CDP6 Greenhouse Gas Emissions Questionnaire - Wal-Mart Stores, Inc.

Respondent: Wal-Mart Stores, Inc.

General Information
It is not a requirement of the CDP questionnaire to give an introduction to your answer, but if you would like to do so, please give it here in the text box below or attach a document.
Due to our size and scope, Wal-Mart is uniquely positioned to have an impact on our world, perhaps like no company before. When Hurricane Katrina struck the Gulf Coast, we used our size and strengths as a business to bring relief to those individuals, families and communities in need. We were proud of our response, and we started to ask ourselves what we could do to be the company that the world saw during Katrina all the time. Thankfully, events like Katrina don&t come around very often, but the world needs help all the time, people and the environment are being pushed to the limits. We view what is happening with our environment as Katrina in slow motion. Environmental loss threatens our health and the health of the natural systems we depend on. The challenges we face include: increasing greenhouse gases that are contributing to climatic change and weather-related disasters; ever-increasing air pollution, which is leading to more asthma and other respiratory diseases in our communities; water pollution, which is increasing while safe fresh water supplies are shrinking; and water-borne diseases cause millions of death each year, mostly among children. There&s also the destruction of critical habitat, causing an unprecedented threat to the diversity of the natural world and us. And those are just a few of the challenges before us. As one of the largest companies in the world, with an expanding global presence, environmental problems are our problems. The supply of natural products like fish, food, and water can only be sustained if the ecosystems that provide them are sustained and protected. That&s what we saw with Katrina: our associates, customers and suppliers occupy the same towns, our children go to the same schools, and we all breathe the same air. These challenges threaten all of us in the broader sense, but they also represent threats to the continued success of our business. We believe, in fact, that being a good steward of the environment in our communities, and being an efficient and profitable business, are not mutually exclusive. In fact, they are one in the same. So, our environmental goals at Wal-Mart are simple and straightforward: to be supplied 100 percent by renewable energy; to create zero waste and to sell products that sustain our resources and environment. These goals are both ambitious and inspirational, and we are working hard to achieve them.

 
Where available please can you provide the following identification numbers for your primary listings/ordinary shares and information for your company:

Company Turnover (also known as sales) in millions of US$
374526

 
ISIN number

 
CUSIP number

 
SEDOL number

 
1 - Risks and Opportunities
Question 1(a)(i) Regulatory Risks
How is your company exposed to regulatory risks related to climate change?
We consider our company to be exposed to regulatory risks because... 
Currently GHG regulation has minimal impact on our operations. We are not a large direct emitter on a site basis and, thus, we are not typically directly regulated. We do not foresee significant regulation of our operations. However, we do expect regulation that would impact our energy suppliers and, therefore, increase our energy costs. In order to effectively manage this, we are taking steps that will enable our company, supply chain and customers the opportunity to offset these higher costs by adoption of technology and innovative participation in carbon markets. We have testified before the U.S Senate on two occasions advocating a well designed cap and trade system for the U.S. and have endorsed the principals published by the U.S. Cap group.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(a)(ii) Physical Risks
How is your company exposed to physical risks from climate change?
We consider our company to be exposed to physical risks because... 
As articulated in the introduction we see climate change as a significant threat to the communities we serve around the globe, and we are continuously working toward becoming better stewards of our environment.



 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(a)(iii) General Risks
How is your company exposed to general risks as a result of climate change?
We consider our company to be exposed to general risks because... 
In addition to regulatory and physical risks, we have the general risk of resource availability constraints, caused by climate change, which would pressure our supply chain.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(a)(iv) Risk Management
Has your company taken or planned action to manage the general and regulatory risks and/or
adapt to the physical risks you have identified?
We have taken or planned action. 
Wal-Mart has undertaken the following activities aimed at managing these risks:

1. Active engagement in regulatory proceedings, debates and policy development in the US and overseas. This includes testifying before the U.S. Senate on Cap and Trade development.

2. Review of our supply chain's capability to manage climate change risk and begin to develop disclosure mechanisms working with the CDP. This includes a pilot project involving more than 30 major supply chain partners.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(a)(v) Financial and Business implications
How do you assess the current and/or future financial effects of the
risks you have identified and how those risks might affect your business?
We assess current and/or future financial effects by... 
We do not attempt to quantify the total impact of these risks due to the degree of uncertainty. However, we do evaluate specific financial impacts of identified risks. For example, Wal-Mart is currently attempting to quantify the financial impact of various U.S. Cap and Trade scenarios.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(b)(i) Regulatory Opportunities
How do current or anticipated regulatory requirements on climate change offer
opportunities for your company?
We consider that current or anticipated regulatory requirements offer opportunities because... 
Wal-Mart believes opportunities exist, under a well designed Cap and Trade system, to use the financial value of carbon to "roll back" the price of low carbon products. Such a mechanism would create and encourage meaningful technology adoption by addressing the first cost premium often associated with these products.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

attachedfiles/Responses/45576/4525/WMT_FINAL_Greenhouse_Gas_Legislative_Position_Paper_6-2-08.pdf
 
