nacional – Flona (Program to Support the Implementation of the National Forest – Flona) gets underway in Amapá State. The Pacto pela Sustentabilidade (Sustainability Pact) is signed by the company’s main suppliers. Walmart is named Empresa Sustentável do Ano (Sustainable Company of the Year) in the Guia Exame de Sustentabilidade publication. The End-to-End Sustainability project gets underway with the participation of ten suppliers. The Sentir Bem (Feeling Good) private-label brand is launched. The eco-efficient distribution center in Betim (MG) and Community Store in Recife (PE) are launched. 2012 The first year of the Movimento Mulher 360 is commemorated with all signatories to the initiative. The Escola Social do Varejo (Social School of Retail) starts sharing its methodology and technology internationally through a partnership between Walmart at global level and the Inter-American Development Bank (IDB). The focus is on providing training and giving job opportunities to young people in Latin America and the Caribbean. Walmart Brasil also receives the Prêmio Época Empresa Verde (Época Green Company Prize) from Editora Globo in the Services category and is highlighted for its Good Environmental Practices. GRI 2.10 Sustainability Report 2013 13 REPORT | RETAIL HEATED MARKET RETAIL SECTOR INNOVATES TO SATISFY THE C CLASS Juliana Rocha The expansion of the middle class and the The Instituto Data Popular defines the middle “The retail sector noticed that a large vol- higher purchasing power of this section of class as people earning between R$292 and ume of consumers had emerged. These are the population have boosted the level of con- R$1,019 a month or with household income people who do not want to be treated as an sumption in Brazil since 2008. The retail trade of between R$1,100 and R$3,875. C class con- upwardly mobile class or want a product to has had to innovate in recent years to satisfy sumers had a combined income of R$665 bil- be exclusive to them,” says Nuno Fouto, direc- the desires of this new consumer. Neverthe- lion in 2012, according to figures from Data tor of research and studies of the Programa less, many challenges remain, such as fore- Popular. This is much higher than the GDP of de Administração do Varejo – Provar (Retail seeing the coming trends and kind of perfor- Switzerland, Chile or Norway. They consume Program) at the Fundação Instituto de Ad- mance this group will demand. R$1.03 trillion a year which also highlights ministração (FIA) business school. the impact of credit on this market. There are currently 104 million people within Since the international crisis broke out in boosted demand for electro-electronic prod- in Brazil. This is equivalent to the population 2008 and worsened in 2011, economists ucts, travel and even new items for the table. of Germany or four times that of Colombia. A have noted that the Brazilian economy has Demand for electro-domestic white line prod- combination of factors led to a large section been buoyed up by domestic consumption. ucts came to an estimated 4.9 million stoves, of the Brazilian population rising to this class: For example, while GDP grew by only 0.9% in 4.6 million refrigerators and 4.3 million wash- a fall in unemployment, higher income and 2012, retail sales expanded by 8.4%. ing machines in 2012. Sales of televisions lower interest rates. 14 The higher purchasing power of the C class the middle class which is known as the C class amounted to 7.3 million and 4.8 million sofas Fouto says retailers aim to meet the desires of tiated. These stores used to exist only for the were sold, according to the Instituto Data the C class by innovating and offering prod- public that wanted to save money but they Popular. ucts and brands that are positioned for the have now become more luxurious,” he adds. luxury market and higher class but with acDemand for mobile phones was 15.8 million cessible prices for the average income group. The profile of the middle class consumer has handsets while 11.3 million laptops and 6.8 mil- Large department store chains, for example, also changed when it comes to the table. Fou- lion tablets were sold. The growing popular- are creating collections with upmarket de- to mentions yogurts, cookies and special fruit ity of these appliances and internet access signers. Furniture and design stores have also juices which have entered the list of products also boosted the potential for on-line retail launched collections with more accessible the C class buys in supermarkets. Meanwhile, sales, says Ricardo Pastore, coordinator of the prices and even luxury car manufacturers are consumption of health and beauty products, Retail Studies Center of the Escola Superior making popular cars. cosmetics, creams and diapers has risen. “We de Propaganda e Marketing business school are seeing a sophistication in consumption. (ESPM). “The challenge now will be to under- Pastore of the ESPM perceives the demand Some products are rising much faster than stand what middle class people want to buy from the middle class for products that are the average in the growth of retail sales.” on-line,” he adds. launched more directly at the higher classes. He points out that there are also popular The new middle class also has a new consum- signs that influence culture, style and con- er profile marked by social mobility. Women sumption. “Popular consumption ends up are an important part of the new market as being adopted. The popular market is very their income has risen by 60% more than strong in Brazil,” Pastore says. men’s over the last 10 years. Another trend which is strengthening among The new C class profile also includes young Brazil’s middle class is to buy in the wholesale- people who make up 55% of this section of retail market (“atacarejo”). These are chains the population and black people who ac- that sell goods in large packaging at lower count for 75% of those who have passed into prices on the retail and wholesale side. “The the middle class in the last decade. new consumer likes the feeling of being sa- Middle Class in Figures R$1.03 trillion is the consumption per year R$665 billion is the turnover R$1,100 to R$3,875 is the monthly income range of the C class 104 million Brazilians are in the middle class known as the C class Source: Instituto Data Popular Sustainability Report 2013 15 walmart PEOPLE GRI 2.8 Walmart employs 82,383 people in Brazil and one of its principles is to promote the personal and professional development of its workforce. This way of operating and managing its professional staff is part of the corporate culture, which is based on the respect for the individual, serving customers and striving for excellence – values practiced by its founder Sam Walton. TOTAL EMPLOYEES BY GENDER AND REGION GRI LA1 29,481 employees Northeast 35.8% of of the total 51.4% 48.6% 2,196 employees Midwest 44.6% 19,070 employees Southeast South 44.6% employees 31,636 38.4% of the total 41.4% 58.6% 2.7% of the total 55.4% 23.1% of the total 55.4% TOTAL NUMBER OF EMPLOYEES 12/31/20121 For undetermined period or permanent For determined period or temporary 1,637 Part-time 1,049 Interns 35 Trainees 83 Total 1. Walmart does not publish figures for outsourced and self-employed workers. 2. This number represents the entire workforce of Walmart Brasil, including interns and expatriates. 16 79,579 82,3832 STRONG CORPORATE CULTURE ON DAILY BASIS All employees work based on respect for the individual, service to our customer and striving for excellence 1.6 million hours of training were held in 2012 DIVERSITY IN THE WORKPLACE IS ENCOURAGED ON A DAILY BASIS, HIGHLIGHTED BY GENDER EQUALITY TOTAL NUMBER OF EMPLOYEES BY GENDER 45.8% 54.2% Sustainability Report 2013 17 walmart Training offered by Walmart to employees GRI LA11 | 4.4 | 4.9 Merchant’s Academy District Schools A training program based on a similar one developed by Walmart This was carried out in 2012 with the aim of developing the in the United States which was adapted to the Brazilian team’s leadership and bringing a greater impact on our operations needs. Two experimental compact training modules were held through behavioral and technical themes. during the year. The course ranges from sale assistants to senior managers and The subjects covered were EDLP and Negotiating. A Logistics 100 Mulheres na Liderança (100 Women Leaders program) Academy is scheduled to be launched in 2013. To strengthen the female presence at leadership level, Walmart aims to create sales staff with technical skills and behavior. Food Safety Training on the issue was reformulated to ensure it was assimilated by the participants, based on the model used by Walmart in the invested in the development of 100 women to leadership positions, mainly in operations. The program lasts six months and includes practical and theoretical lessons, speeches, workshops and mentoring sessions with senior management. United States that was certified by an American university. The Brazilian version was used for 100% of the store leadership to simplify the actions in the chain’s units. Warehouse Membership Club To maintain and expand the base of Sam’s Club members, 100% of Escola de Líderes (Leaders School) Meeting of the company’s senior leadership with directors and managers from the stores. In 2012, the Leaders School development workshops were held for the target public of the entire leadership of the stores, clubs and distribution centers. the attendance team was trained in modules aimed at ensuring the satisfaction of customers served by this format. Training in Sustainability The concepts of sustainability and conscientious consumption were presented on video. Around 94% of employees were trained in 2012 (see more on page 22). 18 Employees throughout Brazil work according in the year, increasing the focus on the im- to the main operating principles established by pact which each training event brings to the the Walmart Way of Working concept. This me- business. As a result, the number of training ans taking an ethical approach and acting with events offered was reduced and investments integrity, pursuing solutions to satisfy customers were made in improving the quality of the and helping them by offering products within content (learn more in the table on page 18). the Everyday Low Prices concept. Walmart gives GRI LA10 priority to hiring local people when opening new stores to bring it closer to the community All staff undergo an annual performance and help develop the economy. GRI EC7 evaluation which considers the skills the company regards as essential for business. To achieve its business objectives, the com- The process is reviewed on a half-yearly ba- pany has invested in training and improving sis and carried out through a meeting with the skills of its employees. Staff received 1.6 the leaders and results in the creation of the million hours of training in 2012, equivalent Individual Development Plans. GRI LA12 to 20 hours each. Walmart also revised its portfolio of courses and programs on offer 100% OF EMPLOYEES UNDERGO AN ANNUAL PERFORMANCE EVALUATION Sustainability Report 2013 19 walmart GRI LA3 MAIN BENEFITS Meals Life insurance Medical and dental assistance Maternity leave extent Payroll loans Drugstore discounts Christmas Kits Emergency loans World Conference on Women in partnership with the Working Mother Media which focused on developing women. The company ended 2012 with 44,639 women employees, equivalent to 54.2% of the headcount. More women than men were hired last year and represented 54.9% of total hires. Women distributed in leadership positions – managers, directors, coordinators and supervisors in stores, corporate offices and distribution centers – amounted to 1,072, or 32.9%* of the total. In terms of people of different racial backgrounds, the DIVERSITY, REMUNERATION AND BENEFITS number of black people and those who regard themselves as being of mixed race came to 31,829, which correspond Fostering diversity and inclusion in the workplace is one of to 38.7% of the workforce. This group accounted for 18.8% Walmart’s goals. The company focuses on including people with of leadership positions. GRI LA13 deficiencies and combats any form of discrimination based on race, sexual orientation, religion and gender. Walmart also makes no wage differentiation by gender and does not undercut the legal minimum wage. A minimum One of the highlights of 2012 was the action taken to achieve and maximum level is established for each function and gender equality and appreciate women’s role. One example there may be some differences due to regional factors, was the adhesion of the directors to the Conselho de Mulheres weekly workload, time with the company, professional ex- do Walmart Brasil (Walmart Brasil’s Women’s Council). The Council perience and performance. The company also has the Pro- has 17 members, 11 women and 6 men, who work in differ- grama de Participação nos Resultados – PPR (Profit-Sharing ent areas of the company. Since its creation, the group has held Plan) which encourages workers to exceed set targets and discussions on development and careers which led to initiatives results and make additional gains. GRI LA14 such as Mentoramento para Mulheres and 100 Mulheres na Liderança (Mentoring Programs for Women and 100 Women Leaders Walmart has relations with over 100 labor unions in Brazil. program) (further information on page 49). It imposes no restrictions on employees joining unions. All workers are covered by collective bargaining agreements 20 At the same time Walmart, in partnership with the International and other policies related to health and safety, including Women’s Forum (IWF), organized the Investing in Women Leaders: those dealing with practices recommended by trade as- a Positive Change conference which was attended by 40 of the sociations. There are variations in the issues covered by company’s executives in Brazil. Another event promoted during the Collective Working Agreements for each region of the the year was the participation by Walmart representatives in the Country. GRI LA4 * Women make up 19.6%.of the company’s senior management (president, vice-presidents and directors). ARTICLE | TALENTS CAN YOU PLAN YOUR CAREER? Alexandre Santille* New technologies and accelerated business lack of information on how the future will growth have reduced professionals’ ability turn out makes this process difficult and that to foresee the job market, forcing them to is why it is important to identify the skills that constantly reevaluate their careers. The front will remain essential as time goes by. runners in this state of change are those who plan ahead and train themselves by combi- Many people who have been working for ye- ning the current needs of the market with ars sometimes resolve to make a complete ca- their own aspirations, values and skills. reer change. This occurs when people notice in mid stream that they are not where they Taking care of your career requires strategy, wanted to be and decide to reinvent their time, dedication and discipline. However, professional lives. In this case, a lot of courage before thinking of these aspects it is worth is needed to perform a new role and all its di- knowing that most people make mistakes not fferent activities. because of any lack of information about the market but about themselves. As a result, the To avoid this kind of disappointment people better understanding an individual has of his are recommended to assess their own em- or her attributes – skills, values, interests and ployability at least once a year and reflect on personality – the more precise will be his or where they want to go and what path to choo- her choices and subsequent satisfaction. se. Reviewing objectives and projects on a regular basis helps to position the career in the The ideal position is to have a better idea of right direction without failing to take advanta- one’s own motivating forces and a clearer ge of the opportunities that the market offers. view of the possibilities of working while still keeping an eye open for new opportunities It is no easy task to carry out all this analy- that arise. sis