Corporate Social Responsibility Report

We have successfully met a key sourcing environmental goal for 2010 by working with partner suppliers in China to improve the energy efficiency of their factories.

Our efforts are aligned with the global Walmart Energy Efficiency Program whose goal is for the top 200 factories in China to achieve 20 per cent greater energy efficiency by 2012*. Walmart Canada enrolled 223 factories into the program by March 2011.

Meeting timelines in Canada

As of January 2011, we can report that 84 of the supplier factories affiliated with Walmart Canada have already reported at least 20 per cent improvement per unit of production. Essentially, these suppliers have met the global Walmart goal two years ahead of schedule.

To aid the efforts of the Energy Efficiency team, participating factories are provided with technical training in cooperation with Business for Social Responsibility (BSR). In addition, a project platform is created through collaboration with the Environmental Defense Fund (EDF), allowing energy experts to assist factories with technological retrofits.

There are currently more than 300 factories in China enrolled in the full global program for direct import suppliers. The purpose is to identify opportunities for energy savings and our combined efforts and action plans have resulted in measurable progress:

On the leading edge

In September 2010, an awards ceremony was held at the Shanghai Expo to recognize 12 supplier factories for their leadership in energy efficiency improvement. Here are the success stories for two of those factories affiliated with Walmart Canada:

Loftex China Ltd. has more than 3,000 employees and is a strategic supplier in producing towel and textile products. Loftex formed its Energy Cost Control Management Team, and implemented 177 energy saving projects which include:

• installation of motor frequency converters on fans and pumps
• heat retaining coating sprayed on dye machines to reduce steam consumption
• waste water heat recovery

Intex Industries (Xiamen) Co. Ltd. is a strategic supplier of sports goods, leisure and entertainment inflatable products. Since joining our Energy Efficiency Program in 2009, Intex has established a task force for monitoring energy saving measures whose actions include:

• an incentive program to recognize employee engagement
• meters installed to measure and analyze energy data
• eco-friendly energy alternatives like CFL lighting and natural gas instead of diesel

*Baseline set in 2007