Question 1(b)(ii) Physical Opportunities
How do current or anticipated physical changes resulting from climate change present
opportunities for your company?
We do not consider that current or anticipated physical changes offer opportunities because... 
We are unable to specifically identify these risks to a level that would enable commercial action.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(b)(iii) General Opportunities
How does climate change present general opportunities for your company?
We consider that climate change offers opportunities because... 
We are currently deploying a Supplier Energy Efficiency Program (SEEP) that will enable low cost technology transfer throughout our supply network. It is our hope that this will form the basis of an energy efficiency model that can be adopted by any private or pubic sector organization that manages a supply chain. We are also operating programs that advance the purchase of energy saving technologies such as low energy lightbulbs. In 2006, we set a goal to sell 100 million compact fluorescent light bulbs (CFLs). We completed the goal three months ahead of schedule and as of June 2008 had already sold 192 million CFLs, which saved Wal-Mart customers nearly $6 billion in electricity costs and reduced greenhouse gas emissions by nearly 40 million metric tons.



 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

attachedfiles/Responses/45576/4528/WM Energy Email.pdf
 
Question 1(b)(iv) Maximizing Opportunities
Do you invest in, or have plans to invest in products and services that are designed
to minimize or adapt to the effects of climate change?
Climate change has led to investment or planned investment in order to maximise climate change opportunities. 
We have publicly stated that preference will be given to suppliers with strong and improving environmental performance. These considerations include the GHG and energy impacts of the products we sell. We are seeking low carbon affordable products and are investing in identifying and marketing them. Examples of this are the CFL light bulb program and also the move to only sell concentrated laundry detergent.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 1(b)(v) Financial and Business Implications
How do you assess the current and/or future financial effects of the
opportunities you have identified and how those opportunities might affect your business?
We assess current and/or future financial effects by... 
We estimate the impact of new products will deliver increased customer value and support our company mission of "Save Money, Live Better."

The financial analysis of new products and services aimed at GHG and energy reduction are no different than traditional financial analysis methods with the exception that, where appropriate, it includes a carbon value.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
2 - Greenhouse Gas (GHG) Emissions Accounting
Question 2(a)(i) Reporting Boundary
Calculation tools that will assist companies in calculating GHG emissions from particular activities, such as the combustion of fuels, production processes, etc can be found at: http://www.ghgprotocol.org/calculation-tools/all-tools. Companies new to emissions reporting are strongly recommended to use these tools to assist them in their calculations. If you have used a calculation tool, please list it under the question on methodologies.
Please indicate the category that best describes the company, entities or group
for which your response is prepared:
Companies over which operational control is exercised. 

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 2(a)(ii) Reporting Year
Please explicitly state the dates of the accounting year or period for which GHG emissions
are reported.
Start date: 01 January 2007
End date: 31 December 2007

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 2(a)(iii) Methodology
Please specify the methodology used by your company to calculate GHG emissions.

Please select the methodology that you have used using the radio buttons.
If you have used the GHG Protocol or ISO 14064-1, please also give references to any calculation tools that you have used or an explanation of any calculation methods that you have devised yourself. Please explain the data sources of the Global Warming Potentials and emission factors used in your calculations. If you cannot find a reference for them within a supplied calculation tool, please contact the provider of the calculation tool for the information.

If you have used a methodology that you have devised yourself, please would you explain your methodology, including methods of calculation, and the data sources of the Global Warming Potentials and emission factors.
GHG Protocol 
Wal-Mart&s greenhouse gas inventory methodology is compliant with the World Resources Institute (WRI) and the World Business Council for Sustainable Development&s (WBCSD) Greenhouse Gas (GHG) Protocol Initiative for corporate greenhouse gas accounting and reporting. The inventory was designed to meet the most rigorous and complete accounting and reporting standards, positioning Wal-Mart to participate in voluntary reporting initiatives and other registries.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 2(b)(i) Scope 1 and Scope 2 of GHG Protocol
Are you able to provide a breakdown of your direct and indirect emissions under Scopes 1 and 2 of the GHG Protocol and to analyse your electricity consumption?