alone and it is worth obtaining help from experienced people. The choice of a mentor Nowadays, there are a number of options to may be made by the professional or the com- choose from. While some professionals look pany. In this case, the mentor should not only for promotion by rising through the organi- have the ideal behavioral techniques but also zation hierarchy, others try to develop them- technical knowledge and help in developing selves horizontally, through opportunities in the work within the organization. other functions or areas, expanding their knowledge and undergoing different challenges. Therefore, one of the biggest challenges in Some professionals tend to specialize, beco- managing one’s career is to take the initiative ming experts in certain subjects, while others and look for the common denominator be- prefer a more systemic view of the business. tween your values, skills and what the market * Graduate in Business Administration from the FGV, with a master’s degree from PUC SP and doctorate in Experimental Psychology from USP. He is currently CEO of LAB SSJ, learning solutions consultancy. needs. This thought should be borne in mind The ideal in this situation is not to think about in all professional phases as each period will a dream job but how to develop skills. The bring new challenges. Sustainability Report 2013 21 walmart SUSTAINABILITY MAnagement GRI 4.4 | 4.11 | 4.16 | 4.17 Walmart Brasil works in alignment with the The initiatives that deal with Climate and En- tives. The eight platforms are: Supply Chain, concept of sustainable development, which ergy and Waste are carried out in the Walmart Construction, Logistics Chain, Zero Impact means that today’s resources should be pre- stores and other operating areas and also (waste management), Raw Material, Climate served and used correctly so they will not affect customers and society. The initiatives and Energy, Conscientious Customers and be scarce for future generations. To do so, related to the More Sustainable Products pil- Conscientious Employees. it encourages changes in the standards of lar is developed with Walmart suppliers (learn production, consumption and use of natural more about this on page 31). RAISING AWARENESS Raising the employee’s awareness is a strate- resources. The company has three strategic pillars which uphold its sustainability man- These three themes are put into practice gic focus of this approach. Initiatives such as agement: Climate and Energy, More Sustain- through eight platforms structured on work- Mobiliza Geral (General Mobilization), the sixth able Products and Waste. ing groups with defined goals and objec- version of which was held in 2012, and the My Sustainability Plan (MSP) show how concepts THEMES FOR THE MY SUSTAINABILITY PLAN My Life Responsible purchasing Community Less impact from consumption habits, such as not acquiring pirate products and giving preference to items from companies that are recognized as operating correctly. Encouraging citizenship behavior, such as voluntary work, conscientious voting, not parking in places reserved for people with deficiencies and the elderly, not throwing litter on the street etc. My Planet Encouraging the reduction of wasting and reusing water. 22 Practicing sports, walking etc. Water Exercises Energy Encouraging employees to spend more time with their families. Family My Health Waste Encouraging the reduction of waste of electrical energy and oil by-products, such as fuel, helping to combat global warming. Making efforts to reduce waste and, in turn, the consumption of natural resources by adopting selective collection, for example. Guidance on the consumption of healthier products and/or in the right quantity. Food Smoking Supporting anti-smoking measures and also encouraging those you know to give up smoking. related to conscientious consumption and social and environmental responsibility can be adopted on a daily basis. The General Mobilization is a training program to publicize the company’s practices and initiatives that may be incorporated into work or personal activities, as well as actions by the employees themselves which serve as an example and are shared. Last year, the training video covered the concept of sustainability and conscientious consumption focusing on waste. Since it began in 2007, General Mobilization has been developed in partnership with the Instituto Akatu pelo Consumo Consciente, a respected voluntary organization. The MSP encourages the employee to adopt sustainable practices in three categories of action – My Life, My Planet and My Health. Each one of these has sub-themes setting personal ways of making its processes more efficient effectively to risks and opportunities from the and use natural resources in a more rational impact and dependency of their companies in way. In 2012, the company became involved the ecosystems. Walmart is using this methodol- can also be seen in initiatives such as the Clube in the Parceria Empresarial Pelos Serviços Ecos- ogy in the beef area, particularly from the Ama- da Solidariedade para Emergências (Solidar- sistêmicos – PESE (Business Partnership for zon region in order to understand the impacts ity Club for Emergency) run by the Walmart Ecosystem Services) that brought together and dependencies related to biodiversity and Institute. Workers have made donations totaling eight companies. GRI 4.13 the ecosystem services of that region. The expe- goals which employees can choose. The result of the conscientious raising actions rience will be part of the learning curve for the R$780,750 that have helped around 400 employees since the initiative’s launch 3 years ago. PESE’s aims are: helping to understand and future replication of the methodology in other manage the impacts and dependencies on products and regions. More than R$305,000 was raised In 2012 biodiversity and ecosystem services, develop- alone and 79 needy employees benefited ing business strategies that promote a balanced PESE is also coordinated by the Centro de Estu- from the support of the fund, maintained ecosystem and show the business value of this dos em Sustentabilidade da Escola de Admin- with voluntary and monthly contributions of practice, exchanging experiences and publiciz- istração de Empresas de São Paulo – FGVCes R$1, R$5 or R$10. The company contributed ing success cases and the constant develop- (Study Center on Sustainability of the São Paulo the same amount as the employees. Of the ment for the corporate management of ecosys- Business Schools Administration Center), the current workforce throughout Brazil, 13% tem services. Conselho Empresarial Brasileiro para o Desenvolvimento Sustentável – CEBDS (Brazilian Busi- make contributions. GRI EC8 ENVIRONMENTAL IMPACTS The methodology used in the partnership stud- ness Council for Sustainable Development) and ies is the Ecosystem Services Review (ESR). This is the World Resources Institute (WRI). Its main fi- Walmart assesses the impact of its opera- a pioneering method to guide corporate man- nancing comes from the United States Agency tions on the environment in order to find agers in developing strategies which respond for International Development (USAID). GRI 4.11 Sustainability Report 2013 23 Environment ENERGY GRI en3 | EN4 The Climate and Energy pillar of Walmart’s sustainability management reflects the company’s target of having 100% of its energy supplied from renewable sources. In 2012, Walmart Brasil officially began migrating its replacing the old refrigeration equipment CONSUMPTION OF DIRECT ENERGY (GJ) and this increased the emissions in 2012 in Brazil. This prevented the target being met but also created the conditions needed to stores to the free energy market where 100% bring about a significant fall in emissions of the supply will come from renewable en- from 2013. The new equipment requires less ergy sources from small hydroelectric and maintenance and has lower GHG emissions. biomass plants. Forty-nine units migrated in 74,419.5 2012 and the aim is to expand the program gas to another 90 by the end of 2013. These units will correspond to around 40% of total en- The impact of the logistics on the emissions has also been considered. Transporting goods creates pollutants and greenhouse ergy consumed. 3,246,104.9 energy This change will also eliminate the need gases. To reduce them, the company is working to integrate the logistics management more with other areas to promote an align- to use diesel generators at peak periods, ment to the business needs through more thereby reducing greenhouse gas emissions sustainable practices. 487,731.3 and pollutants. As the diesel generators are disconnected, there will be an additional diesel Walmart is developing initiatives to increase benefit in the reduction of fuel transported vehicle efficiency in partnership with sup- to the stores and the emissions generated pliers. These include the use of deflectors by this transport. Direct energy consump- and reducing trips with empty trucks. It has tion in 2012 came to 3,808,255.7 GJ and indi- Another commitment for 2013 is to intro- also been increasing the use of vehicles in rect energy consumption to 901,695.8 MWh duce a best practices program to reduce its fleet with the Euro 5 engine technology (3,247,014.04 GJ), 13.1% higher than 2011, consumption in the stores which will include which reduces pollutant gas emissions into due to the opening of new stores. employee training. The company will also the atmosphere. Furthermore, the company begin an Energetic Efficiency Project. This will is renewing its fleet of private cars used by se- One of Walmart Brasil’s goals is to have its new involve investments on replacing existing nior management with flex motor vehicles to stores 25% more efficient in energy consump- equipment with others that are more effi- maintain a more sustainable logistics system. tion. The new units that come into operation cient and a pilot program for self-generation were designed to be more efficient and the in energy from renewable sources. results will be seen during 2013. 24 releases the gases contained in the system Another initiative in the logistics area that will have long-term results is the Walmart EMISSIONS Brasil Transport Sustainability Forum, which In 2012, Walmart replaced refrigeration The Climate and Energy pillar of Walmart’s was held for fifth time in 2012. The event is equipment in more than 200 existing stores. sustainability management aims to reduce a platform for engagement with suppliers The new equipment uses less energy and greenhouse gas emissions (GHG) by 20% in from the transport market, industry, aca- has lower greenhouse gas emission indices. the stores by 2012 and by 30% in the new demic institutions and the public sector. There will be also other efforts to increase stores. This goal has been achieved globally. energy efficiency in the company’s buildings The biggest GHG generation in Brazil comes during the year. from the refrigeration system. The process of ECO-EFFICIENT STORES Walmart’s eco-efficient stores are the result System (EMS), the use of LED lighting in of the company’s strategic sustainability vi- a number of areas – such as parking lots, sion which brings together the Climate and sales floor, stockrooms, preparation and Energy, Waste and More Sustainable Products cold rooms – and the reduction in energy pillars. Since 2009, all the new hypermarket consumption in the refrigerator and frozen stores have adopted the guidelines in the storage areas, whether by placing doors on Sustainability Initiatives Menu which includes the display units or by replacing them with solutions to be used at the beginning of the walking cooler/freezer equipment. Walmart works and in their daily operations. will increase its investments in initiatives in the coming years which will bring a faster Among the outstanding eco-efficient im- return in the areas of energy, water and re- provements developed in 2012 were: the frigeration in alignment with the company’s improvement in the Energy Management best international practices. THERE ARE AROUND 60 POSSIBLE INITIATIVES BEING ADOPTED IN BUILDING AND REFORMING STORES. GET TO KNOW SOME OF THEM: Skylights in the roof allow natural lighting to be taken advantage of, thereby reducing energy consumption. • Reducing the height of the roof leads to a less air conditioning equipment, thereby reducing energy consumption. • Water-based paints have fewer pollutants. • Restrooms with automatic taps and double action flushing systems help reduce water consumption. • Store signs and communication material can be made from recyclable material and be recycled at the end of its working life. • Installing concrete blocks with grass in parking lots in a way that helps absorb rainwater. • LED type fluorescent lamps inside the stores consume less energy. • Replacing gases that damage the atmosphere with fluids based on water in the store refrigeration system. Sustainability Report 2013 25 walmart WASTE Managing waste is one of Walmart’s sustain- The waste management strategy goals also utes to job and income generation for street ability strategy pillars and the company’s led to a reduction of 5% in the use of pack- collectors who form cooperatives that oper- global aim is to stop sending solid waste from aging throughout the supply chain by 2013, ate in partnership with the company. The col- its operations to landfills by 2025. The Zero Im- as well as a reduction of 50% in consumption lection points, which will be expanded to the pact program was introduced to Brazil in 2008 of plastic bags. This last goal was achieved by stores that are still not part of the program, are and is one of the main means of doing so. It the end of 2012. The company has reduced an initiative aligned to Brazil’s National Solid establishes 5 complementary and consecu- the number of plastic bags distributed in the Waste Policy which aims to establish a national tive steps which should be adopted in all the stores by 1.4 million units or 5.1 tons of plastic. reverse logistics process to receive products units, including stores, offices and distribution This result was achieved through the Cliente and packaging after consumption. centers (see table with the percentages of mate- Consciente Merece Desconto program (Respon- rials destined for landfills, recycling, turning into sible Customers Deserve Discounts) which of- Further to the collection of batteries and compost and animal feed on page 27). Walmart fers a R$0.03 discount for every 5 products the mobile phones that began in 2011, another generated waste of 92,947 tons in 2012, of customer buys that do not use plastic bags. initiative was put into practice last year which which 40% was not sent to landfills. The year The total amount of the discount granted by focused on the reverse logistics of drugs. Col- 2012 was marked by a process in which the the program came to R$1.06 million in the lecting boxes were placed in Walmart’s drug- procedures for the approval of services pro- year, equivalent to 30 million bags. stores in the States of São Paulo, Rio Grande viders were reformulated. This was reflected do Sul and Pernambuco for customers to in the improved performance of the stages Part of the company’s commitment in this dispose of drugs when the validity period has of the Zero Impact program for 2013, in ac- area also involves consumer participation. expired. The waste collected that poses a risk cordance with the company’s Ethics & Compli- Customers have 250 recycling stations avail- to human and animal health is separated and ance Policy. able to collect glass, paper and cardboard, transported by accredited companies which plastic and metal. This initiative also contrib- carry out this kind of work. DIRECT MATERIALS IN 2012 GRI en1 (TONS) non-renewable 189 504 863 A4 paper polystyrene Bandejas trays poliestireno stretch film 6,880 401 5,113 total food film plastic bag 142 total weight of recyclable input 2% percentage of recyclable input 26 MATERIAL CONSUMPTION GRI en22 Material Destination Weight In tons 2012 Paper and cardboard Recycling 26,578.9 Plastic Recycling 2,850.7 Metals Recycling 