Sustainable materials
From recycled content to packaging optimization, our attention to the materials that go into the products we sell helps deliver value to our customers, from both an economic and environmental perspective. By stepping back to rethink what — in many cases — has always been, we hope to create a more circular economy. In the U.S. alone, cities spend billions of dollars annually throwing away materials that are worth billions more. Every ton of trash recycled rather than landfilled not only raises the availability of materials we need, but saves money, creates local jobs and reduces greenhouse gas emissions. Our customers expect the products they buy to be safe, affordable and sustainable, and we’re working to deliver on those expectations by:
- Optimizing packaging
- Raising availability of recyclable materials
- Promoting sustainable chemistry
Packaging
Aspiration
Walmart will incorporate the learnings and successes of the Packaging Scorecard into the Sustainability Index.
We’ve incorporated key packaging-related sustainability practices into the Sustainability Index. For categories that rely on a lot of packaging, the Index includes specific packaging KPIs so that we can consistently measure progress across key metrics. For example, the Index now tracks use of sustainable design principles and recycled content. By integrating relevant packaging questions into the sustainability surveys for all categories, we can more easily work with suppliers to improve.
Aspiration
Increase recycled content in plastic packaging and products.
In 2014, we surveyed approximately 100 suppliers using plastic packaging about their current postconsumer resin level by type and asked for forecasts for increasing by 2020. We plan to encourage suppliers to strive for more and hold them accountable to those forecasts through our merchandising organization. We estimate they will increase the amount of recycled content in our packaging by 1 billion pounds.
Aspiration
Increase the recyclability of plastic packaging.
We published packaging recyclability guidelines to prioritize packaging optimization opportunities. We’re tracking progress through key performance indicators in the Sustainability Index and can use this tool with suppliers who need help finding and prioritizing improvement opportunities.
Aspiration
Sustainably increase the supply of recycled content.
Walmart and the Walmart Foundation helped launch the Closed Loop Fund, and the first investments will be made this year. We will be tracking tons diverted and money saved.
CleanPath™
Many water-based consumable products — from surface cleaner to hand soap — contain 90 percent water and a small amount of active ingredients, resulting in high distribution costs, as well as unnecessary environmental consequences. After two years of collaboration with senior retail executives at Walmart and leading manufacturers, Replenish Bottling LLC recently launched a new sustainable product line exclusively at Walmart that has the potential to forever change the way water-based consumer products are designed, manufactured and sold.
Harnessing Replenish’s patented Refill System™, the CleanPath™ line of product, available at Walmart.com, allows consumers to easily mix concentrates with water at home using a reusable bottle. This translates into a C02 emissions and plastic waste reduction of more than 80 percent.
Closed Loop Fund
As a result of our Product Sustainability Expo in April, Walmart and the Walmart Foundation joined 3M, Coca-Cola, Colgate-Palmolive, Goldman Sachs, Green Mountain, Johnson & Johnson Family of Consumer Companies, Keurig, PepsiCo and the PepsiCo Foundation, Procter & Gamble and Unilever to launch and invest in the Closed Loop Fund in the U.S. By providing 0 percent-interest loans to municipalities and below-market interest loans to private companies to develop local recycling infrastructure, the Fund is creating economic value by increasing recycling rates. The Fund aims to invest $100 million over the next five years, boosting recycled materials available for manufacturing and helping ensure food waste is used for beneficial purposes. The Walmart Foundation committed the first investment — $10 million over five years — to attract additional investors to the project.
Challenges: Sustainable materials
Since 2005, Walmart has challenged suppliers to make packaging more sustainable by optimizing packaging and/or using recyclable, renewable and recycled materials. Many of the easy sustainability improvements have already been accomplished. Now, more complex issues are impacting the sustainability of packaging, including:
- Price: Cost of postconsumer recycled resin (PCR) fluctuates, often being more expensive then virgin resin.
- Consistency: Availability and quality of materials may impact performance and price.
- End of Life: New packaging materials can outpace industry’s ability to cost-effectively collect, sort and develop markets to recycle/recover materials.
Walmart and the Walmart Foundation are attempting to address these and other challenges by helping to launch the Closed Loop Fund, described previously. In addition, while Walmart aims to incorporate recycled materials into packaging and products, we never want to sacrifice quality. Using recycled resin isn’t a good fit for all products.
Chemicals
Walmart U.S. and Sam’s Club have worked with the Environmental Defense Fund, other NGOs, suppliers, academics, government and industry stakeholders to develop a company policy on sustainable chemistry for the consumables products that we sell. Our customers expect that the products they buy are safe, affordable and sustainable, and this is one way we’re delivering on those expectations. We’re working to transition to more sustainable substitutes for priority chemicals in household cleaning, personal care, beauty and cosmetic products by:
- Setting expectations with suppliers regarding sustainable chemistry
- Collaborating with stakeholders to identify solutions and share best practices
Aspiration
Catalyze sustainable chemistry.
In 2013, we developed a Sustainable Chemistry Policy, focused on establishing transparency, safer formulation and DfE Certification. We will begin publicly reporting progress on this commitment in January 2016.
Walmart and Target co-host Beauty and Personal Care Products Sustainability Summit
While many of the stakeholders within the beauty and personal care industry want to embrace sustainability issues, they are often coming from different starting points and not collaborating. In September 2014, Walmart joined with Target to co-host a Beauty and Personal Care Products Sustainability Summit in Chicago. The one-day event brought together CVS, Walgreens and some of the largest stakeholders to explore common concerns. Transparency, criteria evaluation and precompetitive funding for new preservation systems were among the leading opportunities identified. As each idea is developed and taken forward, the ambition is that it will be adopted and driven by different players in the supply chain in order to drive sustainable innovation and benefit all the players and customers.
Working with suppliers on DfE certification
While we’re just beginning to collaborate with suppliers in the sustainable chemistry arena, Jelmar’s commitment to more sustainable cleaning products serves as an example of where we’re headed. The maker of CLR, a popular product used to remove calcium, lime and rust deposits from tubs, sinks and glass, Jelmar has aligned with the U.S. Environmental Protection Agency’s DfE (Design for the Environment) formula for safer chemistry. According to Jelmar, its formulas for CLR, CLR Bath & Kitchen Cleaner, CLR Mold & Mildew Remover and more meet DfE criteria by utilizing a proprietary blend of preferred ingredients. We will be piloting expansion of DfE certification to our private-label products as part of our policy.
Ingredients now disclosed online
As we dig deeper into our focus on sustainable chemistry, we cataloged and disclosed the ingredients in the products from all of our private-brand suppliers at Walmart.com and Samsclub.com. This is a significant step, as customers have a direct line of sight into these products as never before. We’re now encouraging the suppliers of our national brands in the U.S. to fully disclose ingredients online and track progress through the Index.
Challenges: Chemicals
Progress requires alignment of objectives and the sharing of precompetitive information across the value chain. Sometimes that’s challenging. Our collaboration with Target on the BPC Summit served as a step toward bringing stakeholders together to catalyze innovation across the industry. Additionally, our sustainable chemistry policy fosters communication between our business and the supply chain. We’re asking the safety- and transparency- related questions that are on the minds of our customers, learning which factors impede progress and developing solutions together.