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
Yes 
Please see attached Inventory Management Plan for details of inventory methodology and data collection procedures.

attachedfiles/Responses/45576/4530/Inventory Management Plan_5_29_08.doc
 
Question 2(b)(i)(y) Scope 1 and Scope 2 of GHG Protocol - Year 1 answers
Please enter the dates for the reporting period that you specified in (answer to question 2(a)(i)) , and then answer the questions for that period. By selecting the &Add Additional Year Figures& button at the end of this webpage, you can repeat the process for the previous reporting period, and then for the reporting period before that, and so on. If possible, please give data going back to the reporting period ending in 2004. You do not have to enter historical data if you have already reported this information in response to previous CDP questionnaires.

 
Please enter the accounting year used to report GHG emissions details below.
Start date: 01 January 2007
End date: 31 December 2007

 
Scope 1 Direct GHG Emissions: Please provide:

a. Total global Scope 1 activity in Metric Tonnes CO2-e emitted.
5161340 CO2e metric tonnes


 
b. Total Scope 1 activity in Metric Tonnes CO2-e emitted for Annex B
countries.
4596844 CO2e metric tonnes


 
By country - Scope 1 activity in metric tonnes of CO2-e by individual country

Using the same methodology please state your emissions per country. NB : If it is not practical for you to list emissions on a full country by country basis, please list here countries with significant emissions in the context of your business and combine the remainder under &rest of world&. If you already have this information in another format (e.g Excel) please attach it.
Country Scope 1 Emissions
(metric tonnes CO2-e)
Argentina 19751
Brazil 194283
Canada 72302
China 76711
Costa Rica 29290
El Salvador 9569
Guatemala 3224
Honduras 3604
Japan 103298
Mexico 226769
Nicaragua 1294
United Kingdom 450658
USA 3970587

 
Scope 2 - Indirect GHG emissions: Please provide:

c. Total global Scope 2 activity in metric tonnes CO2-e emitted
15079475 CO2e metric tonnes


 
d. Total Scope 2 activity in metric tonnes CO2-e emitted for Annex B
countries
13721756 CO2e metric tonnes


 
By country - Scope 2 activity in metric tonnes of CO2-e by individual country
Country Scope 2 Emissions
(metric tonnes CO2-e)
Argentina 35234
Brazil 65125
Canada 203817
China 426811
El Salvador 10692
Guatemala 25344
Honduras 9412
Mexico 774877
United Kingdom 678856
USA 12362688
Japan 476359
Nicaragua 7197
Rest of World 3065

 
Electricity consumption

e. Total global MWh of purchased electricity
25541422 MWh

 
f. Total MWh of purchased electricity for Annex B countries
22467674 MWh

 
By country & MWh of purchased electricity by individual country.
Country
Argentina 111286
Brazil 763926
Canada 685081
China 501417
El Salvador 38915
Guatemala 58418
Honduras 20887
Mexico 1483473
Nicaragua 12914
United Kingdom 1453932
Japan 1118671
USA 19209904
Rest of World 2538
Costa Rica 80059

 
g. Total global MWh of purchased electricity from renewable sources
0 MWh

 
h. Total MWh of purchased electricity from renewable sources for Annex B
countries
0 MWh

 
By country & MWh of purchased electricity from renewable sources by individual country.
Country

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
Yes 
We currently purchase some (approximately 4500 mwh) of electricity through renewable purchase arrangements over and above the typical generation mix provided by local utilities (estimated at 20%). In future years we expect this to increase as we move towards our goal of using 100% renewable energy.

We have installed, or are in the process of installing, solar panels on the roofs of 20 stores in Hawaii and California representing one of the largest Solar projects in the U.S.

During the course of 2007 we also developed improved data capture and management systems, enabling us to more accurately re-baseline 2005 and 2006 GHG emissions. Attached are the revised 2005 & 2006 Baselines.

attachedfiles/Responses/45576/4541/Final Wal-Mart Footprint Totals for CDP with Detail.xls
 
Question 2(b)(i)(y) Scope 1 and Scope 2 of GHG Protocol - Year 2 answers
Please enter the dates for the reporting period that you specified in (answer to question 2(a)(i)) , and then answer the questions for that period. By selecting the &Add Additional Year Figures& button at the end of this webpage, you can repeat the process for the previous reporting period, and then for the reporting period before that, and so on. If possible, please give data going back to the reporting period ending in 2004. You do not have to enter historical data if you have already reported this information in response to previous CDP questionnaires.