303.9 Wood Recycling 1,036.5 Glass Recycling 72.6 Fluorescent lamps Recycling 15.2 Oil Recycling 3.8 Compost and animal feed 5,169.1 Electronic Recycling 4.4 Vegetable oil Recycling 98.0 Bottles and cans Recycling 39.4 Tires (unit) Recycling - Batteries Recycling 27.3 Organic Others 5.4 Total waste 92,947.7 Waste sent to landfills 55,970.1 Organic products sent for compost or animal feed 5,169.1 Total recycled or reprocessed waste 5,183.8 Total waste diverted from landfills Percentage diverted from landfill 36,977.6 40 Sustainability Report 2013 27 ARTICLE | SOLID WASTE POLICY IN THE Minds AND HEARTS OF CONSUMERS André Vilhena* 28 There are 7 billion people on the planet and if everything Waste Policy (local acronym PNRS) in 2010. This new law is in- works out, the population will continue to grow – as will con- novative in many aspects and is helping the country mobilize sumption. Although billions of people still live in poverty, the- in pursuit of solutions. The retail sector has its part to play as re has been a notable reduction in misery in a number of parts no other sector of the economy communicates more with the of the world. The demarcation of this poverty line is controver- consumer. The retailer has great power to influence people sial and has raised heated debates. Many people say they are and change habits. pleased with little while others are unhappy even with a lot. The PNRS created a modern concept of shared responsibility The pursuit of practical solutions is an inevitable aspect of for dealing with items after consumption. It lays down indi- consumption. We are increasingly unwilling to waste time vidual and associated actions involving consumers, industry, cooking (unless it is a hobby), cleaning, washing and repairing retail, street collectors, recyclers and public authorities. The things. We prefer to spend our time on leisure, improving pro- law is regulated through sector agreements in which the roles fessional skills, getting to know people and expanding our so- of each player are defined. Without the combination of efforts cial connections. Industry and commerce make great efforts and efficient governance, we will be unable to make the jump to meet this demand on a daily basis. Conquering the hearts in the quality in solid waste management in Brazil that we and minds of consumers is an intense battle fought in the ba- have been dreaming about. ckground by highly qualified professionals from different business areas. However, these minds are also constantly chan- Walmart Brasil is among the most proactive of the retailers. ging which increases the speed of the transformations and The analysis of its initiatives helped in the creation of speci- puts even greater pressure on the business sector. Tomorrow’s fic topics for the new Brazilian law. Its projects should inspire consumers will be different from today’s. They will certainly the entire sector while obviously respecting the differences be looking for even more diversified attributes in their con- in the size of each business. However, the essence does not sumption choices. Every human and business activity creates change. Store space cannot be turned into a recycling shed some environmental impact. If we could learn how to control but complementary actions that encourage changes in con- its collateral effects, we would achieve sustainable develop- sumer behavior are important and welcome in the pursuit of ment. Can we do this? It would be frightening if we reached the goals established for the first phase of the National Solid the conclusion that it would be an impossible task. Waste Policy. The change in consumption standards has brought a huge problem to urban centers. As we pursue practical solutions and the quality of the products is maintained, we are creating more dry waste in increasingly more populous urban areas. There are many reasons for this concentrated population in large urban centers. How do we face up to this challenge? Where will we put the waste? Are today’s consumers bothered about this issue? The answer is yes and there is this concern in Brazil. Thanks to the commitment of a number of sectors of our society, Brazil finally approved its National Solid *Executive director of Compromisso Empresarial pela Reciclagem – Cempre (Business Commitment for Recycling), member of the Conselho Superior de Meio Ambiente da Fiesp – Cosema (Superior Council for the Environment) and executive director of the Global Alliance for Recycling and Sustainable Development. Sustainability Report 2013 29 Suppliers COMMITMENTS ASSUMED BY WALMART BRASIL GRI 4.12 The Sustainability Pact was signed with Walmart Brasil’s main commercial suppliers in 2009 and led to a series of commitments that guide the sustainability management in the supply chain and cover questions of social and environmental responsibility in the Brazilian Amazon region. Livestock Pact Walmart Brasil has committed itself not to take part in the financing, use, distribution, sale and consumption of livestock products that involve any illegal activity in the value chain, particularly deforestation and slave-like labor. Timber Pact This agreement promotes the financing, production, use, sale and consumption of timber and forestry products with sustainable origin certification. Soybean Pact This agreement establishes restrictions on the financing, production, use, distribution and consumption of soybean grains (fresh or processed) that originate from areas where there has been illegal deforestation in the Amazon biome. Pact for the Eradication of Slave Labor This contract establishes commercial restrictions on companies and/or bodies identified as using slave-like labor practices in their productive chain. 30 Suppliers GRI 4.13 | 4.16 Encouraging small producers and extending responsible activities are some of the practices to ensure healthy safe food Walmart has a network of suppliers that cov- mental aspects with the same discipline as Wide-ranging and challenging initiatives, such ers more than 7,000 companies of different its commercial and financial management. as the End-to-End Sustainability program en- sizes and productive segments. The com- This is done through a sustainability plan courage suppliers to develop solutions that re- pany is committed to building ethical, trans- that is discussed and established with the duce the impacts throughout the value chain, parent relationships that promote sustain- supplier (Joint Sustainability Plan). right from the extraction of the natural re- able development and the strengthening of sources to the post-consumption stage. In the regional companies. As a result, it can offer Forming solid partnerships with suppliers is a second edition of the program, for example, 13 increasingly more products with sustainabil- job that needs to be continuously improved. companies agreed to take on the challenge of ity differentials, one of the pillars on which its Dialogue with partners, researchers, NGOs creating a product with lower environmental business is founded (read more on the strate- and government sectors provide support impact and succeeded (see the results highlight- gic pillars on page 22). for a number of commitments directed at a ed on page 32). A total of 23 companies have more sustainable future. Walmart takes part taken part in the program since the first edition The company handles this area by working to in several such initiatives, such as the discus- was held in 2009. strengthen communication channels, tools sions of the Grupo de Trabalho da Pecuária and projects which ensure that the products Sustentável (Workgroup for Sustainable Cattle Walmart’s private-label brand products are sold in the stores are aligned to the Everyday Raising), Movimento Conexões Sustentáveis an important source of promoting changes Low Prices philosophy. The products should (Sustainable Connections Movement) – which in the value chain concept as they allow in- also originate from the rational use of natural is a signatory to the Pactos da Madeira, da novation in the productive processes and resources and encourage the social and eco- Soja e da Pecuária (Timber, Soybean and Live- undertaking of good social practices and nomic growth of local communities. stock Pacts) – and the Movimento Empresarial environmental care commitments. There are pela Biodiversidade (Corporate Movement for more than 1,700 products in different cate- The success of this strategy stems from the Biodiversity), Fórum Clima – Ação Empresarial gories. Walmart reduced the packaging ma- engagement of its value chain, with the sobre Mudanças Climáticas, Fórum Amazô- terial of many of its products in 2012, such commercial partners playing a highly im- nia Sustentável (Sustainable Amazon Forum), as the soap Sabonete Antibacteriano Equate portant role. This is because only 8% of the Compromisso Empresarial pela Reciclagem (by 35%) and the Absorvente Equate absor- environmental impact of the Walmart value – Cempre (Business Commitment for Recy- bent (by 19%). It also launched a Refil de chain is directly caused by the company’s ac- cling), Conselho Empresarial Brasileiro para o Sabonete Antibacteriano refill with 85% less tivities, according to a survey carried out in Desenvolvimento Sustentável – CEBDS (Bra- packaging than a conventional flask in this 2005 by the American consultancy Blue Sky. zilian Business Council for Sustainable De- category. Other good examples of more sus- To manage its various sustainability initia- velopment) and the Green Building Council tainable packaging are the Ovo de Páscoa tives with the suppliers’ chain, the company Brasil (GBC). Walmart is also a partner of the Sentir Bem Easter egg with reusable packag- monitors and analyses social and environ- Instituto Ethos. ing and the Sacos para Lixo Bom Preço litter Sustainability Report 2013 31 Suppliers bags, with 51% green polyethylene (originating from sugar cane, a renewable source) and 49% recycled polyethylene. MANAGING THE CHAIN All the private-label brands cardboard pack- The value chain involves various stages of the aging is certified by the Forest Stewardship productive process. It ranges from the extrac- Council (FSC). This certification guarantees the tion of natural resources needed for produc- origin of the wood and all the process stages tion and the final consumer attendance, in- and guides consumers on choosing products cluding the proper disposal of packaging and that do not harm the environment. This also the waste generated. To achieve a more sus- helps the social and economic development tainable consumption level, all the links in the of the forestry communities. At the same time, chain must be connected and care taken to the packaging is used to publicize information improve their activities. The retail sector, par- on sustainability and recycling. The message ticularly supermarkets, can carry out an impor- also appears in braille to show respect for blind tant role in the pursuit of sustainable practices consumers and help them choose and be in- by modifying their processes as well as posi- dependent in their daily lives. tively influencing suppliers and consumers. With this in mind, Walmart’s private-label For this reason, the Walmart global Sustainable brand joined the End-to-End Sustainability Agriculture platform that presents targets on program, a company initiative to encour- three pillars – support for small and medium- age industry to develop more sustainable sized producers and their communities, ef- products. Improvements were developed in ficiency in production and reducing waste the second edition through the Sentir Bem and increasing quality control, and the origin brand from the planting of oatmeal grain to of products – performs a fundamental role. To the disposal of the packaging. There was a control the more sustainable origin of the agri- reduction of 208 tons of waste generated in cultural products, Walmart established global the production and savings of 1,640 kilos of targets for two greatly consumed products packaging material over a year. GRI EN27 that have contributed to the deforestation of the planet: palm oil and beef production. Results from the End-to-End Sustainability program GRI EN26 - 3.171 equivalent tons of CO2 issued - 250 tons of waste created - 2 million liters of water 19 million kWh energy consumed The reduction in the impacts achieved by the 13 products created in the second edition of the End-to-End Sustainability program was calculated by the Centro de Tecnologia de Embalagens – CETEA (Center for Packaging Technology) which estimated the sale of products in the Walmart chain over a period of 12 months. The CETEA is associated with the Instituto de Tecnologia de Alimentos (Institute of Food Technology) and has evaluated and accompanied the opportunities for change with each supplier from the start to the end of the productive chain since the program began. 32 Walmart Brasil assumed the leadership of this commitment in the beef chain to ensure that by 2015 the company at global level would not acquire products originating from deforested areas in the Amazon region. This will be confirmed by an independent audit plan. To meet these obligations, a beef monitoring platform was developed that accompanies the information provided by the supplier on the origin of the beef. It will be implemented in 2013 when all the suppliers join the monitoring system and include their data (see the following box). Walmart Brasil also drew up a policy for the responsible purchase of beef. GRI HR6 | HR7 The supplier management process includes an annual prize for outstanding providers of The prizes for the year went to: Accenture do vides information for suppliers on payments and products and services. Fifteen suppliers re- Brasil, Aidar SBZ Advogados, Ambev, Colgate, prepayments for operations carried out by its com- ceived awards for presenting differentiated Diageo, Grupo Eletrofrio, Higident, Instituto mercial partners in all regions where the company performance in areas such as attendance, Akatu, Instituto Aliança, Nestlé DPA, Sanofi, SC operates. The new portal gives partners access to partnership, innovative solutions and so- Johnson, Seara, Sony and Unilever. information in a single electronic space with no need to consult different platforms. cial and environmental responsibility during 2012. The awards were presented at an As part of the process of continuously im- event held in the Transamérica Expo Center proving relations with suppliers, Walmart also in São Paulo at the beginning of 2013. launched a new Suppliers Portal which pro- MONITORING THE ORIGIN OF BEEF Walmart’s beef monitoring and management system results from One of the goals is to expand the monitoring capacity from the a project that took one year and a half to establish. It gives con- Amazon region to other biomes. sumers greater confidence on the origin of the beef and helps livestock breeders in the Amazon region have a more sustainable production. The tool allows the cross sharing of information such as mapping deforested areas, indigenous lands and conservation units with other public lists showing restricted areas and slave labor. The system can automatically block the purchasing order and notify the supplier should any risk be identified. The tool allows Walmart’s meatpacking partners to register geo- Another complementary action by Walmart in the beef chain is its encouragement to livestock breeders in the Amazon region to develop more sustainable production with lower impacts. This initiative will be fostered via technical support to the farmer, in partnership with The Nature Conservancy NGO through a pilot scheme in the municipalities of São Félix do Xingu and Tucumã in the southeast of Pará State, one of the fastest growing livestock frontiers in Brazil. graphical information on the farms from which they buy beef. Sustainability Report 2013 33 REPORT | TRACKING DEVELOPING BUSINESS ETHICS Adalberto Marcondes The economy is one of the most dynamic areas of human activity and its historical development is part of the civilization process itself. Means that were accepted as normal in a particular period may be