 
Please enter the accounting year used to report GHG emissions details below.
Start date: 01 January 2006
End date: 31 December 2006

 
Scope 1 Direct GHG Emissions: Please provide:

a. Total global Scope 1 activity in Metric Tonnes CO2-e emitted.
5058391 CO2e metric tonnes


 
b. Total Scope 1 activity in Metric Tonnes CO2-e emitted for Annex B
countries.
4384152 CO2e metric tonnes


 
By country - Scope 1 activity in metric tonnes of CO2-e by individual country

Using the same methodology please state your emissions per country. NB : If it is not practical for you to list emissions on a full country by country basis, please list here countries with significant emissions in the context of your business and combine the remainder under &rest of world&. If you already have this information in another format (e.g Excel) please attach it.
Country Scope 1 Emissions
(metric tonnes CO2-e)
USA 3736431
United Kingdom 505669
Mexico 357638
Brazil 208016
Japan 83488
Canada 58564
China 45522
Costa Rica 25820
Argentina 16641
El Salvador 8990
Guatemala 7188
Honduras 2310
Nicaragua 2114

 
Scope 2 - Indirect GHG emissions: Please provide:

c. Total global Scope 2 activity in metric tonnes CO2-e emitted
14156028 CO2e metric tonnes


 
d. Total Scope 2 activity in metric tonnes CO2-e emitted for Annex B
countries
13008875 CO2e metric tonnes


 
By country - Scope 2 activity in metric tonnes of CO2-e by individual country
Country Scope 2 Emissions
(metric tonnes CO2-e)
USA 11656409
Mexico 668989
United Kingdom 700218
Japan 460353
China 335098
Canada 191858
Brazil 61091
Argentina 33872
Guatemala 21800
El Salvador 10304
Honduras 6970
Nicaragua 6209
Rest of World 2858

 
Electricity consumption

e. Total global MWh of purchased electricity
24020914 MWh

 
f. Total MWh of purchased electricity for Annex B countries
21332629 MWh

 
By country & MWh of purchased electricity by individual country.
Country
USA 18091488
United Kingdom 1499685
Mexico 1280753
Japan 1080923
Brazil 716607
Canada 660449
China 393672
Argentina 106982
Costa Rica 73604
Guatemala 50248
El Salvador 37503
Honduras 15469
Nicaragua 11142
Rest of World 2388

 
g. Total global MWh of purchased electricity from renewable sources
0 MWh

 
h. Total MWh of purchased electricity from renewable sources for Annex B
countries
0 MWh

 
By country & MWh of purchased electricity from renewable sources by individual country.
Country

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

attachedfiles/Responses/45576/4541/Final Wal-Mart Footprint Totals for CDP with Detail.xls
 
Question 2(b)(i)(y) Scope 1 and Scope 2 of GHG Protocol - Year 3 answers
Please enter the dates for the reporting period that you specified in (answer to question 2(a)(i)) , and then answer the questions for that period. By selecting the &Add Additional Year Figures& button at the end of this webpage, you can repeat the process for the previous reporting period, and then for the reporting period before that, and so on. If possible, please give data going back to the reporting period ending in 2004. You do not have to enter historical data if you have already reported this information in response to previous CDP questionnaires.

 
Please enter the accounting year used to report GHG emissions details below.
Start date: 01 January 2005
End date: 31 December 2005

 
Scope 1 Direct GHG Emissions: Please provide:

a. Total global Scope 1 activity in Metric Tonnes CO2-e emitted.
4753504 CO2e metric tonnes


 
b. Total Scope 1 activity in Metric Tonnes CO2-e emitted for Annex B
countries.
4289352 CO2e metric tonnes


 
By country - Scope 1 activity in metric tonnes of CO2-e by individual country

Using the same methodology please state your emissions per country. NB : If it is not practical for you to list emissions on a full country by country basis, please list here countries with significant emissions in the context of your business and combine the remainder under &rest of world&. If you already have this information in another format (e.g Excel) please attach it.
Country Scope 1 Emissions
(metric tonnes CO2-e)
USA 3649071
United Kingdom 489759
Mexico 245046
Brazil 123032
Japan 91853
Canada 58669
China 29781
Costa Rica 26005
Argentina 19517
El Salvador 9939
Guatemala 7365
Honduras 2268
Nicaragua 1198

 
Scope 2 - Indirect GHG emissions: Please provide:

c. Total global Scope 2 activity in metric tonnes CO2-e emitted
13720894 CO2e metric tonnes


 
d. Total Scope 2 activity in metric tonnes CO2-e emitted for Annex B
countries
12717480 CO2e metric tonnes


 
By country - Scope 2 activity in metric tonnes of CO2-e by individual country
Country Scope 2 Emissions
(metric tonnes CO2-e)
USA 11394503
United Kingdom 681126
Mexico 609849
Japan 459171
China 256644
Brazil 58631
Canada 182646
Argentina 31120
Guatemala 23309
El Salvador 10013
Nicaragua 5619
Honduras 5471
Rest of World 2791

 
Electricity consumption

e. Total global MWh of purchased electricity
23377133 MWh

 
f. Total MWh of purchased electricity for Annex B countries
20937433 MWh

 
By country & MWh of purchased electricity by individual country.
Country
USA 17758539
United Kingdom 1458795
Mexico 1167533
Japan 1078090
Brazil 687756
Canada 641931
China 301505
Argentina 98293
Costa Rica 69941
Guatemala 53728
El Salvador 36444
Honduras 12141
Nicaragua 10083
Rest of World 2353

 
g. Total global MWh of purchased electricity from renewable sources
0 MWh

 
h. Total MWh of purchased electricity from renewable sources for Annex B
countries
0 MWh

 
By country & MWh of purchased electricity from renewable sources by individual country.
Country

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

attachedfiles/Responses/45576/4541/Final Wal-Mart Footprint Totals for CDP with Detail.xls
 
Question 2(b)(ii) Scopes 1 and 2 of GHG Protocol
If you are unable to detail your Scope 1 and Scope 2 GHG emissions and/or electricity consumption, please report the GHG emissions you are able to identify together with a description of those emissions. If you have answered 2(b)(i), please go to question 2(c)(i).

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

 
Question 2(c)(i) Other Emissions & Scope 3 of GHG Protocol
How do you identify and/or measure Scope 3 emissions?
The Wal-Mart supply chain is large and diverse, ranging from very small companies to FORTUNE 50 corporations. We do not yet have an accurate assessment of our supply chain GHG footprint; however, during 2007 we executed a pilot project with the Carbon Disclosure Project to replicate the CDP methodology for our supply chain. This will allow our suppliers to submit their GHG emissions data to Wal-Mart including product level data. We intend to use this data to provide transparency and over the next two years we intend to develop supplier scorecards to evaluate the carbon footprint of suppliers and products. Wal-Mart does not manufacture products, but we have adopted greenhouse gas reduction and "zero waste" goals. In order to acheive this goal, we have to address packaging. We want to ensure that our goods come in the right size package and that the materials in that packaging are made from renewable or recyclable materials. Improvements to packaging also help reduce greenhouse gas emissions by providing for more efficient transport of products throughout the entire distribution system. Regarding packaging, we are committed to: (i) Reducing our solid waste from U.S. stores and clubs by 25 percent in the next two years. (ii) Working with suppliers to create less packaging overall, increase product packaging recycling and increase use of post-consumer material. (iii) Replacing some packaging of our private brands with alternatives that are more sustainable and recyclable within the next two years.

 
Please provide where possible:

a. Details of the most significant Scope 3 sources for your company.
The global supply chain delivering products for retail sale.

 
b. Details in metric tonnes CO2-e of GHG emissions in the following categories:


i Employee business travel.

 
ii External distribution/logistics

 
iii Use/disposal of company&s products and services.

 
iv Company supply chain.

 
c. Details of the methodology you use to quantify or estimate Scope 3 emissions.
Attached is the methodology used by Wal-Mart in its Supply Chain Pilot.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

attachedfiles/Responses/45576/4546/Wal-Mart_Supply_Chain_GHG_Reporting_Guide_8_3_07.doc
 
Question 2(d) External Verification
(i) Has the information reported in response to Questions 2(b)- (c) been
externally verified or audited or do you plan to have the information verified or
audited?
Yes (Please go to 2(d)(ii)) 

 
(ii) If your answer to question 2d(i) is Yes, please provide or attach a copy of the audit or verification statement or state your plans for verification.
Please see atatched.

 
(iii) Please specify the standard or protocol against which the information has
been audited or verified.
Please see attached.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

attachedfiles/Responses/45576/4591/ERT_WalMart_Preliminary 2007 VS_053008.doc
 
Question 2(e) Data Accuracy
Does your company have a system in place to assess the accuracy of GHG emissions inventory calculation methods, data processes and other systems relating to GHG measurement? If so, please provide details. If not, please explain how data accuracy is managed.
Yes, we do have a system. 
Please see attached GHG management plan, which has details of the methodology for GHG baseline calculations and accuracy considerations.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

attachedfiles/Responses/45576/4542/Inventory Management Plan_5_29_08.doc
 
Question 2(f) Emissions History
Do the emissions reported for your last accounting year vary significantly compared to previous years? If so, please explain reasons for the variations.
No, they do not vary significantly. 