regarded as criminal in other times. This has occurred in relation to work and products. Slave labor was legal in Brazil until just over 100 years ago yet today, a century after abolition, slave-like labor still exists in cases where people are forced to work under degrading conditions. More than 2,000 people were rescued from this situation in 2012. Most were held captive in the Amazon region, particularly in Pará State, with cattle ranches responsible for most of this grim ranking. Brazil began a strong expansion at the beginning of 1970 towards the West and North, territories with abundant nature and an immense source of natural resources. Livestock farming was one of the main features of this occupation, with the Brazilian herd expanding from 92.5 million head in 1974 to 213 million in 2013, according to the official statistics agency, the IBGE. The government encouraged colonization of the territories and deforestation for livestock and agricultural production from the beginning of this occupation. This liberalization created a culture of disorderly occupation and gaps in the official land registration processes and use of the law. This uncontrolled situation had a direct effect on the quality of business in the region, particularly the globalized value chains, such as agriculture and livestock. The way of occupying the Amazon territory has changed in this new century. Ethical demands from the markets are redirecting efforts to production models which have a lower environmental impact, less deforestation, more social benefits and greater use of technology. Farms on the Labor Ministry’s slave labor black list or with problems related to encroaching on indigenous areas or reserves of any kind, along with those which have deforested areas 34 ONE OF THE MOST TRANSFORMING FACTORS IN THE DEVELOPMENT OF HUMANITY AT THE TURN OF THIS CENTURY IS BUSINESS ETHICS. MUCH OF WHAT WAS CONSIDERED NORMAL IN THE PAST IS NOW REGARDED AS CRIMINAL “A production model needs to be built illegally, are being pushed outside the market. The use of technologies and modern livestock management processes can free a lot of land currently used for cattle raising for new activities. The government estimates that the territory currently used for cattle production of that can be reconciled with the conservation of the Amazon” Ian Thompson (THE NATURE CONSERVANCY) around 190,000 hectares could shrink to around 133,000 hectares, with the herd increasing to almost 230 million head in 2022. This would release a lot of land that could be used for agriculture or the recovery of the forests. “A partnership is fundamental in encouraging producers to adopt sustainable Part of this move towards more technology and productivity comes from the pressure of the Brazilian and international markets for meat that does not cause social and environmental practices on their land” James Cruden (Marfrig Beef) problems. This century began with a strong demand for the modernization of the management processes linked to nature to be modernized. Combating deforestation in the Amazon region is one of the most high profile battles. Governments, voluntary organizations and companies have come together to create mechanisms to control and manage livestock production and make it more productive while using less land. This led to the creation of organizations defending sustainable livestock breeding and restrictive laws on the indiscriminate “We believe in agreed solutions to promote the best livestock productive practices for Brazilian beef” Maria Cecília Wey de Brito (WWF Brasil) use of the land, such as the Rural Environmental Register, a structural mechanism for the sustainable management of the land and farms. “It is important to accompany the productive chain from the birth of the The most recent step in the direction towards a more ethical relationship between the animals to the delivery of the product to players in the beef chain is the introduction of processes that can track beef from its origin the consumer” on the farm through the meatpacking plant to the supermarket shelf. This method give cus- Mauricio Voivodic (Imaflora) tomers guarantees on the quality of the food that arrives on their table and ensures that the meat sold was produced in registered legal farms where no illegal deforestation occurred and where workers were treated in a dignified way. Sustainability Report 2013 35 SUPPLIERS LOCAL SUPPLIERS GRI EC6 Engaging with and supporting small and medium-sized rural producers is also one of the pillars of the global Sustainable Agriculture platform, and has helped to develop communities in which Walmart is present. By doing so, the company meets the demand of its customers by providing products with features from different regions DISTRIBUTION BY PRODUCT of Brazil while maintaining the standards of quality and low prices associated with the brand. The Producers’ Club, which marked 10 years of existence in 2012, is an example of how this strategy is carried out and expands access to small and medium-sized suppliers in the retail segment. The initiative is also part of Walmart’s efforts to contribute to the fed- 47% Horticulture 19% Delicatessen eral government’s program Brasil sem Miséria (Brazil without Misery) created to raise income and improve popular welfare, particularly of extremely poor families outside the various government programs.In 2012, products such as manioc flour, honey and nuts from the Producers’ Club were added to the mix of products in the stores. The Producers’ Club is a commercial channel through which the farmers sell their products directly to Walmart. It is a partnership that adds high quality items produced in line with the social and environmental legislation and without the need for middlemen. The arrangement is not exclusive but gives Walmart preference in acquiring the amounts available, provided they meet the established technical standards and 15% can be sold at comparable market prices with equivalent products. On the other hand, the club members have the advantage of differ- Grocery entiated payment periods and the possibility of prepaid credit. The 8% ted around 10,500 family farmers. More than 1,000 items in Walmart Bakery Producers’ Club was present in 12 Brazilian states in 2012 and benefitstores are marked individually or receive special identification on the shelves, proving the origin and respect for the standards, technical recommendations and the applicable laws. The Producers’ Club will receive investments in 2013 for training for a 7% period of two years to promote the inclusion of the small producers in Brazil. Butcher 4% Fishmonger NUMBER OF FAMILiES 1,300 10,560 2012 2007 14 2002 36 STATES WHERE THE PRODUCERS’ CLUB IS ACTIVE 2002 2007 2012 THE CLUB SEAL GAVE ME SALES VOLUME, STABILITY AND ACCESS TO THE SUPERMARKET SHELVES. WE GREW BY 33% IN LESS THAN A YEAR. Fernando Yoshiro Neguishi, producer of the Aica mushroom brand (Mogi das Cruzes – SP) WE JOINED THE CLUB AND HAVE NOT STOPPED GROWING. WE NOW EMPLOY ALMOST 30 PEOPLE. Evandro Andreazza of the Forno Velho sweets and jam company (Caxias do Sul – RS) I USED TO SPEND MORE TIME ON THE ROAD THAN IN THE FIELD. NOW WE LOAD THE TRUCK, DELIVER AND GET STRAIGHT BACK TO PRODUCE MORE. Adriane Barbosa de Campos, horticulture producer (Guaíba – RS) WE WENT FROM SLAUGHTERING 600 TO 700 CHICKENS A DAY TO 2,500 TO 3,000. Messias Luiz Batista, producer of “naked neck” hillbilly chicken (Ivaiporã – PR) THIS WAS THE CHANCE TO CUT OUT MIDDLEMEN AND PROFESSIONALIZE THE WORKFORCE AND THE FINISHING OF THE PRODUCTS. Tereza D’Ávila, consultant at the Cooperativa Agroindustrial do Caju – Central Copacaju (Caju Agroindustrial Cooperative) (Tururu, Fortim, Ocará, Aracati, Chorozinho, Granja, Aquiraz, Barreira and Icapuí – CE) Sustainability Report 2013 37 REPORT | MICROPRODUCERS FAMILY FARMING IN BRAZIL INEQUALITY IS STILL A CHALLENGE FOR SMALL PRODUCERS IN BRAZIL Juliana Rocha Family farming plays a significant role in Brazil’s agricultural production but small producers are in an unequal position when it comes to growing and selling their products, depending on their region. Farmers in the South, Southeast and Midwest are more capitalized and have access to modern techniques and equipment and find it easier to sell to the retail trade. Farmers in the Northeast, particularly the semi-arid zone, face poverty and live with the difficulties of drought. “We had a good crop [2012/2013] and family farming income rose but we have a diverse situation. The Northeast has the greatest concentration of rural poverty in the country and faces large problems,” said Valter Bianchinhe, Family Agriculture secretary of the Agrarian Development Ministry (MDA). Francisco Graziano was one of the creators of the Programa Nacional de Fortalecimento da Agricultura Familiar – Pronaf (National Program to Strengthen Family Farming) in 1996. He also highlights the period of prosperity which some of these farmers are enjoying, thanks to the arrival of technology and sustainability techniques. “Small farm- Family Farming in Figures 4,3 million 84% family farmers1 38 of farms are run by families 16% 10% 38% 160 million is non-family farming of GDP comes from family farming Sources: 1. IBGE Agricultural and Livestock census; 2. Ministry of Agrarian Development; 3. Banco do Brasil of the gross agricultural and livestock production comes from family farming reais is the upper limit of annual gross income to be classed as family farming by the government2 ers in Santa Catarina, Paraná, São Paulo and 87% of the manioc planted in Brazil, 70% of over 2011. At the same time, the participa- Espírito Santo are now capitalized. They do beans, 46% of corn, 34% of rice and 21% of tion of private sector consumers in facing up not compete with agribusiness but are part the wheat. They are responsible for 59% of to the challenges of rural poverty is funda- of it except for those in the semi-arid region hog farming, 50% of poultry and 30% of beef mental, says Bianchini. The retail demand for in the Northeast.” cattle. They also play an important role in milk family farm products helps insert them into production and account for 58% of all milk the market and consumers can play their According to the MDA, the latest figures produced. Although they represent 85% of part by demanding products with seals and available from the agriculture and livestock the farms in the Country, the smallholders certificates showing the production origi- census of 2006, announced in 2009, show have a much lower share when the criterion nated from family farming. that there were 4.3 million family farmers in is income created from production. The MDA Brazil, equivalent to 84% of all agricultural says 38% of the gross value of the agricultural Graziano also raises the role of cooperatives producers in the country. Non-family farm- and livestock production comes from family in inserting the small producers into agri- ers account for only 16%. Bahia State has the farming, equivalent to 10% of Brazil’s GDP. business, particularly to find ways of selling largest number of family farms, with 15%, fol- their production and granting credit to work- lowed by Minas Gerais, with 10%. Rio Grande CHALLENGES ers. This is what Cooxupé, a cooperative that do Sul is in third place with 8%, followed by Despite the advances made in income and represents 11,500 coffee producers in the Ceará with 7.8%. Four criteria define family the conditions of farming families, Bianchini South of Minas Gerais, the Cerrado Mineiro farmers: the first is to have a gross income admits that there is still a long way to go area and part of São Paulo state, does for its of up to R$160,000 a year per family, the before rural poverty can be ended. He esti- members, 80% of whom are small farmers. limit that grants access to the Pronaf, credit mates that one third of the small producers “It works well for the small producer because lines and technical and social assistance pro- are strongly integrated to the market, with the combined production results in a large grams, such as the Programa de Aquisição de access to credit and technical help, and an- volume to be sold,” says the Cooxupé market- Alimentos – PAA (Food Acquisition Program). other third are in the transition period, with ing director, Jorge Ribeiro Neto. The coopera- The other three are to employ only family access to the assistance programs. The re- tive transfers credit from the financial system members – have a small production with no maining farmers – over one million families – to its members and uses swaps as a form of hired labor – to live near or on the farm and still live in poverty and need to be brought credit, with the producer buying input and to have an average area of 50 hectares. into the agribusiness market. He mentions paying with the post-harvest production. the government assistance programs to help It also offers technical assistance and raises Some crops are typical of family agriculture in these farmers, such as the 2012/2013 Family funds so that small farmers can have more Brazil, such as the production of horticulture Farming Plan which released R$22.3 billion in sustainable production. The government and fruits and even fish. This is because they resources, including credit lines from the Pro- is also preparing two programs to expand are easier to handle in small properties and naf and the PAA. Through the Pronaf, Banco technical assistance to producers and raise the quality is linked to the care the producer do Brasil granted R$24.2 billion in credit to environmental awareness. These are due to takes on a daily basis. These farmers produce small farmers in 2012, an increase of 20.7% be launched with the next Harvest Plan. 50 hectares is the average size of a family farm2 24,2 billion reais was granted by Banco do Brasil in 2012 in credit through the Pronaf plan3 20,7% was the expansion in the volume of loans granted by Banco do Brasil through the Pronaf3 Of all the Family Farmers in Brazil 15% 10% 8% are in Bahia are in Minas Gerais are in Rio Grande do Sul Sustainability Report 2013 39 Suppliers PROMOTING DIGNIFIED WORKING CONDITIONS CONTRACTS AND AUDITS GRI SO4 Another way of promoting governance is Walmart did not identify any significant risk of through contracts in which Walmart estab- child, forced or slave-like labor practices in its lishes that the labor and environmental laws operations or those of its suppliers in 2012. This will be complied with and technical visits car- conclusion was reached based on its control ried out to make inspections and audits. The strategies and the guidelines of the Interna- company also maintains its Ethical Sourcing tional Labor Organization (ILO) and Universal Program which is applied on a global scale. It Declaration of Human Rights. GRI HR2 | HR6 | HR7 refers particularly to contracts covering direct The contracts signed by Walmart’s commercial partners include clauses on: Working conditions (observing labor law, social security law, among others; and banning the use of forced, slave-like or child labor) Suppliers must also conduct their businesses Merchandise Centers (GMC) or Direct Sourc- ethically and always abide by Walmart’s State- ing Group (DSG) – parts of the company’s ment of Ethics. This includes observing, amongst global infrastructure. others factors, Walmart’s rules governing gifts and gratuities and conflicts of interest. The The measure involves around 500 plants in Ethics and Compliance Department receives Brazil and includes, in addition to the direct complaints from employees, service provid- imports, private-label and exclusive brands ers and suppliers and ensures their anonym- as well as non-brands that undergo human ity. The cases reported are analyzed and have rights audits. The company has also signed up a predetermined deadline for their resolution. to the Programa de Qualificação de Fornece- The Open Doors Policy within the company Safe working conditions dores (Retail Supplier Qualification Program) of encourages communication between the Respect for the environmental laws the Associação Brasileira do Varejo Têxtil (ABV- teams and their leaders and the communi- TEX). In 