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 2(g) Emissions Trading
i) Does your company have facilities covered by the EU Emissions Trading Scheme?
No, we do not. (Please go to question 2(g)(ii) below)  

 
If so:

a) Please provide details of the annual allowances awarded to your company in Phase I for each of the years from 1 January 2005 to 31 December 2007 and details of allowances allocated for Phase II commencing on 1 January 2008.

In all cases, please enter whole numbers without punctuation, For example, enter 2000 instead of 2,000.

Please enter allowance in Metric Tonnes of CO2:

1 January 2005-31 December 2005

 
1 January 2006-31 December 2006

 
1 January 2007-31 December 2007

 
b) Please provide details of actual annual emissions from facilities covered by the EU ETS with effect from 1 January 2005.

Please enter emissions in Metric Tonnes of CO2.

1 January 2005-31 December 2005

 
1 January 2006-31 December 2006

 
1 January 2007-31 December 2007

 
Phase II annual allowances

1 January 2008 & 31 December 2008

 
1 January 2009 & 31 December 2009

 
1 January 2010 & 31 December 2010

 
1 January 2011 & 31 December 2011

 
1 January 2012 & 31 December 2012

 
c) What has been the impact on your company&s profitability of the EU ETS?

 
ii) What is your company's strategy for trading or participating in regional and/or international trading schemes (eg: EU ETS, RGGI, CCX) and Kyoto mechanisms such as CDM and JI projects? Explain your involvement for each of the following:

EU ETS
Not a significant impact on our operation, limited EU business operations.

 
CDM/JI
Currently under review.

 
CCX
Reviewed but opted not to participate.

 
RGGI
Not a regulated entitiy.

 
Others

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 2(h) Energy Costs
i) Please identify the total costs in US $ of your energy consumption eg from fossil fuels and electric power.

If you want to enter a number less than 1, please ensure you use a decimal point (e.g. 0.3) and NOT a comma (e.g. 0,3)
2500000000 US$

 
ii) What percentage of your total operating costs does this represent?
3.56 %

 
iii) What percentage of energy costs are incurred on energy from renewable sources?
0 %

 
More details

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
3 - Performance
Question 3(a) Reduction Plans
i) Does your company have a GHG emissions reduction plan in place? If so, please provide details along with the information requested below. If there is currently no plan in place, please explain why.
Yes, we have a reduction plan in place. (Please proceed to part (ii) ) 

 
ii) What is the baseline year for the emissions reduction plan?
2005

 
If you want to give further information or describe a rolling target, please do so here.

 
iii) What are the emissions reduction targets and over what period do those targets extend?
In October 2005, Wal-Mart Chief Executive Officer Lee Scott announced three sustainability goals for the
company: (1) to be supplied 100 percent by renewable energy; (2) to create zero waste; and (3) to sell
products that sustain the environment. In addition to the company-wide goals described above, Wal-Mart
has also committed: (1) to reduce greenhouse gas emissions at existing stores, Sam&s Clubs and
distribution centers by 20 percent by 2012; (2) to design and open a store prototype that is 25 percent more energy efficient by 2009; and (3) to increase the efficiency of our truck fleet 100 percent by 2015.

 
iv) What activities are you undertaking to reduce your emissions eg: renewable energy, energy efficiency, process modifications, offsets, sequestration etc? What targets have you set for each and over what timescales do they extend?
Wal-Mart has taken steps to reduce energy use and is committed to continue making significant progress.
Specifically:
& Wal-Mart uses one of the most efficient lighting systems in the world for its U.S. stores, including
daylight harvesting, T-8 lamps, and light emitting diodes (LEDs) in exterior signage and grocery cases.
Wal-Mart&s standard lighting system for newly constructed Supercenters is 49 percent more efficient
than the baseline established in the Energy Policy Act of 2005. Wal-Mart's prototype stores include
initiatives such as heat reclamation, active dehumidification, centralized energy management, high
efficiency HVAC equipment and LED exterior signage. These are just some of the items that resulted in
Wal-Mart&s facilities being recognized by the Alliance to Save Energy and others as industry-leading
practices.
& Wal-Mart is making significant progress toward our fleet efficiency goal. By constantly improving
everything from tires to trailer aerodynamics, we have increased our private fleet fuel efficiency average
to 7.1 miles per gallon on an annual basis across 7,000 trucks. This represents a 20 percent improvement over the comparable 2005 average of 5.9 miles per gallon. Improvements include fuel efficient tires that reduce friction, fuel additive to improve burn efficiency of the engine, and aluminum
wheels and a smaller fuel tank to lower the truck's weight. Wal-Mart has also installed auxiliary power
units (APUs), which are small, efficient diesel engines, on nearly 7,000 trucks. This allows drivers to turn
off their truck engines and rely on the APUs to warm or cool the cabin and run communication systems
while on breaks. In a single year, this improvement can eliminate approximately 100,000 metric tons of
carbon dioxide emissions, reduce the use of 10 million gallons of diesel fuel and save an estimated $25
million per year.
& In May 2007, Wal-Mart announced a major purchase of solar power that will provide renewable energy
to 22 stores in California and Hawaii, and will reduce greenhouse gas emissions by an estimated 6,500
to 10,000 metric tons per year. When fully implemented, the aggregate purchase could be one of the
nation&s 10 largest solar power initiatives.
& On February 1, 2008, Wal-Mart began using an online packaging scorecard to evaluate 60,000
suppliers on their ability to develop more sustainable packaging. The scorecard is a tool that all Wal-
Mart buyers use to make more informed purchasing decisions and to show preference to suppliers who
demonstrate a commitment to sustainable packaging. This effort has dramatically reduced packaging
and related energy consumption as well as fostered partnerships with suppliers to design new products.