2012, it began the Supply Chain Ca- cation of violations. The ethics channels in- pacity Building training program for suppliers clude the telephone number 0800-703-3966, to enhance their ethical standards. [email protected] e-mail address and corpo- Respect for business sustainability agreements Operating within the legal, ethical and moral limits and terms of the Walmart Statement of Ethics Suppliers subject to inspections and audits 40 imports which do not go through the Global rate site (www.walmartbrasil.br). GRI 4.6 | SO2 | SO4 PROVIDING FOOD THAT IS HEALTHY AND SAFE GRI PR1 Another important instrument in measur- This includes observing aspects such as In relation to its private-label brands, ing the value chain and identifying points maintaining the right temperature in the Walmart began an intermediary stage of an for improvement is the analysis of the life production, cooking and cooling pro- audit based on the Global Food Safety Initia- cycle of products. Walmart carries out as- cesses, controlling cross contamination, tive (GFSI). This includes Hazard Analysis and sessments to investigate possible impacts employees’ hygiene and health, cleaning Critical Control Points (HACCP), an additional on the health and safety of customers from the workplace and ensuring correct label- food safety measure. All products were au- perishable foods and merchandise. ing. The stores have Expiry Brigades made dited and 70% were approved at a higher up of employees from different areas who level than in 2011. STAGES IN WHICH THE HEALTH AND SAFETY IN THE USE OF PRODUCTS IS EVALUATED are responsible for inspecting and disposing of products about to pass their expiry A total of 99 cases of non-conformity with the date or which have been damaged. Those regulations and standards were registered responsible are told to check the date be- among private-label brand and other suppli- fore putting the products on display and ers during the year. Of these, 26 resulted in a Research and development remove those which are about to expire or penalty or fine. There were no cases of non- Fabrication and production damaged. The stores undergo an external conformity with voluntary codes. GRI PR2 Marketing and promotion Storage, distribution and supply Use and service monthly audit of all critical points and corrective measures are taken if any deviations are found in standards or conduct. Disposal, reuse or recycling Sustainability Report 2013 41 CUSTOMER ATTENDANCE CHANNELS Telephone 0800-705-5050 Site www.walmartbrasil.com.br/atendimento E-mail [email protected] 42 Society GRI 4.16 Walmart aims to ensure its customers’ satisfaction, promote women´s empowerment and help the communities where it is present to grow CUSTOMERS Engagement with customers, communities nership with the Fundação Getulio Vargas busi- The Everyday Low Prices business philosophy and society as a whole is the final link in the ness school, is an example of how this strategy completed a year in Brazil in January 2012 value chain of which Walmart forms a part. can be consolidated. The course lasts 10 hours with impressive results. The level of services This strategy comes into practice, for example, and is available free of charge on an on-line and structure of the logistics chain grew. The with the incentive to promote conscientious platform. It aims to give company managers quality of perishable goods also improved, consumption and the proper disposal of waste a better understanding of the challenges and as did lines at the checkout which declined. and packaging (see more on page 26). It also oc- business opportunities sustainability can bring, These benefits won Walmart the Prêmio Con- curs through the offer of products developed presenting changes in the strategy and opera- sumidor Moderno (Modern Customer Prize) as from best practices to ensure safety and low tions that make a competitive difference. the company that most respects the customer in the Hypermarkets category. Contribu- prices for consumers. The course was launched in October 2012. tory factors to this were the Baixou (Price Cut) Walmart operates on this front as a provider of Over 11,000 managers have already complet- – initiative in which prices of products in all information and publicizes concepts to alter ed it and become multiplying agents of good categories were reduced for at least 60 days the habits of customers and employees. The practices and sustainable habits. They have – and Imperdível (Essential) – leaflets showing Sustentabilidade Aplicada aos Negócios: Orien- joined 160,000 other people who completed prices that were even cheaper for the week. tações para o gestor (Sustainability Applied to the two previous versions of the course, with This latter offer was unusual as it offered a Business: Manager’s Guidelines), created in part- differentiated focuses. discount on perishable and commodity items over a week and not just on specific days. Sustainability Report 2013 43 Society Strengthening this philosophy is also carried ATTENDANCE CHANNELS GRI PR5 out through independent surveys carried out Consumers are the final link in the value in different Brazilian states. The latest survey chain of any product and service. For this by the Instituto Datafolha, held between Feb- reason, one of Walmart’s priorities is to serve ruary 28 and March 3 in 37 stores in 12 state them in a cordial manner and assess their capitals, showed that Walmart had the lowest satisfaction with the items they bought and price in 94% of the outlets checked. services provided. Among the communica- KEY INDICATORS OF THE CUSTOMER ATTENDANCE CENTER tion channels available to customers are Another outstanding initiative in 2012, that e-mail, the company’s website, phone at- reinforces the company’s commitment to the tendance and through social networks. The customer, was the De Olho na Validade, (An Eye contacts are concentrated in the Customer on the Expiry Date) campaign partly launched Relationship Center (CRC), which was ac- in 2011. It was carried out in partnership with cessed by 760,000 customers in 2012. The in- the Brazilian consumer defense agencies (Pro- formation obtained helps improve the com- cons) and the state prosecution services and pany’s work. The CRC is dealt with specifically encouraged consumers to check the expiry through the Customer’s Voice program at date of products and improve the supermar- strategic weekly leadership meetings when ket monitoring and control processes. The the main points related to satisfaction and campaign covered the States of São Paulo, opportunities for improvement are raised. CONTACTS RECEIVED 760,713 2012 In 2012, 83% of the calls were attended within gipe, Rio Grande do Norte, Pernambuco and 20 seconds and 95% of the requests were Paraíba. GRI SO5 attended within 5 days. Over 10,000 custom- 365,769 2012 a specialist company on key aspects such as a service at special periods for the retail sector, friendly and efficient attendance, clean rest- such as Christmas, Easter, Mother’s Day and rooms, availability of products they want to find, Children’s Day. The aim is to raise critical issues and checkout speed, amongst others. Walmart and prepare solutions to ensure the same improved the internal information report from quality of attendance the whole year round these surveys in 2012. Walmart also strengthened its special atten- management took part in ethnographic sur- dance operations center to handle and ac- veys which gave them a real immersion into company consumer complaints in the con- the customer’s home, life and routine. sumer defense agencies known as Procons. 2011 330,723 2012 478,197 2011 E-mail 21,736 2012 27,207 and directing the marketing plan and selling activities. At the same time, Walmart’s senior 527,128 TELEPHONE (0800) ers are consulted in the stores every month by A survey is held every two years on customer 2011 PERSONAL ATTENDANCE Minas Gerais, Rio de Janeiro, Espírito Santo, Goiás, Rio Grande do Sul, Santa Catarina, Ser- 937,317 2011 SOCIAL NETWORKS 3,636 2012 2,304 2011 This initiative included holding technical OTHERS visits for consumer defense bodies to show how the company tries to find an immediate solution to complaints in the stores and also highlights Walmart’s concern to enhance its 9,674 2012 19,420 2011 processes so that the customer has a good URA purchasing experience. (ELECTRONIC ATTENDANCE) 394,944 2012 44 410,189 2011 In 2012, Walmart achieved a reduction of 25% The employee module aims to increase the rentiated features highlighted in the stores over 2011 in the total number of customer pride and sense of belonging to the organiza- and their prices reduced. Products can be complaints at the Procons and increased its tion, the pleasure of serving and doing so well organic, concentrated, presented in smaller solution ratio by 10% in the preliminary noti- and aligning the behavior of the employees to packaging, containing more sustainable raw fications. The team that is dedicated to attend the Walmart culture. As a result, the program materials made without phosphate, bring the Procons also works with demands from reduced complaints related to employee at- savings in water and energy efficiency, emit the National Consumer Defense System. titudes by 16%. There was also a reduction of fewer greenhouse gases and/or create less 20% in the number of overall complaints. waste in its productive process. The Atendimento UAU! (Customer Service Pro- MÊS DA TERRA (EARTH MONTH) This initiative is reinforced by products that gram!) promotes better conduct by employees One of the Walmart’s initiatives to publicize are part of the End-to-End Sustainability pro- and leadership in the stores to foster a good rela- more sustainable products on the shelves gram (see more on this initiative in page 31). tionship with the customer in a relaxed, differen- and conscientious consumption among tiated way. The training uses leadership modules consumers is the Earth Month event which to promote assertive and attentive communica- occurred in June 2012. During this annual tion using good customer attendance. campaign, a group of items have their diffe- Customer Service Program! RECOGNITION GRI 2.10 Prêmio Exame Atendimento ao Cliente 25 BEST Prêmio da Consumidor Moderno EXCELLENCY IN SERVICE TO OUR CUSTOMER – SUPER-HIPER Prêmio da Consumidor Moderno BEST EXPERIENCE IN SOCIAL NETWORKS Prêmio Reclame Aqui SUPERMARKET Prêmio Reclame Aqui WAREHOUSE MEMBERSHIP CLUB Sustainability Report 2013 45 INTERVIEW | CONSCIENTIOUS CONSUMPTION 21 CENTURY ST CUSTOMER CONSCIENTIOUS CONSUMPTION IS AN ESSENTIAL WAY OF ENSURING SOCIAL AND ENVIRONMENTAL SUSTAINABILITY By 2020, four planets will be needed to supply the consumer needs at the ARE THERE OTHERS? rate in which the population is using up natural resources within the cur- Choosing something that is made locally is better because it requires rent production and consumption models. This claim comes from Helio less transport and fuel. Also, things that can be shared and do not Mattar the president of the Instituto Akatu, a non-governmental organi- need to belong to one person or be for individual use. zation that aims to organize the way the society consumes. HOW CAN YOU EDUCATE THE POPULATION TO BE MORE CONSCIENTIOUS AND FOLLOW SUSTAINABILITY PRINCIPLES? WHAT IS CONSCIENTIOUS CONSUMPTION AND HOW DID THIS CONCEPT COME ABOUT? There are three factors: understanding, motivation and choice. The first Helio Mattar – It is when the consumer tries to reduce the negative im- step is for consumers to understand there is a problem and help resolve pacts and increase the positive effects of consumption on society or the it. The second is to motivate consumers to behave when they know their environment. It assumes the consumer has the information to make the action can make a real contribution to resolving the problem. The third choices and knows about the impacts of consumption habits. Buying a is making a choice. For example, people who have lived abroad may product that lasts longer instead of one that is thrown away after use is consider installing a communal laundry in the building as an immediate a choice that will have less impact on the environment. solution but people who live in Brazil and are unfamiliar with this habit do not often think of this as a solution. Therefore, these people need to WHAT OTHER ATTITUDES DOES THE CONSCIENTIOUS CONSUMERS HAVE? have a broader view and think about the impact. The conscientious consumer aims to buy something that he or she really reduce waste. You can reuse, repair, upgrade – as with a computer – and IS ONE OF THE ADVANTAGES OF CONSCIENTIOUS CONSUMPTION THAT IT WILL MAKE SAVINGS IN FAMILY BUDGETS? mend items that can have their life extended such as clothes. Recycling Thirty percent of perishable products bought are thrown away on av- products and their materials should be the last stage when there is no erage in the Brazilian home. Akatu carried out a test which showed other way. These are the main rules. that if a Brazilian family with a monthly income of R$2,000 wastes 10% needs. Nobody else can decide on his or her behalf. The second rule is to of what it buys instead of 30% it could put the 20% in a savings account. Over a period of 70 years, this family would have accumulated R$820,000 just by reducing waste. 46 Companies that do not produce for the conscientious customer will not survive Helio Mattar WHAT ARE THE POSITIVE IMPACTS OF CONSCIENTIOUS CONSUMPTION ON THE ENVIRONMENT AND SOCIETY? WHAT HAPPENS TO COMPANIES THAT DO NOT TAKE NOTICE OF THIS NEW SITUATION? The environmental impact is the easiest to be seen. All products are Companies that are not producing for the conscientious consumer will made from natural resources, from the processing and transport of the not survive. People think that this will only happen in 20 years time, but parts until it becomes a product. There are impacts on nature in each it is not true. We are currently unsure about the supply of water for 2 phase of the production cycle which are generally negative. However, billion people. A plain in China that supplies 400 million Chinese with they can be reduced depending on the care taken. One of the most im- grains is expected to have run out of water by 2020. So where will the portant social impacts is job creation. The question is: what kind of job grains for 400 million people come from? This will increase the price is created? Does it involve child and/or slave labor? Are workers being sharply. There will be no solution if sustainable business is not com- treated within their rights? The customer should know the company to bined with conscientious consumption. ensure that there these items have no negative social impacts. COULD CONSCIENTIOUS CONSUMPTION MAKE COMPANIES MORE SUSTAINABLE? DOES CONSCIENTIOUS CONSUMPTION NOT ONLY INVOLVE THE QUANTITY OF THE PRODUCTS BUT ALSO THE WASTE GENERATED. HOW CAN YOU BE CONSCIENTIOUS ABOUT WASTE? There are a number of ways in which conscientious consumption makes The recycling and collection of recyclable products is improving. Bra- businesses more sustainable. Currently, sixteen percent of the world zil’s solid waste law states that no waste that can be recycled will go to population, around 1.1 billion people, is responsible for 78% of total landfills by the second half of 2014. Fifty-eight percent of Brazil’s waste is consumption. Even with this concentration, we are still consuming 50% organic and can be recycled to create energy and fertilizers. Therefore, more renewable sources than the earth can regenerate. In 20 years, we companies will have to emerge to make compost or create electrical en- will have 3 billion more people on the mass consumer market. This will ergy, as well cooperatives and governments that carry out the collection almost quadruple the current number of consumers. How do you avoid of the other recyclable materials. environmental chaos? The alternative includes conscientious consumption, technological changes that are under way and public policies that will level the playing field. This is the only way we will succeed in surviving on a single planet that has to serve the population that will live in it. Sustainability Report 2013 47 SOCIETY SECTOR ENGAMENT GRI 4.13 Walmart Brasil participates in trade bodies and associations to strengthen the sector and exchange good practices. By involving itself in forums, commissions, committees and meetings, the company promotes the sharing of knowledge and discusses scenarios and challenges throughout the chain. Walmart is currently a member of the following associations and is represented at national and regional level. As a result, it is making an active contribution to policies in various areas and meeting local demands while encouraging Brazil’s growth. BODIES OF WHICH WALMART BRASIL IS A MEMBER 48 Associação Baiana de Supermercados (Abase) Associação de Supermercados do Rio Grande do Norte (Assurn) Associação Brasileira de Atacadistas e Distribuidores (Abad) Associação dos Supermercados do Rio de Janeiro (Asserj) Associação Brasileira de Embalagens (Abre) Associação Gaúcha de Supermercados (Agas) Associação Brasileira de Relações Empresa Cliente (Abrarec) Associação Goiana de Supermercados (Agos) Associação Brasileira de Redes de Farmácias e Drogarias (Abrafarma) Associação Maranhense de Supermercados (Amasp) Associação Brasileira de Supermercados (Abras) Associação Mineira de Supermercados (Amis) Associação Brasileira do Varejo Têxtil (ABVTEX) Associação Paranaense de Supermercados (Apras) Associação Capixaba de Supermercados (Acaps) Associação Paulista de Supermercados (Apas) Associação Catarinense de Supermercados (Acats) Associação Pernambucana de Supermercados (Apes) Associação Cearense de Supermercados (Acesu) Associação Sergipana de Supermercados (Ases) Associação Comercial da Bahia (ACB) Associação Sul Matogrossense de Supermercados (Amas) Associação Comercial de Pernambuco (ACP) Câmara Americana de Comércio (AMCHAM) Associação Brasileira de Comunicação Empresarial (Aberje) Câmara Brasileira do Comércio Eletrônico (Câmara-E.net) Associação de Supermercados da Paraíba (AS-PB) Associação de Supermercados de Alagoas (Asa) Federação das Associações Comerciais e de Serviços do Rio Grande do Sul (Federasul) Associação de Supermercados de Brasília (Asbra) Instituto Desenvolvimento do Varejo (IDV) WOMEN’s EMPOWERment Valuing the women is a primary aspect hiring women construction workers for new and the anniversary was commemorated of the company’s global strategy. Studies stores since 2011 and giving them better in December with an event highlighting its show that companies with a large num- working opportunities. Over 100 women achievements. Initiatives promoted during ber of women in leading positions (gender were hired for the construction of Sam’s the year were presented at the event repre- equality) have better financial results. At the Club in São Bernardo do Campo (SP), Big in sented and can be found on the following same time, most of the company’s custom- Bagé (RS), Maxxi in Presidente Prudente (SP) site www.movimentomulher360.com.br. The ers are women, as 80% of the buying deci- and Walmart in Volta Redonda (RJ). movement was also recognized in the sions are in their hands. However, when it Women’s Empowerment Corporate Leadership comes to working, a large part of the fe- Another operating front to tackle this is- Awards presented by the British magazine male public is still not part of the formal job sue is the Corporate Movement for the Eco- The New Economy, along with other Walmart market. As Walmart believes that success- nomic Development of Women known as initiatives related to the economic develop- ful companies in the future will be those the Women 360 Movement that has around ment of women. GRI 2.10 that attract and retain this female labor, it 40 signatory companies. The initiative was announced in 2011 its Global Women’s Eco- created by Walmart and has the support of Walmart is also a member of the Network nomic Empowerment Initiative. the Secretariat of Women’s Policies of the of Leading Brazilian Women for Sustainabil- Presidency of the Republic. It involves com- ity launched in 2011 by the Ministry of the The initiative establishes clear goals on dif- panies which are highly influential in their Environment. This network brings together ferent work fronts, such as empowering operating sectors and has the support of the leaders of public and private companies, women in the field and plants and increas- voluntary organizations and academic in- government and non-government organi- ing gender diversity among its main supplier. stitutions. The movement is structured on zations and multilateral bodies to discuss four operating bases (see the following table) and propose actions related to the incorpo- Each country sets its own programs and and is aligned to the Women’s Empower- ration of sustainability in business, encourag- actions to meet the initiative’s targets and ment Principles of the UN Women body. The ing green entrepreneurship and changes in commitments. In Brazil, Walmart has been program completed its first year in 2012 standards of consumption and production. PILLARS OF THE WOMEN 360 MOVEMENT 01. 02. 03. 04. DEVELOPMENT OF WOMEN WITHIN COMPANIES DEVELOPMENT OF WOMEN WITHIN THE VALUE CHAIN SOCIAL INCLUSION OF WOMEN VALUING THE IMAGE OF THE WOMEN IN SOCIETY Sustainability Report 2013 49 ARTICLE | WOMEN SUSTAINABILITY, ECONOMIC EMPOWERMENT AND GENDER EQUALITY Rebecca Reichmann Tavares* Sustainable development is nothing more than fighting poverty, reducing inequality and pledging that countries should grow in an inclusive and sustainable way in terms of their production and the consumption of their citizens. This is an enormous collective task that is the responsibility of governments, international institutions, voluntary organizations, the media, business groups, women, men, young people and adults. Women continue to be discriminated against and suffer violence throughout the world. They are marginalized in decision making and their participation in the public, political, social and cultural life of their countries is very low. If we look at the Latin American region alone, including Brazil, we see that great progresses have been made in terms of gender equality in recent years, but there are still gaps in two fundamental areas: the political participation of women and their economic empowerment. 50 Empowering women and promoting gender equality in all social The UN Women and the Global Pact created the Women Empower- and economic activities strengthens economies, boosts business, ment Principles (WEPs) in recognition of the role companies play improves the quality of life of women, men and children and also in expanding economies and human development. The Principles benefits sustainable development. are a combination of policy recommendations for the business community to incorporate values and practices that promote gen- However, there are many obstacles in the way to equality. Brazil is der equality and women’s empowerment. Fifty-five companies in still marked by a big wage difference, with men gaining an aver- Brazil have become signatories to the Principles, a number that has age of 25% more than women, according to figures from the IBGE more than doubled from the end of 2011 to date. issued in May 2012. The seven Women’s Empowerment Principles deal with promoting Women are now a majority of the Brazilian population and provide gender equality through initiatives that help the private sector to the highest number of university students. They are also the ma- concentrate on key elements which are essential for advancing jority of those who complete the courses. Despite this, the 2012 equality in the work place, the market and community. We would World Bank Gender Equality and Development report shows that like to invite companies that are still not signatories to learn about women and men continue to choose very different areas of study the WEPs and join us in the future. in technical and higher education. The split is similar in rich and poor countries. The full participation of women in economic life makes economies stronger and creates fairer and more stable societies. Hundreds This inequality is seen on an even greater scale in the private sec- of companies have incorporated the gender dimension into their tor. For example, women represent only 3% of the CEOs of the organizational policies as one of the pillars of their social respon- world’s largest companies, according to Fortune magazine. sibility and commitment to the economic development of their countries. As a result, they are starting to take advantage of the Inequality in Latin America and Brazil is based on territorial, racial diversity of talents. This will make a positive difference in relations and ethnic factors. Indigenous women, those of African descent at work, productivity and business expansion, develop new and and those who work in rural areas are particularly disadvantaged better products to meet the needs of customers and create more by the lack of social protection, the unstable infrastructure and the varied strategies for new markets. degradation of the environment. The UN Women initiative is working for gender equality and the All this indicates that, despite the big increase in women at univer- empowerment of women in all areas to achieve economic growth, sity, on the job market and in senior positions in companies, many a fairer society and a sustainable planet. barriers still need to be dismantled in the market, institutions and home to change this situation. Women represent virtually half of the world’s population. They run the households, raise children and work. Their full participation and respect for their rights and the integration in the lives of their countries and communities could give sustainable development a new boost. Economic independency for women and their empowerment will inevitably lead to a sustainable future and growth. Studies show that closing the gap between the male and female employment rates would increase GDP by 9% in the United States, 13% in the * Representative of UN Women. She has dedicated more than 20 years to issues of social justice, racial equality and the defense of human rights for women. Euro Zone and 16% in Japan. Sustainability Report 2013 51 society WALMART INSTITUTE GRI EC8 | EC9 | SO1 The Walmart Institute has been operating The year 2012 was marked by the consolida- for seven years and is responsible for the tion of initiatives and sharing experiences. It strategic guidance of Walmart’s private was also a milestone year as it registered a social investments in Brazil. It currently de- great conquest: the start of the internation- velops programs and supports projects in al expansion of the Social School of Retail. partnership with social organizations on three fronts in the regions where is present, The technology, developed in partnership using the potential of the retail sector to co- with the Instituto Aliança, was recognized ordinate local transforming actions. for its excellent and translated into three languages – Spanish, English and Chinese. The Institute operates in the Youth and The idea is to make it available in Asia, Work, Local Development and Income Gen- Africa and Latin America and share its dif- eration areas. It plans and carries out a series ferentiated way of preparing young people of programs and projects on these fronts to for the modern world of work based on the contribute to the debate on the issues at lo- development of life projects. The program cal, regional and national level. At the same also aims to publicize differentials in retail time, it gives supports to Walmart stores careers, an area which employs million of throughout Brazil in carrying out actions people throughout the world. that benefit the community. 52 THE SOCIAL SCHOOL OF RETAIL HAS BENEFITTED MORE THAN 4,000 YOUNG PEOPLE SINCE 2010 in brazil YOUNG PEOPLE AND WORK The Walmart Institute has been active in it was created and an average of around sional identity of the individual, highlighting the issue of Young People and Work to help 80% of them have found their first job. the retail sector as a career possibility. people into the work market, aligned with The program was carried out in partnership Good results, combined with the differ- public policies. with the Education Secretariats in four of entials of the methodology and its capac- overcome the challenge of inserting young the six states that received it last year. This ity of scale, led the Walmart Foundation The Social School of Retail program directs effort aligned with the local public authori- in the United States to invest in taking its actions at young people aged between ties shows how the model is in step with the program international. For the first 17 and 29. It trains them to enter the world the government challenges to insert pro- time, a social technology developed by of work and focuses on the retail segment. fessional instruction into the periods before the Walmart Institute will be transferred or after the teaching hours in the third year to countries in Latin America, Africa and at high school. Asia in partnership with the International The program was carried out in six states in 2012: São Paulo, Paraná, Rio Grande do Sul, Youth Foundation (IYF). Bahia, Ceará and Pernambuco. More than The Walmart Institute proposal is to include 1,400 new professionals were trained last preparatory elements for the young person’s year alone and are being inserted into the working life in the formal education curricu- formal job market. Over 4,000 young peo- lum. The innovation of the model lies in the ple have benefited from the initiative since reflection and construction of the profes- Sustainability Report 2013 53 ARTICLE | YOUNG PEOPLE BECOMING PROFESSIONALS THE YOUTH UNEMPLOYMENT CRISIS: IT WILL TAKE ALL OF US TO SOLVE IT William S. Reese* The Latin American region, like every part of the world, today faces historic opportunities, as well as some real challenges, as countries seek to grow their economies and improve the employment prospects of their citizens – especially the youth. One challenge is that This “positive youth development” approach is at the far too many young people can’t find work, support their families, core of our work at the International Youth Foundation or feel positively about their futures. Another is that many com- (IYF). In nearly 70 countries, we collaborate with public, panies have jobs to offer – but can’t find the skilled workers to fill private, and civil society stakeholders to provide young them. Fixing this skills mismatch – by ensuring job training pro- people with the skills and opportunities they need to be grams meet the true needs of local employers – is a key element in successful workers and citizens. With 1.2 billion young addressing the broader job crisis. people worldwide poised to enter the workforce today, our mission is an urgent one – to design effective, The sheer scope of the problem – and the urgency to act – is begin- tested programs and take them to scale so we can reach ning to change the way all of us think about and approach these more youth and have a sustainable impact on their lives employment issues. Today, an unprecedented number of gov- and communities. ernment and business leaders have joined forces to find real and practical solutions to bridge this opportunity divide. There is also The IYF initiative that first put these principles into prac- a growing recognition that young people are enormous assets to tice was Entra21, launched 14 years ago to prepare dis- society who can drive social and economic progress in their coun- advantaged young people across Latin America to enter tries, if given the chance. and be successful in the 21st century job market. How? By equipping them with the employability and life skills 54 tiative – that aims to prepare one million youth in Latin American for livelihoods over the next ten years. Standing with me at the announcement in Cartagena, Colombia, were top executives from Walmart, along with other major employers in the region: Arcos Dorados-McDonald’s, Caterpillar, CEMEX, and Microsoft. We have high expectations for NEO’s success, and hope it inspires similar