 
v) What investment has been or will be required to achieve the targets and over what time period?
Wal-Mart estimates a capital expenditure of $500mm will be required to achieve these goals.

 
vi) What emissions reductions and associated costs or savings have been achieved to date as a result of the plan?
As articulated in Section IV above, we have acheived reductions in excess of 110,000 metric tons.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 3(b) Emissions Intensity
i) What is the most appropriate measurement of emissions intensity for your company?
Other 

 
Please give your company&s emissions intensity figure for the measurement given above.

If you want to enter a number less than 1, please ensure you use a decimal point (e.g. 0.3) and NOT a comma (e.g. 0,3)

 
ii) Please state your GHG emissions intensity in terms of total tonnes of CO2-e reported under Scope 1 and Scope 2 per US $m turnover and EBITDA for the reporting year.

Scope 1/ US$millions turnover
13.781

 
Scope 2/ US$millions turnover
40.263

 
Scope 1/ EBITDA
214.698

 
Scope 2/ EBITDA
627.266

 
iii) Has your company developed emissions intensity targets?
Yes, we have developed emission intensity targets. (Please answer questions (a) and (b) below.) 

 
a) If the answer to part (iii) above is yes, please state your emissions intensity targets
Wal-Mart is an expanding company, adding new stores and entering new markets, and as such absolute footprint reductions are not economically viable.

 
b) If the answer to part (iii) above is yes, please state what reductions in emissions intensity have been achieved against targets and over what time period.
Wal-Mart does not formally report on an intensity basis.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 3(c) Planning
Do you forecast your company&s future emissions and/or energy use?
Yes, we do. (Please answer questions (i) to (iii) below.) 

 
i) Please provide details of those forecasts, summarize the methodology used and the assumptions made.

If you are able to give quantified forecasts of Scope 1 and Scope 2 emissions and/or electricity consumption, you can enter numerical data on the next page.
These forecasts are treated as confidential.

 
ii) How do you factor the cost of future emissions into capital expenditure planning?
Capital planning for projects which reduce emissions and costs are accounted for in the regular planning process.

 
iii) How have these considerations made an impact on your investment decisions?
Significant energy retrofit projects are currently underway or have been completed.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 3(c) (i) Planning - Forecasted emissions/electricity use - Year 1 answers
This page gives you the opportunity to give numerical forecasts for emissions and electricity use. If possible, please provide emissions forecasts for the next five reporting periods. Use the &Add additional year figures& button at the end of the page to enter emission forecasts for successive reporting periods. Note: Please enter whole numbers without punctuation. For example, use 2000 instead of 2,000
Please enter the accounting period used to report GHG emissions details below.
Dates not selected.

 
Forecasted Scope 1 Direct GHG Emissions: Please provide:

a. Forecasted Total global Scope 1 emissions in Metric Tonnes CO2-e.

 
b. Forecasted Total Scope 1 emissions in Metric Tonnes CO2-e for Annex B countries.