large-scale youth employment efforts in other regions of the world. Today, increasingly, we live in a service-based world – with the retail sector playing a huge role in opening up the doors of economic opportunity for young people to get entry-level jobs and begin a real career. Working with the leaders of these growing sectors – and scaling up effective training programs that meet their workforce needs – is critical for our collective future. I’m convinced that together with corporate partners like Walmart and many others who see themselves as part of the solution – we can rebuild the global economy, invest in human they need to be productive. We recruited many partners in this capital and create a more stable and peaceful world. But effort – including the Inter-American Development Bank’s Multi- only if our young people have the skills and support to lateral Investment Fund (MIF), along with global and local compa- help drive that vision. And only when more business and nies, government ministries, educational and training institutions, government leaders respond to our call to action – and and local civil society organizations. Together, we developed a join this effort. comprehensive program that offers life and employability skills development, mentorship and internship opportunities, and job placement assistance. One critical element in our collective success was to ensure that our skills training met – and matched – the employment needs of the local business community. And we saw real results. From 2001 to 2011, 137,000 young people received job and life skills training in 22 countries. Nearly half of them were employed as a result, and more than a quarter went back to school. With an initial investment from the MIF of US$20 million, we raised US$69 million in additional resources to support and expand our job training programs. Successful multi-sector programs like Entra21 have laid the foundation for even more ambitious efforts. Last year, for example, and again with the support of the Inter-American Development Bank, *President and CEO of the International Youth Foundation and member of the board of the Worldwide Responsible Assembly Production (WRAP) and of the International Council of Toy’s Industries’(ICTI) Care Foundation. we launched New Employment Opportunities for Youth (NEO) ini- Sustainability Report 2013 55 Society LOCAL DEVELOPMENT The Walmart Institute operates on the Local The Local Development platform in the Bom- Development front as a motivator of social ba do Hemetério district in the north of Reci- transformation in specific areas. It is present in fe showed its ability to mobilize. In 2012, the the State of Amapá through its Support for the Institute completed 4 years in that neighbor- National Forest Implementation Program (Flo- hood, coordinating community, cultural (see R ecognition of the district as a national na) and in Recife State through its citizenship picture below), educational, income genera- benchmark in community-based tourism program Bombando Cidadania, which helps tion, environmental conservation and health in Brazil through the development of a local people achieve common aims. promotion initiatives involving more than 1,500 people. creative economy. Increased the entrepreneurial ability of the local groups. The proposal is focused on medium and long-term results and aims to integrate The result was hailed by the residents of sustainability, viability, economic efficien- the district. An interim assessment of the cy, strengthen citizens’ participation, im- program showed that 94% of those di- development of the district by those prove the quality of life and reduce social rectly involved with the actions believed involved in the program. inequalities in a great community effort. that the Bombando Cidadania project had G eneration of new working and study brought real changes to the community With the Flona, which is carried out in partner- (see the qualitative results alongside). ship with the Conservação Internacional (In- 56 QUALITATIVE RESULTS OF THE BOMBANDO CIDADANIA ternational Conservation – IC) and the Insti- It is now recognized nationally as a labora- tuto Chico Mendes – ICMBio (Chico Mendes tory for local development initiatives and Institute), the organization aims to make the won new partnerships last year with the Amapa forest a model of land management public authorities, private sector and vol- and the sustainable use of natural resources. untary bodies. The district’s residents now To do so, a series of community actions, edu- play the main role in the areas of culture, cation initiatives and workshops were held tourism, environment, health and work, with the local community to raise income. amongst others. E xpanded the view of solidarity, ability to cooperate and participation in the opportunities for the residents. GENERATING INCOME In 2012, the Walmart Institute developed its own understanding of social investment through the Generating Income cause. The activity involved supplying and supporting inclusive social businesses, particularly in recycling and the economic development of women. The Institute regards inclusive social businesses as initiatives led by entrepreneurs who simultaneously create a social impact and achieve financial sustainability, i.e. founded on economic viability while fostering social gains. As part of the Income Generation and Productive Groups activities, an important debate was held on the National Solid Waste Policy (PNRS) in 2012. The approval of the COMMUNITY ACTIONS new policy by congress put the coopera- The Walmart Institute, in partnership with in the sixth Community Day in 2012 (see pic- tives of street garbage collectors on another more than 550 stores throughout Brazil, uses ture on page 52). This is an annual event in level, favoring the economic strengthening its distribution channel and organization pow- which Walmart brings its employees togeth- of these groups in a sustainable way. er in the retail sector to promote social actions er to carry out voluntary activities in social that benefit the community. These initiatives organizations close to the stores and offices. To help debate the issue, the Walmart Insti- encourage a culture of solidarity between em- tute promoted the PNRS Forum (picture above) ployees, customers, suppliers and all the com- The Institute also developed the Boas Ações which brought together different agents from panies in the company’s value chain. (Good Deeds) program in combination with the store chain. This program allows employees to all areas of society to discuss the demands and A practical example of this is combating take part in community activities in their neigh- waste through the Programa de Doação a borhoods, benefiting the population and estab- The event brought together street collectors, Bancos de Alimentos (Food Bank Donation Pro- lishing partnership relations with activities that representatives of social organizations and gram). In 2012, around 2,000 tons of food was will bring long-term benefits. The Calendário Na- public authorities, companies and specialists. donated to partners such as Programa Mesa cional de Boas Ações (National Calendar of Good It also presented a practical example in the Brasil (Brazil Table Program) linked to the Ser- Deeds) has become an annual event and part of successful work carried out by three groups viço Social do Comércio (Sesc) social service the daily lives of employees and customers. of cooperatives – Cooperativa Caec (Salvador and the Banco de Alimentos de Porto Alegre – BA), Cooperativa Futura (São José dos Cam- (Food Bank), linked to the Industrial Federa- The calendar allows all the stores in Brazil to pos – SP) and Rede de Cooperativas Cata Vida tion of Rio Grande do Sul State (FIERGS). carry out good deeds in a similar way, with how the sector will be transformed. activities in 18 states and the Federal District. (Sorocaba – SP). This was also an opportunity to share challenges and lessons learned. The aim is to direct products that cannot be Among the initiatives worth highlighting are sold but are still fit for consumption to orga- campaigns to collect food, clothes, toys and The main highlight of the Economic Develop- nizations that take the food to children and books – which are donated to social organi- ment of Women Incentive in 2012 was the in- adults in situations of food insecurity. zations – and raising awareness about health for the whole community in partnership vestment in the Mais Social (More Social) organization in Salvador, Bahia. A total of 470 women More than 8,500 employees from 380 with public authorities, as well as initiatives were trained in cookery and sewing activities. Walmart Brazil units also acted as volunteers by volunteers in social institutes. Sustainability Report 2013 57 GRI Letter 58 B+ Report on all criteria listed for Level C plus: 1.2; 3.9, 3.13; 4.5 to 4.13, 4.16 to 4.17. Report Externally Assured Output Output Output Standard Disclosures G3 Performance Indicators & sector supplement performance indicators B Report on: 1.1; 2.1 to 2.10; 3.1 to 3.8, 3.10 to 3.12; 4.1 to 4.4, 4.14 to 4.15. Not required. G3 Management Approach disclosures C+ Answer a minimum of 10 Performance Indicators, including at least one of the following performance areas: Social, Economic and Environmental. Management Approach disclosures for each Indicator Category. Report minimum of 20 Performance Indicators, at least one of each of Economic, Environmental, Human Rights, Labor Practices, Society and Product Responsibility. A A+ Same as required for Level B. Management Approach disclosures for each Indicator Category. Report on each essential G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a. reporting on the indicator; or b. explaining the reason for its omission. Report Externally Assure d Report Externally Assured C Level of Appliance of the Report G3 Profile disclosure GRI 3.12 Report Externally Assured GRI Index * Sector Supplement in its final version 1. Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy. 1.2 Description of key impacts, risks, and opportunities. 2. Organization Profile Note AR’s pages 4 and 5 4 and 5 Note AR’s pages 2.1 Name of the organization. 2.2 Primary brands, products, and/or services. 10 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 10 2.4 Location of organization’s headquarters. 9 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 9 2.6 Nature of ownership and legal form. 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). 2.8 Scale of the reporting organization. 2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2.10 Awards received in the reporting period. 3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 3.2 Date of most recent previous report (if any). 3.3 Reporting cycle (annual, biennial, etc.) 3.4 Contact point for questions regarding the report or its contents. 3.5 Process for defining report content, including: a) determining materiality, b) prioritizing topics within the report, and c) identifying stakeholders the organization expects to use the report. 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, and suppliers). 3.7 State any specific limitations on the scope or boundary of the report. See completeness Principle for explanation of scope. Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. 3.8 Walmart Brasil Ltda. 9 10 8, 10 and 16 There was no change. 9 Prêmio Época Negócios – 100 Empresas de Maior Prestígio no Brasil (Época magazine Award – the 100 Most Prestigious Companies in Brazil); Prêmio Eco (Eco Award) – winner with the cases of “Walmart Brasil: uma empresa sustentável todos os dias” (“Walmart Brasil a sustainable company everyday”) and “Gestão de Resíduos (“Waste Management”); Prêmio Aberje (Aberje Award) – with the case of “Mudança da Paradigma no Varejo e na Vida do Consumidor Brasileiro” (“Change in the Retail Framework and the Life of the Brazilian Consumer”); Prêmio Benchmarking Ambiental Marketing Brasil (Brazil Environmental Benchmarking Award). 13, 45 and 49 Note AR’s pages 6 2012 Sustainability Report (2011 financial year) 6 Annual 6 7 6 and 7 The figures in this publication include all Walmart stores and offices and distribution centers located in Brazil. For strategic reasons, certain economic indicators for the Brazilian operations are compiled within the global results announcements made by Wal-Mart Stores, Inc. There was no change over the previous year. 6 and 10 6 6 Sustainability Report 2013 59 GRI Index 3.9 3.10 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report. Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, and measurement methods). 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. 3.12 Table identifying the location of the Standard Disclosures in the report. 3.13 Policy and current practice with regard to seeking external assurance for the report. 4. Governance, Commitments, and Engagement Governance 60 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement). 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. 4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 7 There has been no significant change in the scope, limits or measurement methods in relation to previous documents. 7 There was a change in the methodology for calculating the EN3 and EN4 indicators and, for this reason, there is no comparison base. 7 59 to 63 The facts and figures reported in the document were checked and examined by the areas of the company. There is no policy for an external verification of the information. Only the financial statement of the Walmart Institute, available at http://iwm. org.br/arquivos/b/bal/balanco/834_DFInsitutoWalmart2012pdf.pdf, were audited. Note AR’s pages Information on the governance structure of Wal-Mart Stores, Inc., the parent company of Walmart Brasil, is available on the following link: http:// stock.walmart.com/corporate-governance. The CEO of the company is not the president of the Board of Directors, as this is global. The positions of vice-president of Audit, Legal and Finance in Brazil are held by independent members. 18 and 22 Walmart maintains a guideline in relation to the theme but does not describe or publish the remuneration base for this performance. Walmart uses the Open Door Policy that stimulates communication between the teams and its leadership and encourages them to communicate violations. Senior management members must demonstrate a commitment to the basic principles of Walmart and to the results of the company in Brazil, balancing professionalism and a humanistic vision of the business in order to ensure sustainable growth while observing the social, environmental and economic guidelines established by the company. 40 11 11 Walmart supervises the adoption of the best management tools. Of these, we would highlight some internal committees for the analysis of subjects related to the areas of Ethics & Compliance and Auditing. The company is also a signatory to various codes of conduct, sector pacts, and cooperation agreements in the social and environmental field and is also a member of business movements, associations and voluntary bodies. Partially reported. In 2012, the company developed its own tool (Escaladas), influenced by the Must Win Battles methodology proposed by professors and writers Peter Killing, Thomas Malnight and Tracey Keys in the eponymous book. Its configuration occurred from the decisions on the main objectives and goals to be pursued by the company, presented at a strategic meeting with the participation of the presidents, vice-presidents and directors of the company. The main proposals were separated into various hierarchical levels, and a monthly analysis is made of the performance of the activities to achieve them, allowing an evaluation of the advances and main challenges for Walmart Brasil. Another fundamental point related to the management of the processes is the unification of the company’s information systems, considered strategic to obtain an even more flexible and precise monitoring of the main initiatives and productivity gains. The store conversion tests began at the end of 2012. The Information Technology team is evaluating the results to improve the project and speed up the conversion of the stores and distribution centers to a same platform which should be finalized In the first half of 2016. This work aimed to use the best tools within Walmart, particularly in the United States, and adapt them to Brazil’s needs. One of the focuses of activity in 2012 was to simplify the tools available to the Commercial and Financial areas. These significantly improved the management processes which were fundamental for the development of the business according to the Everyday Low Prices philosophy. 11 and 18 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. 30 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: a) has positions in governance bodies, b) participates in projects or committees, c) provides substantive funding beyond routine membership dues or d) views membership as strategic. 23, 31 and 48 4.14 List of stakeholder groups engaged by the organization. 4.15 Basis for identification and selection of stakeholders with whom to engage. 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. 7, 22, 31 and 43 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. 6, 7 and 22 22 and 23 7 6 and 7 Adicional HR3 Total de horas de treinamento para empregados em políticas e procedimentos relativos a aspectos de direitos humanos relevantes para as operações, incluindo o percentual de empregados que recebeu treinamento. Aspecto: Não Discriminação Essencial HR4 Número total de casos de discriminação e as medidas que foram tomadas. Aspecto: Liberdade de Associação e Negociação Coletiva Essencial HR5 Operações identificadas em que o direito de exercer a liberdade de associação e a negociação coletiva pode estar correndo risco significativo e as medidas tomadas para apoiar esse direito. Aspecto: Trabalho Infantil Essencial HR6 HR7 HR8 Adicional HR9 Observação Percentual do pessoal de segurança submetido a treinamento nas políticas ou nos procedimentos da organização relativos a aspectos de direitos humanos que sejam relevantes às operações. Número total de casos de violação de direitos dos povos indígenas e medidas tomadas. Observação Essencial SO1 Observação Observação Essencial SO3 Percentual e número total de unidades de negócios submetidas a avaliações de riscos relacionados a corrupção. Percentual de empregados treinados nas políticas e nos procedimentos anticorrupção da organização. Essencial SO4 Medidas tomadas em resposta a casos de corrupção. Aspecto: Políticas Públicas Essencial SO5 Adicional SO6 Posições quanto a políticas públicas e participação na elaboração de políticas públicas e lobbies. Valor total de contribuições financeiras e em espécie para partidos políticos, políticos ou instituições relacionadas, discriminadas por país. Aspecto: Concorrência Desleal Adicional SO7 Número total de ações judiciais por concorrência desleal, práticas de truste e monopólio e seus resultados. Aspecto: Conformidade Essencial SO8 Valor monetário de multas significativas e número total de sanções não monetárias resultantes da não conformidade com leis e regulamentos. 11 e 40 Essencial PR1 Adicional PR2 Essencial PR3 Adicional PR4 Adicional PR5 Tipo de informação sobre produtos e serviços exigida por procedimentos de rotulagem e o percentual de produtos e serviços sujeitos a tais exigências. Número total de casos de não conformidade com regulamentos e códigos voluntários relacionados a informações e rotulagem de produtos e serviços, discriminados por tipo de resultado. Práticas relacionadas à satisfação do cliente, incluindo resultados de pesquisas que medem essa satisfação. Aspecto: Comunicação de Marketing Essencial PR6 Adicional PR7 11 40 Observação Adicional PR8 Não material. Observação Observação Essencial PR9 Págs. RA Não material. 43 a 45 Observação Págs. RA 41 41 Observação Págs. RA Não material. Não material. 44 a 45 Observação Número total de reclamações comprovadas relativas a violação de privacidade e perda de dados de clientes. Não material. Págs. RA Não material. Observação Observação Valor monetário de multas significativas por não conformidade com leis e regulamentos relativos ao fornecimento e uso de produtos e serviços. Págs. RA Foram registradas duas ações judiciais com mais de um conteúdo, ambas ainda em andamento e aguardando sentença. Não material. Aspecto: Compliance Págs. RA 44 Programas de adesão a leis, normas e códigos voluntários relacionados a comunicações de marketing, incluindo publicidade, promoção e patrocínio. Número total de casos de não conformidade com regulamentos e códigos voluntários relativos a comunicações de marketing, incluindo publicidade, promoção e patrocínio, discriminados por tipo de resultado. Aspecto: Conformidade Págs. RA 11 e 40 Fases do ciclo de vida de produtos e serviços em que os impactos na saúde e segurança são avaliados visando à melhoria e ao percentual de produtos e serviços sujeitos a esses procedimentos. Número total de casos de não conformidade com regulamentos e códigos voluntários relacionados aos impactos causados por produtos e serviços na saúde e segurança durante o ciclo de vida, discriminados por tipo de resultado. Aspecto: Rotulagem de Produtos e Serviços Págs. RA 52 a 57 Forma de Gestão PR (Aspecto: Saúde e Segurança do Cliente) Aspecto: Saúde e Segurança do Cliente Págs. RA Não material. Não foram registrados em 2012 casos envolvendo violação dos direitos dos povos indígenas. Observação SO2 Págs. RA O pessoal de segurança é terceirizado e, por isso, não há dados referentes ao treinamento desse grupo. Observação Essencial Págs. RA 33 e 40 Natureza, escopo e eficácia de quaisquer programas e práticas para avaliar e gerir os impactos das operações nas comunidades, incluindo entrada, operação e saída. Aspecto: Corrupção Págs. RA 33 e 40 Forma de Gestão SO (Aspectos: Comunidade, Corrupção e Concorrência Desleal) Aspecto: Comunidade Págs. RA Não material. Operações identificadas como de risco significativo de ocorrência de trabalho forçado ou análogo ao escravo e as medidas tomadas para contribuir para a erradicação do trabalho forçado ou análogo ao escravo. Aspecto: Práticas de Segurança Adicional Observação Informação confidencial. Operações identificadas como de risco significativo de ocorrência de trabalho infantil e as medidas tomadas para contribuir para a abolição do trabalho infantil. Aspecto: Trabalho Forçado ou Análogo ao Escravo Essencial Não há treinamento específico para esse termo. Não material. Págs. RA Págs. RA DISCLOSURE ON MANAGEMENT APPROACH EC (Aspect: Indirect Economic Impacts) Aspect: Economic Performance Core EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations, and other community investments, retained earnings, and payments to capital providers and governments. Core EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. Core EC3 Coverage of the organization’s defined benefit plan obligations. Core EC4 Significant financial assistance received from government. Aspect: Market Presence Aditional EC5 Core EC6 Core EC7 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. Aspect: Indirect Economic Impacts Core EC8 Aditional EC9 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Understanding and describing significant indirect economic impacts, including the extent of impacts. 52 to 57 Note Not material. Not material. The company has no defined benefit plan. A pension plan is offered in which the employee has the choice of a plan with more convenient alternatives directly with a financial institution. Not material. No assistance was received from the government. Note Core EN1 Materials used by weight or volume. Core EN2 Percentage of materials used that are recycled input materials. Core EN3 Direct energy consumption by primary energy source. Aspect: Energy Not material. 36 to 37 Not material. Partially reported. 19 Note AR’s pages Partially reported. 23, 52 to 57 52 to 57 22 to 27 Note AR’s pages Not material. Partially reported. 26 Not material. Note AR’s pages Not material. To be reported. 24 Not material. To be reported. 24 Not material. Partially reported. 24 and 25 Core EN4 Indirect energy consumption by primary source. Aditional EN5 Energy saved due to conservation and efficiency improvements. Aditional EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Not material. Aditional EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Not material. Aspect: Water Note Core EN8 Total water withdrawal by source. Not material. Aditional EN9 Water sources significantly affected by withdrawal of water. Not material. Aditional EN10 Percentage and total volume of water recycled and reused. Not material. Aspect: Biodiversity Note Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Not material. Core EN11 Core EN12 Aditional EN13 Habitats protected or restored. Not material. Aditional EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. Not material. Aditional EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Not material. Aspect: Emissions, Effluents, and Waste Core EN16 Total direct and indirect greenhouse gas emissions by weight. Core EN17 Other relevant indirect greenhouse gas emissions by weight. AR’s pages Not material. Partially reported. DISCLOSURE ON MANAGEMENT APPROACH EN (Aspect: Products and Services) Aspect: Materials AR’s pages Not material. The financial information is not broken down and is consolidated in the global announcements of the results of Wal-Mart Stores, Inc. Reports are announced with the main financial data of the company through a quarterly conference call involving teams from each country. AR’s pages AR’s pages Not material. Note AR’s pages Not material. Not material. Not material. The replacement of refrigeration equipment was carried out in 258 stores in 2012. The replacement process resulted in the emission of gases contained in the refrigeration system increasing in 2012 but ensured there would be a significant fall in emissions from 2013. Aditional EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Core EN19 Emissions of ozone-depleting substances by weight. Not material. Core EN20 NO, SO, and other significant air emissions by type and weight. Not material. Core EN21 Total water discharge by quality and destination. Not material. Core EN22 Total weight of waste by type and disposal method. Not material. To be reported. 27 Sustainability Report 2013 61 GRI Index Core EN23 Aditional EN24 Aditional EN25 Total number and volume of significant spills. Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff. Not material. Not material. Not material. Aspect: Products and Services Core EN26 Core EN27 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Percentage of products sold and their packaging materials that are reclaimed by category. Note 32 Partially reported. 32 Note AR’s pages Aspect: Compliance Core EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Not material. Aspect: Transport Aditional EN29 Note Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce. Not material. Total environmental protection expenditures and investments by type. Not material. Aspect: Overall Aditional Note EN30 DISCLOSURE ON MANAGEMENT APPROACH LA (Aspects: Employment, Labor/Management Relations, Training and Education and Diversity and Equal Opportunity) Note LA1 Total workforce by employment type, employment contract, and region. Core LA2 Total number and rate of employee turnover by age group, gender, and region. Aditional LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. LA4 Percentage of employees covered by collective bargaining agreements. Core LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements. Aditional LA6 Core LA7 Core LA8 Aditional LA9 Health and safety topics covered in formal agreements with trade unions. 20 Note LA10 Average hours of training per year per employee by employee category. Aditional LA11 Aditional LA12 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Percentage of employees receiving regular performance and career development reviews. 20 Note Core LA13 Core LA14 Ratio of basic salary of men to women by employee category. Not material. Not material. Not material. Note AR’s pages Partially reported. Walmart Brasil has no separate figure for functional category or gender. 19 18 19 Note DISCLOSURE ON MANAGEMENT APPROACH HR (Aspects: Investment and Procurement Practices, Child Labor and Forced and Compulsory Labor) Aspect: Investment and Procurement Practices 62 Core HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Core HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. AR’s pages Not material. Aspect: Diversity and Equal Opportunity Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. AR’s pages None. There is no predefined period established and it varies according to each case. Aspect: Training and Education Core AR’s pages Not available. Aspect: Occupational Health and Safety Percentage of total workforce represented in formal joint management – worker health and safety committees – that help monitor and advise on occupational health and safety programs. Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. AR’s pages 16 Aspect: Labor/Management Relations Core AR’s pages 19 and 20 Aspect: Employment Core AR’s pages AR’s pages 20 20 32 and 33 Note AR’s pages Not material. Partially reported. 40 Additional HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Aspect: Non-Discrimination Core HR4 Total number of incidents of discrimination and actions taken. Aspect: Freedom of Association and Collective Bargaining Core HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights. Aspect: Child Labor Core HR6 HR7 HR8 Additional HR9 Note Note Core SO1 Note Core SO2 Core SO3 Core SO4 Actions taken in response to incidents of corruption. Aspect: Public Policy Core SO5 Additional SO6 Aspect: Anti-Competitive Behavior Additional SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Aspect: Compliance Core SO8 Note 11 40 Core PR1 Additional PR2 Not material. Note Core PR3 Additional PR4 Additional PR5 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Aspect: Marketing Communications Core PR6 Additional PR7 Additional PR8 Core PR9 43 to 45 Note 41 Note AR’s pages Not material. Not material. 44 to 45 Note Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Not material. AR’s pages Not material. Note Note Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. AR’s pages 41 Not material. Aspect: Compliance AR’s pages Not material. Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Aspect: Customer Privacy AR’s pages Two lawsuits were recorded with more than one content, both still in progress and awaiting sentencing. Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. Aspect: Product and Service Labeling AR’s pages 44 Management PR (Aspects: Customer Health and Safety) Aspects: Customer Health and Safety AR’s pages 11 and 40 Note Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. AR’s pages 52 to 57 Note Public policy positions and participation in public policy development and lobbying. Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. AR’s pages 11 and 40 Note Percentage and total number of business units analyzed for risks related to corruption. Percentage of employees trained in organization’s anti-corruption policies and procedures. AR’s pages The security staff is outsourced and therefore there are no data related to the training of this group. Not material. There were no cases in 2012 involving rights violation of indigenous peoples. Percentage of operations with implemented local community engagement, impact assessments, and development programs. Aspect: Corruption AR’s pages 33 and 40 Management SO (Aspects: Local Community, Corruption and Anti-Competitive Behavior) Aspect: Local Community AR’s pages 33 and 40 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations. Total number of incidents of violations involving rights of indigenous people and actions taken. AR’s pages Not material. Note Aspect: Security Practices Additional Note Confidential. Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. Aspect: Forced and Compulsory Labor Core There are no specific trainings for this term. Not material. AR’s pages AR’s pages Address: Avenida Tucunaré, 125 Alphaville ZIP 06460-020 Barueri SP www.walmartbrasil.com.br