 
By country - Forecasted Scope 1 emissions in Metric Tonnes of CO2-e by individual country

Using the same methodology please state your emissions forecasts per country. NB : If it is not practical for you to list emissions on a full country by country basis, please list here countries with significant emissions in the context of your business and combine the remainder under &rest of world&. If you already have this information in another format (e.g Excel) please attach it.
Country Scope 1 Emissions
(metric tonnes CO2-e)

 
Scope 2 Indirect GHG emissions: Please provide:

c. Forecasted total global Scope 2 emissions in Metric Tonnes CO2-e

 
d. Forecasted total Scope 2 emissions in Metric Tonnes CO2-e for Annex B countries

 
By country - Forecasted Scope 2 emissions in Metric Tonnes of CO2-e by individual country
Country Scope 2 Emissions
(metric tonnes CO2-e)

 
Forecasted electricity consumption

e. Forecasted total global MWh of purchased electricity
0 MWh

 
f. Forecasted total MWh of purchased electricity for Annex B countries
0 MWh

 
By country & Forecasted MWh of purchased electricity by individual country.
Country

 
g. Forecasted total global MWh of purchased electricity from renewable sources
0 MWh

 
h. Forecasted total MWh of purchased electricity from renewable sources for Annex B countries
0 MWh

 
By country & Forecasted MWh of purchased electricity from renewable sources by individual country.
Country

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
Yes 
These forecasts are treated as confidential business information.

 
4 - Governance
Question 4(a) Responsibility
Does a Board Committee or other executive body have overall responsibility for climate change? If not, please state how overall responsibility for climate change is managed. If so, please answer parts (i) and (ii) below.
No executive body has overall responsibility for climate change. 
Climate change strategy is managed by the "Climate Change Network", a team of cross functional Wal-Mart associates advised by leading NGOs, academics, and suppliers.

Our Sustainable Value Networks (SVNs) are working to drive innovation in both our everyday operations and the products we sell. Through SVNs, we are breaking down internal silos, tapping hidden potential in
approximately 1.9 million Associates and 60,000 suppliers, building new bridges to non-governmental organizations (NGOs) as well as government entities, and discovering a deeper meaning into how we can better serve our customers and communities. Today, we have seven SVNs that focus on developing profitable, sustainable solutions for the products we carry in our stores. Five others address our direct footprint, and the remaining two focus on our supply chain.

The SVNs are:
Products
& Jewelry
& Seafood
& Food and Agriculture
& Chemicals
& Wood and Paper
& Textiles
& Electronics

Direct Footprint
& Climate
& Buildings and Energy
& Logistics
& Waste
& Alternative Fuels

Supply Chain
& Packaging
& China

 
i) Which Board Committee or executive body has overall responsibility for climate change?
Mr. Tom Hyde, Executive Vice President & Corporate Secretary, is the executive sponsor of the Climate Change network.

 
ii) What is the mechanism by which the Board or other executive body reviews the company&s progress and status regarding climate change?
The Climate Change Network provides regular progress and activity reports to Wal-Mart executives. Additionally, quarterly "Sustainability Milestone Meetings", attended by Wal-Mart executives, highlight progress and updates.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

 
Question 4(b) Individual Performance
Do you assess or provide incentive mechanisms for individual management of climate change issues including attainment of GHG targets? If so, please provide details.
No, we do not. 

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
Yes 
Employees are encouraged to adopt individual "Personal Sustainability Programs" (PSPs), which can be related to a wide range of sustainability issues, climate included.

The Personal Sustainability Project (PSP) is a voluntary project that was started by Associates for Associates in 2006. The program is focused on helping Associates integrate sustainability into their own lives by making small changes to everyday habits.

As of September 2007, Associates told us that they&ve recycled 675,538 pounds of aluminum, 282,476 pounds of glass, 5,953,357 pounds of paper and cardboard, and 3,177,851 pounds of plastic; walked, biked and swum more than 1,109,421 total miles; cooked 368,779 healthy meals; and lost a total combined weight of 184,315 pounds through PSP. In addition, 19,924 Associates tell us they&ve quit or reduced smoking. Interestingly, Associates say they have shared the PSP program with 375,824 of their friends, family and community members outside of Wal-Mart.

Beyond supporting Associates in their efforts to integrate sustainability into their own lives, the program encourages them to work in teams to undertake projects in their communities. For instance, one store developed a used-tire recycling program; another helped their local community to clean up a wildlife area.

 
Question 4(c) Communications
Please indicate whether you publish information about the risks and opportunities presented to your company by climate change, details of your GHG emissions and plans to reduce emissions through any of the following communications:

i) the company&s Annual Report or other statutory filings
No 

 
ii) formal communications with shareholders or external parties
Yes 
Please see attached.

 
iii) voluntary communications such as Corporate Social Responsibility reporting
Yes 
Please see attached.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
No 

attachedfiles/Responses/45576/4622/SustainabilityProgressToDate2007-2008.pdf
 
Question 4(d) Public Policy
Do you engage with policymakers on possible responses to climate change including taxation, regulation and carbon trading? If so, please provide details.
Yes 
See attached documents as examples of Wal-Mart's engagement in the public policy debate.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?